Day: October 20, 2023

I recently sat down with Adam Balfour, author of Ethics and Compliance for Humans. We had a great conversation about his book and the importance of ethics, compliance, and organizational leadership. In addition to a book aimed directly at the Chief Compliance Officer (CCO) and compliance professionals, Balfour emphasized that these principles extend beyond legal backgrounds and encompass various aspects such as sales, marketing, leadership, and culture.

I began by asking Balfour why he wrote the book. He said that it was a goal he had set for himself for some time, wanting to write this book. Further, it has been in the works for quite a few years. Towards the end of last year, Sarah Haddon, publisher of Corporate Compliance Insights, started talking, and it came to life then. Once he had more thoughts and a vision, the book seemed to come together for him. Balfour said that the writing process was a lot of fun, so I also enjoyed that part of the experience. Equally importantly, as a first-time author, Sarah and her team made the process painless and enjoyable.

One of the key takeaways was the role of leaders in promoting ethics and compliance within organizations. Balfour highlighted the need for practical guidance to help leaders effectively navigate ethical dilemmas and ensure that their responsibilities are performed. He emphasized the importance of moving past the perception that ethics and compliance are solely about laws, rules, and regulations. Instead, Balfour suggested that the focus should be on helping guide employees with good intentions to achieve positive outcomes.

We also addressed the challenge of managing negative brand perceptions and humanizing compliance programs. Balfour acknowledged that compliance can sometimes put people in awkward positions, such as when dealing with gifts and entertainment. However, he encouraged organizations to lean into the awkwardness and guide employees on navigating these situations effectively.

One exciting idea that Balfour introduced was the use of pop culture in compliance training to make it more relatable and engaging. By incorporating elements from popular culture, organizations can create a more accessible and enjoyable learning experience for employees.

Balfour also discussed the importance of considering the impact on individuals when making decisions about ethics, compliance, and leadership. He emphasized that there are real human stories and experiences behind the data and metrics. It is crucial not to lose sight of the fact that people are involved and that their experiences can significantly impact their lives and well-being. By incorporating these human stories, Balfour believes that ethics and compliance become more relatable and meaningful to employees.

Balfour highlighted the value that a practical ethics and compliance program can bring to organizations. It goes beyond avoiding fines and penalties or negative headlines. An effective program can contribute to increased return on assets, fewer material lawsuits, and lower settlement amounts. Balfour compared ethics and compliance professionals to midfielders in soccer, playing a crucial role in defense and supporting the organization’s growth.

The book’s main text ends with Balfour calling for a change from a CCO designation to a Chief Purpose Officer. He explained that the concept is something he has been thinking about for some time. There are many different areas and organizations today that he believes are too siloed. He listed ESG, which I think is going through a lot of change and transformation right now. DEI and others, but he drove home the point that “it’s really how you think about what your organization’s purpose is and bringing those functions together under a Chief Purpose Officer.” Further, this Chief Purpose Officer “should have a central place in the C-Suite, helping ensure that the organization stays true to its stated purpose.

He called out Patagonia as an example of a company that is very committed to its purpose. Using the model of Patagonia, which does not have a designated Chief Purpose Officer, leading him to believe “it may not be necessary to create a standalone position.” But “in other organizations, having this idea of a Chief Purpose Officer that supports the CEO supports the CFO in delivering their results. It helps ensure that the organization truly obsesses about its purpose and conducts business correctly and appropriately.”

After the main text ends, Balfour includes excellent resources for every compliance professional. He listed out ways you can tell stories about successful ethical victories from your organization’s history; provides ethics questions and issues inspired by Star Wars; lists some raps and the basic laws of anti-trust; lays out the Speak Up Habit loop; lists specific tactics for bringing compliance into the employee interview process; informs us how Booth’s Law #2 applies to ethics and compliance; and details how to obtain a commitment from newly minted leaders in your organization.

Adam Balfour highlighted the importance of ethics, compliance, and leadership in organizations. Balfour emphasized the need for leaders to go beyond legal thinking and consider various aspects such as sales, marketing, and culture. The episode also highlighted the challenges associated with ethics and compliance, including addressing negative brand perceptions and navigating awkward situations. Organizations can create a more meaningful and effective approach to ethics and compliance by humanizing compliance programs and considering the impact on individuals. I hope you will purchase a copy of Ethics & Compliance for Humans and incorporate its concepts into your compliance program.

Check out Ethics & Compliance for Humans here.