Managing Fraud Risk: A Practical Guide for Directors and Managers

Integrated Approach

Adrian's comments about the need to manage with “tough empathy” are very perceptive I think. In fact the phrase sums up very neatly the approach to business ethics that I recommend to both my clients and my delegates alike. This is the integrated approach, one that combines tough compliance measures with the promotion of the organisation's positive values. The following areas help to illustrate this integrated approach:

• A purely compliance approach within organisations will place the emphasis on absolute adherence to the law, regulations and procedures, whereas an organisation that promotes employee engagement and positive behaviour will always emphasise the importance of being true to the organisation's stated values. The integrated approach balances values and rules.
• A compliance approach will always seek to prevent unethical conduct, whilst a values approach turns this thinking on its head by promoting ethical conduct. The integrated approach does both. It promotes ethical conduct but has a zero tolerance of all unethical conduct.
• A compliance approach will promote formal accountability mechanisms (staff appraisals, disciplinary procedures etc.) underpinned by external enforcement when needed (such as by auditors, lawyers, or the police). A values approach will encourage people to take personal responsibility based on internal commitment to the organisation. The integrated approach will certainly stress the importance of internal commitment but will have ...