This week, we explore the topic of innovation as required, reviewing some of the latest business strategies that can be applied by compliance professionals in corporate compliance programs. My inspiration comes from the MIT Sloan Management Review Winter Edition. Today I want to go in a different direction and give some advice on the proper culture of your organization.
As most readers remember, much of Deputy Speech by Deputy Attorney General Lisa Monaco in October 2021 was about corporate culture. In terms of culture, the founder of Affiliated Monitors, Inc. (AMI) Vin Dicani said of Monaco’s remarks that “the announcement by Deputy Attorney General Lisa Monaco and the Ministry of Justice has again caused a concentration of corporate and individual responsibility of the agency for white-collar crimes. She stressed the importance of implementing and maintaining strong and effective conservation programs and how the Ministry of Justice will continue to look at these programs in the future. “In other words, critical culture is now paramount. Compliance monitoring (CCO) should focus on developing a corporate culture to create an ethical foundation for a successful compliance program.
In the latest issue of the MIT Sloan Management Review, Donal Sol and Charles Sol wrote an article entitled “10 things that need to be right in your corporate culture”In which they argued that“ knowing which elements of culture are most important to employees can help leaders foster interaction as they move to a new reality that will include more remote and hybrid work ”. This is a great overview of some of the key elements of corporate culture and how CCOs can move forward to lay the foundation.
In the article, the authors explored “What distinguishes a good corporate culture from a bad one in the eyes of employees?” Of course, culture always starts from the top, but unfortunately, the authors noted that “the official core values of the organization signal the cultural aspirations of top managers, rather than reflecting elements of corporate culture that are most important to employees.” Only by listening to what employees want can you begin to understand how to improve culture. The authors identified 10 key elements of culture that are most important to employees.
- Employees are respected. Employees are treated carefully, politely and with dignity, and their views are taken seriously. This is by far the most important factor and the only best predictor of a company’s cultural appreciation is whether employees feel respected at work. Respect is not only the most important factor, it stands head and shoulders above other elements of culture in terms of its importance. Respect is almost 18 times more important than the typical feature of our model in predicting the overall rating of the company’s culture, and almost twice as important as the second most predictive factor. The implications of this finding relate to communication and culture of expression, as well as how they can be used by the matching function.
- Support leaders. Leaders help employees do their job, respond to requests, meet individual needs of employees, encourage and support them. Here, the authors found: “Employees describe the leaders who support them, how they help them do their job, respond to requests, meet the individual needs of employees, encourage and support them. Leaders, of course, influence all aspects of culture, but being a source of support for employees is especially important and is a trait of leadership that is most closely linked to a culture with a high rating. ” This is due to the expression of respect, as well as the culture of expression and trust in the organization.
- Leaders live by core values. The actions of leaders are in line with the values of the organization. While regulators are focusing on this issue, employees need to see that leaders not only support words, but actually do actions. Perhaps most interestingly, “Employees don’t expect leaders to live by core values, but they value it when they do.”
- Toxic managers. Leaders create a poisonous work environment and are described in extremely negative terms. Nothing will kill a culture faster than a toxic manager. In terms of compliance, this can be a disaster, as the toxic manager not only poisons the atmosphere of others, but also those who train under his guidance will receive their toxic approach as an example to follow.
- Unethical behavior. Managers and employees lack honesty and act unethically. Once again, this could portend disaster for the organization. Honesty is a cornerstone of most organizations ’official culture, and“ Identifying toxic leaders, deeper to understand the context of their behavior, training them, or removing them from leadership positions are tangible actions that organizations can take to eradicate people who undermine corporate culture and potentially exposing the company to reputational or legal risk ”.
- Benefits. Assessment by employees of all payments provided to employers. While initially this may not seem like a compliance issue, if you look at the Justice Department’s mandate on corporate compliance to be a bearer of institutional justice and institutional justice, you begin to see a connection. Perhaps most interestingly, “benefits are more than twice as important as compensation. Benefits are important to all employees, but which benefits are most important depends on the work of the employee. Health insurance and benefits are the best predictor of cultural rankings for front-line workers, while pension benefits such as 401 (k) plans and pensions are more important to white-collar workers.
- Benefits. Evaluation by employees of benefits and benefits in the workplace. This finding once again calls on the CCO on institutional justice and the links with the importance of attracting, acquiring and retaining talent. The most interesting point I found for compliance was that “Among the bonuses organized by the company, public events are a particularly strong predictor of high culture. Even if you control how employees talk about bonuses in general, social activities such as team building exercises, happy hours and picnics become a reliable predictor of high culture. Organizing community events is a promising and relatively inexpensive way for executives to strengthen their corporate culture when employees return to the office. ” This gives an idea of current reports of conservation in the world after the pandemic.
- Training and development. Employee assessment of opportunities for formal and non-formal learning. This finding also demonstrates compliance with the requirements in terms of both formal and informational training and messaging.
- Occupational safety. Imaginary job security, including fear of dismissal, offshore and automation. Most compliance features do not view job security as part of corporate culture. However, the authors note: “However, uncertainty at work puts a lot of weight on employees’ minds when they value corporate culture. The higher the percentage of employees who spoke about layoffs, outsourcing or the possibility of dismissal, the lower the rating of the company on culture.
- Reorganizations. How employees view reorganizations, including frequency and quality. I found this not too strange, but the authors noted: “Virtually no one can say anything good about the reorganization.” In addition, “the fewer people mention reorganization, the higher the culture score of the company. While you may link the mention of the reorganization to layoffs and job instability, the data show that staff concerns about the issue indicate broader strategic challenges for companies. ”
CCO and compliance functions face a number of challenges during navigation to return to work after COVID-19. Due to the corporate culture, companies must maintain a healthy culture in accordance with the requirements of the Ministry of Justice. The authors conclude: “Understanding the elements of culture that are most important to employees can help managers maintain engagement and a vibrant culture as they transition to a new normal life.”