Money Or Reputation: What Matters More To Job Seekers?

How closely do job seekers look at the business practices of their potential employers? In other words, do employers’ ethics count in the job market? Idealists and those who promote corporate social responsibility will say that of course job applicants consider the ethics and values of companies before signing a contract. Some studies even show that the emerging employment market (especially Gen Y) is very concerned that their new employers are ethically responsible when it comes to business, environmental and social matters. However, some people contend that the measures used in these studies are too vague, too subjective and too easily manipulated for them to be valid. They contend that when it comes to choosing a job, money, security and the chance of advancement still hold more sway than ethics, values and principles.



For example:

Pat Auger (associate professor of information systems and e-commerce at Melbourne Business School), Timothy M. Devinney and Grahame R. Dowling (professors of strategy at the University of Technology, Sydney), Christine Eckert (senior lecturer in marketing at the University of Technology, Sydney) and Nidthida Lin (research lecturer in the School of Business at the University of Western Sydney) conducted what they felt was a very objective study on the value of a company’s reputation in recruitment.

To be as thorough as possible, they divided participants into three categories:

• MBA and executive MBA students


• White collar office workers


• Those involved in manual labour, medical and government/public service

They included people who were employed and not looking to change jobs, as well as those who were employed part-time or were unemployed and looking for jobs.

To ensure that the concept of “reputation” was fully covered, they divided it into three categories:

• Corporate reputation – how the company is perceived as a whole.


• Workplace reputation – the company’s reputation as a good employer.


• Social reputation – the company’s involvement with external stakeholders and its commitment to sustainability.

The results

The results are interesting, although maybe not that surprising – not really.

Despite what we’d all like to think about how we’re evolving as employees and acting more ethically responsible ourselves by choosing ethically responsible employers, all we really want is for our new bosses to show us the money.

In real terms, when all three categories of reputation are added together, the value of reputation in an employment contract is 16.3% for MBAs (social reputation amounts to just 3.2%), 11.1% for non-MBA workers with jobs (social reputation amounts to just 2.6%) and 11.4% for part-time or unemployed workers (social reputation amounts to just 2.4%).

Even when it comes to extremely good or extremely bad reputations, socially ethical practices are bottom of the log.

According to the authors of the study, the results mean that companies don’t need to spend vast amounts of time, effort and money on corporate social responsibility programmes as a means to attract highly qualified recruits. Instead, they can focus on improving salary packages, perks and advancement programmes.

What it doesn’t mean, however, is that corporate responsibility programmes can fall by the wayside. So, even if you don’t need a rock solid reputation for environmental sustainability to compete in the international employment market, you still owe it to your staff, the public and to your company to maintain high standards of business integrity.

Ethics play an important role in business, if not recruitment

How companies behave ethically, in business and in other spheres, influences employees’ attitudes, as well as public perception. Alejandro Russell says that four areas where ethical influence is most strongly felt include:

• Protection of business assets: Employees won’t feel it’s ok to steal company assets (tangible and intangible) if the company treats employees, shareholders and clients ethically in the first place.


• Productivity and teamwork: Employees who feel they work for an ethically sound company tend to work harder and more efficiently than those who think their company is a little shady.


• Public reputation: This not only translates into goodwill but also into increased consumer/customer loyalty.


• Decision-making: It’s easier to make decisions consistently when ethics are clearly defined and the company has a culture of sticking to them. Decisions are immediately more transparent and decision-makers more accountable.

Acting ethically is not all that difficult. All businesses have to do is uphold the 12 Principles identified by the Josephson Institute, some of which include:

• Be honest in everything you do.


• Value personal integrity in employees.


• Always keep promises.


• Be fair in everything you do.


• Have genuine compassion for others.


• Always be accountable for your actions and decisions.

When executives and managers lead by example, employees will follow. And when a company has a good reputation for ethical business and social practices, it’s only natural that it will attract new recruits with unimpeachable moral character.

Jemima Winslow has a very vocal conscience that doesn’t let her get away with ethically iffy decisions. But then she’s never had to decide between long-term unemployment and a company with questionable morals. Given enough time on the breadline, her conscience might sing a different tune