Compliance & Integrity as Leadership Task and Means for shaping an Ethical Corporate Culture

Dear Readers,Compliance & Integrity are indispensable and -hopefully -a matter of course.Compliance is not detached from day-to-day business and is not just the responsibility of compliance officers.Organizing it effectively is a primary responsibility of company management, but also of each individual manager.At company level, this is supported by compliance management systems (CMS).However, there is no standardized, universally valid approach.Rather, a CMS must correspond to the risk situation of the respective company and be able to cope with increasing regulation.Even a functioning and risk-adequate CMS is not yet the ideal situation.It can only develop its potential as an integrated system: Risk management, internal control system and CMS must intertwine.This means, for example, standardizing definitions and risk classes across all systems throughout the company.With this holistic approach, these systems create added value through risk identification and feedback using lessons learned processes.If the governance systems are designed and implemented in a synergy-oriented manner and practiced holistically on a day-to-day basis, added value is also created for business activities.This is achieved by increasing the credibility and trust capital of the company and its brands.Another example of the positive value contribution of governance systems is when risk reporting covers operational and strategic risks.This creates transparency and a discussion about an organization's risk appetite.After all, compliance must add value!One thing is clear: rules and systems are not enough.They must also not be misused to hide behind or encourage omission of action.Furthermore, they are no substitute for a corporate culture in which compliance and integrity are lived.This begins with authentic leadership that exemplifies governance and can be felt in the company as "tone from the top" and "tone from the middle".This includes a culture of learning from mistakes and clear boundaries.The result is not fear, but the desire to take responsibility.This requires communication and interaction.Such a culture needs to be constantly nurtured.In the end, the corporate culture expresses each employee's understanding of integrity.My aim is for our employees to do the right thing, even if no one is looking or there is no specific rule.This awareness of integrity creates a collective effect, positive social pressure, so to speak.The research questions addressed in this study are therefore central to an effective compliance and integrity culture .I hope you enjoy reading the study and find it useful.