Few firms embed ethics in daily operations, global study finds

LRN has released its 2025 Global Study on Ethics & Compliance Program Maturity, highlighting significant gaps between policy and practical implementation in corporate compliance programmes worldwide.

The research, which draws on LRN's proprietary Program Maturity Assessment and global benchmarking data, evaluates ethics and compliance (E&C) programmes across six dimensions: Culture, Written Standards, Enforcement & Incentives, Risk Assessment, Training & Communication, and Resources & Board Oversight.

The report finds that, as regulatory expectations become more complex, many organisations continue to demonstrate uneven progress in the maturity of their E&C programmes. Key shortfalls include limited cultural measurement, insufficient manager accountability, and inconsistent enforcement practices.

Among its findings, the study reveals that a strong "tone in the middle"—reflected by manager engagement and leadership in ethics—remains rare. Only 15% of organisations surveyed report having effective middle management advocacy for ethical standards. Manager-specific training is under-resourced, with 20% of companies not offering any such training, creating a risk that corporate values are not realised in daily business conduct.

Organisations are focusing on updating their codes of conduct more frequently, with 71% revising them at least every three years and 45% annually, a significant increase from 11% a decade ago. However, many report challenges in making these standards translate into actionable practices relevant across various job functions and global locations.

Measurement of ethics training effectiveness also remains problematic. While most organisations track completion rates, fewer assess real-world outcomes. Only 44% assess training comprehension, and just 37% examine misconduct trends following training, meaning that many compliance systems are unable to demonstrate or enhance their long-term impact.

Issues with investigation processes persist, as over 35% of organisations still rely on spreadsheets to track misconduct cases. Fewer than 30% use cross-functional investigation teams, which raises concerns about data integrity, audit robustness, and investigative consistency.

Risk assessment procedures also show substantial gaps. Only 19% of surveyed organisations include talent management as a compliance risk, and less than one-third holistically evaluate reputational or ethical misconduct risk, limiting the effectiveness of risk-based E&C programme management.

The study also highlights that although 76% of companies conduct annual ethics or culture assessments, only 31% reflect ethical behaviour in performance reviews. This disconnect suggests that cultural investment is not fully embedded in performance management systems.

"As organisations face increasing scrutiny, rising complexity, and fast-evolving risks, the strength and sophistication of a company's E&C program becomes a true differentiator. The data from our latest study shows progress, but also offers a call to action for organisations to do more to embed ethical behaviour into day-to-day decision-making, especially at the middle management level." Kevin Michielsen, Chief Executive Officer of LRN Corporation said. 

Ty Francis, MBE, Chief Advisory Officer at LRN Corporation, added, "Organisations that embed ethics into how they lead, manage, and reward people are positioning themselves for long-term resilience and trust. Organisations may have the right policies on paper, but without investment in middle management, integrated systems, and accountability structures, they will struggle to translate principles into practice."

The report recommends reinforcing manager accountability as a priority to ensure that ethical values are modelled and upheld at every organisational level. It also suggests modernising investigative practices by deploying integrated tools and enhancing transparency and measurement frameworks, whilst more rigorously evaluating cultural and training effectiveness and ethics-based decision-making.

The study draws on insights from a large and diverse sample of global compliance professionals and is part of LRN's ongoing research series, which is designed to inform best practices and benchmarks for organisations seeking to strengthen their ethics and compliance capabilities.