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The Ethics Experts

Episode 112 – Courtney VanLonkhuyzen Welton

In this episode of The Ethics Experts, Nick welcomes Courtney VanLonkhuyzen Welton. Courtney serves as Chief Ethics, Compliance and Privacy Officer for Allstate Insurance Company. Her teams provide comprehensive ethics, compliance, and privacy support for over 40,000 employees, balancing the compliance needs of Allstate’s insurance businesses and the growing circle of Allstate protection technology businesses.

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Compliance Kitchen

Uyghur Forced Labor Prevention Act


CBP details out the Uyghur Forced Labor Prevention Act; requests public comment.

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Greetings and Felicitations

The Science of Star Wars: Part 1, Traveling in Hyperspace

Star Wars continues to be the most successful movie franchise in history. The movies are great fun, the storytelling is excellent, thoroughly based on the Hero’s Journey, and the characters are some of the most beloved in cinema history. Whether your favorite scene is the from jump into hyperspace, the climactic lightsaber duel between Obi Wan Kenobi and Darth Vadar, Vadar intoning “I am your father,” or the destruction of the Death Star, they all still resonate today. But what of the science of Star Wars. Are these great scenes and effects even possible? Do they violate the laws of physics and nature as we understand them today? Join Tom Fox and Dr. Ben Locwin, a healthcare executive. In addition to his medical expertise, he is a degreed astrophysicist, as they look behind some of the most exciting scenes in Star Wars to look at the portrayal of science in Star Wars. In Episode 1, they consider traveling in hyperspace. Some of the topics covered are:

1. The visual effect of light bending.

2. Does traveling in hyperspace violate Einstein’s Law of Special Relativity.

3. What would be traveling in hyperspace do to the human body?

4. How does one navigate in hyperspace.

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The ESG Report

Role of ESG in the Fight Against Modern Slavery with Matt Friedman


 
People often ask, ‘Which companies are bad and shouldn’t be bought from?’ In reality, there is no way of determining that, across the board. Some companies getting called out doesn’t mean that others aren’t having issues. “ESG has that potential to introduce the baseline we’re all looking for,” says Matt Friedman, and in this episode, he and host Tom Fox discuss ESG’s role in the fight against modern slavery. 
 

 
What is Modern Slavery? 
Modern slavery is defined as a situation where a person is tricked and deceived into a job situation where they can’t get out, and don’t get paid. Matt reveals that it often happens to migrants who are taken from one place to another, and that there are about 40 million people estimated to be in modern slavery around the world, “There are more slaves today than any other time in history.” 
 
While sex trafficking is a large component of modern slavery, it’s actually a much broader issue. Many Latin Americans who manage to get into the US are highly exploited; they’re picking our tomatoes and oranges, and they don’t get paid at all because they’re indebted, and domestic cleaners are in situations where they’re locked in the house, not able to do anything to protect themselves or escape.
 
The Work of The Mekong Club 
The Mekong Club is a non-government organization set up in Hong Kong to work with the private sector in a positive and supportive way, and to help them understand the issue of human trafficking and what needs to be done to address it. Matt says, “Our role is to work with them, not against them.” With some organizations, the only way to get the private sector to take action is to find something they’re doing and embarrass them enough for them to implement change. The Mekong Club isn’t that kind of organization. Instead, they try to offer the services and consultations needed by the company in order to protect themselves. 
 
About 32 tools are available, offering remedies that come from private sector companies, themselves. One of the first things done with companies is a self-assessment; based on the results, Mekong Club rates the extent to which they are achieving what needs to be done in terms of modern slavery, and works with them in order to mitigate the problems. “This is what they say they need, and whatever it is that they need, they get.” he tells Tom.
 
The ‘S’ in ESG
In Matt’s opinion, the ‘S’ in ESG has always been the orphan. Since it includes human rights, modern slavery, and safety, it is viewed by many as not having measurable, potential risk. As a result of this, a lot of modern slavery indicators – what Matt calls ‘superficial S indicators’ – aren’t up to par with other areas of ESG. Matt and The Mekong Club strive to change that, “We have to have companies actually demonstrate they’re actually doing something when they say they’re doing it.” 
 
The Road to a Robust Company
The Mekong Club focuses on various things when it comes to improving a company – many of which are easy, cost-efficient, and can be implemented by you now, in your own companies. Some of these include: 

  1. Making the leaders understand that modern slavery is a relevant and important issue.  
  2. Having a point person or team of individuals within the organization that are ‘focal people.’ They would be better trained and receive whatever tools/instructions.
  3. Issuing policies and procedures: e.g. Do you have a zero tolerance statement? Do you have a mechanism in place to ensure that workers’ voices are heard? If you find forced labor, how do you remediate it? 
  4. Developing tools. 

 
RESOURCES 
Matt Friedman | Where Were You?: A Profile of Modern Slavery
The Mekong Club | The Mekong Club paper | PDF summary of our tools | Here is our most recent membership brochure | The mini-assessment tool
 

Categories
FCPA Compliance Report

Matt Silverman on Potential Sanctions Against Russia

In this episode of the FCPA Compliance Report, I am joined by Matt Silverman, Director of Trade Compliance at VIAVI. In this Part 1 of a special two-part podcast series, we look at issues related to potential sanctions against Russia, Russian individuals and Russian interests if Russia invades Ukraine. In Part 2, we will discuss what you can do to prepare for such an eventuality. Potential sanctions we review in this episode ininclude:

