The hidden value in getting compliance right

In times of crisis and recovery, a strategic approach to compliance can build trust and create value for customers, stakeholders, and society at large.

- Andrew McPherson, Bob Pethick, and Chris Kong

For organizations managing through a crisis, trust is paramount. Em-ployees and customers need to know that leaders are able to guide them through uncertainty and make the best decisions possible, and leaders need to know that the people executing their decisions are doing so in earnest, to the letter of the law. Of course, organizations must also look ahead to the post-crisis world, in which trust remains critical, but they’ll also need to identify efficiencies to support recovery.

The good news is that there is a part of the organizational structure that can help build trust and drive efficiency: compliance. The importance of compliance itself isn’t news. In a trust-based world, the brands, products, and services perceived as trustworthy are highly effective at attracting and retaining customers. Many leaders have also learned that one key breach can be very costly, to both their organization’s profits and its reputation. And they are keenly aware of the complex regulatory landscape they face. In PwC’s 23rd Annual Global CEO Survey, 36 percent of chief executives in a range of industries reported being extremely concerned about overregulation, ranking it the top threat to their organization’s growth prospects. (The survey was conducted in the fall of 2019, before the coronavirus pandemic took hold.)