Regulators and prosecutors expect firms to identify the underlying causes of misconduct and risk governance failures, not just proximate triggers. Culture is viewed as a key factor, driving behavior and shaping the efficacy of control environments, with firms expected to demonstrate how weaknesses are identified and addressed to mitigate future risk.
Compendium
Jun 23, 2025This interview with Roy Baumeister explores how the fundamental human motivation to belong underpins emotional well-being, power dynamics, and organizational behavior. The need for belonging is linked to conduct risk, culture risk, and governance failures, emphasizing how conformity to group norms can foster misconduct or toxic environments. Even well-intentioned employees may mimic unethical behavior if it reflects prevailing cultural cues.
