The lessons learned from scandals and organizational crises that trace back to the early 2000s make one thing clear: Without an ethical and compliant culture, organizations will be at risk. More and more, culture is moving from a lofty, “squishy” concept to something that should be defined, measured and improved.
For example, culture is referenced by the U.S. Federal Sentencing Guidelines, which include expectations for organizations to promote an “organizational culture that encourages ethical conduct” and “compliance with the law.” The Organisation for Economic Co-operation and Development’s Convention on Combating Bribery of Foreign Public Officials in International Business Transactions refers to the importance of a strong culture of organizational ethics.
Ethics and compliance programs, as traditionally designed, are often not enough. “Organizations responsible for some of the most egregious acts of malfeasance have had quite impressive, formalized ethics and compliance guidelines,” says Nicole Sandford, partner and national practice leader at Deloitte & Touche LLP’s Enterprise Compliance Services. “Many regulators now realize that without a culture of integrity, organizations are likely to view their ethics and compliance programs as a set of check-the-box activities or—even worse—as a roadblock to achieving their business objectives,” Ms. Sandford adds. Getting to [More]