E&C Challenges Shaping the Future of Financial Services

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Ethical Gaps in the Financial Services Sector: 2025 Ethics & Compliance Program Effectiveness Report. The new report examines data from LRN’s recent 2025 Ethics & Compliance Program Effectiveness survey, specifically isolating the data gathered from financial services organizations, uncovering critical shortfalls in ethical decision-making, measurement of ethical culture, and supply chain compliance—areas that demand urgent attention as financial firms navigate an increasingly complex regulatory and risk landscape. https://www.businesswire.com/news/home/20250326776246/en/LRN-Research-Reveals-Key-EC-Challenges-Shaping-the-Future-of-Financial-Services-Industry

Supply chains have endured plenty of pressure in recent years. From the lingering aftershocks of Covid-19 to the ongoing war in Ukraine, rising geopolitical tensions and climate-related disruptions, organisations are contending with a new era of volatility. At a recent Business Reporter dinner briefing at the House of Lords, hosted by LRN, senior leaders gathered to discuss how businesses can strengthen supply chains, mitigate risk and foster ethical resilience. https://www.business-reporter.co.uk/technology/the-expert-view-building-robust-supply-chains

From the House of Lords to Heathrow: Why operational resilience must start with the supply chain.  On March 20, my colleague Amy Hanan, Chief Marketing Officer at LRN, and I hosted a roundtable dinner event at the House of Lords in partnership with Business Reporter, bringing together 20 senior supply chain professionals to discuss one of the most pressing issues facing compliance and procurement leaders today: how to mitigate third-party risks and build true operational resilience.  And then, hours later, the real-world test arrived. This morning, March 21, Heathrow Airport faced widespread delays after a fire at a nearby electrical substation disrupted the airport’s power supply. https://lrn.com/blog/why-operational-resilience-must-start-with-the-supply-chain

Harvard Business Review: How to Approach Business Ethics as Global Consensus Breaks Down. 

Global consensus is breaking down on ethical issues such as anti-bribery enforcement and corporate responsibility. This moment is a call for leaders to face these challenging realities or risk potential financial and reputational damage to their businesses. There are three strategies leaders can use to navigate these ethical challenges—before it’s too late for their organizations: 1) Know your true values and pressure-test them; 2) embrace friction; and 3) “health check” expectations to drive ethical outcomes. By following these strategies, leaders can create constructive and healthy work environments that support ethical decision-making, even amid geopolitical risk and market volatility. https://lrn.com/blog/why-operational-resilience-must-start-with-the-supply-chain

Findings from The State of Board Effectiveness in 2025 by Board Intelligence highlight a major disconnect between the data boards receive and the insights they need. LRN’s 2025 Ethics & Compliance Program Effectiveness Report reinforces that high-performing compliance teams are already leveraging benchmarking and advanced analytics to meet these demands, while others risk falling behind, and the gap is getting bigger.  https://lrn.com/blog/bridging-the-compliance-gap-how-ec-leaders-can-deliver-better-insights-to-the-board?

Corporate compliance teams have to navigate internal challenges, such as perception gaps between different levels of seniority and between generations. At the same time, many companies’ compliance programs are failing to keep up with third-party and supply-chain risks – and the related regulatory requirements. These are among the findings of the 2025 Ethics & Compliance Program Effectiveness Report – Caught in the Middle, published by LRN. This article distills the study’s findings and includes insights provided to the Anti-Corruption Report by LRN chief advisory officer Ty Francis.  https://www.anti-corruption.com/21109251/2025lrn-effectiveness-survey-finds-lags-in-thirdparty-diligence.thtml

In her recent speech at the 10th Annual Culture and Conduct in Financial Services Summit, Emily Shepperd, COO of the UK’s Financial Conduct Authority (FCA), delivered a compelling message: culture is contagious. It’s a force that can either inoculate organizations against misconduct or expose them to reputational ruin. The FCA’s evolving regulatory framework emphasizes that fostering an ethical culture is not just about ticking compliance boxes, it’s central to maintaining market integrity and consumer trust. https://lrn.com/blog/the-contagion-of-culture-why-measuring-ethical-culture-is-essential-for-risk-mitigation

The Economic Crime and Corporate Transparency Act (ECCTA) represents a significant shift in the regulatory landscape for corporate compliance, aiming to address economic crime within the UK. Enacted in 2023, this law introduces new mandates that emphasize the responsibility of corporations to prevent fraudulent activities within their operations. The law’s centerpiece is the “failure to prevent fraud” offense, which sets a higher standard of accountability for companies to curb fraud perpetrated by employees or third-party agents. https://lrn.com/blog/eccta-and-its-impact-on-uk-and-us-companies-an-overview-with-the-fcpa-and-dojs-evaluation-of-corporate-compliance-programs

