the international adoption of ethical business regulation

in association with the Centre for Socio-Legal Studies andWolfson College, University of Oxford

The InternationalAdoption of EthicalBusiness Regulation

Christopher Hodges and Ruth Steinholtz

The Foundation for Law, Justice and Society

Policy Brief

www.fljs.org

www.fljs.org

n This Policy Brief is the latest in a series on Ethical Business Practice (EBP) and Ethical

Business Regulation (EBR). It summarizes current thinking on these topics, based on a

Conference held at Wolfson College, Oxford on 4 May 2018.1

n EBP and EBR are built on firm scientific and empirical evidence, based on insights from

behavioural psychology and economics to research into and experience with ethics and

compliance and regulatory practice.

n Elements of EBP and EBR can be found in diverse regulatory systems across the world,

and the articulation of the EBP and EBR models is attracting wide-ranging interest and

approval, including from OECD and various governments as an approach that offers

firm foundations for future cooperation, growth, and enhanced compliance with rules.

n The number of studies and developments are now proving various aspects of the EBP

and EBR concepts. More volunteers for pilots aimed specifically at these concepts

would be welcome.

n The initiation of EBP has to come from businesses, individually or in sectors. More pilot

studies are required to examine the operation of the full EBP approach and to determine

training needs for regulators, as well as the best methods for implementing EBR.

n EBP will be demonstrated by a combination of evidence of ethical practice based on

the Framework. The approach cannot be ‘tick box’ or solely compliance-based. The

exact type of relevant evidence will differ depending on the sector, type, and size of

company, context, and state of maturity. It might include showing how feedback from

staff, auditors, ombudsmen, suppliers, customers, regulators, and investors is collected

and produces change.

n Politicians should support an EBP/EBR policy. This means that they should not ask

‘Who’s to blame?’ when faced with major problems. Senior Scottish ministers have

indicated that they will do this. Selected regulators in the UK and elsewhere should

pilot the approach and write up the findings. With the strong support of officials in the

Department for Business, discussions have been held with selected authorities

regarding the implementation of EBP/EBR policy.

Executive Summary

THE INTERNATIONAL ADOPTION OF ETHICAL BUSINESS REGULATION . 1

What are ethical business practice (EBP)and ethical business regulation (EBR)?

The key concept behind ethical business practiceand regulation is a focus on ‘doing the right thing’by creating an efficient, ethical culture based uponvalues, and consistent reinforcement andapplication of those values. Constructive inquirythrough conversations to determine what is theright thing to do underpins the approach, as doesfair, honest, and open feedback, without seekingto blame, for continuous improvement. The modelalso postulates full cooperation between ethicalbusinesses and regulators based on a respectful,responsible relationship rather than an adversarialrelationship or one focused on the attribution ofblame.

Organizations can bring to life their commitmentto an effective ethical culture by designing andimplementing the cultural, leadership, and ethicsand compliance frameworks to produce desiredbehaviours, all based upon core ethical values. Thiswill make it possible for them to produce evidencethat shows that they can be trusted — EthicalBusiness Practice. The components of a genericframework are suggested that will support EBP;however, different organizations will of coursedesign and implement their own versions,depending on their particular values, situation,and risks. There is no one culture or set of valuesthat will maximize compliance in everyorganization. The process of developing theframeworks themselves is an importantcontributor to the outcome, and will require alearning culture, where mistakes are viewed asopportunities for improvement. Relevant evidenceshould emerge holistically from staff, suppliers,customers, investors, society, and regulators.

Businesses that demonstrate EBP should deserverecognition, and have a cooperative relationshipwith their regulators — Ethical Business Regulation.Regulators should encourage and reward EBPthrough EBR. In many sectors, individual or collectiveprotocols can be agreed that record parties’expectations in relation to the commitmentrequired, perhaps giving examples of relevantevidence, ethics-based relationships, and the tasks ofdifferent actors in co-regulatory arrangements(including assessors, certifiers, auditors, tradeassociations, ombudsmen, and others as well asbusinesses and regulators). Further work is beingcarried out on this aspect.

EBP can be seen as the next step for many businesssectors, given the low levels of trust in business,increasing demand for transparency, and the need tomaintain market reputations. The UK FinancialReporting Council’s Corporate Governance Code hasbeen amended to stress that decisions should betaken in the interests of long-term sustainability ofbusinesses, based on strong cultures. This is but oneexample of a well-consolidated trend towardsfocusing on culture as the main factor in compliance.

