Newsletter | Volume 1

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How to stimulate the drive to enhance corporate culture

FIFA, Volkswagen, Petrobras, BP and others can be added to the long list of governance failures past the credit and financial crisis that more or less wiped out the accumulated equity of the western financial institutions. The companies and oversight authorities have all undertaken to clean up their governance act to show meaningful results and the willingness to be able to implement and monitor the corporate culture of dishonesty.

The new look on organisational perspectives and insights in stimulating Corporate Culture, we take a hard Look at the softer issues in the organisation that consistently and continuous monitoring cannot discover. How to improve and support corporate culture and that management can uncover the soft, unwritten and customary ways of taking the decisions to bypass the cumbersome bureaucratic processes.

Employee behaviour influences decisions
The key to effective monitoring of the organisational culture needs an insightful and massive understanding of the real values and management and employee behaviour and how the combination influences decisions, priorities about good governance, risk management, compliance and internal controls.

There are just far too many high-profile compliance failures in recent years that are interwoven to corporate business cultures that in fact encouraged, allowed, or looked past forbidden performance.

Check-the-box for adequate procedures
Therefore, Copenagen Compliance® has created a series of ethics and integrity workshops with the primary focus on sustainable business growth. Together we find solutions on how the growth ensures compliance in all corners of the organisation by monitoring the uncharted area of corporate culture. The other option is to solely rely on results from employee surveys or exit interviews, train the staff on concrete subjects required to ensure check-the-box for adequate procedures.

Governance failures can inspire best practice
There are several GRC aspects of corporate failure and the primary issue, in general, is the lack of corporate governance or, in particular, one or more of the governance components of unstructured enterprise risk management, board and management practices, remuneration system, accountability transparency and or the quality and norms of disclosure.

Therefore, in 2016, we suggest that global corporations focus on accountability, transparency and oversight aspects to draw significant lessons in deficient areas that define the GRC culture.

The GRC culture influences the management and employees decisions at unconscious levels, and the results affect stakeholders´ interests. The tone at the top must be to understand the boundaries where controls can be operated and that the GRC policies and rules apply to everyone in the organisation as they pursue their business goals.

Besides the three step implementation explained elsewhere in the newsletter there are three aspects of implementing a GRC culture to create the necessary depth in the processes and the organisation.

Governance Culture: Ensure focus on governance and list all governance components that will the corporate desire to build on all stakeholders with quality, focus and dedication. Sophisticated information architecture is the key to ensure that structured big data can interpret the managements dealing with ambiguities in the decision making process to address the real issues of good and structured processes to enrich the ethics and integrity issues of corporate governance.

Risk Culture: are defined by the structure of values and behaviours in governance culture that affect the risk decisions. All stakeholders must understand the company risk exposure, in fact that should be the first figure that turns up on the screen when management or senior employees log on to the computer. Besides risk policies, statements and procedures, the risk culture are created by GRC training, enterprise risk assessment and guidance on using the data for prudent decision-making.

Compliance Culture: Depending on the overall compliance environment in the organisation the degree of real, effective and value creating compliance in most organisation is rather limited. Most global organisations are not even in sync with the definition of compliance within the various jurisdictions, which affects how compliance issues are handed. The lack of a common meaning is detrimental to how effective a company is in meeting compliance regulations. Creating a strong compliance culture is to follow the right processes and perform the right controls and deterring and detecting compliance problems without oversight.

During such GRC workshops we cover how to be proactive in using GRC to comply with compliance issues, interpreting the intention and make use of the GRC funds to create value.