The Promises and Perils of Compliance: Organizational Factors in the Success (or Failure) of Compliance Programs

In today’s era of increased regulation and renewed enforcement efforts, unethical behavior and misconduct are a focus of concern among not only governments and regulators, but also investors, firms, employees, customers, and the public. Accordingly, compliance programs have gained prominence in the organizational agenda. A properly designed and implemented compliance program provides crucial assurance for all stakeholders that an organization’s personnel abide by all applicable regulations, internal ethical principles, codes of conduct, and other guidelines.

Based on empirical experience and illustrative cases, The Promises and Perils of Compliance seeks to discuss compliance not as just another management tool, but rather as a collection of rules, norms and controls embedded into an organization’s culture and environment that must be understood when designing a compliance program. The authors propose that organizations must be transparent at all stages of the design and implementation of the compliance program and be prepared to interpret, adapt, change, and redefine the program in action. It is also important for organizations to set a realistic agenda for the program so that gains can be seen and celebrated by all stakeholders.

This book offers a pathway to understanding the organizational dynamics any compliance effort needs to consider. It will benefit business students as well as managers, compliance officers, and CEOs and executives at every level.

David Arellano-Gault is Professor at the Department of Public Administration, Center for Research and Teaching in Economics (CIDE). He earned his Ph.D. in public administration from the University of Colorado at Denver. His research looks to critically incorporate the organizational variable to different governmental and public policy issues to understand such phenomena in a more practical and less normative way. His most recent book, Corruption in Latin America, was published in 2020. He is a member of the Mexican Academy of Science and serves in several editorial boards of journals including Organization Studies, Organization Theory, and Public Integrity, among others.

Arturo del Castillo is Associate Managing Director of Kroll, based in Mexico, where he leads the Forensic Investigations Practice. With over 20 years of experience advising clients across multiple industries on complex matters, Arturo has extensive international experience in the preparation of expert witness reports in the context of forensic investigations, as well as judicial proceedings for property damages.

Arturo has given testimony as an expert witness in criminal trials in Mexico, Colombia and in international arbitration panels. He has advised global Fortune 500 companies in FCPA investigations and due diligence matters, and several others in the assessment of compliance risks, design internal controls and support to implement compliance policies and procedures. He also specializes in the design and implementation of compliance programs.

Arturo has been a featured speaker in numerous seminars and workshops. He is often asked to speak at conferences on anti-corruption, corporate ethics and risk management. Since 2020, Arturo (along with Brian Weihs) produces and hosts the TV show Let’s Talk About Compliance, an online program of interviews with compliance professionals.