Following an internal investigation, companies must act swiftly and decisively to reduce the likelihood of future misconduct. While legal measures—such as terminating contracts with individuals implicated in wrongdoing, notifying authorities, and initiating legal proceedings—are essential, they alone are insufficient. Achieving lasting ethical transformation requires a comprehensive strategy where compliance teams work actively to reshape company culture, reinforcing ethical standards.
This structured approach promotes a proactive, long-term commitment to integrity, helping organizations foster a safer, more compliant workplace. Attending the Global Investigations Review conference in Milan in October 2024, we at CBC Law Firm gained valuable insights into solidifying ethical practices and preventing misconduct post-investigation. This article draws on these insights, outlining actionable, culture-driven remediation strategies that enhance ethics, transparency, and a supportive environment for ethical behavior.
Step 1: Root Cause Analysis and Identifying Gaps
Conducting a root cause analysis is the first step in understanding the drivers behind misconduct. This process reveals any structural or cultural weaknesses that may have enabled unethical behavior, such as unclear reporting channels, insufficient oversight, or biases that discourage open communication.
According to the Association of Certified Fraud Examiners (ACFE), organizations that regularly perform root cause analysis or proactive fraud audits experience 50% less misconduct than those without these measures.[1] A thorough analysis allows companies to address the root causes and implement targeted improvements, leading to fewer instances of repeated misconduct.
Compliance teams should systematically examine these underlying issues through in-depth reviews of specific incidents, policies, and accountability gaps. With these insights, companies can better design changes to create a culture where ethical behavior is naturally encouraged and reinforced.
Step 2: Pulse Checks and Employee Engagement
After identifying root causes, it’s essential to assess employees’ perceptions of ethics and compliance. Tools like pulse checks, surveys, and interviews provide valuable feedback on whether employees feel confident reporting concerns, understand compliance policies, and trust that leadership upholds ethical standards.
The Ethics & Compliance Initiative (ECI) Global Business Ethics Survey reports that regular ethical assessments reduce observed misconduct by up to 25%, as employees feel more valued and motivated to uphold ethical guidelines.[2]
By regularly conducting these checks, companies can identify morale issues and any gaps between compliance goals and employee experiences. This enables targeted adjustments to communication, training, and policies, ensuring that the company’s ethical commitments resonate with employees’ daily experiences.
Step 3: Tone from the Top and Communication Strategies
A robust tone from the top is essential for effective post-investigation remediation. Leaders’ visible support for ethics signals that integrity is not only encouraged but required. Senior management should communicate transparently about the investigation’s outcomes and outline steps to prevent similar issues in the future.
Effective communication strategies include regular updates, open Q&A sessions, and clearly articulated values. These practices foster transparency, helping employees feel informed and empowered in their roles. An open-door policy or confidential reporting channels further support this effort, ensuring employees have a safe space to discuss compliance concerns.
Step 4: Engaging Training Programs and Policy Updates
Engaging training programs are crucial for embedding compliance into company culture. Rather than generic sessions, companies should provide interactive, role-specific training on identified risks, such as data privacy, whistleblower protections, and reporting mechanisms.
Updating policies is equally important. Revised policies should clarify expected standards of conduct and any new protocols introduced post-investigation. Clearly communicating these changes ensures all employees understand and acknowledge the updated standards.
Step 5: Redesigning Workflows and Segregation of Duties
Preventing misconduct can also be achieved by restructuring workflows and segregating duties. Adjusting workflows to enhance oversight reduces the risk of unethical actions going undetected. For instance, implementing multi-level approval processes or regular audits of sensitive transactions reinforces accountability throughout the organization.
Segregating duties, so no individual has control over an entire process, creates essential checks and balances, enhancing both transparency and organizational trust.
Step 6: Oversight and Annual Monitoring
Ongoing oversight and monitoring help sustain post-investigation improvements over time. This includes annual reviews of high-risk activities, random sample audits, and compliance assessments across the organization. Compliance teams should track key performance indicators (KPIs) related to compliance, sharing findings with top management.
Documenting and evaluating compliance measures demonstrates a proactive stance on ethics, which can support stakeholder expectations and regulatory requirements. Consistent, documented monitoring further reinforces organizational accountability and highlights a continued commitment to ethical standards.
Step 7: Company Rituals and Psychological Safety
Creating rituals or cultural activities that reinforce ethical values and psychological safety fosters an environment where employees feel comfortable speaking up. Examples include ethics town halls, recognition programs for ethical conduct, and opportunities for employees to voice concerns.
Psychological safety is closely linked to employees’ willingness to report misconduct. Rituals in the workplace can strengthen the organization’s desired behaviors, by creating a sense of belonging and making changes permanent.[3] Research on ritual design by F. Kürşat Özenç and Margaret Hagan suggests that creating intentional rituals can help shape organizational culture, building a sense of belonging and making ethical behavior a permanent part of the workplace.[4]
References
Grant, H. (2013, December 12). New Research: Rituals Make Us Value Things More. Retrieved from Harvard Business Review: https://hbr.org/2013/12/new-research-rituals-make-us-value-things-more
Occupational Fraud 2022:A Report to the Nations. (2022). Retrieved from Association of Certified Fraud Examiners: https://acfepublic.s3.us-west-2.amazonaws.com/2022+Report+to+the+Nations.pdf
Özenç, F. K., & Hagan, M. (2017). Ritual Design: Crafting Team Rituals for Meaningful Organizational Change. Retrieved from Stanford Law School: https://law.stanford.edu/wp-content/uploads/2017/08/SSRN-id2994394.pdf
The State of Ethics & Compliance in the Workplace: A Look at Global Trends. (2023). Retrieved from Ethics & Compliance Initiative: https://www.ethics.org/global-business-ethics-survey/
[1] (Occupational Fraud 2022:A Report to the Nations, 2022)
[2] (The State of Ethics & Compliance in the Workplace: A Look at Global Trends, 2023)
[3] (Grant, 2013)
[4] (Özenç & Hagan, 2017)
Yazı: Av. Altuğ Özgün – Av. Ayşe Anaeli – CBC Law
Kaynak: INmagazine 36. Sayı
Diğer Sayıları İçin: INmagazine
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