LRN report reveals gaps in global ethics programmes

LRN Corporation has released its 2025 Ethics and Compliance Program Effectiveness Report, entitled 'Caught in the Middle', which explores significant gaps in global ethics and compliance programmes.

The report, based on a survey of 1,500 professionals and employees worldwide, identifies key areas where ethics and compliance (E&C) programmes can improve, including resource gaps, generational differences, and the handling of emerging risks.

Kevin Michielsen, Chief Executive Officer of LRN Corporation, emphasised the importance of ethics and compliance programmes, stating: "Ethics and compliance programs have never been more critical to organisational resilience and trust. This research shines a light on where organisations excel and where they must improve to meet the demands of a complex regulatory environment and an evolving workforce."

The report outlines a notable disconnect between the perceptions of executives and those of employees, suggesting that leaders need to be better aligned with frontline workers. It also distinguishes between high- and medium-impact E&C programmes, highlighting that advanced tool usage and analytics are more effectively employed in high-impact programmes.

One of the major gaps identified in the report is a widening resource divide. High-impact E&C programmes reportedly make almost double the use of advanced tools, analytics, and benchmarking compared to medium-impact programmes, creating a significant performance difference.

There is also a leadership disconnect, with data showing a stark contrast in beliefs regarding ethical culture. According to the report, 79% of executives, as opposed to 37% of employees, believe that middle managers consistently make decisions that are aligned with company values.

Another area of concern is the low level of adoption of compliance measures for emerging risks. Issues such as artificial intelligence and global supply chain vulnerabilities are not being adequately addressed in medium-impact programmes, with a lag of up to 2.3 times compared to high-impact programmes.

The generational challenges highlighted in the report show that Gen Z employees are twice as likely to express scepticism about managerial fairness compared to other age groups. This data points to the need for targeted strategies to build trust and engagement with younger employees, who represent a rapidly growing segment of the workforce.

Ty Francis, MBE, Chief Advisory Officer at LRN Corporation, commented on the implications of these findings: "The report serves as a wake-up call for C-suite leaders to bridge the gap between strategy and execution. By focusing on transparency, accountability, and proactive risk management, organisations can transform compliance into a strategic advantage. This new and updated research is a direct juxtaposition of employee experiences with those of compliance professionals, providing a much deeper understanding of the alignment, or gaps, in perceptions of program effectiveness."

'Caught in the Middle' stresses the importance of continuous improvement, collaboration, and innovation in the evolution of E&C programmes. It provides a strategic roadmap for organisations seeking to enhance their programmes, adapt to changing dynamics, and foster ethical cultures in today's complex business environment.