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Employees Aligned on Mission and Values Are Most Favored by U.S. Business Leaders But Their Companies Prefer Employees That Conform, LRN Study Finds

Los Angeles, October 14, 2008 – Who are the most valued employees in corporate America? According to U.S. business leaders, it’s those employees inspired by a company’s mission and values. Yet these same leaders say their companies value employees who do what they are told and are motivated by material rewards, a new study from LRN found.

The LRN Value of Corporate Values Study polled 150 senior leaders and found a disconnect between what these senior leaders say they value in employees and what their companies actually value in the real-world work environment. In fact, the majority of U.S. leaders (87 percent) say they personally value employees inspired by a company’s mission and values, but report their companies most favor employees who do what they are told (35 percent) or are motivated by material rewards (32 percent).

"There's an interesting dichotomy in business today. Leaders see the benefits of becoming more values-based but aren’t certain of how to affect behavior change operationally," said Dov Seidman, chairman and CEO of LRN. "Our work has shown that employees aligned on a deeper mission than just making money are inspired by a long-term view and behave in a way that brings advantage to the business. We are witnessing a trend in business where values-based behaviors and cultures are being shaped as a source of competitive advantage."

In addition to examining the most valued employees in corporate America, the LRN Value of Corporate Values Study reflects the extent to which a company's mission and values are being utilized for advantage in a down economy. Results include:

  • Fifty two percent of leaders said that the recent economic downturn has their companies emphasizing the organizational mission and values to encourage greater performance from employees more than in the period before the decline. But 47 percent of leaders said their companies are stressing values and mission less (5 percent), the same (15 percent) or not at all (27 percent).
  • Nearly half (49 percent) of the leaders surveyed said their companies weigh how aligned employees are with the organizational mission and values in making decisions to downsize teams and resources. Twenty percent of their companies do not consider the mission and values when scaling back the workforce, according to these leaders.
  • A majority of the leaders (56 percent) said their companies place a premium on workers who are allied with the underlying organizational mission versus an equally skilled employee who may not be as aligned; 17 percent do not to value such workers.

About The LRN Value of Corporate Values Study
The results contained within the LRN Value of Corporate Values Study were obtained via an online survey conducted by LRN between June 19 and July 19, 2008. There were a total of 150 senior leader (director level or above) respondents, including CEOs and general counsels. One in three respondents were from companies with 10,000 or more employees, one in four were from companies with 2,500 or more employees and one in four were from companies with less than 2,500 employees. A more detailed examination of the study results can be found at www.howsmatter.com.

About LRN
LRN is the global leader in ethics and compliance management solutions, enabling companies to drive business performance through values-based corporate cultures. The company provides executive insights, management tools and workforce education that make responsible conduct part of everyday business practice. LRN is the trusted partner to leading businesses worldwide, including Disney, Dow Chemical, eBay, Johnson & Johnson, Procter & Gamble, Raytheon and 3M. Founded in 1994, the company operates in more than 120 countries with headquarters in Los Angeles and offices in New York, London and Mumbai. For more information, visit www.lrn.com.

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