Minneapolis, MN---March 1, 2011---Despite the economic turmoil of the past few years, a greater number of compliance professionals report an increase in compliance staff and budgets along with greater of job security in 2010, according to an annual survey conducted by the Society of Corporate Compliance and Ethics (SCCE) and the Health Care Compliance Association (HCCA). However --- the survey also found that a small minority of compliance officers believe their management sees compliance and ethics as a detriment to the business.
"Although it is good news to learn that Compliance and Ethics Professionals report increased compliance budgets and staff along with having a greater sense of job security, it is also important to stress that budget and staff growth must equal the demand for regulatory compliance and business ethics," said SCCE/HCCA Chief Executive Officer Roy Snell.
Snell points out that number of new regulatory initiatives including Dodd-Frank Wall Street Reform and Consumer Protection Act, health care reform laws, and the UK Bribery Act are each putting pressure on organizations to increase their compliance efforts. "Regulators may take a dim view of companies that experience a compliance failure after not increasing their compliance resources," added Snell.
The data revealed by the survey finds that in both 2009 and 2010 compliance budgets were more likely to increase than decrease. In 2010, 32% of survey respondents reported an increase in budgets. With their eyes on 2011, the study finds that 46% of respondents expect their budgets to increase in 2011 with just 12% expecting a decline.
The SCCE/HCCA study also found that 31% percent of respondents reported an increase in compliance and ethics team staffing, while just 10% report a decrease. Job security is also on the rise. More than half of the survey respondents (54%) reported they were not concerned about losing their job as a result of the economy; that's up from 44% in the 2009 and 2008 studies. Forty-three percent reported they were somewhat concerned, and just 4% indicated they were very concerned.
Management's perception of compliance and ethics is also up. The survey reveals that 58% of respondents reports senior management views compliance as a "somewhat positive" or "very positive" asset in helping the organization through the current economic conditions; up from 51% from 2009 and 49% in 2008.
On the other hand, it is a concern that 13% reported that management views compliance as a hindrance.
Our study also found that survey respondents continue to fear that the economy increases the risk of compliance and ethics failures, with 90% reporting it somewhat or greatly increases their risk. This figure remains unchanged from 2009, even with what many describe as an improving economy.
The complete results may be downloaded from the SCCE and HCCA Websitse at:
Since December 2008, when the economic meltdown was in full swing, Society of Corporate Compliance and Ethics (SCCE) and the Health Care Compliance Association (HCCA) have jointly conducted a survey of compliance and ethics professionals to assess the likely impact of the faltering economy on compliance and ethics.
The 2008 survey indicated that 85% of respondents felt that the current economy greatly or somewhat increased the risk of compliance and ethics failures. So pervasive was this perception that only 1% took the contrarian view and felt that the legal and ethics risks might decline in this period. At the same time, there was great fear that compliance budgets would be reduced. As a result the risks would rise at the same time that the resources to manage them would decrease.
In October/November of 2009 and again in November/December of 2010, to determine the actual effect of the economy on compliance spending and staffing to learn the compliance profession's expectations for the next year's budgets and staffing, the SCCE and HCCA conduced a new survey.
About the HCCA
The Health Care Compliance Association (HCCA), established in 1996 and headquartered in Minneapolis, MN, is a non-profit professional membership organization made up of compliance and ethics professionals working in the health care industry. HCCA is dedicated to improving the quality of compliance. Visit HCCA's Web site at www.hcca-info.org. Tel: 888/580-8373.
About the SCCE
The Society of Corporate Compliance & Ethics (SCCE) is headquartered in Minneapolis, MN. Its mission: SCCE exists to champion ethical practice and compliance standards in all organizations and to provide the necessary resources for compliance professionals and others who share these principles. Visit the SCCE Web site at http://www.corporatecompliance.org, Tel: 888-277-4977. Society of Corporate Compliance & Ethics is located at 6500 Barrie Road, Suite 250, Minneapolis, Minnesota 55435. E-mail: email@example.com