Data You Can Use in Your Program Today: Insights from Across Our ... - NAVEX Global · 2016 Ethics...

Copyright © 2016 NAVEX Global, Inc. All Rights Reserved. | Page 0

Data You Can Use inYour Program Today:

Insights from Across Our Benchmark Reports

Presented on

November 15, 2016

Copyright © 2016 NAVEX Global, Inc. All Rights Reserved. | Page 12016 Ethics & Compliance Virtual Conference

Carrie PenmanCCO & SVP, Advisory Services, NAVEX Global

Randy StephensVice President, Advisory Services, NAVEX Global


• Overview of 2015 / 2016 NAVEX Global

Benchmark Reports

• Common Themes:

- Culture and Cynicism

- Organizational Structure

- Resources & Budgets

- Adaptability to Change

• Expanding the Scope of E&C

• Key Takeaways

• Q&A

Today’s Agenda


NAVEX Global’s Annual Benchmark Reports


Culture & Cynicism


Culture Always Wins

Creating and reinforcing a culture of ethics and

compliance is a core element of a robust E&C program.

However, across the reports, we see a lot of evidence

that organizations are still struggling with making sure

programs are impacting culture to the degree needed

to ensure success.


Top Training Program Objective: Culture Change

Source: NAVEX Global's 2016 Ethics & Compliance Training Benchmark Report


Cynicism Is:

“An expression of the uncertainty that comes from working in an environment

where ethics are lax, employees don’t feel valued, and information is withheld.

When it thrives in an organization, it signals a lack of employee trust—a problem

that’s gotten significantly worse over the last generation.”

Rich Karlgaard, Publisher of Forbes

(http://www.wphealthcarenews.com/is-employee-cynicism-killing-your-culture/)

http://www.wphealthcarenews.com/is-employee-cynicism-killing-your-culture/


Cynicism About Culture Change Efforts is the Top Training Program Concern



The Trust Story

• In general, trust in businesses (over other institutions) is on the rise


Trust Varies by Country – U.S. Around the Average

Source: Edelman Trust Barometer 2016


CEO Trust Increasing and Peers Most Important

Source: Edelman Trust Barometer 2016


Delayed Case Closure Time Can Lead to Cynicism

KEY FINDINGS


Another Significant Case Closure Time Increase

Source: NAVEX Global's 2016 Ethics and Compliance Hotline Benchmark Report


Case Closure Time Increases in Three of the Five Allegation Categories

Median Case Closure Days in 2014 = 39 days Median Case Closure Days in 2015 = 46 days



Reports of Retaliation

KEY FINDINGS


Organizations Still Not Getting the Chance to Address Retaliation Allegations Internally



Retaliation Substantiation Rates Remain Elevated



Combatting Cynicism In Your Organization

Employee Beliefs/Actions

• Can employees speak up without censure?

• Are employees allowed to help lead, advocate, and influence?

• Are employees treated – and do they treat each other – with respect?

• Do your training programs feel like a check-the-box experience?

Management & Culture

• Do you know what the trust issues are in your organization?

• Who are the most trusted people in your organization?

• Do leaders keep their promises and live the values?

• Do you have a transparent culture?

• Do organizational messages match behaviors (do as we say)?

• Are managers and employees able to identify and control behaviors that bread cynicism?


Insights from Benchmark Reports on Boosting Culture

If you provide suboptimal information and guidance, employees get the implicit message that this stuff doesn’t really matter.

• Address fear of retaliation head-on through training and awareness campaigns

• Employees typically want to report issues internally first: make sure your reporting systems (and middle managers) encourage reporting

• Increase quality of training and policies; ensure employees understand how these are fundamental to the success of your organization

• Get properly funded: a “bare minimum” approach breeds employee cynicism about culture and values


Organizational Structure

Fragmentation, Silos and Lack of Process Champions


Everyone Wins When HR & Compliance Work Well Together

• Coordination between HR and E&C is

often strained by:

