Episode 263: LRN’s 2023 Ethics and Compliance Program Effectiveness Report Featuring Susan Divers
LRN continues to provide important insights and trends on the importance of ethics and compliance programs. LRN’s annual report is an important resource and needs to be reviewed by the board, senior management and all compliance-related functions.
LRN’s report is based on survey responses from more than 1,850 ethics and compliance professionals at companies from 10 different countries in 26 industries.
According to the report 85 percent of respondents reported that their ethical cultures were stronger s a result of facing and overcoming challenges during the last year. Interestingly, almost the same percentage reported that their respective companies operated based on values as opposed to a rules-based compliance program.
Notwithstanding the positive accomplishments, the LRN report highlighted the difficulties ethics and compliance program officers face as a result of: (1) inadequate internal systems (76 percent); (2) staff shortages (73 percent); (3) budget constraints (73 percent) and employee disengagement (68 percent).
The LRN reported highlighted deficiencies in responding to the Ukraine invasion and increased export and sanctions regulations – only 25 percent of respondents have enhanced their trade control compliance and training and just under 50 percent has enhanced their risk controls in this area.
In this Episode, Susan Divers, Head of Thought Leadership at LRN, and Michael Volkov discuss LRN’s Report and the implications for ethics and compliance programs.