
doi: 10.2139/ssrn.6111169
Corporate compliance programs have become a central feature of corporate governance and enforcement policy, yet persistent corporate misconduct raises questions about their effectiveness. One potential reason is that organizations often fail to adequately consider how compliance programs should influence those aspects of organizational life that shape employees' ability and willingness to follow the rules-that is, the culture of the organization. This chapter examines the relationship between compliance programs and corporate culture. Drawing on legal developments, regulatory guidance, and interdisciplinary empirical research, this chapter traces the evolution from deterrence-based compliance toward integrity-based approaches that emphasize an ethical culture and climate. The chapter examines evidence on the effectiveness of specific compliance program components, program orientation, and implementation quality, highlighting the importance of leadership commitment, perceptions of fairness, and alignment between formal compliance systems and informal organizational norms. It also reviews research explaining why compliance programs fail or become counterproductive. Overall, effective compliance depends on embedding formal compliance mechanisms within supportive ethical cultures and subcultures. However, a deeper understanding of the connections between compliance programs and corporate culture remains necessary.
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