The legal regulations in the area of compliance have become stricter in recent years. New ones have been added. GDPR, LkSG, ESG and CSRD - there are now many legal buzzwords and abbreviations. What was acceptable and unpunishable yesterday is now, or will be tomorrow, cause for negative press coverage or even a criminal offense.
However, legal issues are only one side of the coin here. On the other hand, it is also about the guidelines that companies set themselves, the values that they convey and the ethical conduct that they want to demonstrate throughout the entire organization. In short, it's about developing a culture of compliance.
What is compliance culture?
The ISO standard 37301, section 3.28 defines compliance culture as "values, ethical principles and behaviours that are present in an organization and interact with the structure and control mechanisms to create behaviour that supports compliance." So far, so brittle.
Put simply, compliance culture is about developing and promoting values, ethical principles and behavior that ensure that employees do the right thing, behave ethically and comply with laws and regulations. It is the result of a combination of internal attitudes and external factors (such as laws or the economic situation).
However, a compliance culture cannot be prescribed, but should be developed, communicated and exemplified by managers. It is important to differentiate between compliance itself and compliance culture, as the latter encompasses far more than just adhering to legal regulations. In a compliance culture, rules are adhered to out of personal motivation, not out of fear of possible consequences, collective responsibility for compliance is practiced and ethical conduct (both internal and external) is promoted. It therefore manifests itself in daily practice, approaches, work processes and decisions - from salary negotiations to a chat in the hallway.
Our seminar recommendation
Design and implementation of compliance training
This training provides you with sound and practical knowledge on how to plan, conceptualize, design and conduct compliance training courses in a target- and participant-oriented manner. Develop your methodological skills in this "train-the-trainer" course so that you can convey compliance content to your target group in an interesting and relevant way.
training: Design and implementation of compliance training courses
The importance of a strong compliance culture for companies
Risk minimization: In a company with a strong compliance culture, everyone adheres to the rules laid down by the law and the company and stands up for them. Standards and guidelines are adhered to, thus reducing financial risks and reputational damage due to breaches of the law.
Trust and ethical behavior: Both employees and customers or investors can trust a company that has developed a culture of compliance. On the one hand, employees can rely on the correctness of internal processes and act in an ethical manner themselves. Customers, on the other hand, know that they are dealing with an impeccable company whose orientation is, at best, in line with their own ethical and moral ideas.
Competitive advantage: The trust gained and a proactive compliance culture have a positive effect on the external perception of the company. Ethical conduct is becoming increasingly important for many customers and business partners - a direct competitive advantage. On the other hand, negative examples are remembered for a long time. The diesel scandal at Volkswagen, for example, occurred ten years ago and yet continues to tarnish the car manufacturer's reputation.
Efficiency: A strong compliance culture creates clear rules and ensures transparent processes. Employees work more safely, make informed decisions more quickly and avoid legal stumbling blocks. Processes run more smoothly as unnecessary coordination and corrections are eliminated. This saves time, reduces costs and increases productivity.
Key components of a compliance culture
Leadership and commitment: The executive level and management play a decisive role in establishing a compliance culture within the company. The keyword here is "tone from the top". Does the top management exemplify the values, attitudes and behaviors that are desired? What is their inner attitude towards compliance? Because this has a significant influence on the perception and behavior of all employees with regard to compliance issues.
Communication: A strong compliance culture thrives on open, comprehensible and consistent communication. Managers must formulate guidelines clearly, explain them comprehensibly and disseminate them in a targeted manner. They should actively involve employees, answer questions and dispel uncertainties. A concise statement from top management can underline the importance of compliance issues and bring everyone in the company onto a common course.
Training courses: Compliance training is also an integral part of communication. This is because compliance regulations can become complex. Practical scenarios help to bring the topic out of the gray theory and into everyday working life.
Monitoring: The successful implementation of a CMS should be reviewed and recorded. Internal controls and audits check adherence to the compliance guidelines and uncover any weaknesses so that they can be addressed in a targeted manner. An (anonymous) whistleblower system promotes this further and provides security when reporting serious violations.
Further tips for promoting a compliance culture
Before promoting a culture of compliance, clear guidelines and codes of conduct must be defined. This is of course based on applicable law, but also on the values that the company stands for and wants to establish.
But how can effective training in these guidelines and behaviors take place? At the beginning of any consideration of the design of training courses is the objective. What should be achieved? In the case of compliance culture, an understanding of important guidelines and values, as well as a transfer into practice. In this respect, target group and risk-oriented awareness-raising measures across all functions and hierarchical levels are essential. E-learning can do this well if it is only about understanding. Efficient verification of learning success is also possible here. Joint workshops with the team are more suitable for establishing values and behaviors.
Values can be openness and transparency, for example. This is because in an open environment, employees also feel encouraged to address grievances without fear. This means that some violations can be uncovered earlier and others in the first place. Transparency requires regular and complete communication through the right channels and a culture in which mistakes are not denounced but seen as a learning opportunity.
Challenges in establishing a compliance culture
The challenges that managers have to face in the context of introducing a compliance culture often lie in the triangle of people - money - law. The three examples in the following table show what these challenges look like and how they can be solved.
| The challenge | Solution approach |
|---|---|
| Lack of commitment from employees and managers |
|
| Insufficient resources |
|
| Lack of awareness of the risks (complexity of the legal situation) |
|
Conclusion: Establishing a compliance culture
Compliance culture in companies means developing values, principles and behaviors that lead to legally compliant and ethical actions. This minimizes legal risks, builds trust - both internally and externally - and thus becomes a competitive advantage. It cannot be imposed from above, but is created by managers and ambassador living the culture, clear, transparent and comprehensible communication and appropriate training.
Our recommendation
Basic compliance training
In this training, you will learn how to correctly understand basic compliance knowledge, identify compliance-relevant issues in your day-to-day work and handle them correctly. You will learn about the growing importance of compliance, especially in SMEs and smaller companies, and you will be given practical basics that will sharpen your risk awareness.
Training: Basic compliance training
