In most companies, compliance and ethics training programs lack clear benefits due to numerous shortcomings. Their greatest shortcoming can be associated with their insubstantiality. Chen and Soltes (2018) note that these programs are often treated as legal box-checking exercises. Despite knowing that these programs do not work, company leaders choose to continue investing in them to meet government expectations. Besides, company leaders only see them as protection against worst-case scenarios. There is no real value attached to these programs. Another shortcoming is that these programs lack proper metrics that measure their effectiveness (Chen & Soltes, 2018). Appropriate measurement leads to better compliance management.
The first way of monitoring business conduct is by developing data-driven tools. Apart from collecting information about employee perception on company values and violations, these tools can help assess the company's performance, in terms of standards of conduct, against other leading companies. The other way is through accountability. Creating awareness and communicating about business conduct to the employees is necessary. Leaders should use a plan that shapes and supports adherence to the standards (Paine, Deshpande, & Margolis, 2021). Also, revising the mental model will help leaders examine the core aspects of the business and the operating environment and develop a performance improvement plan instead of just viewing business conduct in a legalistic mentality (Paine, Deshpande, & Margolis, 2021).
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Companies use data in decision-making processes. Data can help companies identify their areas of strength and opportunities for learning, issues that need inquiry, and potential risks to their reputation (Paine, Deshpande, & Margolis, 2021). With data, companies can analyze their past trends. They get insight into the perspective of employees and their clients. It is only through data that companies can understand their clients. Getting feedback for service delivery and customer satisfaction provides direction for businesses.
References
Chen, H., & Soltes, E. (2018). Why Compliance Programs Fail—and How to Fix Them. Harvard Business Review , 96 (2), 115-125.
Paine, L. S., Deshpande, R., & Margolis, J. D. (2011). A Global Leader's Guide to Managing Business Conduct. Harvard Business Review , 89 (9).
