By Ahmad S. Almoushiqeh*
In today's ever-changing corporate environment, the principles of compliance and ethics cannot be ignored.
As industries continue to evolve, it is vital for organizations to not only follow rules but also to act with integrity. This combination ensures that businesses drive long-term shareholder value by remaining sustainable and resilient in the face of challenges.
A culture of integrity that goes beyond mere rule-following, is rooted in championing ethical conduct in every aspect of an organization’s operations.
Within such a culture, every team member is motivated to act transparently, uphold the organization’s values, and consistently demonstrate unwavering integrity in all their actions.
The importance compliance and ethics in business
When a company is committed to ethical behaviour, it creates a positive work environment. This leads to happier employees who are more engaged and productive. Over time, this boosts employee loyalty, increasing productivity, reducing employee attrition and recruitment costs.
Additionally, an organization that consistently follows rules and acts ethically also earns a strong reputation in the market. This trustworthiness attracts customers, partners, and investors, all of whom prefer associating with businesses known for their integrity. This in turn positions businesses for better long-term growth. They can forge stronger partnerships, enter new markets, and innovate with confidence.
In an era where regulatory violations can result in hefty fines and legal challenges, being compliant isn't just a choice—it's a must. Companies that proactively focus on compliance are better equipped to navigate potential pitfalls, ensuring they remain on the right side of the law.
In essence, while the immediate benefits of ethical behaviour and compliance are evident, their long-term impact on a company's success, growth, and resilience cannot be overstated.
Creating a strong compliance and ethics culture
Although the importance cannot be denied, organizations cannot force integrity on themselves.
It must come from within, from employees wanting to follow the right path on their own. Afterall, Integrity is about doing the right thing – even when no one is watching. Just making people follow rules doesn't create a real culture of doing what's right.
So how does one go about creating a culture of compliance and ethics? Key essential components include:
Leadership makes the difference: Strong cultures often start at the top. When leaders are actively engaged and hold themselves accountable for ethical behaviour, it sends a powerful message throughout the organization. Leaders set the tone and are role models for appropriate behaviour.
Tone in the Middle: While 'tone at the top,' is often emphasized, the 'tone in the middle' is equally important. If mid-level managers don't truly embody integrity, employees who report to them will also not consider it important. So, even if top executives champion ethical standards, it is vital that middle managers are also visibly committed.
Awareness and Communication: Keep everyone informed about the importance of compliance. Regular updates, meetings, and open channels of communication ensure that everyone is on the same page. It's not just about knowing the rules but understanding why they matter.
Regulatory Excellence: Regulatory Excellence is central to a culture of compliance and ethics. Going beyond basic adherence and aiming for the highest regulatory standards showcases an organization's ethical commitment. By keeping leaders and employees informed and aligned with legal changes, an organization not only stays compliant but embeds ethics into its daily operations.
Training That Makes Sense: Everyone should get training on the company's values, policies and procedures. This training should be easy to understand and show real-life examples to make it clear.
Speaking up and non-retaliation: Encouraging employees to voice their concerns without fear of retaliation is a sign of a transparent and healthy organization. A 'Speak Up' program provides a platform for employees to report unethical behaviours or compliance issues. Leadership also has the responsibility to ensure a robust resolution process where Speak Up reports are addressed timely, thoroughly, and fairly.
In addition to the above, it is important to remember that it’s the small things we do every day that shape organizational culture.
Building a culture where everyone follows the rules and acts ethically isn't complicated. With the right leaders, training, and a clear set of values, companies can create a place where doing the right thing is just how things are done.
*Ahmad S. Almoushiqeh is the Vice President of Compliance at the stc Group.
