Key Areas Identified for Future Improvement Based on Global Benchmarks
LRN, a leading company in the field of corporate ethics and compliance (headquartered in the U.S.), has released the Japanese excerpt of its “2025 Global Ethics & Compliance (E&C) Programme Maturity Report."
In February of this year, LRN released the “2025 Ethics & Compliance Programme Effectiveness Report.” Based on survey responses from over 3,000 ethics and compliance professionals and employees around the world, the report highlights the unique challenges and opportunities present in the Japanese market.
In order for Japanese companies to respond to an increasingly complex regulatory environment and the growing expectations of diverse stakeholders, E&C must play a critical role in building resilience, establishing trust, and fulfilling accountability.
Background and Overview of the “Global Survey on Ethics & Compliance Programme Maturity”
This survey is based on LRN’s Programme Maturity Assessment (PMA) framework, which evaluates the effectiveness of E&C Programmes across six key areas. Grounded in over a decade of global research, the survey offers insights to help organisations build more effective and impactful Programmes.
In the excerpted version, we focus on issues particularly relevant to the Japanese market, highlighting two of the six assessment areas: “Corporate Culture” and “Risk Assessment and Reporting.”
The results obtained from organisations participating in the 2025 PMA survey are as follows:
- Resources and Board Oversight: 3.06
- Development of Policies and Procedures: 2.71
- Enforcement, Fair Discipline, and Incentives: 2.21
- Training and Internal Communication: 2.13
- Risk Assessment and Reporting: 2.10
- Corporate Culture: 2.06
Key Survey Findings and Highlights
- Culture-Driven Compliance Still Lags Among Middle Management:
- Codes of Conduct Are Updated but Struggle with Organisational Adoption:
- Tracking of Misconduct Trends Remains Underutilised:
- Investigations and Case Management Are Still Too Manual:
“Corporate Culture”
Ideal State:
- Proactive management of gifts and implementation of conflict of interest (COI) certifications
- Adoption of automated disclosure systems
- Regular compliance risk assessments
- Comprehensive Programme reviews to proactively identify and address emerging risks
“Risk Assessment and Reporting”
Ideal State:
- Proactive management of gifts and implementation of conflict of interest (COI) certifications
- Adoption of automated disclosure systems
- Regular compliance risk assessments
- Comprehensive Programme reviews to proactively identify and address emerging risks
Key Priorities Beyond 2025
The survey identifies three priority areas organisations should focus on in the coming year:
- Strengthening Manager Accountability — Develop middle managers as champions of ethics
- Modernising Investigations and Case Management — Ensure visibility and fairness through integrated systems
- Closing Measurement Gaps — Continuously evaluate organisational culture and embed ethics in performance evaluations
Survey Respondent Profile
This survey aggregates responses from compliance professionals across a wide range of industries and regions, reflecting the state of organisations worldwide.
- Company Size：
Among the responding companies, just over one-third (36%) have between 5,000 and 50,000 employees, 16% have more than 50,000 employees, and 31% have fewer than 5,000 employees. - Company Type：
46% of respondents belong to private companies, while 41% are from publicly traded companies. - Position：
Directors (21.9%) and Managers (31.4%) make up the majority, reflecting strong involvement from leadership in compliance activities. Legal professionals such as attorneys (5.8%) also play a key role in shaping E&C Programmes
- Industry Participation：
The financial industry accounts for the largest share at 24%, followed by manufacturing at 13%, and both energy/mining/chemicals and business services industries each at 9%. - Revenue Breakdown：
Companies with less than $50 million in revenue account for 28%, while mid-sized companies with revenue between $50 million and $500 million make up 18%. Large companies with revenue exceeding $1 billion constitute 54% of the total.
Recommendations for Japanese Companies: Strategies to Close the Gaps
LRN recommends the following strategic initiatives for Japanese companies:
- Strengthen Third-Party Due Diligence: Invest in comprehensive risk assessment and monitoring tools to identify and mitigate vulnerabilities within Japan’s complex supply chain networks. This includes compliance with Japan’s “Guidelines for Respecting Human Rights in Responsible Supply Chains.”
- Prioritise Supplier Training: Utilise localised programmes such as LRN’s Catalyst Supplier to help suppliers understand and comply with ethical and regulatory standards.
- Strategic Use of Advanced Technologies: Leverage Japan’s culture of operational precision and accuracy by adopting predictive analytics and automation tools to streamline compliance processes.
- Bridge Generational and Hierarchical Gaps: Encourage transparent communication across all organisational levels and build a comprehensive approach that incorporates the values of Generation Z in particular.
- Integrate AI Risk Management: Incorporate AI-related risks—such as bias, data privacy breaches, and unintended decision-making consequences—into codes of conduct and training Programmes.
Future Outlook
By addressing emerging risks, leveraging technology, and strengthening supplier training, Japanese companies can continue to maintain leadership in ethical business practices and competitiveness in the global market. As one of the countries driving innovation and international trade, Japan is called upon to further enhance these efforts while accurately responding to the current environment.
About the Report
The Japanese abridged version can be accessed and downloaded at the following URL: https://lrn.com/ja/resources/2025-Programme-maturity-report-abridged-version
About LRN Corporation
LRN is a global leader in the field of ethics and compliance. Each year, the company supports more than 30 million people in navigating increasingly complex regulatory environments and provides education and solutions to help build and embed ethical corporate cultures.
LRN has also been recognised by Inc., a prominent U.S. business magazine, as one of the 5,000 fastest-growing companies in America (Inc. 5000). This rapid growth and social impact reflect LRN’s exceptional expertise and innovative approach to promoting ethical business practices. By combining practical data analytics, advanced software solutions, educational Programmes, and strategic advisory services, LRN helps organisations connect their values to concrete actions and leadership—supporting the establishment of a sustainable and competitive advantage. Today, LRN is a trusted long-term partner to over 2,700 leading companies and organisations around the world.
For more information on LRN’s insights, services, ethics and compliance training, and Programme support, please visit lrn.com/ja.
Press Contact
For inquiries from members of the press, please contact:
Yasuo Kamai, LRN Japan Public Relations
Phone: 090-6033-1953
