Why should you have a compliance program? The Moral Case & Conclusions

In two prior issues we have discussed the business case and the legal case for having a compliance and ethics program. Here we address the moral reasons and some general conclusions. 

The moral case – it’s the right thing to do

In our publication we try to be practical in our approach.  But that does not mean limiting our approach only to dealing with finances and law.  Another powerful reason for having an effective C&E program is perhaps the simplest:  It’s the right thing to do.

I had this brought to mind early on in my compliance activities when I was co-chair of Practising Law Institute (“PLI”) programs on compliance.  PLI is designed for lawyers and others in the legal community.  I was doing a presentation on how to sell compliance to management.  When I did a survey of the law-oriented people in the audience, I was surprised by what they rated as the number one reason: “it’s the right thing to do”

My advice to others like me, who have a law and/or business orientation, is not to underestimate or ignore this element. I would also remind people not to be a victim of moral hubris, i.e., thinking that you are the only one who does things because they are “the right thing to do.” 

Here I think there is a real need to humanize and personalize compliance.  For this, the stories of real, human harm caused by corporate crime and misconduct can be a powerful tool.  Books like The Dark Pattern are good resources for these stories.  This is especially important for us, as C&E professionals. When everyone in the room is laser focused on the bottom line and are all counseled to be part of the team and work for the company’s success, you also need to remember the public and others who may be hurt by misconduct. You need to be acutely conscious of the power of “group think” and how the immediate voice of authority can cause people to do things they later come to regret.   

Reducing everything to numbers takes away the “right and wrong” element, which can be powerful with people.  Every manager, every executive, every employee is also a potential victim of corporate crime.  Personalizing the impact and reminding people of their duty to protect others is part of our function. The advice to “think like a manager” or join together for the company, needs to be balanced with remembering that the next victim of corporate crime could be your own mother or your daughter or your brother. 

Which reason to use to make your case

A logical question, then, might be which of these three cases to use to make your case.  The message here is that they are all part of the full C&E case. Using one does not exclude any other.

When convincing others of the value of a strong C&E program, don’t exclude anything.  Instead, know your audience and especially the individuals, their interests and orientations

Another essential point is not to depend solely on group presentations. Talk with the leaders individually outside of any meeting, find out where they are coming from, and use the 3 elements above as appropriate.  But don’t make the mistake of artificially limiting yourself on which points to emphasize

Like any salesperson, know your customer and meet that person’s concerns and interests. A strong C&E program is a valuable asset for any organization.  It also plays an essential role in dealing with the legal system.  And protecting the public, your employees, your investors, your customers and the environment is the right thing to do.  Don’t sell any of these points short.