Press Release

The Compliance and Ethics Leadership Council Identifies Leading Indicators of Misconduct at Large Organizations

Clarifying Expectations of Ethical Behavior for Employees Can Reduce Misconduct Levels by More Than 40%

WASHINGTON--(BUSINESS WIRE)--Aug. 8, 2007--The Compliance and Ethics Leadership Council (CELC), a leading provider of best practices research, executive education, and decision-support services to Chief Compliance Officers, today announced the results of a groundbreaking quantitative analysis, Preempting Compliance Failures, which isolates the most important drivers of misconduct at large organizations. The CELC is a membership program of the Corporate Executive Board (NASDAQ: EXBD) (, the premier network for leaders of the world's largest public and private organizations.

Seeking to help executives at large companies preempt compliance failures, the CELC undertook an extensive quantitative analysis of 245 variables to identify the key factors that drive employee misconduct based on a survey of 1,750 employees. The analysis reveals that employee understanding of ethical expectations and guidelines at their company, a factor within the control of senior managers, can impact misconduct levels by more than 40%. Other key findings include:

    --  Between sixty and eighty percent of all misconduct is never
        reported by employees: The majority of employees do not report
        misconduct that they have observed directly; employees are
        most likely to report theft, harassment and insider trading
        and are least likely to report expense-related misconduct.

    --  Fear of Speaking Up Is the Most Important Leading Indicator of
        Misconduct: Of 45 variables tested--including cultural,
        compliance, industry and financial factors--fear of speaking
        up is the strongest indicator of misconduct; Companies in
        which employees are uncomfortable speaking up or fear
        retaliation have significantly elevated levels of misconduct.

    --  Inappropriate Gift & Entertainment Expenditures Are a
        "Gateway" Misconduct: While inappropriate gifts and
        entertainment expenditures may not comprise the most severe
        form of misconduct, they often co-present (and are highly
        correlated) with other forms of misconduct for senior

CELC Program Director Ronnie Kann says, "The research suggests that significant benefits accrue to organizations that are able to develop a culture of integrity. In particular, organizations that cultivate a perception of openness among employees experience dramatically lower levels of misconduct."

Preempting Compliance Failures benefited from the generous contribution and ongoing support of the Altria Group and its Compliance and Integrity executives, David Greenberg and Jack Lenzi.

More than 1,700 individuals in North America, Europe, Australia and India participated in the CELC's misconduct survey in the spring of 2007.

About the Corporate Executive Board

The Corporate Executive Board Company (NASDAQ: EXBD) is a leading provider of best practices research and analysis focusing on corporate strategy, operations, and general management issues. EXBD provides its integrated set of services currently to more than 3,700 of the world's largest and most prestigious corporations, including over 80 percent of the Fortune 500. These services include best practices research studies, executive education seminars, management implementation toolkits, customized research briefs, and Web-based access to a library of over 300,000 corporate best practices.

CONTACT: Corporate Executive Board
Megan Sowder, 202-777-9029

SOURCE: The Corporate Executive Board Company