ComplianceCraft

What every compliance professional needs to know about how culture drives ethics from the inside out.

Earlier this month, I had the opportunity to participate in a panel discussion at Hethico, a conference for compliance professionals in the life sciences sector, jointly organised by EFPIA, ETHICS, and MedTech Europe. The event brought together members of the ethics and compliance community to exchange perspectives, share experiences, and explore solutions to the challenges facing today’s pharmaceutical and medical technology industries. As part of the discussion, I shared my reflections on how organisations can foster and sustain an ethical culture.

Over the past several years, I’ve come to deeply appreciate the extent to which organisational culture shapes the effectiveness of a compliance program. Even the most well‑designed program, complete with comprehensive policies, tailored training, and strong messaging from senior leadership, can quickly unravel if the underlying culture is weak. When values are not consistently reflected in day‑to‑day behaviours, formal structures alone are rarely enough to carry the program forward.

This idea is often captured in the phrase attributed to Peter Drucker: “Culture eats strategy for breakfast.” Whether or not the attribution is precise, the sentiment resonates strongly in the compliance context. Time invested in shaping and reinforcing the right culture is rarely wasted.

Below are a few reflections from the panel discussion entitled “How to build the right corporate culture.”

Know it

Culture is fundamentally about norms and values, what actually happens when no one is watching. While foundational elements such as policies, leadership commitment, tone from the top, and training are essential, they are only the starting point. What ultimately matters is whether these principles are genuinely understood, embraced, and experienced across the organisation.

Recognize what impacts it

One of the more nuanced discussions focused on the factors that shape norms and values, including geography and local cultural context. Ethical culture cannot be imposed uniformly without sensitivity to how people think, communicate, and make decisions in different environments. Approaching this work with humility, and without a “we know better” mindset, is essential.

At the same time, global organisations face the challenge of balancing cultural sensitivity with consistency. While values may be expressed differently across regions, core principles such as integrity, transparency, and accountability must remain constant. One observation shared during the discussion was that organisations are often most effective when they are thoughtful about where to focus compliance resources – particularly in areas where local or organisational norms may be furthest from the desired culture. When compliance professionals have a deep understanding of the local context, they are better positioned to design approaches that are both respectful and effective.

Measure it

What’s written in policies or reports doesn’t always reflect reality. If a compliance program is going to work in practice, organisations need to look beyond documentation and find ways to understand real‑world behaviours. Measuring culture through surveys, interviews, data, or other tools, can help identify what is working and where gaps exist. A number of organisations, including Ethisphere, GoodCorporation and LRN, offer frameworks that can support this kind of assessment.

Nurture it

Building an ethical culture requires ongoing effort. One theme that resonated strongly was the importance of connecting compliance to organisational purpose. People rarely rally behind rules alone; they are far more likely to engage when they understand why ethical behaviour matters.

We also discussed the role of ambassador or champion programs, where colleagues from across the organisation act as local voices for ethics and compliance. These initiatives reinforce the idea that compliance is not owned solely by a single function. When designed well, they extend reach, build trust, provide local insight, and create meaningful two‑way dialogue between compliance professionals and the wider organisation.

More broadly, while much attention is often placed on “tone from the top” and even the “mood in the middle,” peer‑led influence is equally important. When ethical behaviour is reinforced at every level, compliance becomes embedded not as a set of rules, but as a shared value reflected in everyday decisions.

Over time, I’ve learned that culture isn’t built through policies or training decks alone – it’s built through people. When compliance professionals invest in culture, they’re investing in trust, connection, and accountability. When individuals understand the purpose behind ethical expectations and see how they relate to their own work, doing the right thing becomes less about compliance and more about identity.

What are some of the ways you’ve seen organisations successfully develop or reinforce an ethical culture?