On December 11, 2024, the European Compliance Professionals Association (ECPA) had the pleasure of welcoming Professor Robert Bird, Eversource Energy Chair in Business Ethics at the University of Connecticut, for an insightful lecture on the importance of compliance and how to build a culture of integrity within organizations. Held in collaboration with Ellex, this event brought together ECPA members eager to explore fresh perspectives on compliance as a critical driver of business success.
The Stress of Compliance
Professor Bird opened the discussion by shedding light on the often-overlooked pressures faced by compliance professionals. Many in the field experience stress, isolation, and a lack of resources, with some even reporting negative impacts on their mental health. These challenges not only affect individuals but can undermine the overall effectiveness of compliance programs. Bird noted that 60% of compliance professionals have considered leaving their jobs due to these difficulties, which highlights the urgent need to rethink how compliance is approached and managed in organizations.
Moving Beyond "Command and Control"
Traditionally, compliance has been managed through a “command and control” model, relying on rules, detection, and deterrence to influence behavior. While effective in some cases, Bird argued that this approach is inherently limited. It fosters mistrust, encourages employees to think in terms of risk and reward rather than ethical principles, and often leads to adversarial relationships within organizations.
Instead, Bird advocated for a paradigm shift toward a stewardship model. In this model, employees are seen not as opportunistic rule-breakers but as individuals who want to contribute, innovate, and act in alignment with shared values. This approach emphasizes intrinsic motivation, where employees choose to comply because they believe it is the right thing to do, not because they fear sanctions or expect rewards.
The Bedrock of Integrity
At the heart of this new approach lies integrity, which Professor Bird described as the foundation of trust and ethical behavior in any organization. Integrity is more than just following rules; it involves acting honestly, keeping promises, and committing to principles that promote the greater good. Organizations that prioritize integrity are better equipped to build trust among employees and stakeholders, inspiring a culture where compliance becomes second nature.
ECPA members were particularly engaged in discussing how integrity-driven compliance can transform organizational culture. They shared examples from their own experiences and explored strategies for encouraging employees to internalize company values.
Building a Culture of Integrity
Bird highlighted several key elements for creating a culture of integrity within organizations:
Legitimacy: Compliance professionals must be seen as credible and supported by leadership at the highest levels. Without visible backing from the C-suite, compliance efforts risk being perceived as superficial or unimportant.
Procedural Fairness: Rules and processes must be clear, consistent, and applied equitably. Employees are more likely to comply when they feel they are treated with respect and fairness.
Trust: Trust is built through consistent, predictable behavior and transparent communication. Leaders, in particular, must model the values they expect employees to uphold, especially under challenging circumstances.
ECPA members appreciated these actionable insights, recognizing that compliance is most effective when it is a shared responsibility across the organization. They emphasized the importance of collaboration between compliance teams, leadership, and employees to foster an environment of mutual respect and accountability.
A Thought-Provoking Discussion
The lecture sparked a dynamic and engaging discussion among attendees. Many ECPA members shared their own challenges in balancing enforcement with building trust, while others reflected on the importance of aligning compliance efforts with organizational culture. Professor Bird’s practical advice and research-driven insights resonated strongly, providing valuable guidance for shaping the future of compliance in their organizations.
Advancing the Compliance Profession
This event was another example of ECPA’s commitment to fostering dialogue, professional growth, and the development of best practices in compliance. By connecting members with thought leaders like Professor Bird, ECPA continues to elevate the compliance profession and promote its role as a strategic and ethical cornerstone of modern business.
As the lecture concluded, it was clear that the themes of integrity, trust, and cultural transformation had left a lasting impression. Compliance, as Bird aptly demonstrated, is not just about rules—it is about building organizations that thrive on shared values and ethical leadership.
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