Amid growing regulatory pressures, establishing a compliance-driven culture is necessary for legal departments and their organisations. Embedding compliance into the corporate fabric not only mitigates risks but also builds trust and integrity.
Here’s a strategic guide to fostering a compliance-driven culture.
1. Leadership Commitment
Top-Down Support
A compliance culture starts at the top. Leadership must visibly and consistently support compliance initiatives. When executives demonstrate their commitment through actions and communication, it sends a powerful message to the entire organisation. This involves not only verbal endorsements but also participating in compliance training and adhering to the same standards as everyone else.
Setting the Tone
The Board must set the tone by explicitly acknowledging the corporate risk appetite and the values that underpin enterprise compliance programs. To achieve this, the General Counsel should collaborate with the C-suite to integrate compliance into the organisation’s values and goals. Regularly discussing compliance in leadership meetings and including it in strategic planning ensures it remains a priority.
2. Clear Policies and Procedures
Developing Robust Policies
Create comprehensive, easy-to-understand policies that address key compliance areas such as conduct, confidentiality, and information security. These policies should be accessible to all employees and regularly updated to reflect the latest regulatory changes.
Procedural Implementation
In recent research, 90% of employees surveyed said that they’d faced situations in the workplace where they didn’t know how to comply. This highlights the critical role of implementing procedures that support compliance policies. This includes detailed and easy-to-understand guidelines on identifying issues, reporting violations, conducting internal investigations, and managing disciplinary actions. Effective procedures provide a clear roadmap for employees, reducing uncertainty and enhancing adherence.
3. Effective Training and Communication
Tailored Training Programs
Develop training programs tailored to different roles within the organisation. For instance, the compliance training for the sales team should differ from that for the IT department. Tailoring training ensures that employees understand the specific compliance issues relevant to their functions. Especially seek to make these training programs engaging and accessible for everyone – even the simplest rewards such as chocolates and a free lunch can be effective.
Ongoing Education
Compliance training should not be a one-time event. Regular refresher courses and updates on new regulations keep compliance top of mind. Utilise various formats such as e-learning modules, workshops, and interactive sessions to maintain engagement. For the more adventurous, consider ‘gamifying’ the training or seek guidance from specialists in corporate training.
Transparent Communication
Maintain open lines of communication about compliance expectations and updates. Use posters, intranet postings, and town hall meetings to disseminate information. Transparency helps build a culture where compliance is seen as an integral part of daily operations.
4. Monitoring and Accountability
Regular Audits and Assessments
Conduct regular compliance audits to identify potential risks and areas for improvement. These audits should be thorough and objective, providing a clear picture of the organisation’s compliance health.
Accountability Mechanisms
Establish clear accountability mechanisms. Hold managers and employees accountable for compliance through performance reviews and incentive programs. Recognising and rewarding compliance adherence reinforces its importance.
5. Encouraging The Right Behaviour
Promoting a Speak-Up Culture
Encourage employees to voice concerns without fear of retaliation. Implementing a confidential process to safely communicate ensures that potential issues are reported and addressed promptly. Employees need to feel safe and supported when raising compliance concerns.
Effective Leadership
Leaders and managers in the organisation may also need training on how to appropriately address compliance issues, such as how to respond to employee complaints such as harassment, bullying or discrimination.
Leaders as Role Models
The adage of “actions speak louder than words” is particularly true when it comes to the workplace. Leaders must be conscious of leading with integrity, modelling the ethical behaviours that are expected, rewarding behaviours that are consistent with values, and taking action when needed.
7. Integrating Technology
Leveraging Compliance or Legal Technology
Utilise technology to streamline compliance processes. Tools such as legal intake can be used to confidentially and securely route sensitive complaints to the appropriate person. Compliance or matter management systems can also provide automated monitoring and reporting, to ensure those who need to know, do. And that the necessary response times are adhered to, especially for regulatory issues. These technologies help in identifying trends, managing documentation, and ensuring adherence to regulations.
Continuous Improvement through Data
Use data analytics to continuously improve compliance programs. By analysing compliance data, legal departments can identify patterns, predict potential issues, and implement proactive measures. This data-driven approach ensures that compliance programs evolve with changing regulatory landscapes.
Conclusion
Creating a culture of compliance requires continuous effort and dedication. It involves leadership, clear policies, effective training, robust monitoring, ethical behaviour, and strategic use of technology. Embedding compliance into the organisational DNA is essential for sustainable success and risk mitigation.
By focusing on these strategies, legal departments can foster a compliance-driven culture that meets regulatory requirements and builds a foundation of trust and integrity within the organisation.
