Compliance: From rules to values

Anyone following discussions about the growing importance of compliance as a rule-based management tool may get the impression that integrity and trust have become fundamentally dispensable and that the principles of the honorable businessman are no longer in keeping with the times. But on closer inspection, the opposite is true.

In practice, compliance is mainly determined by laws, controls, and sanctions: Employees are to be extrinsically motivated to do the right thing in the interests of the company by a fine-meshed system of controls and sanctions. This approach often forgets that value-based compliance systems bring many benefits, for example by strengthening the corporate culture and conveying positive values.

Read more about why compliance should be built more on values than rules in this article from KPMG.

The article appeared in the twelfth issue of KPMG’s CGO magazine, which also features articles on supply chain due diligence, sustainability KPIs, EU taxonomy, remote audits. You can download the magazine in full here.


PS: Please note that the article is only available in German.