Gen Z employees consult codes of conduct more often, even while saying they are more likely to bend the rules

2024 Code of Conduct report from LRN highlights generational gap and other divides hindering ethical workplace cultures worldwide   

NEW YORK (September 10, 2024) — A new report released today by LRN Corporation, the leader in ethics and compliance solutions that enable organizations to inspire principled performance, reveals striking generational differences in how employees engage with their organization’s code of conduct and approach ethical decision-making in the workplace.  

More specifically, Gen Z employees say that they are more likely to consult their employer’s code of conduct than older generations (63% versus 49% of Boomers, for example), but are paradoxically 2.5 times more likely to agree that bending the rules is acceptable to “get the job done.” This generational divide poses unique, and significant, challenges for ethics and compliance (E&C) professionals aiming to build a consistent ethical culture across their multi-generational workforces.  

LRN’s 2024 Code of Conduct Report highlights a range of insights that reflect the evolving challenges in promoting and enforcing ethical behavior in the workplace. Other key findings from the report include: 

• Clear correlation between code of conduct training and usage: For instance, employees in India and China, where code of conduct training was most prevalent among our respondents (97% and 91% of employees respectively), are the most likely to engage “very often” with their code of conduct (47% and 40%, respectively), while those in the Netherlands, where respondents were least likely to have had training (64%), are the most likely (35%) to say they “never” engage with it.  

• Leadership disconnect persists: A notable gap continues to exist between how senior leaders, middle managers and front-line employees perceive the importance and use of the code of conduct. While 90% of senior leaders believe that the code is followed, this confidence drops to 81% among middle managers and just 69% among front-line employees. 

• Code of conduct innovations slow to be adopted: Despite organizations increasingly rolling out web-based or interactive codes of conduct, employees are 1.7 times more likely to prefer viewing the code in a traditional (PDF) format. This suggests that organizations need to communicate the benefits of digital tools more effectively to encourage adoption. 

• Hybrid work appears to be a “sweet spot”: Employees in hybrid work arrangements show the highest levels of code engagement, indicating that a balanced approach between remote and in-office work is likely to play an important role in ensuring more effective E&C programs. 

"These findings underscore the complexity of fostering strong ethical cultures, particularly as different generations bring varying attitudes, expectations, and behaviors to the workplace," said Jim Walton, LRN Advisory Services Director and lead author of the report. "Codes of conduct play a key role in guiding the development of ethical, compliant workplace cultures, and organizations must think strategically and creatively about how best to bridge the generational gaps as they shape their business culture for the future. In addition, technology such as artificial intelligence will be critical to how those codes evolve in the years to come, so investing in innovative compliance tools – as well as ensuring those tools are accessible and trusted by employees across all demographics – is essential." 

As well as incorporating survey-based insights gathered earlier this year as part of the 2024 Benchmark of Ethical Culture report, LRN used its proprietary Code of Conduct Assessment Tool to evaluate the codes featured in the report and evaluate eight different dimensions of effective codes of conduct. The tool reflects the latest regulatory and best practice guidance along with nearly three decades of experience and research into ethical culture and compliance program effectiveness.  

About LRN Corporation

LRN's mission and purpose is to inspire principled performance and help people around the world do the right thing. Since 1994, LRN has worked to propel organizations forward with the partnership, knowledge, and tools to build ethical culture. More than 2,800 companies and tens of millions of learners worldwide utilize LRN services and take LRN e-learning courses to help navigate complex regulatory environments and foster ethical, responsible, and inclusive cultures. In partnership with LRN, companies translate their values into concrete corporate practices and leadership behaviors that create sustainable competitive advantage. By acting upon shared values, companies and their people find the means to outbehave and outperform. Learn more at LRN.com and follow on Twitter, LinkedIn, and Facebook.  

Media Contacts

Scott Addison, Helen Scott, Charlotte Hole, Jamie Rollo or Catherine Oswalt, Infinite Global (for LRN) 

LRN@infiniteglobal.com