Where do conduct, culture, and compliance intersect?

Culture has always been fundamental to determining how an organization operates.  Recently, however, the topic of culture has moved to the top of the agenda for regulators, investors, and consumers. Regulators have come to realize that that without a culture of integrity, organizations are likely to view their ethics and compliance programs as a set of check-the-box activities.

Organizations understand that culture is one of the biggest determinants of how employees behave. Strong cultures have two common elements: there is a high level of agreement about what is valued, and a high level of intensity with regard to those values. Organizations with strong positive cultures create trusting relationships with stakeholders and investors and—in turn—stakeholders and investors trust the organization and the brand.

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The importance of measuring culture—and eight key principles for promoting it

Posted by Keith Darcy, Independent Senior Advisor to Deloitte & Touche LLP, and Dave Wilson, Independent Senior Advisor to Deloitte & Touche LLP, on May 17, 2016

“Culture” is the focus of significant regulatory attention in the financial services industry. It comes up in the aftermath of governance breakdowns, and is discussed as being at the root of what went wrong. In the light of high-profile conduct failures in the US, the UK and Europe, this reaction and heightened regulatory scrutiny is understandable. But a firm’s attention to culture can be more effective when it isn’t reactive at all.

In a new whitepaper, Management information on culture: Connecting the dots, we aim to refocus the spotlight on culture as a 365-day-a-year business-as-usual factor in a firm’s strategy and overall performance. It is critical to a firm’s long-term success to understand and manage culture.

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An ethical culture helps uphold the rules—but it doesn’t begin with them


Culture is one of those words we use a lot, but have trouble getting our hands around. At our recent Cross-Industry Compliance Leadership Summit at Deloitte University, we gave it a try. Compliance leaders from the financial services, healthcare, life sciences, consumer, energy, and other industries joined me and several of my Deloitte colleagues to discuss the challenges in culture-building that extend across disparate industries—and the common strategies as well.

The heart of the discussion focused on the notion that a culture of compliance is made up of human interactions. The right attitude can be worth more than the number of rules you promulgate. Fostering trust is a good way to earn it back. Organizations that build trusting relationships with stakeholders experience reciprocity from them.

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