Welcome to a short podcast series on doing compliance with a Venetian twist. This week, we will examine three areas where Venice’s time-honored methods inform modern compliance practices. Over the next 3 episodes, we will consider going back to basics in your compliance regime, the use of incentives and consequences to drive a culture of compliance, and how the Lion’s Mouth informs your modern-day whistleblower program. In episode 2, we see how Venice used financial and non-financial incentives and consequence management to create a culture of compliance in Venice’s largest business operation, Arsenale.
The Arsenale district in Venice was known for its shipbuilding prowess from the 1200s to the 1400s. By examining how Venice managed its critical shipbuilding workforce through both incentives and discipline, Tom draws valuable parallels to modern corporate compliance programs. He highlights that Venice implemented job security and compensatory incentives to promote loyalty while enforcing strict non-compete clauses and severe punishments for leaking state secrets. Tom emphasizes the importance of balancing positive incentives with clear disciplinary actions, aligning this historical example with contemporary guidance from the DOJ and SEC. These principles support recognizing compliance efforts through promotions, bonuses, and acknowledgments, which can foster ethical behavior and improve overall organizational integrity.
Key highlights:
- Arsenale and Incentivizing Compliance
- Historical Context and Compliance Insights
- Punishments and Incentives in Venice
- Modern Compliance Practices
For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.
Check out the full 3-book series, The Compliance Kids, on Amazon.com.
