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Making Ethics & Compliance Training Memorable: Part 2 – What is Strength Based Training?

There is not much I enjoy more than sitting down with one of the innovative thinkers in compliance, Carsten Tams, to find out what is on his mind regarding compliance. I recently had the opportunity to do so on the topic of making Ethics and Compliance (E&C) training memorable. We explored this topic over this short five-part podcast series on the  Innovation in Compliance podcast series on the award-winning Compliance Podcast Network.

Over the next five blog posts, I will also explore these topics in the blog format. I will introduce the problem and challenges and then provide you with four proven strategies for success in your compliance training. I deeply dive into why traditional E&C training often fails to engage employees and needs more impact on their behavior despite significant investments. In Part 2, we discuss focusing on strengths within compliance and ethics training instead of traditional deficit-based methods highlighting potential misconduct.

Employees often feel mistrusted and alienated when we instruct people about prohibited behaviors and how the company detects and discipline misconduct. They tune out. This is deficit-based learning. It approaches the learner as a risk factor or potential delinquent. It aims to constrain unwanted behavior. When employees can learn how to shape and safeguard the ethical workplace they aspire to effectively, they feel inspired and tune in. This is strength-based training. It approaches the learner as a valued partner in maintaining integrity. It assumes that people have capabilities and aims to elicit and strengthen the positive ethical faculties already present in most people.

Traditional compliance training often begins with the assumption that employees might engage in inappropriate behavior. This deficit-focused approach can make employees feel like potential delinquents, which is counterproductive. When training casts employees in a negative light, it threatens their self-concept and leads to disengagement. Self-affirmation theory in psychology supports this, suggesting that people must feel respected and valued to stay engaged.

In contrast, a strength-based approach recognizes and builds upon the positive capabilities that employees bring to the table. This method has proven successful in various fields, including healthcare, aviation safety, and education. It engages employees more effectively by acknowledging their existing values, problem-solving skills, and capacity for ethical behavior.

I would not talk about Carsten Tams if I did not cite his signature line, “It’s All About the UX.” This highlights the significance of user experience in training, as effective compliance training should integrate employees as valued partners. Focusing on learners’ needs and expectations can make training more engaging and impactful. This shift from content-centric to learner-centric training is crucial for building trust and engagement.

Employees inherently possess ethical values and capabilities. Research by Jonathan Haidt on Moral Foundations Theory indicates that people worldwide share basic moral intuitions such as fairness and respect. Employees also bring problem-solving skills and the ability to act and speak up when they observe unethical behavior. The Association of Certified Fraud Examiners, in its annual Report to the Nations, has consistently found that employee tips are the primary source of detecting misconduct, highlighting the importance of empowering employees as ethical agents.

Strength-based training involves recognizing and developing these inherent capabilities. Some examples are:

  1. Scenario-Based Training: Traditional deficit-based scenarios focus on spotting problems and avoiding rule-breaking. Strength-based scenarios, however, go further by engaging learners in problem-solving. Employees are presented with situations where they can devise strategies to uphold ethical values and prevent negative outcomes. This approach utilizes their creative and critical thinking skills.
  2. Collaborative Learning: Encouraging social interactions and mutual support among employees can enhance the training experience. Fostering a sense of community and collective efficacy can help employees feel more confident in intervening against unethical behavior.
  3. Active Bystander Training: In areas like anti-sexual harassment, training that views employees as potential allies rather than potential offenders has shown positive results. Programs like active bystander training empower employees to act and support each other in maintaining a respectful workplace.

Strength-based training does more than prevent misconduct; it contributes to building an organization’s sustainable, ethical culture. By enabling and encouraging most employees to act on their moral values, organizations create an inhospitable environment for potential wrongdoers. This approach is more effective than relying solely on top-down communications about zero-tolerance policies and disciplinary measures.

Tams emphasizes that a supportive and proactive community within the workplace can deter unethical behavior more effectively than distant enforcement. In criminology, research on collective efficacy shows that communities with strong social ties and confidence in their ability to address incivilities experience lower crime rates. The same principles can apply within organizations, where a collective commitment to ethical behavior creates a powerful deterrent against misconduct.

Strength-based ethics and compliance training represent a paradigm shift in how organizations approach compliance. By focusing on employees’ positive capabilities and fostering a supportive and engaging training environment, companies can build a more resilient and ethical culture. This approach enhances compliance and empowers employees to be active partners in maintaining and promoting ethical standards. As organizations continue to evolve, integrating these principles into training programs can lead to more effective and sustainable outcomes.

Join us tomorrow, where I take a deep dive into making your compliance training experiential.

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SBR - Authors' Podcast

SBR Authors Podcast: Adam Balfour on Ethics and Compliance for Humans

Welcome to the Sunday Book Review, the Authors Podcast! Don’t miss out on this episode of SBR-Author’s Podcast, where Tom sits down with Adam Balfour on his book Ethics & Compliance for Humans.

