
A Blueprint for an Automated Compliance Program: Third Edition
Few compliance programs harness automation to its full potential. Learn how you can drive impact with every process by infusing technology where it matters most.
Ethical decisions are expressions of individual values, but they can also be influenced by social and organizational behaviors. Corporations can promote ethical decision-making by striving for alignment between organizational values and the interests or objectives of key decision-makers, a state known as ethical congruence.
Ethical congruence is a state where an individual’s decision-making aligns with the appropriate set of values for that situation. We can explore the idea of ethical congruence by understanding the nature of values and the contexts in which individuals make value-based ethical decisions.
Values are the core beliefs we hold about what is right in terms of how we act and how we interact with others. Many of our values fall into one of two categories: terminal values and instrumental values.
An instrumental value is a type of value that prescribes a mode of conduct for the individual. Instrumental values relate to how we characterize our daily actions and the ideals that we wish to embody, both on the personal and organizational levels. Instrumental values include things like:
A terminal value are the goals and objectives that individuals and organizations work towards, sometimes for their entire lives. On an individual level, terminal values may include things like happiness, self-respect, or financial freedom. On an organization level, terminal values include business objectives like maximizing shareholder value throughout the organization’s life cycle.
Terminal values reflect our vision for the future, while instrumental values describe the methods by which we hope to attain that future. For both individuals and organizations, values become the ultimate criteria for judging right and wrong.
In business ethics, ethical congruence is an organizational state where the actions and behaviors of decision-makers are effectively aligned with organizational values and ethics.
Through effective corporate governance, business leaders strive work towards ethical congruence by:
Ethical congruence reflects alignment between the values of the individual decision-maker and organizational values. This is ultimately shared when the individual and the organization adopt similar value systems, a state known as value congruence.
Individuals whose personal values do not align with those of their employer have difficulty making decisions at work, experience lower job satisfaction and higher stress, and are less committed to their employer, resulting in higher turnover. These challenges are effectively addressed when corporations hire for fit and establish clear guidelines that promote ethical conduct amongst their employees.
Few compliance programs harness automation to its full potential. Learn how you can drive impact with every process by infusing technology where it matters most.