NEWS
The recent resignation of the CEO of Primark is the latest high-profile case that illustrates the importance of an organisation’s compliance culture. Primark is a major global retail clothing chain employing over 80,000 people across 17 countries.
An allegation was made by a woman about the CEO’s “behaviour in a social environment”. The owners of Primark, Associated British Foods (ABF), instigated an independent investigation, and the CEO’s resignation followed.
The Company avoided serious damage to its reputation by acting quickly and appropriately, and issuing a statement that reiterated its commitment to respect and dignity in the work environment.
Companies must treat complaints seriously, regardless of whether they happen inside or outside the office environment and (especially in view of the incoming changes under Labour’s Employment Rights Bill), whether they involve employees or third parties.
Clear policies and procedures that outline standards expected, together with suitable reporting mechanisms, are the basic building blocks of a compliance program. However, creating a true compliance culture requires an environment where everyone understands and buys into the need for ethical behaviour, and where raising concerns is not just encouraged, it’s expected.
Tone at the top is also critically important – if leaders don’t role model ethical standards, how can they expect others to?
We can help organisations build a deep and lasting compliance culture – contact us today for an initial, complimentary discussion.
Roger Williams. Director, Quarmans.
