Northern Ohio Residents Think Enron Scandal Will Lead to Better Business Behavior, According to...

Business Editors

TOLEDO, Ohio--(BUSINESS WIRE)--June 24, 2002

Study Reveals Importance of Honesty and Integrity

in Today's Business Leaders

An overwhelming majority of northern Ohio residents -- 86 percent -- believe that the Enron scandal will have a positive

The finding, from a new survey sponsored by Right Management Consultants -- Toledo and EPIC-MRA, shows how northern Ohio residents view the credibility of business leaders in the wake of the Enron scandal -- particularly their attitudes regarding the importance of honesty, accountability and open communication among corporate leaders.

Sixty-seven percent expect that employees will be more likely to participate in whistle-blowing activities. A large majority, 75 percent, felt that business leaders would be more accountable for their actions in the future.

However, 82 percent of northern Ohio residents also expressed a lack of confidence that corporate leaders are currently doing the right thing in terms of honestly accounting for profits, losses and the overall financial picture of their companies.

Other findings reveal that 48 percent of northern Ohio residents feel that honesty should be a top quality among business leaders and an overwhelming majority, 80 percent, expressed a strong sense of loyalty to their employers. Also, six out of ten respondents stated that they trust their own employers to do the right thing when it comes to treatment of employees.

"An important lesson from the Right Management research is that corporations need to focus on the skills of their current and future leaders. Corporations must ensure that their leaders demonstrate qualities of honesty and integrity and that they communicate clearly with employees, other stakeholders and the public," said Larry Howe, managing director - Toledo, Right Management Consultants.

This survey of more than 100 northern Ohio residents was conducted via telephone from May 15 through May 21, 2002, by EPIC-MRA, a Lansing, Michigan-based polling firm.

Right Management Consultants offers services to corporations of all sizes through a global network of more than 300 service locations and the Internet. The company is a worldwide leader in customized career transition solutions and also offers a wide range of organizational consulting services, including talent management, leadership development and organizational performance services. In combination, these lines of business enable Right to help businesses manage the entire career life cycle of their employees.

Right Management Consultants - Great Lakes Region was founded by John Bourbeau, managing principal and CEO, in 1981. During the past 20 years, Bourbeau has built the company from a one-man office to more than 60 consultants located in Detroit (Southfield), Midland, Grand Rapids, Kalamazoo and Toledo, Ohio. The Detroit office serves as the region's headquarters and is considered a premier career transition and organizational consulting firm. The Great Lakes Region Web site can be accessed at www.right-glr.com.

           Right Management Consultants / EPIC - MRA Survey
           ------------------------------------------------
        Northern Ohio Residents Think Enron Scandal Will Lead
                     To Better Business Behavior

--  Most Anticipate More Employee Whistle Blowing (67%)

    In the wake of the Enron scandal, would you say that employees of
    businesses and corporations will be more (or less) like to
    participate in whistle blowing activities to make business leaders
    more accountable for their actions?

--  Most Anticipate More Corporate Accountability (75%)

    Will top business and corporate leaders be more (or less)
    accountable after the Enron scandal?

--  Most Lack Confidence Business Leaders Are Reporting Honestly (82%)

    How confident are you that most corporate and business leaders are
    doing the right thing in honestly accounting for the profits,
    losses and the overall financial picture of their companies?

--  Many Seeking Honesty from Business Leaders (48% list honesty
    first)

    What would you say are the main one or two qualities that today's
    top business leaders should have following the scandal at Enron?

--  Most Say They Are Loyal Employees (80%)

    How much loyalty would you say you have toward the organization
    that you or the main wage earner works for?

--  Most Trust Own Employers (66%)

    How much do you trust the top leaders in the organization that you
    or the main wage earner works for, to do the right things when it
    comes to the treatment of their employees?

--  About One-Third Report Negative Feelings About Execs (33% worse)

    Would you say that your feelings about most officers, executives
    and owners of major corporations and business is better, worse or
    about he same as it was before the news of what happened at Enron?

--  Most Agree Better Access to Information Will Prevent Scandals
    (91%)

    To avoid future Enrons, business leaders must be willing to
    provide much more access to financial information about their
    business (agree or disagree?)

--  Scandal Seen as Leading to Better Corporate Behavior (86%)

    The Enron experience could have a positive impact because business
    leaders will try to show that they are responsible (agree or
    disagree?)

--  Almost All Agree on Need for Openness v. Secrecy on Finances (91%)

    Business leaders must be willing to provide open communication
    about their financial instead of secrecy (agree or disagree?)

--  Display of Honesty, Integrity Seen as Scandal Prevention (96%)

    To prevent future scandals, business leaders must show they have
    the highest standards of honesty and integrity (agree or
    disagree?)

--  Most Believe Scandal Will Improve Leadership Behavior (69%)

    Do you think the Enron scandal will have a positive impact or a
    negative impact on the behavior of most top business leaders?

Results from survey of adults conducted by EPIC-MRA - May 15-21, 2002:

                         Region: Northern Ohio
                           Sample size: 101
                       Margin of error: +/-9.8%

Note: To receive a copy of the completed key research findings and a break-out of the respondents by geographic region (i.e., Michigan, northern Ohio, western Michigan, southeastern Michigan) please contact Amy Wilczynski of John Bailey & Associates for Right Management Consultants at 248-362-4200 or via e-mail at wilczynski@baileypr.com.