EBR is an approach to regulation that applies thelessons of behavioural science and ethics totraditional legal and economic approaches. It cantransform not only the observance of society’s rulesbut also enlist powerful support for operatingbeyond the minimum standards of compliance(achieving consistent performance andimprovement) — an approach that can drivebusiness growth. There is now evidence frommultiple sources concerning the effect of a strong,healthy ethical culture on performance. There is nolonger any doubt that an organization can be bothethical and profitable.

2 . THE INTERNATIONAL ADOPTION OF ETHICAL BUSINESS REGULATION

The International Adoption of EthicalBusiness Regulation

EBP and EBR build on modern scientificunderstanding of successful human behaviour. TheEBP and EBR concepts are based on a mass ofempirical evidence that includes behaviouralpsychology, research on the most effective practiceby companies and regulators in achievingcompliance and in ‘enforcement’, and evidence onwhat does not work, including enforcement basedon deterrence theory. Extensive substantiation waspublished by Hodges in 2015.2 The EBP and EBRmodel has been explained by Hodges and Steinholtzin 2017.3

Elements of EBR can be identified in the approach ofa wide range of regulators, such as in food,pharmaceuticals, medical devices, health & safety,environment, energy, and the UK’s Primary Authorityscheme. A number of pilot studies and other trendsare currently underway, outlined below.

Official support for EBR

The Organisation for Economic Co-operation andDevelopment (OECD) has focused recent work onregulatory policy and governance in the context of

international regulatory cooperation and quality ofregulatory activities.4 Nick Malyshev, Head of theRegulatory Policy Division at OECD, has identified agrowing role for global private regulation and hencefor cooperation between public and private actors,and on behavioural insights.

The ownership of business risk rests squarely withbusinesses themselves, as has been demonstrated invarious contexts, ranging from workplace safety toemployment conditions and human rights. RobBrightwell of the Cabinet Office explained in theOxford conference on EBP and EBR that the UK policyof ‘regulated self-assurance’ by businesses was setout as the goal in the UK’s 2017 Regulatory FuturesReview.

In February 2016, the UK Department for Business,Innovation and Skills published a short paper on EBRthat has been widely read across government andthe regulatory community.5 The EBR approach hasbeen cited with approval in the 2016 UNCTAD draftManual on Consumer Protection.6 The ScottishGovernment adopted the idea as policy in 2016.7

Aspects of ethical business regulation

Cooperation based on full communication and anopen culture: The aviation safety paradigmThe aviation industry realized some decades agothat compliance-based regulation was not working,and that a radically different approach was needed.They have developed a ‘just, open culture’ based onopen, honest conversations in an adult–adultrelationship. The approach was outlined at theconference by Jon Round, Head of Airspace, AirTraffic Management and Aerodromes (AAA) at theCivil Aviation Authority and Captain John Monks,Head of Aviation Safety, Risk & Compliance at BritishAirways PLC. Those concerned with aviation safetyneed to know that they can have honestconversations that are not impeded by fear. A ‘justculture’ is built on processes and procedures that donot normalize deviance, and supports outcomes thatcan be deliverable.

A similar approach of constant open communicationand mutual learning has developed over severalyears in the relationship between the Water Industry


The Essence of the Concepts

Ethical business practiceAn organization in which the leaders consciouslyand consistently strive to create an effective ethicalculture where employees do the right thing, basedupon ethical values and supported by culturalnorms and formal institutions. EBP requires peoplewho can recognize ethical dilemma, challengeconstructively, speak up if they know or suspectunethical behaviour, and who use mistakes andwrongdoing as an opportunity to learn andimprove. Engagement with EBR then requires theorganization to be open with its regulators andprovide evidence of EBP.

Ethical business regulationA relationship between a business, or a group ofbusinesses, and a regulator, or group of regulators,in which the business produces evidence of itsongoing commitment to EBP and the regulatorrecognizes and encourages that commitment.

Commission for Scotland and Scottish Water. Thiswas explained by Alan Sutherland, CEO of the WaterIndustry Commission for Scotland and DouglasMillican, CEO of Scottish Water. They are currentlyinvolved in negotiating the pricing structure forwater in Scotland for 2021–27, expressly adoptingthe principles of EBR.8 The previous regime of onlyrevealing information that was specifically requestedhas been replaced by an agreed process in settingprices for the next decade based on full informationthat is deployed to address a wide range of issues,notably when to replace assets at end of life, andwho is to pay for this. The architecture has beenexpanded to include a Consumer Panel and socialmedia consultation of consumers.

