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Compliance and corporate culture: Interconnection and impact on business performance

Author

Listed:
  • Oleksandr Babich
  • Kateryna Andriushchenko

Abstract

The purpose of the article was to develop practical recommendations for integrating the compliance function into business processes, including the formation of transparent internal control mechanisms, increasing the level of involvement of management at all levels, systematic staff training and implementation of the code of ethics, as well as assessing the effectiveness of compliance programmes through their impact on key business processes such as procurement, sales, recruitment and contractual work. The article explored the relationship between corporate culture and compliance, as well as their impact on business performance in today’s global economy, growing competition and increasing regulatory pressure. Attention was focused on the importance of developing an ethical corporate culture as a key element of the successful implementation of compliance programmes, especially in the context of modern global economy, where the level of regulatory pressure on business increases every year. The article analysed scientific publications and industry standards that define corporate culture as an integral part of an effective compliance programme, using the method of average assessment of the compliance function’s effectiveness, as well as the cost and revenue function model. The challenges faced by enterprises in integrating compliance procedures into business processes are highlighted, including insufficient support from management, resistance to change, and lack of understanding of the importance of compliance. The article discussed in detail the methods of assessing corporate culture, including questionnaires, analysis of internal documents, focus groups and the dynamics of labour discipline violations. Particular attention was paid to the mechanisms for diagnosing corporate culture through key indicators such as innovation, results orientation, employee support and stability. The article highlighted the theoretical aspects and practical significance of integrating compliance and corporate culture as tools for improving business efficiency, ensuring its stability and competitiveness

Suggested Citation

  • Oleksandr Babich & Kateryna Andriushchenko, 2025. "Compliance and corporate culture: Interconnection and impact on business performance," Management and Business Articles, Management and Business, vol. 3(2), pages 6-14, December.
    • Handle: RePEc:bdw:emsesd:v:3:y:2025:i:2:p:6-14
    DOI: https://doi.org/10.59214/mb/2.2025.06
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    References listed on IDEAS

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