Notwithstanding empirical evidence that combining ethics and compliance into one function or programme is likely to erode an ethical culture in organisations, the praxis to coalesce ethics and compliance conceptually and structurally remains attractive and continues in many organisations. Drawing on systems psychodynamic theory, this study enquires into unconscious complexities and drivers that may contribute to adverse consequences when combining ethics and compliance. Whereas previous research demonstrates that compliance dominates ethics because of self‐regulation issues, this research provides deeper insight into (...) why this happens. On explicating the unconscious dynamics that underlie the apparent lure of combination, it becomes clear that this praxis remains attractive because of its function to repress anxieties, maintain phantasies, and provide psychological comfort. In recognising the role of unconscious dynamics in the decision to combine ethics and compliance and the consequences thereof, cognition of this combination and its outcomes is moved beyond a conscious rational process. This elucidates the commanding opposing unconscious forces potentially at play in this decision. Insights could lessen adverse outcomes by prompting organisations to think of the combination of ethics and compliance as unconsciously motivated systemic processes that require sincere consideration before pursuing them. (shrink)

Over the last decade, scandals within the UK Financial Service sector have impacted their legitimacy and raised questions whether a compliance culture exists or not. Several institutional changes at the regulatory and normative levels have targeted stakeholders’ concerns regarding compliance culture and led to changes in the legitimation process. This paper attempts to address a gap in the literature by asking the following question: How is the UK financial institutions’ compliance culture shaped by the institutional environment and changing legitimacy claims? (...) Towards achieving this objective, the paper draws on the institutional theory and pays attention to the various configurations of the legitimacy notion :451–478; 2017). The paper utilises a longitudinal interpretive design and undertakes a qualitative content analysis of fines issued by the UK regulator and the communicated response of violating firms as well as non-sanctioned firms. Our findings indicate that there is a cyclical ‘evolutionary compliance’ rather than the more widely recognised state of ‘compliance culture’. This culture is fuelled by interchangeable isomorphic forces where the majority of violating firms are seen to issue similar responses to the regulators sanction to maintain their reputation and legitimacy in the market. Notably, legitimacy is now defined within an interactive process between the regulator and firms rather than being static and achieved by ticking the box. (shrink)

Secrecy and ethics are often seen as opposing forces within organizations. Secret work is viewed as unethical, as it excludes others from knowing and is associated with self-interested behavior. We contend that this view does not account for the dynamic inherent to secrecy and to the fact that ethics is embedded in social relations. This paper suggests an alternative view. We consider secrecy as a social process which allows employees to maintain their ethics when faced with managerial policies that affect (...) the quality of their work. Building on an in-depth case study of a team of journalists who worked in secret after their managers decided to prioritize the interests of shareholders and advertising firms, we show how these journalists managed to maintain collective ethics through secrecy and to do their work according to their own moral principles. This paper offers two primary contributions. First, we show a mutually beneficial relationship between ethics and secrecy in organizations, wherein secrecy helps maintaining ethics in everyday work. Second, the paper shows how secrecy can lead to ethical resistance, via a transformation of the power relationship with managers. (shrink)

A paper was published in 2003 discussing the ethics of nurses participating in executions by inserting the intravenous line for lethal injections and providing care until death. This paper was circulated on an international email list of senior nurses and academics to engender discussion. From that discussion, several people agreed to contribute to a paper expressing their own thoughts and feelings about the ethics of nurses participating in executions in countries where capital punishment is legal. While a range of opinions (...) were presented, these opinions fell into two main themes. The first of these included reflections on the philosophical obligations of nurses as caregivers who support those in times of great need, including condemned prisoners at the end of life. The second theme encompassed the notion that no nurse ever should participate in the active taking of life, in line with the codes of ethics of various nursing organisations. This range of opinions suggests the complexity of this issue and the need for further public discussion. (shrink)

Environmental, health, and safety management systems have become common in research settings to improve laboratory safety through systematic observation and self-regulation. However, there is scant empirical evidence assessing whether these surveillance and inspection systems meet their intended objectives. Using data from safety inspections in research laboratories at a large university, we investigate whether conducting inspections, and recording and reporting findings back to the formally responsible actors (i.e., principal investigator scientists) lead to the improvement of regulatory compliance. Our analyses identify a (...) population of well-funded, high-status, tenured researchers whose non-compliant practices persist. Our interviews with environmental, health, and safety personnel suggest that higher-status actors disengage from the regulatory system, the compliance officers, and the system’s feedback process by their variable recognition and acknowledgment of relevant regulations, attention to the inspection reports, and responses to the feedback concerning repair of the unsafe situation. This study extends previous literature on regulatory compliance by providing evidence for the role of power and status in explaining actor-level non-compliant behavior. (shrink)

This qualitative field study is based on interviews with 20 experienced audit partners in France and documents the dialogical dimension of ethical deliberation in auditing. We ask: do audit partners consult each other when faced with an ethical dilemma at work? Who among their peers do they prefer to consult and why? Our analysis provides evidence that audit partners do not deliberate alone, contrary to what psychological experimental research on audit ethics usually postulates. When faced with an uncertain situation in (...) terms of professional ethics, they seek reassurance by consulting colleagues. Not just any colleagues, however. Whom they consult depends on whether they wish to avoid or take measured ethical risks. Overall, we find that audit partners approach ethics as a personal and collective risk that must be managed in specific ways. This study enriches what we know about auditor ethics by helping to shed light on what is usually inaccessible to researchers: the questions that audit partners ask their peers when faced with uncomfortable ethical issues in client engagements before making a decision they find acceptable. (shrink)

The compliance officers' (CO) profession has been evolving over the last few decades. The expectations placed upon the individuals holding such a position vary across jurisdictions, but they are all expected to ensure employees and management of the business entity comply with the law. Given the limited research on CO in Europe, and the increasing public interest in this profession, the current authors have carried out a survey in Cyprus in an effort to map out and contextualize the CO' profession. (...) The findings illustrate CO's academic and professional qualifications, their awareness of their legal liability, the level of knowledge and job performance of their duties as prescribed by law, as well as gaps in the performance of duties as expected by management, boards, and regulators. The policy implications derived from the study suggest coherence and synergies to be found through common exam and postgraduate qualification in the field of financial compliance. (shrink)