In today’s global economy, supply chains operate under more scrutiny than ever before. From stricter regulations and growing ESG expectations to increased demands for transparency and accountability, organizations face mounting pressure to manage risks that are both interconnected and evolving. The key to long-term success lies in transforming compliance from a reactive process into an ethics-driven foundation for resilience.
Setting the stage: The supply-chain wake-up call
Recent industry disruptions have revealed how even the most sophisticated supply chains can falter when communication, visibility, and accountability break down. Ethical lapses often emerge long before operational failures, proving that risk management must extend beyond compliance checklists to focus on culture and leadership.
As Maurice Crescenzi, Industry Practice Leader at Moody’s Corporation, noted, effective third-party risk management (TPRM) requires a holistic approach. Organizations should view TPRM not as a siloed activity but as part of an integrated ethics and compliance ecosystem—one that fosters transparency, empowers people to speak up, and leverages technology for continuous insight.
Evolving regulations & expectations
The regulatory environment is becoming increasingly complex, with frameworks like the EU Corporate Sustainability Due Diligence Directive (CSDDD), German Supply Chain Due Diligence Act (LkSG), and U.S. Foreign Corrupt Practices Act (FCPA) expanding the scope of corporate accountability. Organizations must now ensure not only compliance within their own walls but also across their entire network of suppliers and third parties.
High-performing organizations are using these regulatory developments as opportunities to strengthen ethical culture, not as compliance burdens. As highlighted in LRN’s 2025 Program Effectiveness Report, the most effective ethics and compliance programs treat regulation as a driver of culture—fostering transparency, accountability, and principled leadership throughout the business.
Andrew Kepper, Senior Director of Compliance at Brown-Forman, emphasized the importance of embedding compliance directly into operational workflows. “Compliance should be intuitive,” he explained. “When people understand how it supports the business, it becomes second nature.”
Building stronger third-party due diligence
A resilient supply chain starts with meaningful third-party partnerships. Nanda Kishore, VP of Global Supply Chain at Evoy, shared that ethical conduct, transparency, and sustainability should be part of a supplier’s entry criteria—not optional extras. “Accountability starts long before a contract is signed,” he said. “Our goal is to ensure suppliers align with our values, not just our business objectives.”
Continuous engagement—through training, shared metrics, and open communication—ensures that suppliers understand expectations and remain aligned with the organization’s culture over time.
Andrew Kepper added that collaboration between compliance and procurement is key: “When compliance and procurement work together, oversight becomes partnership. It’s no longer about catching mistakes; it’s about preventing them.”
Ethics, culture & technology in risk management
Culture and technology are now inseparable in the pursuit of ethical supply chains. While data enables visibility, it’s culture that determines how organizations respond. Technology should amplify ethical leadership, not replace it.
At LRN, solutions like Catalyst Supplier and Catalyst Reveal are helping organizations identify and address risks before they escalate. Catalyst Supplier provides continuous visibility across supplier networks, enabling organizations to extend their ethical standards across multiple tiers. Catalyst Reveal delivers actionable insights through behavioral and operational analytics—helping compliance teams detect potential red flags early and act with confidence.
Together, these tools empower organizations to move from reactive oversight to proactive risk management, reinforcing a culture of accountability at scale.
Looking ahead
As global supply chains continue to evolve, the intersection of ethics, leadership, and technology will define the next generation of risk management. By integrating culture and compliance into every stage of supplier engagement, organizations can turn regulation into opportunity—and complexity into resilience.
To stay ahead, leaders must focus on building systems that connect data with decision-making and ethics with action.
Resources:
Here are some resources to help you plan for the future and strengthen risk management across your global supply chain:
Article → Read how leading organizations are redefining supply-chain accountability. Read the article
Presentation Slides → View the slides and poll results from Beyond Due Diligence: Mitigating Risk in Your Global Supply Chain. View now
To learn more about building an ethical and resilient supply chain, visit lrn.com.
