Latest news with #ProgramMaturityAssessment
Techday NZ
12-05-2025
- Business
- Techday NZ
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.
Business Wire
08-05-2025
- Business
- Business Wire
LRN Research Exposes Gaps in Ethical Culture, Enforcement, and Risk Management
NEW YORK--(BUSINESS WIRE)-- LRN Corporation, a leader in ethics and compliance (E&C) solutions, has released its 2025 Global Study on Ethics & Compliance Program Maturity, providing one of the most comprehensive views on the state of corporate compliance programs worldwide. As the global regulatory environment grows more complex, the study finds E&C programs remain uneven in their maturity and reveals significant shortfalls in areas critical to long-term success, including cultural measurement, manager accountability, and enforcement consistency. The data from our latest study shows progress, but also offers a call to action for organizations to do more to embed ethical behavior into day-to-day decision-making, especially at the middle management level. 'As organizations face increasing scrutiny, rising complexity, and fast-evolving risks, the strength and sophistication of a company's E&C program becomes a true differentiator,' said Kevin Michielsen, CEO of LRN Corporation. 'The data from our latest study shows progress, but also offers a call to action for organizations to do more to embed ethical behavior into day-to-day decision-making, especially at the middle management level.' Drawing on insights from global benchmarking and survey data using LRN's proprietary Program Maturity Assessment (PMA), the report evaluates the maturity of E&C programs across six core dimensions: Culture, Written Standards, Enforcement & Incentives, Risk Assessment, Training & Communication, and Resources & Board Oversight. The study reveals that while organizations are updating codes of conduct and expanding board-level oversight, deep gaps remain in middle management engagement, culture-building, enforcement, and risk assessment. Key Findings: Cultural Alignment Underdeveloped: Although 76% of companies conduct annual ethics or culture assessments, only 31% evaluate ethical behavior in performance reviews. Just 15% report having a strong 'tone in the middle,' with manager training and accountability notably under-resourced, including 20% offering no manager-specific training at all. This lack of investment risks reducing corporate values to empty rhetoric, rather than lived practice. Codes of Conduct Frequently Updated, Not Fully Embedded: 71% of organizations revise their Code of Conduct at least every three years, with 45% doing so annually, up from 11% a decade ago. However, many still struggle to integrate these standards into real-world decisions and ensure they're seen as relevant, actionable, and accessible to employees across functions and geographies. Training and Impact Measurement Gaps Persist: Only 44% of organizations assess training comprehension, and just 37% track misconduct trends after training. Many programs focus on completion rates rather than outcome-based metrics, limiting their ability to demonstrate true effectiveness. Investigations Remain Manual and Fragmented: Over 35% of organizations still use spreadsheets to track misconduct cases, and fewer than 30% use cross-functional investigation teams, raising serious concerns about data integrity, auditability, and consistency. Risk Assessment Practices Lack Depth: Only 19% of organizations include talent management risks in their compliance risk assessments, and fewer than one-third evaluate reputational or ethical misconduct risk comprehensively. 'Organizations that embed ethics into how they lead, manage, and reward people are positioning themselves for long-term resilience and trust,' said Ty Francis, MBE, Chief Advisory Officer at LRN Corporation. 'Organizations 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 2025 Global Study on E&C Program Maturity offers a clear roadmap for building resilient, values-driven organizations based on insights from a diverse, global pool of compliance professionals. Organizations must reinforce manager accountability to ensure that ethical values are consistently modeled and upheld at every level. They should modernize investigations by adopting integrated tools, enhancing speed, transparency, and credibility, and closing the measurement gap by rigorously evaluating organizational culture, training effectiveness, and ethics-based decision-making. To download the full 2025 Global Study on Ethics & Compliance Program Maturity, visit here. The 2025 Global Study on Ethics & Compliance Program Maturity is the latest installment in LRN's decade-long research series of surveys and analyses that track data points from organizations across the world. This research complements other LRN ongoing studies, including the Ethics & Compliance Program Effectiveness Report, the Benchmark of Ethical Culture Report, and Code of Conduct Report. Combined, LRN industry research provides unparalleled insights into best practices, benchmarks, and innovative strategies shaping the future of compliance programs. About LRN Corporation LRN is the world's largest dedicated ethics and compliance company, educating and helping more than 30 million people each year worldwide navigate complex legal and regulatory environments and foster ethical cultures. As one of the Inc. 5000 Fastest-Growing Companies, LRN's growth and impact underscore our commitment to excellence and innovation in the advancement of ethical business practices. Our combination of practical analytics and software solutions, education, and strategic advisement helps companies translate their values into concrete practices and leadership behaviors that create sustainable, competitive advantage. LRN is the trusted long-term partner to more than 2700 organizations, including some of the most respected and successful businesses in the world.
