Leaders often assume a uniform corporate culture, but reality is fragmented. Ethical norms can differ dramatically between a sales team in one country and a finance team in another. Recognizing this heterogeneity is the first step toward effective, tailored compliance programs that address specific local risks.
Instead of relying on passive whistleblower hotlines, companies can proactively identify high-risk areas. A simple survey asking employees if they've seen misconduct, if they reported it, and why not, acts as a powerful diagnostic tool to pinpoint where integrity gaps are emerging before they become major crises.
Many white-collar criminals are otherwise intelligent, successful leaders who want their firms to succeed. Their misconduct stems from environmental pressures and psychological distance from consequences, rather than inherent malicious intent. This challenges the simplistic view that only bad people do bad things.
Public perception sees corporate fraud as a rare, company-defining event. The reality inside Fortune 100 companies is that substantial violations occur frequently—as often as every few days. Management's job isn't to eliminate misconduct entirely, but to manage its frequency and severity to keep it small and internal.
Most firms give generic online training to masses and reserve expensive in-person sessions for senior executives. A more effective approach is to use data, like from an ethics survey, to identify high-risk business units or regions and invest in targeted, in-person training for them, regardless of seniority.
It is commonly assumed that fear of retaliation is the primary reason employees stay silent about misconduct. However, research reveals a significant factor is the desire not to see their colleagues get fired. This social dynamic, not just individual fear, creates integrity gaps that leaders must address to encourage reporting.