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Connecting the Dots Between Compliance, Ethics, and Organizational Culture

Posted on Thursday, August 18, 2016 7:59 PM

Ethics and compliance are different, yet they relate to an organization’s culture. The best way to describe the difference between the two is that compliance is about “remaining in accord with the laws” and ethics is about “doing the right thing.”

In chapter 8 of the U.S. Sentencing Commission’s Guidelines Manual, it outlines the significance of both compliance and ethics within an organization. It states: “To have an effective compliance and ethics program, an organization shall (1) exercise due diligence to prevent and detect criminal conduct; and (2) otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.”

Additionally, leadership is the key component for the culture of the organization. Vivek Wadhwa said: “Corporate executives and business owners need to realize that there can be no compromise when it comes to ethics, and there are no easy shortcuts to success. Ethics need to be carefully sown into the fabric of their companies.” This statement has also been said about compliance.

Although leadership is responsible for an organization’s culture, there are other ways an individual can shape the culture. For example, showing respect toward others and addressing issues in a timely manner. Everyone contributes to the role in creating an ethical and compliant culture.

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Additionally, the CorridorComply web-based tool identifies your program from basic to advance in each of the OIG’s 7 Elements of an Effective Compliance Program. Contact a Corridor representative today to learn more about how CorridorComply can help ensure that your organization is on a strong path toward compliance excellence!


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