Nudging Corporate Compliance and Integrity – Based on the Ethical Compass
Project supported by KBA-Notasys Integrity fund
From society’s viewpoint, corporate compliance is a necessary prerequisite for a corporation’s license to operate. For corporations, and more specifically, for their members in concrete situations, compliance is often perceived as a cost, be it direct or, more importantly, indirect, namely as a constraint not to choose an alternative that may be seen as advantageous, but not in line with compliance or integrity demands.
The project “Nudging Corporate Compliance and Integrity – Based on the Ethical Compass” is intended to elaborate on two combined tools for more effective compliance and integrity (C&I) management: an ethical compass and nudging. The mentioned tools aim at motivating compliance and integrity demands as an investment in sustainable value creation (Ethical Compass) and supporting this motivation with concrete behavioral interventions (Nudging). Accordingly, two implementation problems can be identified: (1) to understand the “Why”, that is, the deeper reason for compliance and integrity which, if perceived, might increase the willingness to adhere to the rules and standards of proper conduct; (2) to actually be compliant in situations where opposing situational incentives might tempt or push persons to be non-compliant.
The goal of the project is to explore the possibilities to support C&I management with the Ethical Compass and Nudging and to specify (a) the conditions, (b) the constraints and (c) the concrete measures. A crucial feature of the project is the integration of conceptual (ethical, economic and psychological) knowledge with experiences from practice in order to ensure the relevance and usability of the developed tools. Based on desk research, questionnaires and interviews as well as an expert workshop, the objective is to provide a handbook for corporations on how to implement both tools for effective compliance and integrity management. The insights documented in the handbook should provide a framework for future research as well as an orientation for practitioners in the field of compliance and integrity management.