The standard compliance approach focuses on risk mitigation through enforcement of rules and regulations. Such an approach might help to keep criminals in organization in check, but it does not help to create a climate of integrity. Compliance has to be understood in a broader ethical sense and should be perceived not as a control function but as a genuine leadership function with compliance experts as development partners. This way, compliance processes and structures will not only ensure high quality of products and processes but it will also be a vehicle to support integrity, passion and excellence through a behavioural change. At mlb-consulting, we can help you getting there! To know more, please get in touch under beyond.compliance(at)mlb-consulting.com

1. Beyond Compliance™:
How to enhance ethical
management to support
the overall business
strategy?
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2. Food quality?
Inventoryirregularities?
Corruption by/
of suppliers?
Anti Trust issues?
Correct reporting
on time as basis
for remuneration?
Price fixing?
Environmental issues? Dumping prices?
Health & safety at
the workplace?
Human rights?
Legality of working conditions?
What are your current compliance challenges?
Fraud
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Corruption in the
value chain?

3. The standard compliance approach focuses on
the black sheep only
The standard compliance approach focuses on risk
mitigation through enforcement of rules and
regulations.
The basic assumption behind is, that bad things are
done by “bad people”. Scandals in corporations are
attributed to greedy managers with character
deficiencies.
Accordingly, the compliance systems in corporations
are designed to keep “bad people” in check.
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4. …and forgets that good people do bad
things in bad contexts.
But from what have learned from recent scandals is
that persons with a high level of integrity who are put
into a pathological context will probably misbehave:
bad contexts can push good people towards illegal
and immoral decisions. This is nothing knew. This
phenomenon has been widely examined through
psychological experiments that scholars have
conducted in the early 1950s/1960s in order to
understand the mechanisms behind.
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5. authority
low
trust
compe..ve
environment
internal competition
fear
consensus driven culture
tolerance of
wrongdoing
performance
pressure
group
think
peer pressure
.me
pressure
lack
of
role
models
diffusion
of
responsibility
rou0nes
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Challenges legalistic compliance ignores:

6. How we turn ethically blind?
We perceive the world through a filter
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slippery slope of incremental change
time
Actual
situation:
(all potential
situational,
environmental
and
organizational
pressures and
stimuli)
Ethical
Blindness
Psychological
Factors
- values
- cognitive style
- personality
Observable
Experience
- education
- functional
background
- other factors
Limited
Field
of
Visioni
Selective
Perception
Inter-
pretation
adapted from Finkelstein, S., Hambrick, D.C., Canella, A.A., 2009, Strategic Leadership, here: Bounded Rationality, p. 45

7. Risk
Time
(Reactive)(Proactive)
Financial & Reputational Damage
Integrity
Culture
What you manage:
Compliance
Culture
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With the standard approach the rising tide
of integrity risks is noticed much too late.

8. Contexts are stronger than (most) people
We know that it is extremely difficult for everybody
to live up to our values when there is a “bad context”
around them.
It is not realistic to expect heroism from employees –
fighting “the system” on a daily basis. For an
organization to transform into the next level of
ethical conduct, the “context” itself has to be
addressed.
In an organization of black crows, the single moral
hero (white crow) has little impact.
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9. Beyond Compliance™ or:
moving the organization towards an integrity culture
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10. Beyond Compliance™:
Turning Compliance into a Partner!
• The idea is to use the compliance approach (practices) and systems
to not only ensure high quality of products and processes but also
use it as a vehicle to support integrity, passion and excellence
through a behavioral change.
• Behavioral change does not happen over night, it has to be initiated,
communicated, trained and rewarded. In order to be successful,
behavioral change needs to be part of the companies’ strategy.
• We can support you in initiating, communicating and training of
behaviors, attitudes in order to promote ethical conduct and
integrity at the working place – beyond compliance.
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11. integrity
check-up
• Ethical blindness risk landscape and recommendations
Roll-out
• Create awareness on ethical blindness and develop positive
peer pressure and value resillience
Embed and
sustain
• track KPI’s, embed in management systems, anchor in
behaviours
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Our Beyond Compliance™ Portfolio
milestones

12. integrity
check-up
• interviews with top level management
• trigger points survey
• analysis of policies & procedures & strategy alignment
• Analysis of communication concept
Roll-out
• developing roadmap
• integrity training cascade
• communication alignment
Embed and
sustain
• KPI tracking
• third party involvement
• tailor-made training for selected key groups
• embedding integrity into HR policies
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Our Beyond Compliance™ Portfolio
actions

13. Get in touch to find out more:
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Anna Eckardt, L.L.M.
phone: + 41 78 920 25 46
email: anna.eckardt@mlb-consulting.com
Bettina Palazzo, Ph. D
Phone: +41 79 697 56 28
email: bettina.palazzo@mlb-consulting.com