What are common root causes of Ethics and Compliance issues?

The identification of a lack of oversight combined with excessive pressure to meet goals as a common root cause of ethics and compliance issues is grounded in the understanding of organizational behavior and risk management. When employees operate under high stress to achieve targets—particularly under conditions where oversight is minimal—there can be a tendency to take shortcuts or disregard ethical standards in pursuit of results. This pressure can lead to a culture in which achieving results is prioritized over adherence to compliance measures and ethical guidelines.

In environments where oversight is lacking, there is a diminished likelihood of detecting unethical behavior or non-compliance until it has escalated into a significant issue. The combination of these factors creates fertile ground for ethical breaches as employees might rationalize their actions in pursuit of goals, believing that the end justifies the means or that they are unlikely to be caught.

On the other hand, excessive flexibility in the control environment can sometimes be beneficial, as it allows for creativity and adaptability; though if it's not managed wisely, it can lead to compliance problems. High levels of training and awareness typically help in mitigating ethics and compliance issues, making it an unlikely root cause. Lastly, while the complete elimination of rules might suggest a lack of structure, it doesn't directly correlate with typical organizational pressures that create compliance issues