The effective implementation of regulation in organizations is an ongoing concern for both research and practice, in order to avoid deviant behavior and its consequences. However, the way compliance with regulations is actually enacted or “performed” within organizations instead of merely executed, remains largely under-characterized. Evidence from an ethnographic study in the compliance unit of a French investment bank allows us to develop a detailed practice approach to how regulation is actually implemented in firms. We characterize the work accomplished by (...) compliance analysts who are in fact, “curving” the script of regulation within what we conceptualize as a “comfort zone”. Beyond agency, ethics appears as a key element in linking the “letter of the law”, which serves as a referential anchor to guide action, with the complex nature of specific situations. We analyze the way individuals and compliance teams cope with, interpret, struggle and in fine, perform regulation within this comfort zone. A particular interest is thus given to the work of embedded ethics in this process, as an enabler to partly recouple compliance with the regulated activity. We find that blind execution is not only impossible, but also devoid of meaning both from regulatory, risk management, and business perspectives in organizations. We highlight and characterize a hermeneutic dimension to this work, essential to effectively perform regulation in complex environments, and we suggest some directions for further research. (shrink)

“No one can serve two masters.” This Bible quotation highlights an irreducible contradiction, which echoes numerous organizational settings. This article considers the under-explored ethical implications of paradoxical injunctions created by such a contradiction at the managerial level. Contradictory organizational constraints turn into paradoxant systems , where the organization structurally settles paradoxical injunctions which challenge managerial ethics in practice. We then ask what managerial responsibility means in such contexts and find that managers have then to reshape their practice as a situated (...) construction through constant mediation between different “masters” and bricolage (i.e., tinkering with concepts). An ethnographic case study of an anti-money laundering service in an investment bank illuminates this phenomenon from a practice perspective. The possibility to enact an actual ethical practice within the contradictory organization relies on a new role of the manager. This implies drawing on an approach of responsible management as an enactment of ethics in practice which is situated within the framework of a new conception of both the organization, as a structurally “paradoxant system,” and the manager as a mediator in charge of enacting coherence. (shrink)