Cultivating a culture of well-being: Investing in employee mental health fortifies ethics
Frank Orlowski
25 Year Global Executive at Pfizer Inc. Board Member The American Cancer Society. Global Advisor.
CEP Magazine - March 2024
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By Frank Orlowski
In the past year, the United States has seen a stronger focus on mental health. This emphasis can be seen in many noteworthy U.S. organizations, including visible sports organizations like the National Football League, Major League Baseball, and the National Basketball Association.
However, how does this relate to compliance and ethics professionals?
Well-being links to ethics
In the contemporary corporate landscape—characterized by fierce competition, unrelenting demands, and an external public relations focus on mental health—a compelling truth has emerged:
Prioritizing employee well- being is not merely a matter of individual concern but a critical element of building an ethical and sustainable business.
This recognition has developed into a shift in corporate priorities, with companies recognizing a link between employee mental health and ethical conduct. By investing in initiatives promoting well-being—which may be launched first and foremost to improve mental health—we are seeing that it also cultivates a more positive and ethical work environment, reaping significant benefits for individuals and the organization. For example, the U.S. Surgeon General’s Framework for Workplace Mental Health & Well-Being, which was published in 2022, mentions essential workplace mental health and well-being principles (see Figure 1).[1]
When these five essentials are out of balance, there is a direct correlation between the well-being of workers and the health of organizations. It talks about how the imbalance results in not only traditional burnout and stress but also behavioral changes, which can lead to poor decision-making.
Figure 1: Five mental health essentials from the U.S. Surgeon General
One does not have to be a mental health professional to draw the conclusion that employees grappling with mental health challenges have a reduced level of judgment and are more likely to engage in unethical behavior, which is influenced and exacerbated by work stress.[2] This can impact everything from productivity and collaboration to organizational trust and reputation.
Mental health challenges can affect an individual’s cognitive abilities, emotional regulation, and decision-making skills—including unethical decision-making. However, it is very important to note that not all individuals with mental health challenges engage in unethical behavior, and not all unethical behavior is caused by mental health challenges.
Management has an effect
One example was in 2016 when CNN interviewed Wells Fargo employees about how the bank’s highly aggressive sales goals created an environment where unethical behavior was rewarded. This came out after the bank admitted to shareholders that as many as two million unauthorized bank and credit
card accounts had been opened. Secondly, even the famed Warren Buffett, explaining Berkshire Hathaway’s practices in the annual letter to shareholders in February 2019, notes that he and Vice Chairman Charlie Munger “have seen all sorts of bad corporate behavior, both accounting and operational, induced by the desire of management to meet Wall Street expectations. What starts as an ‘innocent’ fudge in order to not disappoint ‘the Street’—say, trade-loading at quarter-end, turning a blind eye to rising insurance losses, or drawing down a ‘cookie-jar’ reserve—can become the first step toward full-fledged fraud.”
Much has been done in recent years to combat this bad behavior. When employees feel understood, supported, and empowered to prioritize their well-being, it fosters an environment where ethical decision-making flourishes. This underscores mental health’s crucial role in shaping a culture of integrity and ethical conduct within an organization.
Create a healthy culture
Understanding this crucial connection, forward-thinking companies are implementing diverse initiatives to address employee mental health holistically. These initiatives go beyond compliance and control measures, delving into the human factor and fostering a culture of support and understanding. Some popular initiatives include:
Comprehensive employee assistance programs: Confidential access to mental health professionals and resources empowers employees to seek help without fear of stigma or judgment.
Stress management programs: Workshops and resources on coping mechanisms, mindfulness, and time management equip employees with the tools to navigate stress effectively, reducing its detrimental effects on their well-being and decision-making.
Flexible work arrangements: Empowering employees to choose schedules that align with their personal needs and preferences fosters a better work–life balance, promoting overall well-being and reducing stress levels.
Mental health awareness campaigns: Openly discussing mental health challenges through educational initiatives and leadership commitment normalizes conversations and removes barriers for employees
seeking support.
Destigmatization efforts: Implementing educational programs and promoting leadership support for mental health challenges can significantly reduce the stigma associated with these issues, encouraging employees to seek support without fear of repercussions.
Promoting healthy habits: Company-sponsored programs that encourage healthy eating, regular exercise, and adequate sleep empower employees to take control of their well-being and improve their overall health.
The benefits of prioritizing employee well-being extend beyond individual employees, creating a transformative ripple effect throughout the organization. By investing in these initiatives, companies can expect to see the following.
Reduced absenteeism and presenteeism. Absenteeism is defined as unplanned employee absences—in other words, when employees call in sick, deal with family emergencies, can’t find a babysitter, or other similar situations.
Of course, we’re all human with lives outside of work; managers should expect and plan for at least some level of absenteeism on their team. On the other hand, presenteeism is when employees are present at wor, but are not doing their jobs or being productive. This occurs when employees decide to work even when sick or don’t feel 100%. Presenteeism is hard to quantify because while employees show up for work and might even outwardly look fine, underlying health issues might drive down their motivation and productivity.
