Compliance programs work most of the time because most people tend to respond in similar ways to similar circumstances. In behavioral science, those tendencies are sometimes called “effects.” Some effects can strengthen compliance programs; others can weaken them.… Continue Reading
Posts Tagged: behavioral science
Problems with integrity often start from behaviors. Poor culture may drive misconduct and poor outcomes. The behavioral risk needs to be managed. Do we all agree on this? I think so.… Continue Reading
We’ve all heard the question before: Does corruption work as grease in the wheels or as sand?
The debate had its origin in Nathaniel H. Leff’s paper from 1964 “Economic Development Through Bureaucratic Corruption,” and was soon popularized by Samuel Huntington in his 1968 book Political Order in Changing Societies.… Continue Reading
Forget the idea that human beings are perfectly rational. People do not always make consistent decisions based on strict logic or narrow self-interest. Human behavior is complex and emotions and intuition have a significant role to play in individual decision-making.… Continue Reading
For the last several years, academic attention has converged on questions of behavioral ethics, and the findings are robust and sophisticated.
Organizations such as NYU’s Ethical Systems and the Santa Clara University Markkula Center for Applied Ethics provide a wealth of insight, tools and research to help companies access and use the latest thinking to enhance their internal ethics and compliance approaches.… Continue Reading
In one of the most interesting looks at what makes a compliance program tick and why, Todd Haugh, an assistant professor of business law and ethics at Indiana University’s Kelley School of Business, said that even best-practices compliance programs fail to take into account the importance of eliminating rationalizations.… Continue Reading
The real world isn’t just good guys and bad guys. There’s a story behind every compliance problem, and even though it may not excuse anyone’s behavior, it should be a reminder that people just like us make mistakes — sometimes really big mistakes.… Continue Reading
We’ve all heard of them — the Bernie Madoffs and Michael Milkens whose cinematic crimes have painted our perception of white-collar criminality.
However, while wrongdoers such as Madoff and Milken are rightly villainized for their misdeeds, their dramatic schemes tend to occlude the far more common phenomenon of smaller-scale white-collar crime.… Continue Reading
A recent FCPA Blog post written by Bart Soenens, a tenured academic researcher at the University of Gent in the Netherlands and Jeroen Michels, a policy analyst at the Organisation for Economic Co-operation and Development in Paris, posed the question “what exactly is the nature of human morality?”… Continue Reading
Various systems and practices have been developed to nudge employees, tax payers or contractors towards ethical behavior, aided by hints and formats that seem similar to website pop-ups or software solutions.… Continue Reading