Why compliance regimes are viral

Patrick McKenzie (patio11) explains how compliance regimes designed to be viral brought many more firms into the scope of frameworks like SOC 2. This created a market demand for compliance-on-the-cheap by companies like Delve. Delve has been accused in an anonymous bit of investigative journalism as engaging in Potemkin compliance.

Patrick contrasts what real audits look like with what Delve allegedly delivered. He argues that selling compliance theater as compliance is fraud, not the sort of benign rule-breaking celebrated in startup culture.

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Full transcript available here: https://www.complexsystemspodcast.com/delve-into-compliance-theatre/

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Links:
Fake Compliance as a Service - Part 1: https://substack.com/home/post/p-191342187
Editorial independence episode: https://www.complexsystemspodcast.com/episodes/editorial-standards-and-independence/
Dan Davies episode: https://www.complexsystemspodcast.com/episodes/dan-davies-organizations-fraud/

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Timestamps:
(00:00) Intro
(02:14) The taxonomy of compliance
(04:11) Why compliance is viral
(09:08) Defense in depth
(14:19) Accountability and liability
(16:05) The allegations against Delve
(19:53) Sponsors: Mercury | Meter
(22:41) The allegations against Delve (cont'd)
(24:31) The response and evidence
(29:38) Implausible patterns
(38:22) Heuristics for truth
(40:10) Sponsors: Granola | Framer
(42:52) Heuristics for truth (cont'd)
(44:28) Naughtiness vs. fraud
(51:16) A voice in the startup community
(53:05) Advice for the exposed
(56:38) Wrap