Welcome to 2026, a 10/1 year in numerology (if you are into it). Wherever you might be on the political spectrum, we can all agree that there is a lot happening, and there has been some significant changes. While I occasionally hear about the impact of our social climate on corporate ethics and compliance, let me offer a positive perspective that confirms the continuing — and even increasing — importance of corporate ethics and compliance.
We should be mindful of the important role that corporate values, ethics and compliance retains and the guiding principles that provide stability at the workplace, notwithstanding economic concerns and disruptions. Perhaps I am being naive, but let me spin this out — given that there is little question that political forces and elements have combined to bring about significant change, corporate leaders, managers and employees have become even more important to our communities, our workforces and stakeholders as an important light of stability.
A company that sticks to its values, promotes its code of conduct and its ethical commitment is likely to gain significant benefits from a workplace that is even more loyal, more productive and more engaged — employees and worker stakeholders need this message right now, especially given rising economic anxieties and continuing readjustment in institutional elements and political engagement.
Our country has experienced significant times of disruption before in its history — the Civil War, two World Wars, and other times of social disruptions. In the current environment, employees hunger for stability and arguably are looking to corporate employers to demonstrate ethics and compliance. Admittedly, the basis for my statement is anecdotal, and perhaps my observations reflect a coincidence rather than a meaningful trend.
From Volkov Law’s perspective, we have observed across several industries an increase in employee reporting, particularly in those areas where corporate values come into play — ethical violations, respectful treatment in the workplace, and conflict of interest concerns. Employees want their employers to stand on principles as a beacon of ethical commitment and to act accordingly.
This increase in expectations is manifest and likely to reach other stakeholders such as shareholders and significant business partners, such as banks and other institutional investors.
Our observations coincide with studies and surveys that show the importance of employee engagement, trust and performance. Ethical leadership is a positive force on employee commitment to the organization and job performance. This trend is even more important in today’s world where change is occurring and there are economic and political strains.
Keep in mind that my view here is apolitical. Social upheaval al can occur on the right or left of the political spectrum and emotions can be intense. The hard reality is that corporate leaders need to address these concerns without any political leaning.
Employees today are demanding ethical, transparent leaders as critical to the workplace. Employees want to believe in the mission of their employers and want to commit themselves to the specific corporate mission — these are important principles that generate employee productivity and low rates of corporate misconduct.
When the government recalibrated its enforcement mission to emphasize immigration and trade enforcement, that was not a justification for loosening ethics and compliance program requirements; instead, the adjustment in priorities was an opportunity for ethics and compliance programs to refashion their focus.
More significantly, over the last ten (10) years, we have seen a significant increase in employee concerns relating to civility and safety in the workplace. The best way to address these concerns is through reinvigorated messaging as to the importance of ethical values, respect for colleagues, and commitment to a safe workplace, free from discrimination, harassment, and inappropriate treatment of colleagues.
Conflicts of interest and an unsafe workplace directly threaten these important principles. When managers are able to advance their interest to the detriment of the organization, employees are keenly aware of such disparate activities. As a result, the company’s morale can suffer — as this becomes more pronounced, the threat to a company increases.
Ethics is even more important today than years past — in times of turbulence, ethics and corporate values act as a guiding light for managers, employees and other stakeholders. Corporate leaders have to embrace this reality.
