Compliance Perspectives SCCE

By Adam Turteltaub



Creating the right corporate culture is an idea that’s sacrosanct in the field of compliance and ethics. The folks at Gartner, though, are challenging that belief.



In this podcast Chris Audet, Vice President and Chief of Research for General Counsels and Chief Compliance Officers, tells us that their newly released report finds that focusing on key quality measures in the compliance program may be more important.



The firm reached the conclusion after surveying over 1000 employees about the situations that lead to employee noncompliance. To quote from the press release, “In the survey, 87% of respondents said they faced situations where they didn’t know how to comply in the last 12 months, followed by 77% of respondents who experienced situations of rationalization and 40% experiencing situations of malice.”



Improved quality standards – the design and accessibility of policies, training and so forth – had much more of an effect on reducing uncertainty than culture did. As he notes, when employees are faced with uncertainty, the key thing is to have easily accessible policies and a workforce that knows where to find them.



Most troubling, of course, is the reportedly high temptation, not always acted on, to be noncompliant for malicious reasons. Listen in to learn more about the challenges of malice and rationalization and how quality standards may help there as well.

By Adam Turteltaub



There’s no General Data Protection Regulation (GDPR) in the US. Absent a comprehensive, national privacy law, states have stepped in to fill the gap.



As Adam Greene (LinkedIn), Partner at Davis Wright Tremaine explains in this podcast, that’s creating some complications. The California Consumer Privacy Act (CCPA) already differs from subsequent laws in several states which use language reminiscent of the GDPR. And while there are many similarities, some differences are substantial. For example, some state laws are targeted at businesses, not non-profits. That’s an important distinction for healthcare with so many non-profit institutions.



Perhaps the greatest challenge for organizations is figuring out which standard to follow, if any. Do they take a state-by-state approach, or one national approach based on the toughest state laws? Whatever the choice, it’s important to determine what data you have since there may be limits on collection and a requirement to share that data with consumers who want to see it.



Listen in to learn more about what the states are requiring and what you need to do to meet their expectations.

By Adam Turteltaub



For as much as there is talk about the force of the US Foreign Corrupt Practices Act (FCPA), the impact of the OECD’s anticorruption efforts deserves a great deal of credit. By encouraging laws against foreign bribery, anticorruption compliance efforts, and grading the work of the countries who are parties to their Antibribery Convention, the OECD continue to raise the bar.



In Australia, the OECD’s push for more resources for small and medium enterprises (SMEs) seeking to avoid corruption led to the creation of the Bribery Prevention Network, explains Dan Wilcock (contact), Head of Sustainability Governance for the UN Global Compact Network Australia and Manager of the Bribery Prevention Network. This public-private partnership was born out of the work of more than thirty organizations working collaboratively.



The end product is a robust online hub filled with practical resources on topics such as anticorruption programs and conducting risk assessments. The Network also facilitates sharing of expertise from larger organizations to the SMEs in their supply chain.



Listen in to learn more about what they are doing and lessons for others seeking to start similar endeavors.



 

By Adam Turteltaub



Best known as The FCPA Professor, Mike Koehler argues that that many people have it all wrong when it comes to enforcement of the Foreign Corrupt Practices Act (FCPA). Citing historical data he argues that there is not, contrary to popular opinion, a slow down in enforcement of the FCPA. The pace of roughly 12-13 resolutions per year has continued.



In fact, the three resolutions in the first quarter of 2024, he notes, puts it on track to continue the trend.



How do compliance teams get management attention to FCPA enforcement? He recommends against just focusing on the likely price of the settlement. Instead, outline all the costs. Those start with the multiple years before the resolution when the costs of legal, accounting and other fees may be as much as twice the resolution. Then, point to the eighteen months or so after the settlement when the organization will be under ongoing scrutiny, likely at a substantial cost.



All of this, of course, is in addition to the diminished productivity and potential business losses.



Listen in to learn more about how he sees anticorruption enforcement shaping out both by US and international prosecutors.



 

By Adam Turteltaub



Jessica Zeff (LinkedIn) loves government audits. I know, it’s hard to believe, given the dread they inspire. But, the founder and lead consultant of Simply Compliance makes a very good case in this podcast that audits can be much better than people expect and actually helpful for the compliance program.



How is this possible?  She argues strongly that, given the inevitability of an eventual audit, compliance teams should prepare for them on an ongoing basis rather than just when the audit notification arrives in the mail. By assessing what data an auditor might need, what gaps they may find, and what concerns they may have, compliance teams can complement their risk assessment process and have a better handle on where they should be focusing their efforts.



As importantly, having this information handy can be helpful during the audit. Not only does it reduce last minute rushing to prepare, it enables the team to tell auditors their story in a way that shows the organization is doing the right thing and that compliance is on the ball.



When the auditors arrive, she advises being prepared logistically as well. This includes having relevant (and not irrelevant) data ready for the auditors. In addition, she recommends thinking through what they will need -- from space to meals -- and ensuring that the staff they need to interview is available.



Listen in to learn more about how a government audit may not just be better than you think but also a positive experience.

By Adam Turteltaub



Integrity is like peace, love and brotherhood.  We’re all for it, but when it comes to practicing it, that’s when the challenges start.



Paul Fiorelli hopes to change that. The Director, Cintas Institute for Business Ethics at Xavier University has just written a new book: Establishing Workplace Integrity. In it, Paul addresses six lessons in values-based leadership.



To benefit from some of his long-established and well-recognized expertise we asked him to join us for this podcast. He discusses the importance, of values-based leadership. He also cites six factors that lead people into unethical or non-compliant behavior:



* Pressure to perform

* Going down a slippery slope

* Rationalization

* Groupthink

* Altruism (violating the law to help the company)

* Greed



One or several of them are at play when wrongdoing occurs.



So what makes for success and helps to prevent wrongdoing? He makes an argument for SMART goals: specific, measurable, attainable, relevant and time-based.



Listen in to learn more about values-based leadership and promoting a workplace of integrity.