Are boards of directors and managers expected to oversee and manage compliance and ethics programs?

Enhance your ethical decision-making skills with the BOMI Ethics is Good Business Test. Utilize flashcards and multiple choice questions with explanations to prepare effectively. Ace your exam with confidence!

Boards and managers have a governance responsibility to ensure an effective compliance and ethics program. The board sets the tone at the top, approves policies, and allocates resources, signaling what is expected and shaping the organization’s ethical standards. Managers take that direction and translate it into actual practices by developing procedures, delivering training, monitoring adherence, and addressing any violations. This combination creates accountability, aligns behavior with values and legal obligations, and strengthens risk management across the organization. External auditors may assess controls, but they aren’t responsible for running the program day to day, and the expectation isn’t limited to certain industries—the leadership role in oversight and implementation is a general principle of good governance. Therefore, yes, boards and managers are expected to oversee and manage compliance and ethics programs.