ABSTRACT
Incentivising ethical behaviour through positive support is highlighted by both Transparency International and the OECD as an important means to demonstrate officer’s organisation's ethics and compliance commitment. This means working cross-functionally with HR to bring compliance and compensation together so that ethics becomes integrated into performance evaluations. The resulting ethics and compliance insight can be used to adjust business strategy, forecasts and incentives to ensure they work with – not against – officers company's ethical standards. One company that has joined the dots between a culture of integrity and annual performance reviews is Novartis, which has made good conduct a component in its associates' yearly assessments, with the explicit aim of incentivising ethical behaviour. Hardwiring ethics to incentives is among the best resources in the corporate toolkit. The Handelsbanken approach to long-term incentives may not work for everyone, but it highlights how remuneration can be used to shape organisational culture and achieve corporate goals.