  1. Impose a comprehensive or near-complete embargo of Russia.
  2. Impose additional sectoral sanctions on certain Russian industries.
  3. Prohibit exports of certain items or technology to Russia.
  4. Designate Russian entities under the Foreign Direct Product Rule.
  5. Add specific Russian entities or individuals to OFAC’s Specially Designated Nationals and Blocked Persons List (“SDN”).
  6. Prohibit Russian entities from accessing the U.S. financial system/using U.S. dollars and/or sanctioning foreign banks that conduct transactions with sanctioned Russian entities.
  7. Prohibit U.S. persons or entities from investing in Russian companies, requiring divestment, and/or sanctioning foreign entities that buy Russian government bonds.
  8. Impose “secondary sanctions” on entities or individuals that conduct certain transactions with Russia.
  9. Freeze Russian assets located in the U.S.
  10. Ban U.S. financial assistance to Russian entities.
  11. Withhold U.S. aid to any organizations that assist Russia.
  12. Prohibit imports and/or impose high tariffs on specific Russian imports.
  13. U.S. State-Level Sanctions: States may enact laws that prohibit business with, or require divestment of shares in, firms that conduct certain transactions with Russia.

Resources

Matt Silverman on LinkedIn

Categories
Daily Compliance News

February 21, 2022 the Credit Suisse Papers Edition


In today’s edition of Daily Compliance News:

  • Credit Suisse hid money for criminals and dictators. (NYT)
  • KT settles FCPA enforcement action with SEC.  (WSJ)
  • Sacklers up settlement amount of $6bn. (Reuters)
  • Chip eaters rejoice as US lifts avocado ban. (WaPo)
Categories
Blog

Leadership Lessons from Oliver Stone’s Platoon

What are the leadership lessons from Oscar-winning Best Picture Platoon? It was a very personal film for Stone, having served in Vietnam, he wrote the screenplay as a response to what he saw as the inaccurate propaganda from John Wayne’s film The Green Berets. It is the story of an idealist volunteer, Taylor, who wanted to see what war was like. There is a ROTC trained Second Lieutenant, Wolfe but the platoon is run by two lifers, Sergeants Barnes (the bad one) and Elias (the good one). Stone also won Best Director and the film won two additional Oscars for Best Editing and Best Sound Mixing.
One commentator, on the website  Platoonics in blog post entitled  Platoon Analysis of the Movie and Comparison to Business World Today cited Barnes as a pure transactional leader, contrasted with Elias who he characterized as transformational leader. He wrote of Barnes, such leads guide[s] or motivate[s] their followers in the direction of established goals by clarifying role and task requirements . The followers of such leaders simply obey orders . Such leadership is necessary within the military since failure means the loss of lives. He goes on to note that Barnes demonstrates his leadership style the afternoon before the ambush, when he gives the orders of who will go on duty that night. However, the failure of this style is shown, with the death of the new recruit, Gardner. Yet Barnes is able to give the orders, and effectively run the platoon, because of his reliance on deterrence-based trust. Deterrence-based trust will work only to the degree that punishment is possible, consequences are clear and the punishment is actually imposed .
Elias contrasts with a charismatic type of leadership style which provide[s] followers with meaning by constructing and communicating a vision, or image, that articulates followers values while allowing them to express their identity through a shared collective vision. He writes that Elias displays two key attributes of a charismatic leader, extraordinary behavior and acting as an agent of change. As a change agent, it is Sgt. Elias s challenge to Sgt. Barnes in the village scene with the little girl and the reporting to the Captain. His extraordinary behavior is shown in his prescience of knowing where the enemy will come from, how to outflank them, and his superhuman effort to take on a seemingly entire Viet Cong army by himself.
Both of these types of leadership styles can work but they both have consequences and may not work all the time. The consequences of Barnes make it painfully obvious that transactional leadership may not be the most effective type of leadership. In order to retain his place as leader, Barnes eliminates his conflict, his enemy, his fellow soldier and American, quite ruthlessly, without much thought as to the consequences or considering the Big Picture. His ability to give orders also caused him to not objectively consider the objections raised by Sgt. Elias and could have prevented the death of Gardner. Barnes just wants to make it out alive, unfortunately killing or letting all those in his way die.
As for Elias, His unwavering belief in his vision ultimately leads to his death by the hands of Sgt. Barnes. While his values and parts of his vision are cherished by the rest of the Grunts, Sgt. Elias embodies the vision. When he died, in essence, there is no one to stand up and support what he believed there is no new standard bearer. In other words, Elias had not trained any other soldier for succession or prepared anyone else to step up to the leadership role when required to follow through with his vision.
Platoon is still a powerful movie. The firefight scenes are some of the most realistic ever filmed. One innovation Stone used was to subject the actors to a grueling 30-day boot camp, led by Vietnam War veteran Dale Dye. In the boot camp, the actors were limited to how much food and water they could drink and eat. When they slept, Dye and his crew fired blanks to keep the tired actors awake. Stone said that he was trying to break them down, “to mess with their heads so we could get that dog-tired, don’t give a damn attitude, the anger, the irritation… the casual approach to death”. Willem Dafoe said of the total immersion experience “the training was very important to the making of the film,” adding to its authenticity and strengthening the camaraderie developed among the cast: “By the time you got through the training and through the film, you had a relationship to the weapon. It wasn t going to kill people, but you felt comfortable with it.”
There are multiple leadership lessons to be garnered from the film. The stereotypes of Barnes and Elias demonstrate that both styles have merit yet when not paired with additional leadership factors, can lead to catastrophic failure. Perhaps the final word best comes from Stone himself who gave an interview to Chartered Accountants ANZ Chief Executive Lee White about the film.. But at least one thing remains key whether your business is in the arts, manufacturing or services. The leadership has to be authentic. Stone went on to note that “You are tryin to get different groups working together bringing it all together without fighting each other. Making a movie is like leading a business with multiple divisions and multiple goals. The challenge is to galvanize all the stakeholders into a cohesive operation working towards a shared vision.”