Playing the Bad Cop: Enforcing Policy Is Successful Policy

The moment a high-performing executive receives different treatment than a factory worker for the same policy violation, your entire compliance program becomes a carefully crafted fiction that employees see through immediately. The gap between policy creation and policy enforcement represents one of the most critical challenges facing today’s compliance professionals. While organizations excel at crafting comprehensive codes of conduct and detailed procedural documents, the real test of an ethics and compliance program lies in its ability to consistently apply these standards when violations occur. 

This episode of The Ethicsverse explores the complex dynamics of policy enforcement within corporate compliance frameworks, examining the persistent challenge of translating written policies into consistent organizational behavior. The discussion identifies key factors contributing to enforcement inconsistencies, including policy proliferation, inadequate business integration, and inconsistent disciplinary application across organizational hierarchies. Expert practitioners present evidence-based approaches to policy governance, emphasizing the critical importance of “followability” in policy design and the integration of compliance functions with quality management systems. The analysis reveals how disciplinary committee structures, sanctions standards, and cross-functional governance models can enhance enforcement consistency while preserving organizational culture. Central themes include the necessity of business-first policy design, the role of compliance officers in disciplinary decision-making, and the relationship between consistent enforcement and organizational credibility.

Featuring:

• Stephanie Davis, Chief Ethics & Compliance Officer, Volkswagen Group of America
• Adesola Makoko, Head of Business Integrity North America / Global Investigations Lead, West Zone, Unilever
• Matt Kelly, CEO & Editor, Radical Compliance
• Nick Gallo, Chief Servant & Co-CEO, Ethico

Writing Followable Policies That Enable Business Operations

• Policy creators must deeply understand business operations before drafting rules, as disconnected compliance officers often write policies that inadvertently prevent employees from performing their core job functions effectively.
• The concept of “followability” should guide all policy development, ensuring that written standards can be realistically implemented within existing business processes without requiring constant compliance intervention or approval.
• Integration of compliance functions with quality management systems (like ISO 9001) creates natural feedback loops that help identify when policies are impractical or contradictory to operational requirements.

Managing Policy Proliferation and Organizational Confusion

• Organizations frequently suffer from “policy layering” where multiple versions of similar policies coexist, creating confusion about which standards actually apply and undermining consistent implementation across departments.
• Establishing central policy repositories with clear governance models prevents departments from creating conflicting local policies that may violate company-wide compliance standards without proper oversight.
• Regular policy audits and consolidation efforts are essential to eliminate outdated, redundant, or contradictory requirements that create compliance paralysis rather than effective risk management.

Building Effective Disciplinary Committee Structures

• Consistent disciplinary outcomes require structured committee approaches with the same decision-makers reviewing all code of conduct violations, ensuring uniform application of sanctions across organizational levels.
• Cross-functional disciplinary committees that include representatives from HR, compliance, legal, and business units provide diverse perspectives while maintaining objectivity in enforcement decisions.
• Documentation of all disciplinary decisions and their rationale creates institutional memory that supports consistent treatment of similar violations over time and demonstrates program effectiveness to external stakeholders.

Establishing Clear Sanctions Standards and Guidelines

• Organizations must develop transparent sanctions standards that outline specific consequences for different types of violations, including detailed consideration of mitigating and aggravating factors that influence disciplinary outcomes.
• Public accessibility of disciplinary processes and standards builds employee trust by demonstrating fairness and predictability in how violations are addressed across all organizational levels.
• Sanction guidelines should address common employee concerns about disparate treatment between executives and lower-level employees by clearly articulating why different factors may lead to different outcomes.

Ensuring Consistent Enforcement Across Organizational Hierarchies

• The credibility of compliance programs depends critically on applying identical standards to high-performing executives and entry-level employees, as inconsistent treatment destroys organizational trust in stated values.
• “Zero tolerance” policies lose meaning when organizations make exceptions for top performers or senior leaders, creating cynicism about whether stated values represent actual organizational priorities.
• Visible enforcement actions against senior leaders, while difficult, send powerful cultural messages that reinforce the authenticity of organizational commitment to ethical conduct.

Defining Compliance Officer Roles in Disciplinary Processes

• Compliance officers should participate in disciplinary discussions to ensure code of conduct violations receive appropriate consideration, but should not be responsible for making final disciplinary decisions to maintain objectivity.
• The compliance function serves as a cultural guardian during disciplinary processes, advocating for consistent application of ethical standards while HR focuses on employment law compliance and business continuity.
• Compliance officers must maintain detailed records of all disciplinary outcomes to identify patterns, ensure consistency, and provide evidence of program effectiveness during audits or investigations.

Creating Business Integrity Governance Models

• Regional or functional business integrity committees comprising senior cross-functional leaders provide local oversight while maintaining consistency with global standards and organizational values.
• Governance documents that outline committee composition, meeting frequency, decision-making processes, and escalation procedures prevent ad-hoc approaches that undermine program credibility.
• Training committee members on policy interpretation and sanctions standards ensures qualified decision-making and reduces the risk of arbitrary or inconsistent disciplinary outcomes.

Integrating Compliance and HR Functions Effectively

• Clear delineation of responsibilities between compliance and HR functions prevents jurisdictional conflicts while ensuring all employee concerns receive appropriate attention from qualified specialists.
• Written agreements specifying which types of employee complaints fall under compliance versus HR purview help both functions focus resources on their areas of expertise while maintaining seamless employee support.
• Regular communication between compliance and HR teams, including shared reporting systems, creates comprehensive views of employee conduct patterns and enables more informed disciplinary decisions.

Developing Effective Policy Communication Strategies

• Traditional email announcements about policy changes prove ineffective; successful programs use interactive approaches like lunch-and-learns, walking meetings, and direct employee feedback sessions to ensure understanding.
• Focus groups and stakeholder consultation during policy development identify potential implementation challenges before policies are finalized, reducing the need for frequent revisions and clarifications.
• Working with internal communications teams or developing communication skills within compliance teams ensures policy messages resonate with diverse employee populations across different organizational levels and functions.

Monitoring and Measuring Enforcement Effectiveness

• Real-time reporting systems that track complaint handling, investigation outcomes, and disciplinary actions provide data-driven insights into program effectiveness and enforcement consistency patterns.
• Regular analysis of enforcement metrics helps identify potential bias, inconsistent application, or gaps in policy coverage that could undermine program credibility or effectiveness.
• Systematic monitoring of policy adherence through quality management integration creates ongoing feedback loops that support continuous improvement in both policy design and enforcement practices.

Conclusion