Disclaimer: MRO is committed to providing non-binding guidance to industry stakeholders on important industry topics. Subject matter experts from MRO’s organizational groups have authored some of the articles in this publication, and the opinion and views expressed in these articles are those of the author(s) and do not necessarily represent the opinions and views of MRO. The following article was written by Nazra Gladu, from Manitoba Hydro.
As I stirred my blueberry yogurt during lunch, watching the berries and cultures swirl together, I could not help but think, this is exactly how a strong, nutrient-rich, organizational compliance culture grows.
A good organizational compliance culture spreads like healthy bacteria in a well-fermented dish, multiplying with a steady, rippling effect. It starts with a few essential ingredients: values like integrity, accountability, and transparency, carefully mixed with intention, and then allowed to develop, thrive, and flavor the entire organization. As these values are modeled by management, and reinforced through daily actions, they spread naturally across divisions, teams, and departments. Just like bacteria adapt to their surroundings, a healthy compliance culture evolves with regulatory changes, technological advancements, and organizational growth, becoming stronger with each challenge over time. It does not come from rules and regulations handed down from the outside, but instead grows from inside the team, becoming something people live by and rely on to keep the organization strong, compliant and on track.
The Global Compliance Institute describes Compliance Culture as an environment where the Board of Directors, management, and employees are all committed to ensuring that all applicable regulatory requirements are complied with in both letter and spirit,[1] and I tend to agree. A healthy compliance culture requires the participation of an entire team to be successful. After years in the reliability compliance space (and more than a few bumps along the way), below are some important lessons that have stuck with me.
Core Components of a Strong Organizational Compliance Culture:
- Leadership Commitment to Excellence: Leaders must prioritize compliance and practice what they preach by consistently modeling ethical and professional behavior.
- Accountability and Ownership: All employees, from executives to operational staff, are responsible for upholding compliance standards. Building on this point, misconduct should be handled fairly, consistently, and according to established procedures.
- Clear Policies, Processes and Procedures: Organizations should document and communicate clear compliance policies, processes, and procedures.
- Open Communication without Fear: Organizations should encourage reporting of unethical behavior (possible violations or non-compliances) without fear of retaliation, or retribution.
- Training, Education and Continuous Learning: Consistent training greatly helps employees understand compliance requirements and ethical standards.
- Monitoring and Continuous Improvement: Regular review, assessment and update of compliance programs and policies is essential for adapting to new requirements, regulations, and risks.
The Value of a Strong Organizational Compliance Culture:
- Risk Reduction and Mitigation: Reduces the likelihood of possible violations, non-compliances, loss in reputation and penalties.
- Enhanced Reputation and Integrity: Builds trust with leadership, stakeholders, customers, and regulators.
- Employee Engagement and Confidence: A positive compliance culture can improve morale, productivity, well-being, and employee retention.
Challenges in Building an Organizational Compliance Culture:
- Cultural Resistance to Change: Employees may resist new compliance processes, procedures, or initiatives. We sometimes fear what we do not fully understand, or worry that change will disrupt our routines, challenge our autonomy, or expose us to greater scrutiny.
- Lack of Awareness or Understanding: Employees may not fully understand the importance of compliance, its value, or how it applies to their specific roles or areas.
- Resource Allocation: Building a strong compliance program (and culture) requires time, a sufficiently staffed workforce and financial investment.
- Compliance Fatigue: Overburdening staff with rules, training, communications, or audits can lead to people tuning out or pushing against change. After all, even the most dedicated employees have their limits, and too much input can lead to mental overload.
I hope this article has given you something valuable to reflect on. When compliance is mixed into the recipe of an organization’s nutrient-rich culture, success is not just achievable but becomes sustainable, resilient, and built to last….and if you are wondering about my yogurt, it was delicious!
[1] Global Compliance Institute: https://www.gci-ccm.org/insight/2023/12/positive-compliance-culture-what-it-how-create-it-embed-it-maintain-it-and-measure
About the Author
Nazra Gladu, P.Eng., is a Reliability Compliance Program Engineer at Manitoba Hydro, the province’s largest and only integrated electricity and natural gas utility. With over 17 years of experience, she leads the development and oversight of corporate compliance programs, regulatory engagement, internal audit strategies, and regulatory audits to ensure alignment with evolving reliability standards.
Nazra holds a B.Sc. in Electrical Engineering from the University of Manitoba and has held diverse roles in system operations, project management, and engineering. She actively contributes to several industry and professional committees, including Electricity Canada’s Electric Regulatory Advisory Committee, Engineers Geoscientists Manitoba’s Equity, Diversity, and Inclusion Committee, Manitoba Hydro’s Engineer-in-Training Recruitment Panel, and Manitoba Hydro Professional Engineers Association Volunteer Services Committee. She is also a past member of the Midwest Reliability Organization’s Compliance Monitoring and Enforcement Program Advisory Council.
Nazra is a published author and active contributor to the compliance community, with a strong passion for mentorship, equity in engineering, and community engagement. Outside of work, she enjoys creating stained glass art, cheering at her son’s soccer games, and supporting Winnipeg’s vibrant local pro wrestling scene.