NEW YORK, March 20, 2019 (GLOBE NEWSWIRE) -- The wave of explosive ethical crises and scandals at big companies over recent years has laid bare the importance of having an effective ethics and compliance (E&C) program in place, one that truly influences behavior.
Companies are responding to this new environment by investing in and embedding effective E&C practices throughout their operations, rather than simply burnishing table-stake components like hotlines, rules and training. That’s a key finding of the 2019 Ethics and Compliance Program Effectiveness Report, based on a survey of 480 ethics, compliance and legal professionals at large companies conducted by LRN Corporation.
“‘Operationalizing’ ethics and compliance programs instead of relying on checklists is increasingly necessary in order for companies to thrive today. In this time of radical evolution of workplace norms and social media transparency, this is a critical shift if organizations are to meet the expectation of government watchdogs while mitigating the growing risks,” says LRN Advisor Susan Divers.
Among the survey findings that suggest that ethics and compliance considerations and positive practices are becoming more prominent within organizations overall:
In addition, more effective best practices are on the rise:
Still a Lot of Room for Improvement – and Risk for Companies Whose Programs Don’t Get It Right
Despite the positive trajectory in many dimensions of embedding ethics and E&C rigor throughout companies, deficiencies remain, especially when it comes to leaders and managers “walking the walk” in E&C.
What the Highest-Performing E&C Programs Do
According to the survey and analysis, the E&C programs that have the greatest positive impact on the organization overall and are most likely to inspire ethical behavior do the following:
“Embedding E&C programs into organizational operations broadens the programs’ impact and makes it easier for employees to comply. The best programs have found ways to do that – often by making the E&C guidelines simpler and more accessible,” says Emily Miner, member of the E&C advisory team at LRN.
For more insights on ethics, compliance, corporate culture and reputation, please subscribe to LRN’s E&C Pulse Newsletter here.
To learn more, or to speak with Susan Divers, please contact Michael-Jon Romano of Sommerfield Communications at +1 (212) 255-8386 or Michael-Jon@Sommerfield.com.
About LRN
LRN’s mission is to inspire principled performance. Since 1994, LRN has helped over 25 million people at more than 700 companies worldwide simultaneously navigate complex legal and regulatory environments and make ethical decisions, and has also helped hundreds of companies foster ethical, responsible, and inclusive cultures. LRN’s combination of practical tools, education, and strategic advice helps companies translate their values into concrete corporate practices and leadership behaviors that create sustainable competitive advantage. In partnership with LRN, companies need not choose between living principles and maximizing profits, or between enhancing reputation and growing revenue: all are a product of principled performance. As a global company, LRN works with organizations in more than 100 countries.
For additional information on LRN, see https://lrn.com/