[LRN Corporation]
LRN releases survey results on Japanese corporate compliance Japan’s corporate ethics and compliance programs are making progress, although challenges remain
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Press release: February 14, 2024
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LRN releases survey results on Japanese corporate compliance Japan’s corporate ethics and compliance programs are making progress, although challenges remain
*Less than half of E&C programs found to maintain consistent ethical standards for high performers*
LRN is a leading global company providing corporate ethics and compliance solutions.
Corporation (New York, USA CEO Kevin Michaelsen)
LRN) has released the 2024 Ethics and Compliance Program Effectiveness Report, which conducted a survey on ethics and compliance in Japanese companies. This survey was conducted in November 2023 and targeted 132 people in charge of ethics, compliance, and legal affairs at companies and organizations in Japan.
This report highlights the increasing focus on the transparency and accountability of Japanese companies’ ethics and compliance programs (hereinafter referred to as E&C programs). However, the latest edition of LRN’s Ethics and Compliance Program Effectiveness Report found that fewer than half of programs (46 %).
Additionally, it was found that the effectiveness of E&C programs continues to evolve in Japan. On the positive side, we found that half (50%) of programs report directly to the board of directors and 62% of programs enable top management to make difficult decisions that align with the company’s values and purpose. did. However, only about a quarter (27%) of programs consider values rather than rules when determining the “right” course of action, and only a quarter (27%) of programs consider E&C to be mutually essential and important. It turned out that even fewer (21%).
Jim Walton, director of advisory services at LRN and lead author of the report, said: “Following a global shift towards ethical values in organizations, Japan and the Asia-Pacific region are at a crossroads. Survey data shows that compliance-focused programs are dominant, but there are great opportunities for improvement. Yes, Japanese business leaders must take immediate action to ensure business decisions are aligned with company values, address
questionable ethical practices, and strive for consistent standards of conduct. .Now is the time to evolve ethics and compliance in business to a stronger foundation.”
Main findings:
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In Japan, only 57% of executives and senior leaders considered E&C in their decision-making in the past 12 months, lower than the Asia Pacific (65%) and global averages (61%).
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Roughly two-thirds (63%) of Japanese respondents said their board of directors had taken steps to proactively address misconduct by senior executives and top performers within the past year.
– More than 83% of Japanese organizations help employees avoid fraud and unethical behavior through ethics and compliance programs. –
Japan’s E&C leaders’ top program priorities for next year include improving program effectiveness and enhancing the employee experience, making policies and procedures easier to use (37%), and online training. The focus is on improving courses and platforms (34%) and moving codes of conduct and policies to a searchable web-based format (30%).
The 2024 Global Report is based on a survey of more than 1,400 E&C professionals (mostly organizations with 1,000 or more employees) from 19 countries and 26 industries in North America, Europe, and Asia Pacific. Japan accounted for 9% of all respondents.
CEO of LRN
Kevin Michaelsen said: “Companies around the world, including Japan, face a variety of challenges from a regulatory and technological perspective. Connecting your employees is key. Year after year, research on the effectiveness of E&C programs shows a link between fostering an ethical culture and business performance. , the more organized and clearly communicated a company is, the better prepared it will be to deal with future industry and regulatory changes.”
You can download the “2024 Ethics and Compliance Program Effectiveness Report” from the URL below.
https://lrn.com/ja/resources/ethics-compliance-program-effectiveness-report?utm_campaign=pr
*About LRN*
LRN’s mission and purpose is to inspire principled performance and help people around the world do the right thing. Since 1994, LRN has been committed to advancing organizations with partnerships, knowledge and tools to build ethical cultures. More than 2,800 companies worldwide use LRN’s services, and tens of millions of learners have taken LRN’s eLearning courses to help them navigate complex regulatory environments and become ethical, responsible, and inclusive. It helps foster culture. In partnership with LRN, companies translate their values into concrete corporate practices and leadership behaviors to create sustainable competitive advantage. By acting on shared values, companies and their employees can find ways to do better.
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