COVID-19 Ultimate 'Test' For Ethics & Compliance Programs: Report

SAN FRANCISCO, CA — The COVID-19 pandemic proved to be the ultimate "stress test" for ethics and compliance programs worldwide, but employees said their companies largely rose to the challenge, according to the latest annual Ethics and Compliance report published by LRN.

"The 2021 Ethics & Compliance Program Effectiveness Report: Meeting the COVID-19 Challenge" examined how the pandemic affected ethics and compliance programs around the world, and whether employees felt supported by their employers. LRN, which has an office in San Francisco, publishes the report annually and works with more than 700 companies across 100 countries.

Researchers surveyed nearly 650 ethics, compliance, and legal executives and experts at companies and organizations with at least 1,000 employees.

Among the findings, 87 percent of ethics, compliance, and legal experts reported that leadership rose to the challenges of dealing with the consequences of the crisis. Additionally, 79 percent said their company's ethical culture is stronger as a result of their COVID-19 experience.

However, only 40 percent of respondents reported that their firms simplified or modified compliance procedures to meet the new business challenges. And only 45 percent indicated that their ethics and compliance team, in the face of the pandemic, strengthened risk controls in critical areas such as cybersecurity, privacy, and donations of critical equipment.

The survey was conducted during the second half of 2020 and analyzed during early spring 2021.

Read the full report.