As the modern workplace continues to evolve, organizations are under increasing pressure to maintain robust ethical standards. Balancing technological advancements, changing employee expectations, and new work models has made this task more complex than ever. According to LRN’s 2024 Code of Conduct Report, these dynamics have exposed significant challenges, particularly in how organizations engage employees with their codes of conduct (CoC), bridge leadership gaps, and adapt to generational differences.
To explore these challenges further, LRN partnered with the International Compliance Association (ICA) to host masterclasses in New York, London, Singapore, and Amsterdam. These events brought together senior compliance and ethics professionals to share strategies for fostering ethical cultures, reflecting both global trends and region-specific insights. The masterclasses built on the findings from LRN’s report, offering practical solutions to address these pressing issues.
Three key insights from LRN’s 2024 Code of Conduct Report
- Engagement gaps across work models:
Hybrid employees show higher engagement with CoCs than in-office or remote counterparts, highlighting the need for flexible work environments to boost ethical participation. - Leadership disconnect:
While 90% of senior leaders believe their colleagues adhere to the CoC, only 81% of middle managers and 69% of front-line managers /individual contributors agree. This significant gap underscores the need for better alignment and communication across organizational levels.
- Generational differences:
Gen Z employees are 2.5 times more likely than Boomers to see rule-bending as acceptable, yet 63% of Gen Z frequently use the code of conduct as a resource, compared to 49% of Boomers and 53% of Gen X. This highlights the need for adaptable communication strategies to align ethical expectations across generations.
Regional perspectives from the LRN & ICA masterclasses
New York masterclass: Engaging hybrid and remote employees
In New York, the primary focus was on the engagement gaps across work models, directly linking to LRN’s finding that hybrid employees engage more actively with CoCs than their in-office or remote colleagues. Compliance leaders discussed the importance of using digital tools like microsites, mobile apps, and interactive training to ensure hybrid and remote workers remain connected to their CoCs. This flexible approach not only aligns with employee preferences but also fosters stronger ethical participation across varied work environments.
London masterclass: Bridging the leadership disconnect
The leadership disconnect identified in LRN’s report was the core issue addressed in London. Panelists emphasized that middle managers are essential to reinforcing the organization’s ethical culture. By empowering these managers to act as ethical culture ambassadors and through personalized training, the leadership message can better resonate with front-line employees. This approach helps close the gap between senior leaders and the rest of the organization, ensuring ethical expectations are clearly communicated and embraced at all levels.
Singapore masterclass: Addressing cultural sensitivity and generational differences
The Singapore masterclass focused heavily on generational differences and cultural sensitivity, as highlighted in the LRN report. Participants discussed how to communicate CoCs effectively in diverse cultural contexts, acknowledging that compliance strategies must be adapted to different regions and generational mindsets. In cultures where collective responsibility is more prevalent, such as Japan, a group-oriented compliance approach may be more effective, while individualistic cultures like the U.S. may prioritize personal accountability. Moreover, the generational gap—where younger employees are more likely to challenge rules—was a recurring theme, stressing the need for adaptable, engaging training to bridge these divides.
Amsterdam masterclass: Innovating compliance training to boost engagement
In Amsterdam, the focus was on innovation in compliance training, linking back to all three of LRN’s key findings: engagement, leadership, and generational divides. Creative approaches like Netflix-style videos, AI chatbots, and interactive games such as "Where’s Waldo" were highlighted as effective tools to engage employees across all age groups and work models. These engaging, dynamic training methods help boost CoC engagement, ensuring that compliance remains relevant and top of mind for all employees, regardless of their role or work location.
Global themes from the LRN & ICA masterclasses
While each region offered unique insights tied to specific challenges, several global themes emerged from the masterclass series:
- Shifting from rule-based to values-based codes: Across all cities, there was a strong emphasis on shifting from rigid, rule-heavy CoCs to values-driven guidelines. A values-based CoC resonates more deeply with employees by aligning ethical behavior with the organization’s core mission and culture. This approach fosters greater internalization of ethical standards, making compliance a more natural part of daily work rather than an external mandate.
- Tailoring communication and multi-channel distribution: Communication is key to fostering an ethical culture, and each masterclass stressed the need for multi-channel CoC distribution. Whether through PDFs, mobile apps, or digital platforms, providing employees with access to the CoC in a format that suits their needs is essential for boosting engagement. Tailoring the content to regional and generational preferences, as seen in Singapore, also ensures that CoCs resonate across cultural and generational divides.
- Bridging the leadership disconnect: Consistent, multi-level communication is crucial for closing the leadership disconnect highlighted in the LRN report. Appointing CoC ambassadors at various organizational levels, as discussed in London and Amsterdam, can ensure that ethical messages are not diluted as they trickle down from senior leaders to front-line employees. This “Tone at the top, mood in the middle, buzz at the bottom” approach ensures that the CoC message remains strong and clear across the organization.
Conclusion
In summary, creating a strong ethical culture requires continuous adaptation, inclusive communication, and leadership commitment at all levels. By applying these global and regional insights and building on the findings from LRN’s 2024 Code of Conduct Report, organizations can foster a more engaged, cohesive, and resilient ethical environment.
