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Corporate non-compliance is a major issue across the world.\u00a0 Highly public cases involving major corporations point to the fact that the usual descriptions of why business employees perform illegal acts are misdirected.<\/p>\nCorporate non-compliance is a major issue across the world.\u00a0 Highly public cases involving major corporations point to the fact that the usual descriptions of why business employees perform illegal acts are misdirected.<\/p>\n
No Compliance Program can completely eradicate unwanted conduct by a few employees.\u00a0 Behaviorally aware programs, however, show potential of realizing the main goals of Compliance<\/a> i.e., reduction in unethical and illegal behavior within the company.<\/p>\n To this end, cognizance of employee behavior is vital, of which Decision-making is the most important part<\/a>.\u00a0 Humans make decisions using 2 ways:<\/p>\n Since System 2 takes more mental effort, humans tend to rely mostly on System 1 for most of the Decision-making.\u00a0 The problem with that is people tend to use System 2 to justify decisions made using System 1 instead of judging their decisions by it.<\/p>\n Although Behavioral Ethics Research is the foundation for studying System 2\u2019s failure to prevent Unethical Behavior, it does not completely explain it.\u00a0 Criminology helps us go further in this regard.<\/p>\n Criminologist point at fulfilment of 3 conditions for an unethical act to occur:<\/p>\n Effective methods for compliance pay attention not on the way government regulators respond to compliance initiatives rather on how employees\u2014the actual users\u2014will be affected.<\/p>\n Behavioral Strategy<\/a> in conjunction with criminological insights suggests the following 3 cost-effective steps that companies can take to steer away from the innate behavior of serving self-interest that results in compliance violations:<\/p>\n These 3 simple steps aid in improving the behavioral implications of the Compliance Program, overpowering employee rationalizations that end up in violations.<\/p>\n Let us delve a little deeper into some details of the 3 steps.<\/p>\n Objective of this step is to apply various theories like dual system of thinking, rationalization, and behavioral ethics\u2014which have been in existence for quite some time\u2014to the business particularly to compliance related issues in a holistic fashion.\u00a0 Companies are just starting to realize the significance and effectiveness of this practice.<\/p>\n Hiring an expert externally or developing someone internally, to stay informed of the different fields and their growing insights into ethical business decision making<\/a>, is the 1st step in ensuring compliance with ethical behavior.<\/p>\n The next step involves employing best practices\u2014motivated by Behavioral Science which is at the core of criminology and behavioral ethics, such as nipping violation risk in the bud through preliminary declarations, having moderated conversations among employees, sharing success stories\u2014to stamp out the root cause of unethical behavior. \u00a0Compliance Programs should have the objective of eradicating rationalizations, if they are deemed to be the cause and root of employee misconduct.\u00a0<\/strong><\/p>\n The last step entails deploying appropriate reward and incentive structures\u2014monetary, otherwise, or in combination\u2014to positively influence the way compliance is viewed by employees within an organization.<\/p>\n Research suggests that in case of significant corporate trust violations, the main reason, frequently, pertains less with a rogue employee and more with sections of the organization that are dysfunctional, conflicting, or incongruent.<\/p>\n Interested in learning more about Ending Non-compliance and Unethical Behavior in companies?\u00a0 You\u00a0can download\u00a0an editable PowerPoint on <\/u>Corporate Compliance: Ending Unethical Behavior<\/strong><\/a> here\u00a0<\/u>on the\u00a0Flevy documents marketplace<\/a>.<\/p>\n You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0FlevyPro Library<\/a>. \u00a0FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives.\u00a0 Here\u2019s what some have to say:<\/p>\n \u201cMy FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market.\u00a0 They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions.\u00a0 I strongly recommend FlevyPro to any consultant serious about success.\u201d<\/p>\n \u2013 Bill Branson, Founder at Strategic Business Architects<\/p><\/blockquote>\n \u201cAs a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power.\u00a0 For us, it is an invaluable resource to increase our impact and value.\u201d<\/p>\n \u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p><\/blockquote>\n \u201cFlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients.\u00a0 In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over!\u00a0 The quality of the decks available allows me to punch way above my weight\u2013it\u2019s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.\u201d<\/p>\n \u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":" Corporate non-compliance is a major issue across the world.\u00a0 Highly public cases involving major corporations point to the fact that the usual descriptions of why business employees perform illegal acts are misdirected. No Compliance Program can completely eradicate unwanted conduct by a few employees.\u00a0 Behaviorally aware programs, however, show potential of realizing the main goals… Corporate Compliance: Ending Unethical Behavior<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":11398,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[408,85],"tags":[2979,2977,2974,2976,2978,1136,1637,2975],"class_list":["post-11392","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management-leadership","category-organization","tag-behavioral-ethics-research","tag-compliance-program","tag-corporate-compliance","tag-corporate-non-compliance","tag-criminology","tag-decision-making","tag-employee-behavior","tag-unethical-behavior"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/11392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=11392"}],"version-history":[{"count":8,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/11392\/revisions"}],"predecessor-version":[{"id":11405,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/11392\/revisions\/11405"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/11398"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=11392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=11392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=11392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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<\/a><\/p>\nAppoint Behavioral Expert<\/strong><\/h2>\n
Eliminate the root-cause via best practices<\/strong><\/h2>\n
Employ inducements to direct behavior<\/strong><\/h2>\n
Do You Find Value in This Framework?<\/h2>\n