Few firms embed ethics in daily operations, global study finds
LRN has released its 2025 Global Study on Ethics & Compliance Program Maturity, highlighting significant gaps between policy and practical implementation in corporate compliance programmes worldwide.
The research, which draws on LRN's proprietary Program Maturity Assessment and global benchmarking data, evaluates ethics and compliance (E&C) programmes across six dimensions: Culture, Written Standards, Enforcement & Incentives, Risk Assessment, Training & Communication, and Resources & Board Oversight.
The report finds that, as regulatory expectations become more complex, many organisations continue to demonstrate uneven progress in the maturity of their E&C programmes. Key shortfalls include limited cultural measurement, insufficient manager accountability, and inconsistent enforcement practices.
Among its findings, the study reveals that a strong "tone in the middle"—reflected by manager engagement and leadership in ethics—remains rare. Only 15% of organisations surveyed report having effective middle management advocacy for ethical standards. Manager-specific training is under-resourced, with 20% of companies not offering any such training, creating a risk that corporate values are not realised in daily business conduct.
Organisations are focusing on updating their codes of conduct more frequently, with 71% revising them at least every three years and 45% annually, a significant increase from 11% a decade ago. However, many report challenges in making these standards translate into actionable practices relevant across various job functions and global locations.
Measurement of ethics training effectiveness also remains problematic. While most organisations track completion rates, fewer assess real-world outcomes. Only 44% assess training comprehension, and just 37% examine misconduct trends following training, meaning that many compliance systems are unable to demonstrate or enhance their long-term impact.
Issues with investigation processes persist, as over 35% of organisations still rely on spreadsheets to track misconduct cases. Fewer than 30% use cross-functional investigation teams, which raises concerns about data integrity, audit robustness, and investigative consistency.
Risk assessment procedures also show substantial gaps. Only 19% of surveyed organisations include talent management as a compliance risk, and less than one-third holistically evaluate reputational or ethical misconduct risk, limiting the effectiveness of risk-based E&C programme management.
The study also highlights that although 76% of companies conduct annual ethics or culture assessments, only 31% reflect ethical behaviour in performance reviews. This disconnect suggests that cultural investment is not fully embedded in performance management systems.
"As organisations face increasing scrutiny, rising complexity, and fast-evolving risks, the strength and sophistication of a company's E&C program becomes a true differentiator. The data from our latest study shows progress, but also offers a call to action for organisations to do more to embed ethical behaviour into day-to-day decision-making, especially at the middle management level." Kevin Michielsen, Chief Executive Officer of LRN Corporation said.
Ty Francis, MBE, Chief Advisory Officer at LRN Corporation, added, "Organisations that embed ethics into how they lead, manage, and reward people are positioning themselves for long-term resilience and trust. Organisations may have the right policies on paper, but without investment in middle management, integrated systems, and accountability structures, they will struggle to translate principles into practice."
The report recommends reinforcing manager accountability as a priority to ensure that ethical values are modelled and upheld at every organisational level. It also suggests modernising investigative practices by deploying integrated tools and enhancing transparency and measurement frameworks, whilst more rigorously evaluating cultural and training effectiveness and ethics-based decision-making.
The study draws on insights from a large and diverse sample of global compliance professionals and is part of LRN's ongoing research series, which is designed to inform best practices and benchmarks for organisations seeking to strengthen their ethics and compliance capabilities.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Nahar Net
37 minutes ago
- Nahar Net
Israel army issues evacuation warning for parts of Beirut's southern suburbs
by Naharnet Newsdesk 05 June 2025, 21:06 The Israeli army issued an evacuation warning for parts of Beirut's southern suburbs on Thursday, telling residents they were in the vicinity of buildings associated with Hezbollah. "You are located near facilities belonging to the terrorist organization Hezbollah," said the warning from Arabic-language spokesman Avichay Adraee, whose warnings are usually followed by airstrikes. "For your safety and the safety of your families, you are required to evacuate these buildings immediately and move away from them at a distance of no less than 300 meters," Adraee added.
