Managerial Perspectives on Ethical Governance and Compliance Systems in Multinational Corporations
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Abstract
Ethical governance and compliance systems are essential components of corporate management, especially in multinational corporations navigating global business transformations. While much research has focused on the technical and regulatory aspects of these systems, the subjective experiences of individuals engaged in their implementation remain underexplored. This study addresses this gap by exploring how managers and compliance officers experience ethical governance and compliance systems within multinational organizations. Using a phenomenological approach, we aimed to understand the lived experiences of individuals facing ethical challenges in their roles. Data were collected through in-depth interviews with 12 managers and compliance officers with at least five years of professional experience, working in multinational corporations operating across the manufacturing, financial services, and technology sectors. These organizations conduct business in multiple countries and are required to comply with diverse regulatory and ethical standards across jurisdictions. Interview data were analyzed using a phenomenological thematic analysis procedure involving transcript familiarization, initial coding, theme development, theme refinement, and interpretative synthesis of participants’ lived experiences.analysis revealed that while ethical governance is vital, individuals often face tensions between ethical standards and business pressures. Transparency and communication were identified as key factors in enhancing the effectiveness of compliance systems. These findings offer valuable insights into the human dimension of ethical governance, emphasizing the need for systems that align with both organizational values and personal beliefs. The study highlights the importance of incorporating the subjective experiences of individuals into the design of ethical frameworks and suggests areas for future research on the cultural and role-based variations in ethical decision-making.
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