Ethics & Compliance
as a Strategic Partner

The benefits of a long-term commitment to outperforming through business integrity

Over the past decade, the E&C approach for most organizations has gone from rules-based systems to the emphasis on values. Having an E&C program that takes a risk-based view combined with values-based solutions enables organizations to have long-term sustainability even in a business environment so often consumed with short-term results.

Whether the topic is corruption, environment and social, or use of AI, it's those repeatable processes and core values that will enable you to quickly react. Operationally, instead of chasing the different regulations, think about it from a systems and values standpoint. Determining the type of controls or management systems you need can help you to meet any regulation, new technology, or expanded business opportunity that comes along.

The conscience of an organization is not with the E&C department but starts at the top. E&C leaders are increasingly being drawn into discussions around strategic decision making. Board members and executive leaders are becoming more sophisticated around risk. They are concerned with ethics and want to better understand how that can protect companies.

Executive leadership needs to be more hands-on to:

Develop guiding values for how the business will be run
Get people in key positions who will commit to those values in terms of how they lead and operate

If you are not focused on values and ethical culture, you are more likely to find yourself facing the same compliance missteps over and over again.

Our team is called Ethics & Integrity, so it’s more than just complying with the law, it’s ethics and integrity as fundamental values –it’s not a sprint, it’s a marathon.”

Felipe Maldonado, Director, Compliance Programs, Salesforce

Reporting Lines Send a Clear Signal About E&C’s Importance

Reporting lines and organizational charts send messages about the perceived importance of different functions. While regulators have not explicitly defined an "ideal" reporting line or level of seniority, they have made it clear that the location must be deliberate and in line with the entity's risks.

The Department of Justice encourages companies to assess how E&C compares to other control functions within your organization — with seniority and access to leadership being key to its influence.

Reporting directly to the CEO or president sends the strongest signal, placing ethics and compliance on equal footing with key control functions. Placing E&C within the legal department can also be effective but necessitates the program leader to have a Chief Ethics and Compliance Officer (or similar) title, with a dotted reporting line to the chair of the committee of the board with oversight of the E&C program.

STRUCTURE

REPORTING

The Power of Presence: How E&C Gains Trust Across the Organization

Ethics and compliance communication is more than just emails or talking to the board — it’s about creating a visible, trusted presence across the organization.

At the top of the organization, E&C teams need to foster relationships with boards and senior leaders, ensuring ethics and compliance has a meaningful presence in the most strategic conversations.

But people leaders sit at the heart of it. These leaders are the everyday face of E&C, shaping not just culture but also awareness of processes, expectations, and where to turn with concerns. When leaders engage their teams in regular (monthly) ethics and compliance conversations, employees are significantly more likely to report misconduct and trust the process behind it.

Strong communication isn’t just about shaping values — it’s about reinforcing that E&C is present, accessible, and essential to how the business operates.

HOW THE PROGRAM OPERATES

WHAT EMPLOYEES PERCEIVE

WHAT THE DATA SHOWS

People who are frequently having those conversations are:

30 POINTS

MORE LIKELY

to report misconduct that they observe

43 POINTS

MORE LIKELY

to believe that the organization will take action if they raise their hand

Real Conversations, Real Impact: E&C at the Strategy Table

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Hear directly from leading E&C practitioners on how they navigate ethical risks, influence strategic decisions, and embed integrity into innovation, growth, and global expansion. These conversations offer practical insights and lessons from the front lines of compliance leadership.