− Duplication of efforts

− Inefficiencies

− Fear that confidential employeeinformation will not remain confidential

− Turf battles


7 Major Stakeholders (Silos) in Policy Management

Source: NAVEX Global's 2016 Ethics and Compliance Policy Management Benchmark Report


Silos Hamper Change in Policy Management

Source: NAVEX Global's 2016 Ethics and Compliance Policy Management Benchmark Report


Key Responsibilities for Third Party Risk Management

Source: NAVEX Global's 2016 Ethics and Compliance Third Party Risk Management Benchmark Report


Resources & Budgets


28% of Respondents Have No Dedicated Training Budget



HR/ER, E&C and Legal Are Top Three Budget Contributors forTraining and on Average of 2.3 Departments Contribute to Training Budgets



Automation and Technology Increase Satisfaction in Third Party and Policy Management

0%

20%

40%

Centralized and standardized policymanagement software

No standardized policy managementsoftware

Poor

Fair

Good

Very Good

Source: NAVEX Global's 2016 Ethics and Compliance Third Party Risk Management Benchmark Report

Please rate your organization's execution on the following aspects of policy management.*


Adaptability to Change


Workplaces are Changing Dramatically, but E&C Programs May Not Be Keeping Up

Data from the benchmark reports suggest that

E&C programs may not be evolving fast enough

to meet the needs of a rapidly changing workplace


Board Training Not Adapting to Emerging Risks



Training Programs Slow to Innovate in Delivery Formats



25% of Respondents Still Managing Training Tracking & Processes Manually



Don’t Miss Critical E&C Data Capture

Organizations that documented reports from all channels in their

incident management systems captured 72% more reports.

INTAKE METHODS

Incident Management System Centralized Report Documentation,

Workflow & Analytics

MEDIAN NUMBER OF REPORTS

CAPTURED = 1.9

Nearly 2x Visibility Into Organizational Culture and Trends

INTAKE METHODS

MEDIAN NUMBER OF REPORTS

CAPTURED = 1.1


Insights from Benchmark Reports on Keeping Up With the Pace of Change

• Stale content and manual approaches create risk

• Refresh training and policy content and automate processes wherever you can

• Complete risk assessments to ensure you’re keeping up with emerging risks—and create

a multiyear training plan to match new risks with appropriate training and policies

• Mix up your delivery formats—look for opportunities to gamify or create social

learning experiences.

• Track results and make a case for incorporating more of these elements in your

program going forward

• Embed policies with tools, videos, relevant examples and decision trees


Expanding the Scope of E&C: Is This the Year for Pushing Boundaries and Increasing Authority?


Thinking Outside the E&C Box

• Is the scope of our E&C programs too

narrowly focused?

• High-profile areas with clear E&C

components are often over-looked as not

“part of the job”

− Cyber security, sustainability, marketing, advertising, philanthropy, human rights, community engagement

• Long term goal, but look for short

term opportunities


Key Steps For Organizations To Take

1. Pay attention to advertising, marketing and your values. Watch for disconnects between your core values and your marketing campaigns

2. Ask questions about who owns key risk areas. Confirm that E&C issues related to each risk area are being addressed

3. Find common ground. Corporate social responsibility, human rights, sustainability: it’s in everyone’s interest to make sure E&C issues related to these areas are identified and addressed


What’s Next on the Schedule?

Don’t miss the next 3 sessions at 12:00pm PT / 3:00pm ET• Become a Strategic Partner to the Board & C-Suite: Advance Your

Program and Career

• The Impact of Workplace Investigations on Corporate Culture—and Vice Versa

• Whistleblowing & Retaliation: New Acts Prompting Swift Action

Enjoy a 30-minute break at 1:00pm PT / 4:00pm ET! During the break, join a special Scheduled Chat with FCPA & Corruption expert, Michael Volkov—in the Networking Lounge!

Our Closing Keynote is at 1:30pm PT / 4:30pm ETThe Business Case for Compliance: How Ethics PaysTimothy Erblich, CEO, Ethisphere

Date post:	19-Aug-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

Data You Can Use in Your Program Today: Insights from Across Our ... - NAVEX Global · 2016 Ethics...

Documents