Post-Election Breakdown: E&C and HR’s Next Four Years 🦅🗓️

In the wake of one of the most historic presidential elections in history, and the return of Donald Trump as the United States’ 47th President, ethics, compliance, and HR professionals will face untold challenges in 2025 and beyond. While changes in administration may shift enforcement priorities, the fundamental need for robust compliance programs remains constant. This analysis explores how compliance leaders can navigate these changes while maintaining program effectiveness and organizational impact.

This panel discussion brought together leading compliance experts to examine the implications of recent political shifts on corporate compliance programs. The conversation explored how regulatory changes might impact various industries, the enduring importance of compliance functions regardless of political leadership, and strategies for maintaining effective programs during periods of transition. Experts emphasized the continued relevance of core compliance principles while acknowledging the need for adaptability in response to evolving regulatory landscapes.

Meet The Ethics Experts:

• Hemma Ramrattan Lomax, Founder, CEO, Chief Compliance Coach, COMPAAS 360
• Kristy Grant-Hart, Founder & CEO, Spark Compliance Consulting
• Matt Kelly, CEO & Editor, Radical Compliance
• Nick Gallo, Chief Servant & Co-CEO, Ethico

Regulatory Continuity

• Despite political changes, core compliance requirements and frameworks will likely remain stable, as many regulations stem from longstanding business needs rather than political priorities.
• The DOJ’s guidelines for effective compliance programs, cooperation credit policies, and fundamental enforcement mechanisms are expected to continue largely unchanged, though specific enforcement priorities may shift based on administration focus and resource allocation decisions.
• Companies should maintain their compliance infrastructure while staying alert to potential changes in enforcement emphasis or interpretation.

Global Regulatory Environment

• Multinational companies must continue navigating a complex web of international regulations, regardless of U.S. political shifts.
• The European Union’s expanding regulatory framework, including new AI regulations and privacy requirements, combined with varying state-level requirements in the U.S., means companies need to maintain robust compliance programs that meet the highest common denominator of global standards.
• Organizations should particularly focus on areas like sanctions compliance, supply chain due diligence, and emerging technology regulations that transcend national boundaries.

Corporate Culture Considerations

• Political polarization under a second Trump presidency could create additional challenges for maintaining cohesive corporate cultures and effective compliance programs.
• However, it could also present an opportunity for increase risk intelligence, as long as convenient, effective reporting avenues are freely available.
• Organizations should focus on unifying principles that transcend political differences, emphasizing shared organizational values and business objectives while avoiding politically charged messaging that could alienate portions of the workforce and maintaining strong ethical standards regardless of the political environment.

Workforce Impact Management

• Trump-era policies could affect workforce compliance issues, particularly regarding immigration enforcement, diversity initiatives, and workplace culture.
• Compliance programs need to balance potential federal policy shifts with ongoing organizational commitments to workplace fairness and inclusion, while maintaining effective speak-up cultures.
• The experience of the first Trump administration suggests organizations may face increased pressure to demonstrate compliance with enhanced immigration enforcement while maintaining inclusive workplace cultures. Companies should also prepare for potential changes to federal contractor requirements and affirmative action programs, which could require significant adjustments to current practices.

Technology and Innovation Oversight

• Trump’s stated opposition to AI regulation and potential rollback of Biden-era tech initiatives could create regulatory uncertainty in emerging technology areas.
• Compliance teams should prepare for possible reduction in federal oversight while maintaining robust internal controls for technology risks, particularly as state and international regulations may fill any federal regulatory gaps and create a more complex compliance landscape for technology governance.
• The potential dismantling of federal AI guidelines could lead to increased regulatory fragmentation, with states and industries developing their own standards. Organizations should also anticipate continued pressure from stakeholders for responsible technology deployment, regardless of federal regulatory requirements.

Strategic Resource Allocation

• Organizations should develop flexible compliance frameworks that can adapt to changing federal priorities while ensuring adequate coverage of fundamental risks, including areas where reduced federal enforcement might increase state-level or private litigation exposure.
• Historical patterns suggest the importance of maintaining strong investigation and remediation capabilities even in areas of reduced federal enforcement.
• Companies should also consider building stronger state-level compliance monitoring capabilities to track evolving requirements across jurisdictions (as federal oversights may be reduced).

Global Standards Navigation

• A second Trump presidency could create greater divergence between U.S. and international regulatory standards, particularly regarding environmental, social, and governance (ESG) issues.
• Companies operating globally must maintain compliance programs that meet the highest applicable standards across jurisdictions, potentially exceeding U.S. federal requirements to satisfy international obligations and stakeholder expectations, while preparing for potential conflicts between U.S. and international requirements.
• The experience of multinational corporations during the first Trump administration highlighted the challenges of balancing competing regulatory regimes. Organizations should also prepare for potential impacts on international data transfers and privacy requirements, as regulatory divergence could complicate cross-border operations.

Healthcare Sector Implications

• Potential changes to healthcare regulations and enforcement under Trump could significantly impact healthcare compliance programs, particularly regarding Medicare/Medicaid regulations and pricing transparency requirements.
• Healthcare organizations should maintain robust compliance programs while preparing for possible regulatory changes, paying particular attention to areas where reduced federal oversight might lead to increased state-level regulation or private enforcement actions.
• The appointment of new leadership at key agencies like CMS could signal significant shifts in enforcement priorities and interpretation of existing regulations. Organizations should also prepare for potential changes to telehealth regulations and privacy requirements that evolved during the COVID-19 pandemic.

Risk Management Evolution

• While a second Trump presidency might reduce certain regulatory burdens, organizations must maintain effective risk management capabilities independent of political changes.
• Compliance programs should focus on demonstrating value through risk mitigation and operational efficiency rather than purely regulatory compliance, while maintaining core capabilities that protect against fundamental business risks regardless of the regulatory environment.
• Experience from the first Trump administration suggests that reduced federal enforcement often leads to increased private litigation and reputational risks. Organizations should also ensure their risk assessment processes can quickly adapt to rapid policy changes while maintaining consistent coverage of core organizational risks.

Conclusion

The next four years present a unique opportunity for ethics and compliance professionals to demonstrate their irreplaceable value to organizations. While political shifts may alter the regulatory landscape, the fundamental need for strong ethical leadership and risk management remains constant – and may even intensify due to a reduction in government oversight (and increase in reputational risks). This is not a time to retreat or maintain the status quo, but rather to step forward boldly and showcase how compliance functions serve as essential business partners in navigating uncertainty.

The path forward requires courage, creativity, and unwavering commitment to doing what’s right – qualities that have always defined the best compliance professionals. By embracing these challenges while staying true to our core mission of protecting organizations and their stakeholders, we can emerge from this period with stronger, more resilient compliance programs and enhanced organizational influence. For compliance professionals willing to be proactive, innovative, and focused on business partnership, the next four years offer a chance to elevate the profession and demonstrate why strong ethics and compliance programs are essential to organizational success in any political environment.