A Local Authority–business pilotThe primary contact between local businesses, orlocal branches of national businesses, is with theirLocal Authority. Local Authorities are responsible formany regulatory areas, often acting as the primarycontacts for national regulators such as the FoodStandards Agency, the Health & Safety Executive,and many others. The UK has developed a highlysuccessful structure for cooperation between LocalAuthorities and national or local businesses, throughthe Primary Authority scheme, which is supervisedby the Office of Product Safety and Standards.

An EBP/R pilot study was undertaken in 2017between the Neighbourhood Protection Service ofCornwall Council (‘Cornwall Council’) and the RickStein Group (‘Rick Stein’). Aspects of the study designand outputs were reported at the conference byAllan Hampshire, Service Director, Neighbourhoodsand Public Protection at Cornwall Council and IanFitzgerald, Managing Director of the Rick SteinGroup, who made the following main points.

n Current regulatory regimes are not as effective as

they should be, because they are based on fear,

and motivators are misaligned. The EBR pilot

study was successful in building trust between

individuals and parties, based on closer,

meaningful relationships involving sharing and

respect, which are now producing better

outcomes. It enabled the participants to build on

the opportunity for communication that arose

from the Primary Authority scheme.

n Both parties valued the EBR approach as it gave

them the opportunity to understand the culture

of their organizations in greater depth. They

achieved a more accurate view of the values that

are expressed in the organization and what issues

might be preventing them from achieving their

highest potential. They felt that this

understanding facilitated better communication

between them, and therefore deepened the trust

that had been growing during the course of the

Primary Authority relationship.

n Cornwall Council confirmed that the use of a

cultural values assessment provided a good basis

for understanding whether a business was

committed to being ethical and expressed a view

that further inquiry into the mechanism for

entering into an EBR relationship was warranted.

n Further work should be done to explore how the

existence of an EBR relationship would affect

national inspection regimes. EBR could be

interpreted as a form of earned recognition

which may be a welcome benefit for businesses

in the future.

Wide potential applications of EBP and EBR

Food and Primary AuthorityThe involvement of national regulators in a combinedapproach is an obvious next step, whether this buildson the Primary Authority scheme or regulators’ owninitiatives. An example of the latter is the ‘RegulatingOur Future’ programme of the Food StandardsAgency (FSA), which was outlined by YvonneRobinson of the FSA. The FSA has established aworkstream to develop EBR, including to examine itsown cultural values, recognizing that it has beendoing some aspects of EBR for some time.

The ‘Regulating Our Future’ programme has beenshaped through ‘open policymaking’ involving allstakeholders, including a consumer panel. It aims todeliver behaviour change, and to use all availabledata, including the resources of businesses. It hasfour main platforms: enhanced registration (two-wayexchange of information); segmentation (riskmanagement, assessing all information on abusiness and the nature and intensity of its


approach); assurance (enlisting businesses’ ownassurance systems and data, more ways to show theyare doing the right thing); intervention (recognizingwhen businesses do the right thing and comingdown hard on those that don’t; moving towards aco-regulation approach; using root cause analysis).

Medical devices John Wilkinson, Director of Devices at the Medicinesand Healthcare products Regulatory Authority(MHRA) noted that the catalyst for change is beingjeopardized by a raft of new regulatory requirementsin the recent EU Medical Devices Regulation.Discussions on EBR are developing good historicalengagement with manufacturers of medical devicesand other healthcare products. These areas werecovered by Phil Brown, Director, Technical andRegulatory at Association of British HealthTechIndustries (ABHI) and Sarah Lepak, Director ofGovernance & Policy at the British Healthcare TradesAssociation (BHTA). BHTA had developed an ethicalresponse around 2000 in response to bad practicesby unethical traders in double-glazing andunregulated activities within the home. Theassociation had developed a Code of Practiceapproach that had proved successful and they nowwish to expand this beyond advertising and tradingactivities to all business activities by member firms.

