​The Culture Impact

Tone at the top and visible support from management are crucial in shaping the organization’s ethical values, says Pilar Caballero, chief compliance officer at Ryder Systems.

Comments Views

​How can a board or management best change a toxic culture or nurture a positive culture?

While the board has oversight of the alignment of the company’s culture with its strategic vision, it is difficult for a board to directly shape corporate culture. Management is in the best position to impact culture. The tone at the top and management’s visible support of a compliance and ethics program are crucial. For example, how management responds when its most beloved, top-performing employees misbehave sends an important cultural message as to what is tolerated and the collective values of the organization.    

Is culture always to blame for misconduct?

While culture is frequently a significant factor when misconduct occurs, culture is not always the only culprit. Rogue employees can behave poorly, contrary to company culture, and create liability for companies. How a company reacts to misconduct by an employee or group of employees can say a great deal about the company’s culture and goes a long way toward cultivating the right tone. Leveraging information and resources from internal audit, human resources, finance, and legal helps keep a pulse on the culture.

Should boards be more proactive in identifying early signs of CEO and employee misconduct?

 The board has oversight of the company's risk which include risks associated with CEO and employee misconduct. It is important for the board to cultivate open channels of communications among key members of management, including a company's chief compliance officer, to better evaluate the corporate culture and understand what an organization is doing to promote an ethical culture.

Staff
Internal Auditor is pleased to provide you an opportunity to share your thoughts about the articles posted on this site. Some comments may be reprinted elsewhere, online or offline. We encourage lively, open discussion and only ask that you refrain from personal comments and remarks that are off topic. Internal Auditor reserves the right to remove comments.

About the Author

 

 

Ia Online StaffIa Online Staff<p>Written by <em>Internal Auditor </em>magazine staff.</p>https://iaonline.theiia.org/authors/Pages/Ia-Online-Staff.aspx

 

Comment on this article

comments powered by Disqus
  • MNP_Natonal Can Conf_Sept2017_Premium 1
  • SCCE_Aug2017_Prem 2
  • IIA FallTraining_Sept2017_Prem3