Behavioral Ethics and Economics, Compliance Culture and Meeting DOJ’s Compliance Expectations (Part One of Two)

Behavioral ethics and behavioral economics have had a profound and increasing influence on corporate compliance programs and the expectations of enforcement officials. Companies now regularly rely on theories of behavioral ethics and behavioral economics to drive and test cultures of compliance. The theories are likewise visible in the recently released U.S. Department of Justice’s Evaluation of Corporate Compliance Programs, which places a strong emphasis on cultures of compliance and being able to measure and demonstrate them. In a two-part guest article series, Paul Hastings partners Jon Drimmer, Matt Herrington and Tom Best examine the latest behavioral ethics research and provide practical steps a company can take to ensure that its program is hitting the right marks. See the Anti-Corruption Report’s three-part series on behavioral-science lessons from the Wells Fargo scandal: “Culture Eats Compliance for Lunch” (Nov. 28, 2018); “Devil in the Decentralization” (Dec. 12, 2018); and “Focusing on the ‘Regular Apples’ (Part Three of Three)” (Feb. 6, 2019).

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