Why Is Ethics & Compliance Training Important?
In today’s business environment, compliance programs of all sizes need to demonstrate the value of every dollar they spend. Unfortunately, the return on some compliance initiatives—such as training—is difficult to measure. As a result, executives may not understand the value that a well-run training program delivers and conclude that it should be scaled back or, worse, eliminated entirely.
Contrary to being a “nice to have,” an effective E&C training program is critical to running a productive, reputable and successful organization. With complex regulations and a legal environment that is constantly shifting, few have mastery of this content, yet all need to protect their organizations. So it can be a challenge for compliance professionals to articulate the magnitude of legal, financial and reputational risk that exists without effective training.
5 Objectives Your Organization Can Achieve with Training:
»» Create a culture of ethics and respect
»» Prevent misconduct
»» Establish a legal defense in the event of a misstep
»» Manage reputation
»» Avoid litigation
The Value of a Culture of Ethics & Respect
A strong ethics and compliance training program is tied to improvements in organizational culture. An E&C training program built around a well-defined code of conduct and fine-tuned to the organization’s values and risk profile can help articulate who the organization is, define its best version of itself and bind stakeholders to that vision. When board members, executives, management and all other employees receive E&C training, the entire organization can appreciate the commitment to its culture of ethics and respect.
In each of the three annual E&C training benchmark reports that NAVEX Global has published, the top objective for compliance professionals pursuing an effective training solution has been creating a culture of ethics and respect. Organizational pride and buy-in to an ethical culture often radiates beyond the physical barriers of the office and extends deeply into employee communities, across the organization’s market and industry and into positive press and regulatory relationships. Recognition as an ethical place to work tends to be self-fulfilling by attracting and retaining high-quality executives, employees, partners and customers.
The Value of a Solid Legal Defense
Today’s enforcement environment is intense and very active on all fronts. Whether it is new regulations, new interpretations or simply stepped-up enforcement of existing laws, compliance departments are feeling the pressure. In fact, 48 percent of respondents to NAVEX Global’s 2015 Ethics & Compliance Benchmark Report said that their training program had been used as part of a defense for their organization in a lawsuit or agency action—or to help secure a better position in a settlement. On average, survey respondents noted that their training program had been used in a defense setting four times in the past three years. Training mandates—whether in laws and regulations or incorporated into settlement terms presented by government enforcement agencies—have become commonplace.
The Definitive Guide to Ethics & Compliance Training is a comprehensive resource full of tips, advice and examples to help organizations develop cost-effective, high value, engaging and successful ethics and compliance (E&C) training programs. To learn more about what elements are really required to drive a successful strategy for developing, implementing and measuring an effective compliance training program, read the full article here: http://trust.navexglobal.com/Definitive-Guide-to-Training_Download-Lex.html