The U.S. Department of Justice’s recent signals to scale back enforcement of the Foreign Corrupt Practices Act (FCPA) have caught the attention of corporate compliance professionals worldwide. Under Attorney General Pam Bondi, the DOJ is shifting focus from corporate bribery to cases linked to human trafficking, narcotics, and violent crime. The disbanding of the Corporate Enforcement Unit and reduced oversight of export controls have further fueled speculation that white-collar enforcement is no longer a top priority in the U.S. : https://lrn.com/blog/while-the-us-may-look-to-relax-its-fcpa-focus-europe-will-be-watching

As we look towards 2025, the landscape of corporate ethics and compliance (E&C) will shift even more rapidly than we’ve seen this year, driven by the integration of artificial intelligence (AI) and shifting global regulations. The critical trends that will shape the future of E&C range from the risks and opportunities presented by AI, the growing focus on supply chain compliance made only more important with new legislation in the EU like CSDDD and new guidance from the Department of Justice’s (DOJ) Memo to its prosecutors, the role of leadership in fostering ethical cultures, and the complexities of navigating evolving ESG (Environmental, Social, and Governance) requirements in a less tolerant world. https://lrn.com/blog/ai-ethics-and-esg-in-2025

Boards are increasingly relying on quantitative data, such as corporate culture surveys, including metrics of employee turnover to assess corporate culture, moving away from subjective “gut checks” according to PwC’s recent 2024 Annual Corporate Directors Report.https://lrn.com/blog/boards-limiting-focus-on-esg-while-data-and-analytics-for-culture-measurement-continue-to-rise 

The food manufacturing industry has always been a highly competitive and risk-riddled industry. In a race to maintain productivity, reduce costs, and remain competitive, ensuring supply chain resilience is paramount. A crucial element of this resilience lies in effectively managing risks within third-party supplier relationships. Here we’ll explore practical approaches for monitoring supplier practices, the importance of ethics and compliance training, and the key risk indicators to watch for, aligning with recent regulatory guidance from around the world. https://lrn.com/blog/monitoring-third-party-supplier-practices-in-the-food-manufacturing-supply-chain

The recent lawsuit by Delta Airlines against CrowdStrike for over $500 million in damages following its widespread flight cancellations highlights just how critical the reliance on third-party technology suppliers has become. The July 2024 CrowdStrike incident, which disrupted operations across multiple sectors, including airlines, banking and healthcare, emphasizes how unregulated or unvetted third-party suppliers can pose substantial risks to business continuity. As the Financial Conduct Authority (FCA) reminds us, businesses must focus on mitigating such risks, particularly as firms increasingly rely on external technology providers. https://lrn.com/blog/the-importance-of-supply-chain-due-diligence-training-and-operational-resilience-lessons-from-the-doj-fca-and-the-crowdstrike-outage

In today's constantly changing workforce, ethics and compliance training must evolve to reflect the diverse perspectives and needs of multiple generations. As organizations strive to foster ethical cultures and reduce misconduct, a one-size-fits-all approach no longer suffices, especially with the growing presence of Generation Z (we define as being born between 1997 and 2012) in the workplace. As I travel to different cities around the world to talk about our 2024 LRN Code of Conduct Report, I’m constantly asked about how this younger generation is adapting to and using E&C resources. The data contained in this report echoes some research we released earlier this year in our LRN Benchmark of Ethical Culture Report. I firmly believe, leveraging insights from both of these papers, we can identify key trends to design more effective ethics and compliance (E&C) programs, particularly for Gen Z employees.  https://lrn.com/blog/tailoring-ethics-and-compliance-training-for-generation-z

https://complianceandethics.org/another-read-on-the-new-french-anti-corruption-afa-guidelines-its-all-about-ethical-culture/

https://complianceandethics.org/does-the-law-to-strengthen-business-integrity-go-far-enough-for-europes-largest-economy/

In Conversation with Craig Kreeger, CEO of Virgin Atlantic Airways

Interview by: Ty Francis, Executive Vice President & Group Publisher, Ethisphere

Since its inception, Virgin Atlantic has succeeded in establishing a customer-centric culture built around continually driving new ways to provide industry-leading service. Ethisphere’s Ty Francis caught up with Virgin Atlantic CEO Craig Kreeger recently to discuss the airline’s strategy, how it’s working to maintain its strong position, and what new directions they may take going forward.

