In a rapidly evolving business and regulatory landscape, the importance of robust ethics and compliance (E&C) programs cannot be overstated. This was the central theme of a recent thought-provoking webinar, “Adapting to a Changing World: Mastering E&C Program Effectiveness in 2025,” hosted jointly by Corporate Compliance Insights and LRN.
Meet the speakers
Moderated by Sarah Hadden, the publisher and CEO of Corporate Compliance Insights and hosted by Ty Francis, Chief Advisory Officer at LRN, the session spotlighted the latest findings from LRN’s 2025 Ethics & Compliance Program Effectiveness Report and featured a dynamic panel of industry experts.
The panel featured a trio of seasoned professionals offering diverse insights from across industries:
- Juliana Molina - Compliance Leader at Zoll Medical, brought a medical and logistics industry lens.
- Gina Voss - Representing Forensic Risk Alliance, contributed deep expertise in forensic compliance and external advisory.
- Felipe Garcia - Representing Salesforce, provided perspectives from the tech sector and offered a global organizational viewpoint.
Together, they explored trends, challenges, and opportunities for E&C programs in 2025 and beyond.
Key insights from the discussion
Ty Francis opened the session by framing the insights from the 11th annual report. With more than a decade of research trend data and 3,000 responses from the 2025 survey—1,500 from compliance professionals and 1,500 from employees—the report offers a unique juxtaposition of internal perspectives.
1. Widening gaps in program effectiveness
One of the most compelling insights was the increasing disparity between high-impact and medium-impact compliance programs. High-impact programs are:
- 1.9x more likely to use benchmarking and analytics.
- 1.3x more likely to report findings to their boards.
- 1.8x more likely to benchmark against peer companies for training effectiveness.
“It’s a catch-22,” said Ty Francis. “These programs don’t have the resources to collect the right data, and because they lack the data, they can’t prioritize where to allocate resources effectively. It’s a vicious cycle of underperformance.”
The growing divide underscores how data maturity and benchmarking are becoming crucial differentiators.
2. Middle management: The missing link
A concerning trend revealed by the data is the widening disconnect between leadership and middle management. While 79% of executives are believed to make decisions based on company values, only 37% of middle managers are perceived to do the same—highlighting a 42-point perception gap.
“There is a perception that senior leaders are not held to the same standards,” said Juliana Molina. “That undermines the trust needed to make values-based decisions day-to-day.”
Felipe Garcia added, “The challenge depends on the population you’re working with. In one company, the manager’s manager was perceived as top leadership. In another, everyone had direct access to the CEO. You have to know who ‘middle management’ really is in each context.”
The panel emphasized the importance of ensuring that compliance messaging cascades effectively, particularly in organizations with complex hierarchies. This “stuck in the middle” syndrome threatens to erode the effectiveness of even the most well-intentioned leadership strategies.
3. Harnessing misconduct trend analysis
High-impact programs are significantly more likely to use misconduct trend analysis—63% compared to just 33% among medium-impact programs. Beyond identifying trends, the panel stressed the importance of root cause analysis to prevent recurrence and drive systemic improvements.
“Companies still believe that no reports to the hotline means nothing is wrong,” said Juliana. “That’s the opposite of what we know to be true.”
Felipe agreed: “It’s not just about having data. If all your reports are anonymous, it suggests fear of retaliation. That’s a red flag in itself.”
4. Benchmarking as a strategic lever
The value of both internal and external benchmarking emerged as a dominant theme. Yet, many organizations struggle to implement it effectively due to lack of data literacy, inadequate tools and systems, and disconnected or siloed data repositories.
“The neighbors’ grass is always greener,” noted Ty Francis, “but sometimes, showing your board what others are doing is the only way to convince them to invest in change.”
Gina Voss added, “One of the biggest challenges is simply knowing where to begin. Organizations have tons of data, but few know how to use it in meaningful ways.”
Felipe shared how simple, visual dashboards—even at manufacturing sites—can empower frontline workers and increase transparency. As a practical example, Juliana described using peer comparisons to build a business case for a third-party code of conduct.
5. Generational challenges and opportunities
Gen Z’s expectations are reshaping compliance culture. They are:
- Twice as likely to report skepticism toward managerial fairness.
- More prone to question the purpose and legitimacy of rules.
- More critical of leadership that does not walk the talk.
“They didn’t write the rules, and they don’t automatically believe in them,” said Ty Francis. “We ignore this generational shift at our peril.”
Felipe shared, “We just launched a new code of conduct at Salesforce with LRN that really connects with Gen Z. The visuals, the language—it’s a different level of accessibility, and we’re already seeing positive feedback.”
Juliana emphasized the need for authenticity: “Transparency and involving employees in decision-making—those go a long way in building trust with younger generations.”
This shift requires a rethink in how compliance programs are communicated and structured. Tailoring messaging to generational expectations—such as Salesforce’s new, inclusive code of conduct co-developed with LRN—can significantly boost engagement and trust.
6. AI and emerging risks
While AI is being explored to enhance training and risk detection, its adoption remains uneven. Only 47% of high-impact programs have begun investing in AI—with medium and low-impact programs trailing far behind, at 21% and 15%, respectively.
“There are still many companies taking a very conservative approach,” Juliana noted. “And if you don’t understand the risks, you’re unlikely to unlock the benefits.”
Ty cautioned, “AI can enhance speed and customization, but we need to be transparent about how it’s used—and why.”
The panel agreed that understanding AI’s risks and benefits is essential before integrating it into E&C strategies. Transparency and ethical usage must go hand-in-hand with innovation.
Final thoughts: Elevating program effectiveness
The webinar concluded with actionable takeaways for organizations seeking to elevate their E&C program effectiveness:
- Invest in benchmarking tools and improve data literacy.
- Ensure cultural alignment across organizational levels, not just at the top.
- Leverage misconduct data not just for reporting but for learning.
- Bridge generational divides with adaptive communication.
- Collaborate across functions—from audit to internal controls—to drive integrity across the business.
As Sarah Hadden aptly noted, “Don’t just take my word for it—let the data do the talking.” In a compliance landscape defined by increasing complexity and heightened stakeholder scrutiny, the ability to harness insights and act on them swiftly is the hallmark of program effectiveness in 2025.
Access the full 2025 Ethics & Compliance Program Effectiveness Report here to read more.
