LRN Research: Values Trump Rules When It Comes to Ethics and Compliance Effectiveness
With economic and geopolitical headwinds looming large around the world, companies and organizations need to pay even more – not less – attention to their ethics and compliance (E&C) efforts to ensure resilience and optimal performance, indicates a new report from LRN Corporation.
The 2023 edition of LRN’s E&C Program Effectiveness Report is based on survey responses from more than 1,850 ethics and compliance professionals at companies and organizations with at least 1,000 employees, across 26 industries and in 10 different countries – making it the largest and most comprehensive research of its kind.
According to the research, 85% of respondents report that their ethical cultures were stronger as a result of their experiences meeting the challenges of the past year, with more than half of respondents giving their executives high marks for taking ethical considerations into account in business decision-making. More widely, a majority of respondents (84%) said their organizations relied on values, rather than rules, to motivate their employees to “do the right thing.”
Among the other notable findings from this year’s report include:
- Only a quarter (25%) of respondents said that they plan to enhance their trade controls and sanctions training and just under half (45%) have strengthened risk controls in this area
- Most respondents (60%) felt that their board of directors actively ensures that executive misconduct is effectively addressed, with three-fifths reporting that their organization has formal requirements to take into account executives’ and employees’ ethical behavior in performance evaluations, promotion decisions, bonus awards and hiring for key control functions
- More than two-fifths (44%) of respondents say that their organization has disciplined or terminated the employment of a senior executive or top performer for unethical behavior in the past year – with three quarters (76%) of those respondents saying that the individual was subject to financial “claw back”
Notes to Editors:
About LRN
Since 1994, LRN has worked to propel organizations forward with the partnership, knowledge, and tools to build ethical culture. More than 2,500 companies and tens of millions of learners worldwide utilize LRN services and take LRN e-learning courses to help navigate complex regulatory environments and foster ethical, responsible, and inclusive cultures. Learn more at LRN.com and follow on Twitter, LinkedIn, and Facebook.
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Contact information
Scott Addison
LRN@infiniteglobal.com
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