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While some managers are obsessed with calculating and managing employees’ absence rates, presenteeism has been estimated to have a yearly cost of $150 billion in the U.S., which makes it the real sleeping dragon between the two. A well-supported workforce experiences less absenteeism and presenteeism, leading to increased productivity and improved performance.
Enhanced productivity and performance
According to Psychology Today, mentally healthy, well-rested employees are often more productive and contribute to organizational success. The World Health Organization, in its 2022 study on mental health, has confirmed that it is essential to prioritize mental health and well-being in the workplace to ensure that employees can perform at their best.
Elevated employee morale and engagement
Employees feel valued and empowered and experience higher job satisfaction, increased engagement, and a more substantial commitment to the organization. In March 2018, Harvard Business Review conducted 105 studies— which included data from more than 30,000 employees from 30 countries—and confirmed that empowering leaders had more creative and helpful employees.[8] Employees were more likely to trust leaders they perceived as more empowering. They had greater faith in their leaders and were more likely to put in effort without feeling that they would be exploited.
What it means
So, we can observe some correlations between mental wellness and improved ethics.
Mental well-being is linked to stress
High-stress environments can lead to poor decision-making and ethical lapses (as illustrated in the CNN Wells Fargo interview and comments in Warren Buffet’s letter to shareholders). Conversely, employees who benefit from mental health support are better equipped to manage stress, resulting in improved decision-making processes. Ethical choices often require a calm and rational mindset, and mental health initiatives create an environment conducive to such thinking.
Mental health benefits
can help employees manage stress, anxiety, and other mental health issues, improving overall well-being and happiness.
Mental health initiatives promote empathy
Employees who are aware of their own mental health needs are more likely to be attuned to the well-being of others. This heightened sense of empathy creates a culture of mutual support, making it more likely for individuals to adhere to ethical standards. Empathetic employees are less likely to engage in unethical behaviors that may harm their colleagues or the organization.
Caring leads to trust
When a corporation is perceived as caring for its employees’ mental well-being, stakeholders are more likely to trust that the organization is also committed to ethical business practices. This trust, in turn, reinforces a commitment to compliance with ethical standards.
Culture increases value
When a truly fortified ethical culture exists, and employees feel valued and empowered, they are more likely to speak up about unethical behavior and champion ethical decision-making, ultimately strengthening the organization’s ethical culture. A National Bureau of Economic Research found that “85% of CEOs [chief executive officers] and CFOs [chief financial officers] believe an unhealthy culture leads to unethical behavior. What’s more, that same survey found that nine out of 10 CFOs believe improving company culture would increase their company’s business value and performance.”
Although leaders admit that an unhealthy company culture can impact engagement, a disconnect remains. Leaders may believe they’re putting in the work to build and improve, but the reality is that employees disagree. Nearly half of employees (45%) say leadership is minimally or not committed to improving culture. This discrepancy can lead to harrowing business repercussions, such as voluntary turnover, that can cost organizations up to two times an employee’s annual salary.
Three real-world examples demonstrate the correlation between mental wellness and improved ethical behaviors.
The company created a new Mental Health Awareness Month campaign at American Express: “Here for You. Here for Each Other.” Throughout the month, the company held webinars and shared tools such as talking points for senior leaders, all aimed at helping “colleagues understand that it’s okay not to be okay, and it’s okay to ask for help.” Counselors were accessible for teams who sought group counseling sessions, ensuring a safe space for discussing anything. These efforts not
only normalized the importance of self-care and reduced stigma, thus getting at the root of an obstacle to helping those needing mental health support, but also created a more open environment to tackle ethical problems that might have existed in the organization.
At EY, the company fully integrated employee assistance and life management services program with compliance and controls. They have a 24-hour hotline and website where employees can access the following:
Another company (Tanium) also has a robust mental health program for employees. According to a blog post: “At Tanium, the company wants to ensure team members have the knowledge and resources needed to make informed short-term and long-term financial decisions that benefit them and their families” to mitigate employees making decisions in the workplace that may be against the company policy to increase financial gain. “Employees can also attend regular Financial Wellness Weeks that include:
The financial information sessions cover essential topics that help employees understand their financial position and not be tempted to make decisions in the workplace for personal financial gain.
Conclusion
In today’s competitive business landscape, prioritizing employee well-being is no longer simply a good practice but can be seen as an ethical imperative for an organization’s sustainable growth. By acknowledging the vital link between well-being and ethical conduct, companies can cultivate a positive and ethical work environment where individuals thrive, contribute effectively, and collectively propel the organization toward a successful future. As understanding this crucial connection continues to evolve, integrating well-being initiatives will become an essential cornerstone of any ethical and sustainable business model.
Takeaways
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1 年Frank Orlowski Great article. Every corporation should keep these principles and values in mind. Especially mindfulness and stress management. Excited to chat next week!