Data and digitalRichard Thomas CBE noted that the appeal to ethicalvalues will be fundamentally important indetermining the regulatory and enforcementapproach to data protection under the General DataProtection Regulation. His successor as UKInformation Commissioner has said:

I have no intention of changing our proportionateand pragmatic approach after 25 May. My aim is toprevent harm, and to place support and complianceat the heart of our regulatory action. Voluntarycompliance is the preferred route. But we will backthis up by tough action where necessary; hefty finescan and will be levied on those organizations thatpersistently, deliberately or negligently flout the law.Report to us, engage with us. Show us effectiveaccountability measures. Doing so will be a factorwhen we consider any regulatory action. … Andwhen we do need to apply a sanction, fines will notalways be the most appropriate or effective choice.9

A major example of the need for a genuinelycooperative approach to making and applyingethical rules is the fast-developing digital arena.There is no time to wait for structures to emergethrough legislation on regulation. People expectbusinesses and governments to simply observeethical norms. Companies need to demonstrate thatthey get it right. In areas where there are no rules,and it would take too long to create legislation, it willbe important to assemble an inclusive dialogueamong all relevant stakeholders. The approach iseffectively an extension of self-regulation throughinvolvement of all stakeholders on an equal basis,and voluntary compliance, backed by socialsanctions based on reputational risk.

Financial ServicesAll leading financial authorities identified that poorculture was a — if not the — major cause of the 2008global financial crash and subsequent scandals.Various central banks and regulators are nowreturning to focus on culture in order to prevent thenext crisis. As the UK’s Financial Conduct Authorityhas recently said:

Culture in financial services is widely accepted as akey root cause of the major conduct failings thathave occurred within the industry in recent history,causing harm to both consumers and markets. …The financial services industry, in particular, hasdemonstrated instances of rate-rigging, roguetrading and mis-selling in the last 10 years since theglobal financial crisis. Despite record fines,increasing investigations and an expandingcompliance industry, misconduct remains. Why?What have we not learned?10

The Dutch Financial Regulator DNB has been focusedon behaviour and culture for over five years,informed by the conviction that these aspects arekey to successful regulation.11 There may be a senseof frustration among supervisors in wishing to createand supervise the culture of financial institutions.However, the critical step is to accept thatorganizations are responsible for their own culture,and this cannot be imposed or controlled fromoutside — although it can be supported or harmed.


International extensions

Businesses that have expressed an interest in EBRrange from retirement homes, mining, transport, andfood safety in Canada to various areas of safety andconsumer trading in Finland. Srikanth Mangalam,Founder and President of the Public Risk Management(PRISM) Institute, Mississauga, Canada, noted that theconcept of EBP is not new to Canada, where aresponsible care programme was developed in 1985after the Bhopal disaster. He outlined an example inwhich fines were first doubled and then tripled, yetcompliance dropped rather than increased. This wascontrasted with new regulation based onconsultation, after which compliance improved.

Minna Päivinen, Director of Research at the Safetyand Chemicals Agency (Tukes) of Finland, said thatthe ethical and fairness approach fits well with theapproach of Tukes, and they plan to develop it infurther pilots. The Finnish legislation gives a goodframework for EBR. They are constantly trying to findthe balance between advice and guidance. The keychallenge is to build an environment to foster trust,for which good channels of communication areparamount.

How to change culture

The EBP model challenges an organization toconsider all aspects of its governance, functioning,and operations in order to create an effective ethicalculture, and in so doing, to produce consistentevidence that it can be trusted — and why.Businesses that operate in regulated sectors, such asthose that involve quality systems, can draw uponmuch relevant information, however, there arenumerous other sources of evidence regarding theculture of an organization that can be produced.

For example, the Barrett Cultural Values Assessment(CVA) tool reveals the collective top personal valuesof an organization’s staff, and assesses how closelyaligned these values are with the values that areperceived to in fact exist in the organizationalculture, and those values deemed to bring theorganization to its full potential. Ruth Steinholtz,Founder and Managing Partner of AretéWork LLP,demonstrated that the result is a very powerfuldiagnostic of the level of dysfunction (cultural

entropy) in the organization, identifying issues thatwill tend to diminish ‘cultural capital’ and employeeengagement. Low cultural capital is an indication ofhigh-risk culture because employees will be morelikely to rationalize bad behaviour and will be lesslikely to speak up if they observe others behavingunethically. Therefore, cultural capital is a usefulindicator in this context. Over 6,000 organizationshave used the CVA tool as part of a culturaltransformation programme, with considerablesuccess. Its other benefits include that it is easy toadminister and the results are easy to work with, aswas demonstrated by both Cornwall Council andRick Stein in their pilot.

In addition to discussing the importance ofmeasuring and understanding culture, Ms Steinholtzbriefly introduced some of the elements of theCultural and Leadership Framework, in particular theimportance of defining an inspiring social purposeand a belief that ‘ethics is everyone’s responsibility’.

