The role of compliance for organisational change

Abstract

Purpose Fuelled by the latest scandals at Siemens, VW or Walmart, there is a lively debate on the role of compliance and ethics programmes. Unlike large corporations, small and medium-sized enterprises (SMEs) arguably tend to underestimate their significance and lag behind. Hence, the purpose of this paper is to shed light on the process of introducing compliance codes and its effects on employee acceptance and performance. Design/methodology/approach In line with the qualitative methodology, the authors conducted 12 in-depth interviews with German SME employees which the authors evaluated with the qualitative content analysis. Findings As for the major contribution, results indicate the emergence of a lack of understanding, anger, anxiety and operational performance losses – both at the individual and the corporate level – especially when employees feel uninvolved in the initial introduction stadium. Originality/value Practicing managers may benefit from the recommendation to facilitate staff involvement at earlier stages. As for theory advancement, the authors draw on Kotter’s (2007) long surviving “Eight Steps Change Management Model” and find significant support for shifting the spotlight of attention towards the first four phases. The authors discuss the original value of the research, admit limitations and illuminate some promising future research trajectories.