Adam Balfour, a Scottish-born compliance professional, has been leading the compliance program for the Americas region at Bridgestone. Balfour strongly believes in the importance of ethics, compliance, and leadership within organizations, arguing that these elements can significantly contribute to financial success. He likens the role of ethics and compliance professionals to soccer midfielders, who defend and support the team’s growth. Balfour’s perspective is shaped by his experiences and passion for ethics and compliance, leading him to write a book titled “Ethics & Compliance for Humans,” providing valuable resources for compliance professionals. Join Tom Fox and Adam Balfour on this episode of the SBR-Author’s Podcast as they delve deeper into these topics.

Key highlights include:

  • The Duality of Human Nature
  • The Importance of Guiding Employees Ethically
  • Humanizing Compliance Programs: Building Ethical Relationships
  • Engaging Compliance Training through Pop Culture
  • Navigating Ethical Dilemmas in the Workplace
  • The Role of a Unifying Purpose Leader

Resources:

Adam Balfour on Linkedin

Ethics & Compliance for Humans

Tom Fox

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This Week in FCPA

Episode 215 – the Something’s Burning edition


As the Chinese Consulate burns papers after its closure, Tom and Jay brave the surge in Covid-19  cases by staying safe at home. They are back to look at top compliance articles and stories which caught their eye this week.

1.     More compliance guidance from OFAC. Dick Cassin reports in the FCPA Blog.

2.     First ComEd fined $200MM in Illinois, then Speaker of Ohio House charged in massive state corruption probes. Matt Kelly in Radical Compliance on Illinois. Julie Wernau and Katherine Blunt in WSJ on Ohio.

3.     Was Willie Nelson or Patsy Cline crazy? Bill Steinmann says it’s the FCPA year 2020 in the FCPA Blog.
4.     Mike Volkov goes Old Testament about Amazon OFAC sanctions. In Corruption Crime and Compliance.
5.     From 3 Lines of Defense to the 3 Lines Model as the IIA updates its model. Matt Kelly back with a rare double double for This Week in FCPA in Radical Compliance.
6.     Compliance really is a journey. Mary Shirley in CCI.
7.     How is Covid-19 impacting compliance? Jennifer Sun explores in CCI.
8.     The Ethical Revolution in Business. Philip Winterburn and Jane Mitchell in Converge.
9.     This month on The Compliance Life, I am joined by Scott Sullivan, Chief Integrity and Compliance Officer at Newport Mining. In Part 1, we discussed  the need for empathy in a CCO. In Part 2, we looked at reading the tea leaves and staying ahead of the (corp) wolf pack. This week in Part 3, we considered who a CCO needs on their compliance team.
10.  On the Compliance Podcast Network, Tom continues the topic of 3rd party risk management this month.This week saw the following offerings: Monday-the ROI of 3rd party compliance (Linda Justice as guest); Tuesday– 3rd parties as innovation partners (Eric Feldman as guest), Wednesday-3rd party risk expansion; Thursday-termination of 3rd parties; and Friday-distributor compensation. The month of July is being sponsored by Affiliated Monitors.  Note 31 Days to a More Effective Compliance Program now has its own iTunes channel. If you want to binge out and listen to only these episodes, click here.
11.  Great Upcoming Webinars:
K2 Intelligence Fin Webinar with AIBACP: Pandemics to Recession—Finding AML and ABC Synergies in Tough Times, July 30, 2020 at 1:30 PM – 2:30 PM EST; with JoAnn Taylor and Adam Frey. Registration and Information here.
ECI’s Best Practice Forum, a Q&A Session with Brian Rabbitt, Acting Assistant Attorney General for the Criminal Division on the FCPA Resource Guide, 2nd edition, Thursday, July 30, 2:00 – 4:00 p.m. EDT. Registration and Information here.
Tom Fox is the Compliance Evangelist and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.

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Compliance Into the Weeds

Compliance Issues in 2020, Part 1

Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. Welcome to the first Into the Weeds podcast of the new decade and the new year. In this Part 1 of a two-part podcast series, Matt Kelly and I take a look at ten issues that we think will be significant for the compliance professional in the upcoming year.

Some of the highlights include:

  • A legislative fix to the Supreme Court’s Digital Realty Trust decision? Can Congress do anything, including overturning this anti-compliance ruling.
  • The Fed will take a look at technological service providers? How this will impact compliance.
  • Climate change disclosures. We use this topic to consider the impact on corporate governance, Boards and mandated disclosures.
  • Disgorgement at the Supreme Court. Will the SCt allow fraudsters to keep their ill-gotten gains?
  • Critical audit matters. Will companies move make controls more data based and less subjective?

Check in next week, where Matt and Tom continue the discussion.
Resources
Matt’s blog post 7 Compliance Items to Watch in 2020 in Radical Compliance.