Connecting Compliance and Ethics with organizational culture: RSF celebrates National Compliance Week

NOTE: RSF is celebrating National Compliance Week from Nov. 6-12.

Ethics and compliance are different but both have a direct correlation to organizational culture. Simply put, compliance is accordance with the law, while ethics are about doing the right thing.

“To have an effective compliance and ethics program, an organization shall (1) exercise due diligence to prevent and detect criminal conduct; and (2) promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law,” according to United States Sentencing Commission Guidelines.

Ethical, compliant cultures are rooted in two overarching values: 1) TRANSPARENCY – exemplify open and honest communication and behavior; and 2) RESPECT –
embodiment of equality, dignity, diversity and rights. Cultures deficient in these values succumb to higher turnover and low morale, both of which are very costly.

So who is responsible for addressing an organization’s culture? Leadership.

“Corporate executives and business owners must realize there can be no compromise when it comes to ethics and compliance, and there are no easy shortcuts to success,” said Vivek Wadhwa, entrepreneur, academician, and fellow at The Rock Center for Corporate Governance, which is a joint initiative of Stanford Law School and Stanford Graduate School of Business. “Ethics must be carefully sown into the fabric of their companies.” This has also been said of compliance.

“Leadership” is not reserved for those at the top. Leadership describes an attribute available to everyone and applicable to any situation or endeavor. Ways to exhibit leadership include but are not limited to showing respect towards others, remaining transparent, and reporting concerns.

Everyone plays an important role in creating an ethical and compliant culture at Roper St. Francis. Attitudes are contagious. As such, exhibiting ethical and compliant behavior will inspire and influence others to do the same.

If you have any questions about this memo, please don’t hesitate to contact one of your Compliance Officers at 720-8462 or 402-1197.

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