Data can be used to demonstrate improvement inculture. An innovative example was cited by MarcusRink, Chief Inspector of the Drinking WaterInspectorate (DWI). From the extensive water testingdata that is regularly produced, much of it bycompanies themselves, the DWI has developed aCompliance Risk Index (which examines the effect ofa compliance failure, and what the company hasdone about it) and an Event Risk Index. The data hasbeen used to confront the riskiest companies withthe need to move to a transformation programme,and to assist in making decisions on theproportionate responses to breaches of the law.

Challenges

Transparency is an important element in supportingtrust, but it can raise problems. The aviation safetysystem does not burden the public with completetransparency about all relevant data, for the simplereason that it would cause anxiety among the public.The enterprise of flying is not without risk, and theinformation can be concerning, but the results arewhat the public needs to see and to rely on. Theaviation sector finds that it has to fight to maintainits operational values of openness, because they arenot valued by the public, which remains attached toa blame culture. The involvement of the media,


politicians, the police, and criminal justice systemposes a real challenge to maintaining success. Publictolerance for failure is declining, and this must betackled in order for EBR to be widely adopted.

Is there a risk that a close relationship betweenbusinesses and regulators might become too cozyand complacent? The conclusion of the Committeeon Standards in Public Life was that the best way ofcountering this risk is to accept that it may occur andto take steps to guard against it, for examplethrough governance, transparency, and periodiccirculation of individuals to bring fresh insights.12

EBR offers an opportunity for further discussions butmay need resource, or resource of a different type.Regulators may need to spend more time withbusiness on a proactive basis, however, becausefewer incidents and issues will result from an EBRapproach, the overall time commitment should beless in the long term. It is undoubtedly better toprevent problems before they emerge than to try tofix them later. Furthermore, certain aspects ofsupporting an ethical culture can be assisted byother private sector organizations, such as tradeassociations or auditors.

Investment in EBP should generate better overallresults for an organization, since it enlists thesupport of all staff, suppliers, customers, investors,regulators, and so on. As staff are more likely to bringtheir discretionary effort to work, and not rely onobtaining business through bribery, an effectiveethical culture will support innovation and growth.Investment in EBR should, over time, reduce theregulatory burden by transferring some existingelements of legal regulatory systems to less formalmechanisms, such as guidance, best practice, codes,and standards.

The importance of selecting the rightenforcement practice

The traditional approach to enforcement relies onthe theory of deterrence. However:

n There is little empirical evidence that traditionaltheories of deterrence affect future businessbehaviour. The scientific findings of behaviouralpsychology research support a positive approach

to improving behaviour. For most people,adherence to rules can be voluntary, based ontheir internal moral sense, supported by what theysee of others’ behaviour. (‘Compliance is social.’)

n Traditional policy on encouraging privateenforcement of law is based on deterrence, andapproaches to enforcement and hence regulationproduce an adversarial culture. However,evidence demonstrates that such an approachwill merely be costly, and high-profile failures willdrive calls for increased deterrence, which willitself fail. A more productive culture for all is onein which business and regulators operate as adultcollaborators.

n While some public regulatory and enforcementauthorities cling to deterrence as their sole policy,a number of authorities in some countries (led bythe UK) have moved to a supportive approach, asa result of practical experience and the impact ofBetter Regulation policy.

n These systems rely on the continual circulation ofdata and its assessment in order to identify rootcauses of problems and reduce the risk ofreoccurrence. As civil aviation has found, an open,just (no blame) culture is essential if performanceis to be maintained.

EBR does not mean that regulators never usesanctions. But it needs to be understood thatsanctions are not a primary driver of behaviour, ascase studies are increasingly showing.13 Regulatorsshould understand the drivers of behaviour and usethe right tools in the appropriate situations.Applying the wrong enforcement tool can cause lessrather than more compliance!

These points were illustrated by Dr Florentin Blanc,who described his study of occupational health andsafety enforcement regimes in France, Germany, andthe UK. The study showed that a high incidence ofinspections (Germany) does not necessarily producegreater safety outcomes, and that the supportiveapproach of the UK’s Health and Safety Executive hasproduced significantly better outcomes than theenforcement-based approach in France, save inrelation to transportation safety, where the HSE doesnot have jurisdiction.


Dr Blanc concluded that:

n There is no correlation between ‘more

control’/‘more sanctions’ and ‘better outcomes’;

n An absence of active ‘regulatory delivery’

activities also under-performs so it is not just

about ‘less is more’!

n Meaningful engagement with regulated sectors

— risk-focused and risk-proportionate, using a

range of instruments adapted to various issues,

situations, and behaviour profiles — appears to

deliver significantly better results;

n Occupational Safety and Health data allows us to

make comparisons relatively easily — and should

be replicated in other sectors.

