LRN’s 2023 Program Effectiveness Report delivers indispensable findings pertinent to the field of ethics and compliance. The report, once dubbed “board worthy” by significant industry figure Donna Boehme, is considered to be a must-read for every board member. This has been reinforced in a discussion between Susan Divers and Michael Volkov, as reflected in an episode of their podcast.
The LRN report once again confirmed that high-performing ethics and compliance programs principally rely on values to motivate and guide ethical and compliant behavior. This signifies that a company’s ethical principles are a more effective regulator than simple reliance on rules.
Divers and Volkov have noted several crucial conclusions from LRN’s 2023 Report, which could challenge maybe traditional understanding of what elevates a successful program.
- Implementing values-based strategies and practices is more effective in driving ethical behavior than adherence to rules and regulations alone.
- Companies with powerful ethical cultures that meld values with behavioral guidance are likely to see elevated levels of employee trust, loyalty, and overall job satisfaction.
- Companies who advocate for an ethics-first approach establish a competitive edge in the business market, making them a top choice for the modern, values-driven consumer.
While the report’s conclusions may require some course-correction for companies that have relied heavily on regulatory adherence, the pay-off for incorporating a robust value-based ethics and compliance program is clear. Consequently, the business world would do well to pay keen attention to LRN’s annual Program Effectiveness Report.