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Compliance; legitimacy; employees; perception; ethics; reform; corporate culture; reporting; standards; management; officer; oversight; finance; incentives; rational; moral disengagement; social norms; ethical behavior; violations; rationalizations; fraud; deceptive; committee; CECO; board of directors; monitoring; measurements; annual report
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Chipping Away At Compliance: How Compliance Programs Lose Legitimacy And Its Impact On Unethical Behavior, David Hess
Chipping Away At Compliance: How Compliance Programs Lose Legitimacy And Its Impact On Unethical Behavior, David Hess
Brooklyn Journal of Corporate, Financial & Commercial Law
Employee perceptions of an organization’s compliance program are critical. A program that has lost legitimacy with its employees is not just ineffective, but it creates more harm than good by leading to more unethical behavior. This Article identifies ways in which compliance programs can start to lose legitimacy, explains how that lost legitimacy leads to increased wrongdoing, and then concludes by setting out some basic reforms focused on helping stop this downward spiral and protecting the legitimacy of the compliance function.