Browsing by Author "Makhura, Puseletso Eunice"

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    A critical analysis of whether ethics and compliance functions should be combined or separated in organisations
    (Stellenbosch : Stellenbosch University, 2021-12) Makhura, Puseletso Eunice; Woermann, Minka; Stellenbosch University. Faculty of Arts and Social Sciences. Dept. of Philosophy: Centre for Applied Ethics.
    ENGLISH ABSTRACT: Recent global corporate scandals have demonstrated the importance of strong ethical organisations. Ethics and compliance functions play a critical role in fostering an organisational culture that accentuates ethical conduct. The challenge is how to optimally structure the two functions, given that they are unique but have common goals. The goal of both functions is to embed the ethical culture across an organisation. Compliance however involves following rules and policies to control and monitor unethical behaviour, while ethics involves engendering values and principles to self-regulate behaviour. The aim of my research is, firstly, to draw on pertinent academic literature exploring the structuring of ethics and compliance functions, notably Painter et al.’s (2019) Values Driven Business Alignment Framework and Mintzberg (1983) approach to grouping functions and aligning processes; and, secondly, to forward an argument for a suitable structuring of the ethics and compliance functions. Whether to separate, combine or separate-but-collaborate the ethics and compliance functions is influenced by both the regulatory framework of a specific country and the pertinent design principles. Separation or combination of the two functions is based on features of what is called vertical alignment, whereas the separate-but-collaborate approach is based on features of horizontal alignment. Past research focused on vertical alignment; however, an increasing body of knowledge on horizontal alignment has been produced in recent years. The hybrid model promotes collaboration on common issues while maintaining the independence of each function. The benefits of a hybrid model are fourfold: it improves synergy between the functions, reduces inter-functional tension, prevents silos and expands cooperation. This study is valuable in that, firstly, it contributes to the debate by providing justification for a hybrid model founded on horizontal alignment and functional design principles. Secondly, the study provides a practical guide on how to implement an appropriate design for value-driven functions in an organization.