24 May 2010

Securing employee and top management commitment rank among top ethical challenges

If this is true, ethics has a long way to go. What do ethics and compliance professionals need to do in order for their agenda to be taken seriously within their companies?

My colleague, Cora Ng, recently asked ethics & compliance experts what they see as the biggest challenge in their line of work.

According to the responses received, the top ten challenges currently facing ethics and compliance managers are:
1. Getting employee buy-in and commitment to true ethical behaviour
2. Getting support from top management and changing the view of compliance function as a mere cost centre
3. Fighting against the existing ‘turn-a-blind-eye’ culture, and the way ‘business has always been done’
4. Managing an effective global program that complies with different and sometimes contradicting local laws
5. Keeping abreast of ever increasing legislation and ensuring that new requirements are always met
6. Managing an effective compliance program in a resource constrained environment
7. Managing rapidly changing stakeholder expectations and avoiding negative media publicity as a result
8. Increased liability of individual prosecution under tough legislative regime
9. Educating, monitoring and managing activities of third parties to ensure compliance
10. Defining ‘adequate’ for your company’s compliance efforts, how do you know you’re doing enough?

(Note: The top three answers came from 35% of responses received.)

This may be the primary cause for a noted shift from rules-based ethics towards fostering a values-based cultures. A big research project we did last year found that Companies’ ethical policies have historically comprised extended lists of ‘dos’ and ‘don’ts’. Many still do.

One interviewee, David Bar, regional director for Europe at LRN has observed this trend towards values as well, noting that“more and more, we are seeing ethical policies being developed that are not about rules and legal transgressions… Instead, companies are seeking to provide parameters as to what constitutes acceptable behaviour within an organisation, with the aim of making that organisation a better place to work for and with.”

What does a values-based approach require?

As a bare minimum, this approach requires provision of a set of guiding principles, guidance, open dialogue about ethical challenges, training, honest dealings with suppliers, and building trust among stakeholders.

The above survey responses have informed an upcoming conference, the 3rd Global Anti-Corruption Summit (June, Washington DC).

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