Unethical behavior cost: key elements and calculation
fosco frongiaSenior project manager| ENTE PATRIMONIALE CHIESA GESU' CRISTO SUGFino Mornasco, Como, Italy
As described in some articles (published in projectmanagement.com too) it is critical to consider every unethical behavior represents a cost for the company, people etc.
these cost should be defined below a long-therm perspective.
Which are the key elements we have to consider for defining this cost?
Have never tried to calculate them?
In this case, do you have any sample for doing it?
many thanks for your collaboration Saving Changes...
The 10 most significant risks and costs from unethical behavior:
(1) Increased risk of doing business and the possibility of bankruptcy and severely damaged company brand and image.
(2) Decreased productivity.
(3) Increased misconduct and conflict internally.
(4) Decreased performance levels of employees.
(5) Increased employee turnover and more challenging employee recruitment.
(6) Decreased success of retention and recruitment of employees.
(7) Increased absenteeism and “presenteeism” (the tendency to stay at work beyond the time needed for effective performance on the job).
(8) Decreased probability of reporting misconduct and unethical behavior of others.
(9) Increased dysfunctional behaviors such as not paying attention to details, scapegoating, withholding information, under delivering and overpromising, not giving credit to others, lowering goals, misrepresenting results, etc.
(10) Decreased value of the company.
The time to avoid these most significant risks and costs of unethical behavior is before it occurs, not after.
The 10 most significant risks and costs from unethical behavior:
(1) Increased risk of doing business and the possibility of bankruptcy and severely damaged company brand and image.
(2) Decreased productivity.
(3) Increased misconduct and conflict internally.
(4) Decreased performance levels of employees.
(5) Increased employee turnover and more challenging employee recruitment.
(6) Decreased success of retention and recruitment of employees.
(7) Increased absenteeism and “presenteeism” (the tendency to stay at work beyond the time needed for effective performance on the job).
(8) Decreased probability of reporting misconduct and unethical behavior of others.
(9) Increased dysfunctional behaviors such as not paying attention to details, scapegoating, withholding information, under delivering and overpromising, not giving credit to others, lowering goals, misrepresenting results, etc.
(10) Decreased value of the company.
The time to avoid these most significant risks and costs of unethical behavior is before it occurs, not after.
The 10 most significant risks and costs from unethical behavior:
(1) Increased risk of doing business and the possibility of bankruptcy and severely damaged company brand and image.
(2) Decreased productivity.
(3) Increased misconduct and conflict internally.
(4) Decreased performance levels of employees.
(5) Increased employee turnover and more challenging employee recruitment.
(6) Decreased success of retention and recruitment of employees.
(7) Increased absenteeism and “presenteeism” (the tendency to stay at work beyond the time needed for effective performance on the job).
(8) Decreased probability of reporting misconduct and unethical behavior of others.
(9) Increased dysfunctional behaviors such as not paying attention to details, scapegoating, withholding information, under delivering and overpromising, not giving credit to others, lowering goals, misrepresenting results, etc.
(10) Decreased value of the company.
The time to avoid these most significant risks and costs of unethical behavior is before it occurs, not after.
many thanks Suhail for your answer. very useful and complete. do you tried to "translate" it in monetary value? Saving Changes...
fosco frongiaSenior project manager| ENTE PATRIMONIALE CHIESA GESU' CRISTO SUGFino Mornasco, Como, Italy
Feb 05, 2016 8:26 AM
Replying to Rami Kaibni
...
I believe Suhail's feedback is inclusive of everything required, I can't think of anything else to add for now.
thanks Rami Saving Changes...
fosco frongiaSenior project manager| ENTE PATRIMONIALE CHIESA GESU' CRISTO SUGFino Mornasco, Como, Italy
Feb 05, 2016 1:16 PM
Replying to Pravin Kumar Shrivastava
...
Very good elaboration and quantifying the cost for each item. Do you think some kind on penalties will also be included as risks.
Many thanks Pravin, may you specify better what you think about penalties? Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Fosco, you should be able to do quantitative risk assessments with Suhail's list.
Take 'decreased productivity'. You could say there is a substantial likelihood (25%) of minor productivity decreases (.05 FTE -> $ ##), and there is a lesser likelihood (5%) of major productivity decreases (.2 FTE -> $ ##). Your total cost will be (25% X .05 FTE) + (5% X0.2 FTE).
...
1 reply by fosco frongia
Feb 15, 2016 8:51 AM
fosco frongia
...
Many thanks Stéphane for your precious contribution
Saving Changes...
fosco frongiaSenior project manager| ENTE PATRIMONIALE CHIESA GESU' CRISTO SUGFino Mornasco, Como, Italy
Feb 05, 2016 11:59 PM
Replying to Stéphane Parent
...
Fosco, you should be able to do quantitative risk assessments with Suhail's list.
Take 'decreased productivity'. You could say there is a substantial likelihood (25%) of minor productivity decreases (.05 FTE -> $ ##), and there is a lesser likelihood (5%) of major productivity decreases (.2 FTE -> $ ##). Your total cost will be (25% X .05 FTE) + (5% X0.2 FTE).
Many thanks Stéphane for your precious contribution Saving Changes...
"More than any time in history mankind faces a crossroads. One path leads to despair and utter hopelessness, the other to total extinction. Let us pray that we have the wisdom to choose correctly."
Community Champion
