Ethics and compliance in corporations: values based approach

In the corporate world, one comes across titles such as Ethics Counsellor, Compliance Officer, Ethics and Compliance Officer, Ethics Officer and many others. Though the titles differ, all persons working in the Ethics & Compliance programs in corporations share the common goal of promoting responsible conduct in the corporation. With the overarching goal being the same, the approach and strategies vary based on the chosen title: Ethics or Compliance. Under the Ethics approach, one strives to select individuals with good character, depends on the inherent goodness of employees, and employs ethics exhortations. With the Compliance approach, one depends on codified rules and adherence to these codified rules which usually originate from the law, and which are extended by the company policies. Both approaches have pros and cons, and the cons often outweigh the pros. The various stories of corporate misadventures reported in the newspapers, raise questions on the efficacy of these approaches. There is third approach based on "values", which can possibly be more effective in resonating with the employees of a corporation. By identifying the stakeholders (not limited to the financial stakeholders) who are impacted by the corporation, by recognizing the interests of the stakeholders, by committing to the values and duties of care towards stakeholders, "responsible conduct" of the corporation towards the stakeholders can be pursued effectively, and sustainably.