Psychological Factors to Consider When Adopting an Ethics and Compliance Program

Abstract

Ethics and compliance programs are imperative for all types of business organizations. That is because they ensure that businesses operate according to the demands of the law, and that they maintain their reputation among their customer bases. For instance, ethics and compliance programs may require organizations to conduct external audits on their financial information every once in a while, to ascertain that they are compliant with financial fair play regulations. As such, it is important for businesses to ensure their human power follows the ethical and compliance guidelines to avoid any legal or reputational issues. For businesses to ensure that their employees are compliant, it is important for them to consider the psychological factors that influence human behavior. That is because they will indicate whether the human factor will remain compliant with the set rules and regulations. In this study, the objective will be to prove that psychological factors are essential when adopting ethics and compliance programs, so as to show the psychological factors for organizations to consider. Ideally, human behavior is significantly influenced by motivation, attitudes, and perception, and these are the factors that the research will focus on analyzing.