Ty: How does the corporate culture at Virgin Atlantic support the airline’s efforts to serve customers with integrity and provide top-notch service?

CK: The relationship between our brand and our customers is really the relationship between our people and our customers. We encourage our people (through our hiring, training, and practices) to be themselves at work and to have fun. The human connection that comes from that creates a great relationship and has come to define what we refer to as ‘uniquely’ Virgin Atlantic.We listen to our customers, genuinely seeking to make their experience great. In the end, we always want to be at our best to represent our brand and build genuine relationships with our customers so that they have a positive experience flying with us.

Ty: What sets you apart from competitors with respect to your service offerings and value proposition?

CK: We exist to create a better experience in air travel for our customers. We began by resolving a need for the customer, with a mindset established by Richard to make the journey as enjoyable as the destination. This mindset runs through the company today by putting the customer at the heart of everything we do. We constantly look at pioneering new ways to improve their experience—from the moment they step into our clubhouses to prepare for their journey, to the point at which they step off a flight.We also listen to our customers and try to be a step ahead by addressing their needs even before they realize they have them. For example, we were the first airline to feature an on-board bar and the first to introduce seatback entertainment. However, we don’t innovate just to compete with other carriers. We innovate for our customers to improve their experience.

Ty: How does today’s consumer differ from the one of yesteryear, and how are you keeping pace with their evolving needs?

CK: We see that many of our customers have an entrepreneurial spirit—they chase life and opportunities. They’re always on the go and therefore always like to be connected. They enjoy more high-touch experiences and appreciate when brands go out of their way to accommodate their busy schedules.That’s why we’ve created a mandate to deliver WiFi across our entire fleet. That’s also why we’ve created unique environments in our clubhouses (with spas and fine dining options) and on our aircrafts (with a bar in Upper Class and tons of on-board entertainment options) so that customers can freely choose how they spend their time prepping for meetings, networking or relaxing.

Ty: What new services and innovations can your customers expect to see going forward?

CK: At Virgin Atlantic, we’re focused on what has always made us successful: our service and our experience. Similar to other Virgin brands, we decided from the onset that we would shake things up and inject some style into aviation. For us, it’s not about getting into the ‘amenities arm race’ like other airlines. We won’t settle for the norm, and therefore we will always be at the forefront of innovation.More recently, we announced that in addition to investing in our fleet, including our new Boeing 787s, we will be investing £300 million into our customer experience by 2018. This investment includes both on-the-ground and in-the-air experiences such as the opening of our brand new Clubhouse at LAX, the new Wander Wall for our Premium Economy passengers (to encourage socializing with our cabin crew and other passengers) and enhancements to our food and wine service. We’re constantly looking into emerging technologies such as wearables, to make our customer experience more enjoyable.

Ty: After almost 30 years in the airline industry, what have you learned about the consumer mindset and the elements of success?

CK: I’ve seen a lot in my 30 years in the business, but what I’ve learned is that consumer demands will continually evolve based on culture, society, and technology. We’re in a 24/7 world where businesses are more global than ever before. The world is getting smaller and there’s added pressure to be always on.As a result, the airline business is more valuable than ever before in helping to broker connections, drive networking opportunities, and advance business relationships. It is our responsibility to be a step ahead in order to provide the best experience to customers—from WiFi across our entire fleet, to a choice of channels on our on-board entertainment systems—so that they can be as efficient and relaxed as possible. What hasn’t changed is that people want to enjoy the journey as much as the destination.

Ty: What do you enjoy most about this job and what is your vision for the future?

CK: I love my job—when I got the job, two friends sent me exactly the same text message: to say that I had the coolest job in the industry! It’s a relaxed environment where we let our people come to work and be themselves.What I really do enjoy the most are the people. The enthusiasm and spirit of our employees and our customers for our brand is what motivates me every single day. They believe in what we do and have fun doing it. Their friendliness and care for the brand and how it’s perceived comes across in the way they interact with customers, on the ground and in the sky. I truly believe this is why customers fly with us time and time again and this is why I love coming to work every day.

Expert Biography:Craig Kreeger joined Virgin Atlantic as Chief Executive in February 2013, taking the reigns of Sir Richard Branson’s airline after a 27-year career at American Airlines (AA). Born in 1959, the native Californian grew up in Sacramento. He studied Economics at the University of California, San Diego and graduated from UCLA with an MBA in 1985.  

Main article: http://insights.ethisphere.com/a-non-stop-journey/