Trade Arabia
38 minutes ago
- Trade Arabia
Somerset House announce landmark collaboration for summer 2026
Globally acclaimed arts destination Somerset House and event brand Moving Venue have joined forces to offer a never-before-seen event experience in one of London's most prestigious cultural venues in summer next year. For a limited season, London's iconic courtyard, The Edmond J. Safra Fountain Court, will be transformed with elegant, purpose-built structures to create a breathtaking architectural canvas for corporate events, brand activations and summer parties. With exquisite catering, expert production, and creative freedom at its heart, the collaboration is a rare opportunity to host unforgettable events in one of the city's most prestigious cultural venues. It offers scalable flexibility across open-air and covered spaces accommodating up to 2,500 guests (including seated dining for up to 500 and standing receptions for 2,500). Luci Sorrell, Head of Sales, Commercial Events at Somerset House, said: "We're bringing a bold new vision to one of London's most recognisable spaces and we're excited to be working with Moving Venue to deliver this. The Edmond J. Safra Fountain Court has been reimagined like never before, offering a rare opportunity to host outdoor events with the assurance of refined cover, premium production and an unforgettable setting." "Additionally as a registered charity, Somerset House is proud to offer businesses the opportunity to support our mission of facilitating and increasing access to arts and culture for all, inviting hosts to align their summer events with creativity, culture and meaningful social impact," stated Sorrell. The styling complements the Grade-I listed architecture with understated luxury: olive tree planters, sculptural furniture, and refined bar installations, while remaining highly adaptable to empower brands to layer their own vision, bespoke decoration and curated entertainment. The reimagined outdoor setting makes it easy for event planners to deliver seamless and memorable events.
Trade Arabia
38 minutes ago
- Trade Arabia
Bahrain's Sama Bay Project enters fast track
Bahrain-based Millet Engineering Bureau has announced that work is in full swing at the Sama Bay development located on the Galali waterfront with its second phase over 90% completed. According to the Bureau, the initial phase of Sama Bay covered a total area of 75,000 sq m in a prime coastal location. This phase introduces a vibrant mix of facilities including 14 retail units with flexible leasing options, 14 food trucks integrated within an open-air service zone, and two fully equipped public beaches designed to accommodate recreational and leisure activities. As the firm overseeing the design and implementation of Sama Bay project, Millet Engineering Bureau said it was delighted to see the project on track for full delivery in the near future. The second phase represents a pivotal advancement, introducing an exclusive array of seaside dining venues designed to deliver exceptional culinary experiences in an idyllic setting, said a statement from the Bureau. These additions are set to further elevate the project's profile as a signature destination and a driver of both tourism and economic growth, in alignment with Bahrain's Tourism Strategy 2022–2026 and the national development goals outlined in Economic Vision 2030. It also features the 'Al Nakheel Premium,' a state-of-the-art open-air fitness gym nestled in a natural environment, alongside multiple sports amenities such as a football field, padel courts, and a variety of outdoor seating areas distributed throughout designated relaxation and social zones, said the statement. Dr Salman Alghatam, the General Manager of Millet Engineering Bureau, stated that work on Sama Bay has progressed in alignment with the project's master schedule and in accordance with the highest engineering and quality standards. "In a remarkably short span, the project has emerged as a flagship destination for tourism, recreation, and lifestyle activities, drawing widespread interest from Muharraq residents, citizens, and international visitors alike," stated Dr Alghatam. "Its strategic coastal setting, combined with thoughtfully designed spaces, offers a seamless and enriching experience that meets a broad spectrum of interests while delivering outstanding quality and comfort," he added. Dr. Alghatam pointed out that since the launch of Phase I, the Sama Bay has attracted strong visitor engagement and served as a venue for major public events such as Bahrain Sports Day, affirming its role as a dynamic hub for wellness and community life. The second and final phase of the project significantly elevates the waterfront experience through the addition of six architecturally distinct buildings with direct sea views, each designed to accommodate two restaurants, he stated.
