Building Business Resilience Through Ethics and Compliance

In the current climate of geopolitical uncertainty and shifting regulations, companies need more than good financial planning to stay resilient. They need to embed ethics and compliance at the heart of their operations.

At the Basel Institute on Governance, our experience and research show that strong, well-integrated compliance systems help organisations weather political storms, gain the trust of stakeholders and unlock new opportunities for financial growth. Our recent Quick Guide on Business Integrity brings this message into focus, offering practical insights for compliance and ethics officers working across sectors.

Beyond box-ticking for effective compliance

Compliance that works is not about having the longest policy manual or the most training sessions. It’s about whether those efforts actually prevent misconduct and encourage people to do the right thing, even when no one is watching.

In our recent work helping the OECD develop recommendations on assessing anti-corruption compliance, companies repeatedly told us that organisational culture is the critical factor. A culture that empowers people to act with integrity, speak up safely and learn from mistakes is what makes rules meaningful. The real measure of a compliance programme’s value is its impact on behaviour and decision-making, not just activity counts.

Staying ahead in a shifting landscape

Regulatory and stakeholder expectations are constantly evolving. New laws around human rights, climate, sustainability and supply chain standards mean businesses face overlapping risks and obligations. A strong ethics and compliance framework helps companies manage these demands in an integrated, strategic way.

This is especially important for smaller businesses that want to enter global supply chains. Robust compliance systems help them meet higher standards, reassure customers and investors, and open doors to new markets.

Ethics builds trust and trust builds resilience

A good reputation remains one of a company’s greatest assets. Acting ethically strengthens trust with investors, employees, customers and communities. This trust can take years to build but can be lost overnight if wrongdoing occurs, or even if it’s merely suspected.

Our recent publications highlight that companies with mature ethics and compliance programmes are not only less likely to face crises but also more likely to recover quickly if things go wrong. A strong track record of integrity shows regulators and stakeholders that any incident is the exception, not the norm.

Smarter risk decisions

A solid compliance function helps businesses make better decisions by identifying and managing integrity risks early. This is about more than avoiding fines or bad headlines. It can uncover deeper business risks, from unreliable partners to political threats. It also gives leaders the data they need to steer the business through high-risk environments.

Stronger together: the role of Collective Action

Even with effective compliance systems in place, individual company efforts are not enough. Many barriers to fair competition, such as bribery demands or unfair procurement, are systemic. Companies need to work together, and with governments and civil society, to tackle these challenges through Collective Action, which is an approach centred around sustained multi-stakeholder initiatives involving the private sector.

These initiatives build trust, share knowledge and strengthen market integrity. They also help companies contribute to a more level playing field, which benefits everyone. The Basel Institute maintains a global database of Collective Action initiatives on the B20 Collective Action Hub. 

Behaviour-led compliance is smart business

One clear take away from our ongoing work is that the future of compliance lies in practical, outcomes-focused approaches that keep people and behaviour at the centre. At the Basel Institute, we continue to help companies build these systems and support governments in providing clear, fair guidance and consistent enforcement.

Whether you work in a multinational, an SME or a state-owned enterprise, the message is the same: investing in robust ethics and compliance is not just a cost: it’s a strategic foundation for resilience and sustainable success.