Too few organizations are embracing compliance culture, according to a survey by FTI Consulting and Ethico, which found that while executive pressure to show compliance programs’ value is increasing, their resources — financial and otherwise — aren’t.
The findings reveal the extent of dysfunction within organizations when it comes to the importance of compliance and ethics programs, said Angie Gorman, a managing director at FTI and one of the report’s authors.
“We have observed the influence CCOs exert in organizations vs. the responsibilities they are assigned and the critical role culture plays in their success,” Gorman said. “Our research more than validated our conclusions and provided data points illustrating the depth of the challenges that were surprising, even to us.”
Here’s a look at a few of the key findings of the report:
- 51% of CCOs said they aren’t asked to provide strategic direction to the executive team or board of directors on compliance topics.
- 41% of CCOs said leadership puts pressure on them to downplay ethics and compliance risks when presenting to the board.
- 84% say their organization has been negatively impacted by a compliance incident and the top-rated impact is low employee morale.
- 53% of respondents do not have an annual budget available to them to manage compliance programs and initiatives.