Answer:
Measuring the success of an ethics or integrity program is challenging but important. A few key metrics I would look at:
Employee survey results - Regularly surveying employees on their perceptions of the company's ethical culture, whether they feel empowered to speak up about issues, trust in leadership to handle issues appropriately, etc. Positive trends over time would indicate the program is having an impact.
Reports to hotlines/helplines - An increase in reports is often a positive sign that employees feel more comfortable surfacing issues. The substance and outcome of reports should also be analyzed.
Ethical violations and disciplinary actions - A decline in substantiated ethical breaches and disciplinary actions taken is a good sign. However, it's important to dig into the details, as a low number could also indicate issues aren't being caught or reported.
Retention and recruiting - High ethical standards can be a competitive advantage in attracting and retaining talent. Measuring employee turnover and assessing how ethics factors into reasons for joining or leaving the company is insightful.
Stakeholder feedback - Seeking input from customers, suppliers, regulators, community members and other external stakeholders on the company's ethical reputation and performance.
Participation in training and other program elements - Tracking attendance for training sessions, downloads of policies, use of advice lines, and participation in discussions and events related to ethics.
Ultimately, I believe the most important measures are the hardest to quantify - things like whether employees at all levels are internalizing ethical principles in their daily decisions, openly discussing gray areas and dilemmas, and whether an ethical mindset is embedded in the company's strategy, operations and culture.
Analyzing a combination of quantitative and qualitative measures from multiple angles is needed to get a true picture of the program's impact. The specific metrics may vary by company and industry. But in general, I believe a successful program is one that measurably reduces ethical risks and misconduct while increasing employee engagement with ethics and building trust with stakeholders. The "why" is that strong ethics drives better long-term business outcomes across financial performance, talent, reputation and sustainability.