From Vulnerability to Resilience (Part 1) The SMEs Compliance Advantage

The compliance field often positions small and medium enterprises (SMEs) as too small for compliance. MNCs may view SMEs as high risk and the weakest link in a compliance program. This series will challenge that perspective by building off discussions on how SMEs can build imperfect integrity programs and thrive while building integrity into their operations with fewer resources. And will take an in-depth look at how SMEs engage in effective compliance and build meaningful integrity programs.

SME Advantages: Agility, Visible Leadership & Local Connections

The truth is that SMEs may lack resources to have integrity programs that are comparable to those supported by MNCs, but they have built-in compliance advantages. They are agile, leadership is visible, and they have deep local connections. That make SMEs uniquely qualified to develop/engage in compliance programs that reflect their actual risks and values. These advantages are easy to miss if you are striving for a perfect compliance program or assume that only large multinational-style systems are “real” compliance.

• Ability to Act & Adjust

  SMEs can move quickly. They can create new policies, processes, and adapt training without the delays that can slow down larger companies. Their agility creates space for innovation and iteration, and allows SMEs to adjust if something is not working quickly.

  
  

• Visible Integrity Leadership

  SME leadership is often more visible and closer to the daily work. Their visibility and proximity to the work means that they have a deeper understanding of integrity challenges. It also means that SME leadership can demonstrate their commitment and dedication to ethics/integrity, which is visible, personal, and most importantly, consistent. SMEs’ leadership can reinforce an integrity culture and communicate expectations in informal and formal contexts.

  
  

• Awareness of Local Risk & Norms

  SMEs are also deeply connected to their local communities. They are often part of the fabric of a community where they operate, and their reputation matters. Their deep connections and knowledge of their communities allow them to quickly identify emerging risks, navigate relationships, and pick up on nuances that a headquarters compliance team may miss.

  
  

• Freedom to Design Practical Policies

  SMES do not need to overdesign programs. They can develop clear rules, reporting pathways, and publicly commit to being a responsible business, which align with their values, behavior, and business priorities.

Focusing on SMEs’ compliance advantages allows us to recognize that SMEs are essential and powerful partners in corporate integrity systems. The remainder of this series will challenge the assumption that SMEs’ compliance is only for large companies and highlight the compliance and integrity advantages built into SMEs.

Michele Crymes

Anti-Corruption and Governance Expert