Christopher Hodges’ recommendations are thatregulators should have a wide toolbox ofenforcement tools, and should apply the appropriatetools in responding to particular people who havebreached the rules. This responsive approachrequires flexibility, discretion, and accountability.

It is important that public confidence is maintainedin the exercise of discretion in enforcement. Animportant means of achieving this is throughpublication and transparent operation of a writtenEnforcement Policy that lists mitigating andaggregating factors that will be taken into account insetting enforcement responses and sanctions. Suchfactors should include the extent to which a businessand its staff have demonstrated EBP, throughevidence of having an inherent ethical culture,identifying and remedying failures, cooperating withauthorities, remedying those harmed, and takingeffective steps to prevent future risk.

Conclusion

EBP and EBR offer transformative opportunities forregulation, behaviour, and economies. Thesemechanisms are a different paradigm fromtraditional regulation, enforcement, and compliance.Elements of EBP or EBR can be seen in many sectors,and conference attendees have reported that thecomparisons between different sectors havestimulated new ideas for many. More EBP pilotsshould be done by companies, especially based on aBarrett Cultural Values Assessment, and more EBRrelationships should be explored.


Notes

1 See: http://www.fljs.org/content/policymakers-business-leaders-and-regulators-assess-shift-deterrence-values-based-ethical2 C.J.S. Hodges, Law and Corporate Behaviour: Integrating Theories of Regulation and Enforcement (Hart Publishing, 2015).3 C. Hodges and R. Steinholtz, Ethical Business Practice and Regulation: A Behavioural and Values-Based Approach to Compliance and Enforcement (Hart

Publishing, 2017).4 Recommendation on Regulatory Policy and Governance (OECD, 2012).5 C. Hodges, Ethical Business Practice: Understanding the Evidence (Better Regulation Delivery Office, 2016),

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/497539/16-113-ethical-business-regulation.pdf 6 http://unctad.org/en/PublicationsLibrary/webditcclp2016d1.pdf. Chapter 6 on CSR/self-regulation.7 Delivering Better Outcomes for Consumers and Businesses in Scotland (Scottish Government, 2016),

http://www.gov.scot/Resource/0051/00511478.pdf; Report of the Working Group on Consumer and Competition Policy for Scotland. ScottishGovernment response, p. 16, http://www.gov.scot/Publications/2016/03/8525/downloads

8 Innovation and Collaboration: Future Proofing the Water Industry for Customers. Methodology for the Strategic Review of Charges 2021–2027 (WICS,2017),https://www.watercommission.co.uk/UserFiles/Documents/SRC21_Innovation%20and%20Collaboration_Methodology_WICS_amended.pdf

9 Speech by Elizabeth Denham at the IAPP Europe Data Protection Intensive 2018, 18 April 2018.10 Transforming Culture in Financial Services (Financial Conduct Authority, 2018).11 Supervision of Behaviour and Culture (n. 74).12 Committee on Standards in Public Life, Striking the Balance. Upholding the Seven Principles of Public Life in Regulation,

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/554817/Striking_the_Balance__web__-_v3_220916.pdf 13 E. Soltes, Why They Do It. Inside the Mind of the White-Collar Criminal (PublicAffairs, 2016); J. Ewing, Faster, Higher, Farther: The Inside Story of the

Volkswagen Scandal (W. W. Norton & Company, 2017); J. Luyendijk, Swimming with Sharks: Inside the World of the Bankers (Guardian FaberPublishing, 2015).

The Foundation The mission of the Foundation is to study, reflect on,and promote an understanding of the role that lawplays in society. This is achieved by identifying andanalysing issues of contemporary interest andimportance. In doing so, it draws on the work ofscholars and researchers, and aims to make its workeasily accessible to practitioners and professionals,whether in government, business, or the law.

Christopher Hodges is Professor of Justice Systems,and head of the Swiss Re Research Programme onCivil Justice Systems, Centre for Socio-Legal Studies,University of Oxford. He is a Supernumerary Fellowof Wolfson College, Oxford, and a Fellow of theEuropean Law Institute.

Ruth Steinholtz is the Founder of AretéWork LLP, aninternational lawyer, management board member,General Counsel and business ethics catalyst,speaker, and author. Ruth speaks authoritatively onvalues-based ethics and compliance, and is a creatorof change in both mindset and culture, with a focuson prevention. She developed the first ethicsambassador network; an approach which is nowadopted by companies globally.

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