Singapore outpaces global peers in ethics compliance

Singapore organisations lead with 20% higher ethics and compliance metrics than global averages.

Ninety percent of surveyed organisations in Singapore made critical decisions over the past year that aligned with their core values, standing out for its exemplary commitment to ethics and compliance (E&C). 

According to Eric Morehead, Director of Advisory Service Solutions at LRN, Singaporean organisations have significantly outperformed their global counterparts in adhering to E&C standards. This superior performance is rooted in a strong ethical culture and rigorous compliance frameworks, showcasing a distinct approach to business that prioritises ethical considerations over mere profitability.

"This level of adherence to ethical standards is not merely commendable; it sets a new benchmark for global business practices," Morehead pointed out.

In addition, a significant two-thirds (72%) of Singaporean organisations reported that their boards had actively modified or abandoned specific business initiatives based on ethical and compliance considerations. 

The foundation of Singapore's E&C success lies in the strong value systems embedded within organisations. Morehead emphasised the importance of a robust ethical framework, stating, "In Singapore, values trump compliance rules. This isn't about following guidelines; it's about ingraining ethical decision-making into the organisational DNA." 

He noted that Singaporean companies are not only about setting rules but also about creating cultures where employees can rely on their values to make the right decisions, especially in unique or challenging situations.

However, despite these impressive figures, there's an ongoing push for improvement. Morehead highlighted a growing recognition among Singaporean firms of the need to further enhance their E&C programs. 

This includes addressing resource constraints and upgrading internal systems, particularly around training and staff capabilities in compliance and ethics. The move towards bolstering these aspects indicates a proactive stance towards sustainable ethical business practices.

"There's a clear understanding among Singaporean leaders that effective E&C is not a cost centre but a critical component of sustainable success," Morehead added.

He highlighted that despite the non-revenue-generating nature of E&C functions, there is a consensus on the necessity of allocating more resources towards these areas.