Five Trends Seen in Our Clients’ Culture, Conduct, and Compliance Needs in 2024, So Far

As we approach the second half of the year, we’re reflecting on the topics that have been front-of-mind for clients, and given us some interesting problems to solve for:

• A shift to an environmental understanding of speak-up culture. We are seeing companies move away from simple measures of whether their speak-up program is fit for purpose (e.g., tracking whistleblowing reports and trends over time) to exploring whether their culture creates the right environment to foster speak up. This comes as whistleblowing receives renewed focus following the DOJ’s new reward program for individuals who report criminal misconduct at public or private companies, and the UK’s ongoing discussions around how to incentivize reporting, and the implementation of the EU Whistleblower Directive.
• A desire for internal investigations to be more efficient, effective, and culturally sensitive. Perhaps due to more whistleblowing, we have seen a meaningful increase in internal and government-facing reviews globally, including reviews of sensitive issues such as sexual harassment, discrimination, or cultural concerns. Thus, conducting more effective and efficient investigations has become a necessary focus. There is also a desire to ensure investigations are perceived as fair and take a trauma-informed approach for all parties involved. 
• Seeing the possibilities of integrated data analysis. The amount and types of data our clients must navigate for business and investigation purposes is only growing. Instead of being satisfied with highlighting examples of problematic conduct in limited data sets, some clients are now expressing desires to query databases to identify patterns of behaviors beyond initial escalations. 
• Asking bigger questions. Clients are going beyond immediate and direct consequences of investigations to identify true root causes. Is a bullying and harassment claim a symptom of a wider cultural issue in the division? What is driving a sales team to ignore policies, procedures and repeated training? We’ve helped clients conduct culture assessments and used qualitative and quantitative methods to map culture. It has helped them think about what to change in their workplace ecosystem. The potential impact of the M&A Safe Harbour on disclosure is also still fresh in our clients’ minds. With cultural assessments becoming a standard part of the due-diligence process, cultural factors are more likely to scupper planned exits. 
• Portfolio-wide risk benchmarking. Our investor clients are conducting risk assessments across their portfolios to understand where the companies they’re invested in are exposed to core risks, as well as assessing how well equipped their compliance programs are to deal with the relevant risks. The legal and deal teams at these clients are using data visualizations of the portfolio reviews in meetings to prioritize efforts to strengthen compliance programs. As investors hold assets for longer, more attention is being paid to managing risks and ensuring companies’ controls are in place before any planned exit. 

Across these, one common theme is “culture”. Regulators and enforcement agencies are, of course, talking about it. But our clients are recognizing how much it affects every aspect of organizations business success and risk management. That’s why we see mapping, measuring, and acting on organizational culture as an essential part of the toolkit. 

R&G Insights Lab is a differentiated solution for corporate governance and risk. Combining legal talent and subject matter experts in compliance, data, culture, and behavioral science, we help clients assess risk, map organisational culture, design compliance programs, and implement actionable insights from qualitative and quantitative data. Get in touch with us to bounce around ideas and approaches. 

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