As most organizations are in the process of paying out annual bonuses and handing out merit increases to salaries, it is important to start thinking about implementing compliance incentives within your organization to help promote ethical behavior from stakeholders.
What is an incentive?
An incentive allows compliance programs to provide financial or other forms of compensation to employees who display a sense of compliance. However, implementing an incentive program may yield adverse outcomes for stakeholders, including reducing potential bonuses or additional financial contributions to prevent misconduct. To prevent this outcome, the U.S. Department of Justice (DOJ) recently outlined additional key elements of an effective ethics and compliance program, including implementing a compensation system that holds stakeholders accountable for misconduct and rewards compliant behavior. The goal is to encourage ethical behavior within an organization and to hold stakeholders accountable.
