Top 5 compliance and ethics challenges in 2025

With new regulations like the EU AI Act, evolving whistleblower protection standards, and heightened scrutiny on supply chains, businesses are navigating uncharted territory. However, these shifts at the same time can offer more opportunities than operational hurdles—they can future-proof your organisation against reputational and financial risks.

Curious about what’s coming next? Read on to discover the top 5 compliance and ethics challenges to expect in 2025 and learn actionable steps to prepare your organisation.

Top compliance and ethics challenges organisations may face in 2025

Keeping up with new regulatory demands

As 2025 begins, organisations must prepare for the enforcement of key regulations like MiCA, DORA, AML6, NIS2, and CSRD. These laws will significantly reshape compliance practices across Europe and globally. With overlapping requirements and tight deadlines, the stakes are high. Non-compliance could result in severe penalties and reputational fallout.

Action step: Prioritise a thorough review of your organisation's compliance framework. Assign dedicated teams to address each regulation's specific requirements, and create a clear timeline to meet all 2025 deadlines. Invest in compliance tools and training to allow your organisation stays ahead of these demands.

Integrating artificial intelligence into compliance programs

As the EU's AI Act takes effect in 2025, organisations will face stricter regulations surrounding the ethical use of AI. This legislation requires companies to evaluate AI systems for potential risks, ensure transparency, and align their deployment with compliance standards. Businesses operating in the EU will need to demonstrate accountability in their AI governance to avoid penalties.

Action step: Assess all AI systems currently in use for compliance with the EU AI Act. Implement governance policies that address transparency, risk assessment, and ethical usage in line with regulatory standards.

Emphasing whistleblower protection mechanisms

Whistleblower protection will remain a top priority in 2025, with increasing emphasis on systems that foster trust and anonymity. Regulators are likely to expand expectations for accessibility and transparency in whistleblower reporting mechanisms, making robust protections a competitive necessity.

Action step: Review your whistleblower protection policies. Make sure systems provide anonymity, multilingual options, and are widely accessible across your organisation and supply chain.

Addressing modern slavery in supply chains

2025 will see the full implementation of the EU Corporate Sustainability Due Diligence Directive. Organisations will need to prove they are actively identifying and addressing human rights violations within their supply chains. Global scrutiny on labour practices is set to increase.

Action Step: Perform a detailed mapping of your supply chain. Implement monitoring tools to check forcompliance and work with suppliers to address gaps in ethical practices.

Managing third-party risks

Third-party risk management will be critical in 2025, especially as bribery and corruption remain significant threats. Leveraging technology to optimise due diligence will be key to managing risks effectively.

Action step: Review and enhance your third-party risk management processes. Use technology to automate due diligence while ensuring regulatory and ethical compliance.

Leveraging whistleblowing software to mitigate risks

Implementing advanced whistleblowing software can help your organisation stay ahead of potential risks by providing secure, anonymous channels for reporting misconduct. Such tools helps your organisational remain transparent and stay compliant with the upcoming regulations. Along with this, regularly train employees on its use to build a speak up culture which in the end helps create and sustain ethical operations.

‍Revisiting your compliance and ethics strategy

Compliance and ethics in 2025 will demand proactive strategies and robust systems. From adapting to regulatory changes to strengthening whistleblower mechanisms, organisations must take strategic action to stay ahead. With the right preparations, businesses can navigate these challenges while maintaining integrity and operational excellence.