The Future of Ethics and Compliance Teams
The evolving role of ethics and compliance teams is reshaping organizational dynamics, highlighting their strategic importance beyond mere regulatory adherence.
From Enforcers to Strategic Advisors: The New Role of Ethics and Compliance
The role of chief ethics and compliance officers is evolving from being seen merely as enforcers of rules and regulations to becoming strategic advisors and thought partners to the C-Suite and business leaders. This shift emphasizes ethics and compliance as integral business partners rather than merely the ‘police’ of corporate conduct.
Current Organizational Structures: Where Do Ethics and Compliance Teams Report?
Despite the changing roles, the formal organizational structure of ethics and compliance teams has not seen significant changes. In 71% of World’s Most Wthical companies, these teams are part of the Legal department, typically reporting to the General Counsel. Only 23% of ethics and compliance functions report directly to senior leadership, such as the CEO. While independence is ideal, being part of the Legal department can also be effective if there is direct access to senior leadership and the Board.
The Importance of Direct Access to Leadership and the Board
Having unfettered access to senior leadership and the Board is crucial for the effectiveness of ethics and compliance programs. Regardless of whether these teams report within Legal or as independent functions, direct communication with top-level management ensures that ethical considerations are integrated into strategic decision-making processes.
The Evolution of Titles: Reflecting a Broader Scope and Purpose
The titles within ethics and compliance functions have evolved, reflecting a broader scope and purpose. From ‘Compliance Officer to Chief Ethics Officer or Chief Integrity Officer, these titles signify a shift from a sole focus on compliance to encompassing ethics, integrity, and organizational governance. This evolution highlights the strategic importance of these roles in shaping the organizational ethos.
Real-World Impacts: How Recent Events Have Shaped Ethics and Compliance Roles
Recent global events have accelerated the evolution of ethics and compliance roles. The COVID-19 pandemic, for example, required chief ethics and compliance officers to be deeply involved in strategic decisions concerning operations, workplace safety, and health protocols. Similarly, geopolitical tensions such as the Russian War in Ukraine have further highlighted the need for these officers to provide guidance on complex and sensitive matters, underscoring their role as strategic enablers and business partners.
A Strategic Change in Mindset
Ethics and compliance isn’t a one-size-fits-all function. It’s strengths and opportunities vary by organization, so programs should cultivate a clear idea of how E&C becomes a strategic asset to the enterprise.
This is a conversation that has been much more frequent in recent years as ethics and compliance programs leave behind the old image of “the department of no.” Now, it is all about understanding what the enterprise is trying to achieve, and how E&C can help execute on that strategy instead of simply imposing rules and red tape.
Perhaps shift within ethics and compliance teams has been very productive, and points to the future of this discipline.
Learn More
These insights came from the webinar, 2025 E&C Trends: What the Data Tells Us About Programs and People. This webinar is now on-demand in the Ethisphere Resource Center.
Further insights are available in Ethisphere’s 2025 E&C Program Trends & Employee Perceptions Report, which offers a dual-lens view into today’s ethics and compliance landscape, combining a deep dive into program practices with rare insights into how employees experience them on the ground.
