I recently had the opportunity to sit down with Adam Balfour, author of Ethics and Compliance for Humans. We had a great conversation about his book and the importance of ethics, compliance, and leadership in organizations. In addition to a book that is aimed directly for the Chief Compliance Officer (CCO) and compliance professional, Balfour emphasized that these principles extend beyond legal backgrounds and encompass various aspects such as sales, marketing, leadership, and culture.
I began by asking Balfour why he wrote the book. He said that it was a goal he had set for himself for some time, wanting to write this book. Further it has been in the works for quite a few years. Towards the end of last year, Sarah Haddon, publisher of Corporate Compliance Insights, I started really talking and it kind of came to life then. Once he had more of the thoughts and the vision, the book seemed to come together for him. Balfour said that the writing process was a lot of fun, so I enjoyed that part of the experience as well. Equally importantly, as a first-time author Sarah and her team made the process completely painless and enjoyable.
One of the key takeaways was the role of leaders in promoting ethics and compliance within organizations. Balfour highlighted the need for practical guidance to help leaders effectively navigate ethical dilemmas and ensure that their responsibilities are performed. He emphasized the importance of moving past the perception that ethics and compliance are solely about laws, rules, and regulations. Instead, Balfour suggested that the focus should be on helping guide employees with good intentions to achieve positive outcomes.
We also touched upon the challenge of addressing negative brand perceptions and humanizing compliance programs. Balfour acknowledged that compliance can sometimes put people in awkward positions, such as when dealing with gifts and entertainment. However, he encouraged organizations to lean into the awkwardness and provide employees with guidance on how to navigate these situations effectively.
One interesting concept introduced by Balfour was the use of pop culture in compliance training to make it more relatable and engaging. By incorporating elements from popular culture, organizations can create a more accessible and enjoyable learning experience for employees.
Balfour also discussed the importance of considering the impact on individuals when making decisions about ethics, compliance, and leadership. He emphasized that behind the data and metrics, there are real human stories and experiences. It is crucial not to lose sight of the fact that people are involved and that their experiences can have a significant impact on their lives and well-being. By incorporating these human stories, Balfour believes that ethics and compliance become more relatable and meaningful to employees.
Balfour highlighted the value that an effective ethics and compliance program can bring to organizations. It goes beyond avoiding fines and penalties or negative headlines. An effective program can contribute to increased return on assets, fewer material lawsuits, and lower settlement amounts. Balfour compared ethics and compliance professionals to midfielders in soccer, playing a crucial role in both defense and supporting the growth of the organization.
The main text of the book ends with Balfour calling for a change from a CCO designation to a Chief Purpose Officer. He explained the concept is something he has been thinking about for a sometime. There are many different areas and organizations today which he believes are too siloed. He listed ESG, which I think is going through a lot of change, a lot of transformation right now. DEI and others but he drove home the point that “it’s really how do you think about what your organization’s purpose is and really bringing those functions together under a Chief Purpose Officer.” Further this Chief Purpose Officer “should have a central place in the C-Suite, helping make sure that the organization stays true to what its stated purpose is.
He called out Patagonia as an example of a company which is very committed to its purpose. Using the example of Patagonia, which does not have a designated Chief Purpose Officer; leading him to believe “it may not be necessary to create a standalone position.” But “in other organizations, having this idea of a Chief Purpose Officer that supports the CEO, supports the CFO in delivering on their results. It really helps ensure that the organization truly obsesses about its purpose and conducts business in the right and appropriate way as well.”
After the main text ends, Balfour included some excellent resources for every compliance professional. He listed out ways you can tell stories about successful ethical victories from your organizations history; provides ethics questions and issues inspired by Star Wars; lists some raps and the basic laws of anti-trust; lays out the Speak Up Habit loop; lists specific tactics for bringing compliance into the employee interview process; informs us how Booth’s Law #2 applies to ethics and compliance; and details how to obtain a commitment from newly minted leaders in your organization.
Adam Balfour shed light on the importance of ethics, compliance, and leadership in organizations. Balfour emphasized the need for leaders to go beyond legal thinking and consider various aspects such as sales, marketing, and culture. The episode also highlighted the challenges associated with ethics and compliance, including addressing negative brand perceptions and navigating awkward situations. By humanizing compliance programs and considering the impact on individuals, organizations can create a more meaningful and effective approach to ethics and compliance. I hope you will purchase a copy of Ethics & Compliance for Humans and incorporate its concepts into your compliance program.
Check out Ethics & Compliance for Humans here.
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