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The Compliance Life

Joe Burke – Into the CCO Chair

The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What skills does a CCO need to navigate the compliance waters in any company successfully? What are some of the top challenges CCOs have faced, and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, my guest is Joe Burke, most recently the Chief Ethics & Compliance Officer and Employment Counsel, Quest Software Inc.

Burke continues his roles at Dell, doing global audits and Investigations. He also worked his legal role to drive change in compliance. In 2017, he left Dell to move to the spin-off of Quest Software Inc. and a new role as Chief Ethics and Compliance Officer. In this role, he created a new compliance regime and worked with the Private Equity owners to bring about change at Quest in the area of compliance.

Resources

Joe Burke LinkedIn Profile

Categories
Blog

On Being a Citizen

Each person who becomes a naturalized citizen of these United States is required to swear the following Oath:
“I hereby declare, on oath, that I absolutely and entirely renounce and abjure all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty, of whom or which I have heretofore been a subject or citizen; that I will support and defend the Constitution and laws of the United States of America against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I will bear arms on behalf of the United States when required by the law; that I will perform noncombatant service in the Armed Forces of the United States when required by the law; that I will perform work of national importance under civilian direction when required by the law; and that I take this obligation freely, without any mental reservation or purpose of evasion; so help me God.”
The principles embodied in the Oath are codified in Section 337(a) in the Immigration and Nationality Act (INA), which provides that all applicants shall take an oath that incorporates the substance of the following:

  1. Support the Constitution;
  2. Renounce and abjure absolutely and entirely all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty of whom or which the applicant was before a subject or citizen;
  3. Support and defend the Constitution and laws of the United States against all enemies, foreign and domestic;
  4. Bear true faith and allegiance to the same; and
  5. A. Bear arms on behalf of the United States when required by the law; or
    B. Perform noncombatant service in the Armed Forces of the United States when required by the law; or
    C. Perform work of national importance under civilian direction when required by the law.

The language of the current Oath is found in the Code of Federal Regulations Section 337.1 and is closely based upon the statutory elements in Section 337(a) of the INA.
I know all this because my wife recently became a US citizen this month and I could not be more proud of her for this accomplishment. Reading the Oath she swore did give me some pause to think about what does it really mean to be a citizen of these United States.
First and foremost, I have never been required to swear this Oath, as a natural born citizen of the United States. Now I wish I had done so because the Oath makes clear that as citizens, we all have obligations to our country. Right about now the language “Support and defend the Constitution and laws of the United States against all enemies, foreign and domestic” is as important as it has ever been, given the events of January 6, 2021 and the involvement of the highest levels of former administration.
But I also reflected on Clause Five quite a bit as well. Although I am far past the age where I might reasonably be expected to be drafted, if there was a total war and the existence of our country was in such grave danger, I could be called on to bears arms in support of the US. If I am too old or infirm to bear arms in support of this country. I still be could called on to “Perform noncombatant service in the Armed Forces of the United States when required by the law”. Finally, I can be called upon to “Perform work of national importance under civilian direction when required by the law.” There have been few true national emergencies in my lifetime. Perhaps the Cuban Missile Crisis and the Covid-19 pandemic are the only true national emergencies during my lifetime. I was too young to understand much about the Cuban Missile Crisis other than my father was called to active duty over a weekend.
But the language does not specify you can be called only in a military emergency. It can be to perform work of national importance. Certainly, following the government’s directions during the pandemic was such an instance of performing work under the direction of civilian authority.
John Lee Dumas, in his concluding remarks when I asked him to reflect on 9/11 and the intervening 20 years in the award-winning podcast series, Looking Back on 9/11 said that America is the Land of the Free because we are the Home of the Brave. Re-reading this Oath  drove home to me that we are all obligated to be and act as citizens of these United States. Even if you are like me and never been required to take this Oath or like my wife, who had to swear this Oath to become a US citizen, and everyone in between.

Categories
The Corruption Files

Uncovering the Hidden Schemes in Pharma with Tom Fox and Michael DeBernardis

Thomas Fox and Michael DeBernardis shed light on the bribery schemes highlighted in the cases of Eli Lilly, Fresenius, and Teva and present the prosecutorial investigation, the questionable donations and expenses, preventative measures for companies to implement, and practicing due diligence to minimize risk.

Key points discussed in the episode:
✔️ Thomas Fox introduces the cases involving Eli Lilly, Fresenius, and Teva.
✔️ Michael DeBernardis breaks down the DOJ and SEC’s investigative process in uncovering Eli Lilly’s bribery schemes – by looking into other companies from similar industries and asking the pressing questions.
✔️ Thomas Fox describes the bribes made: money going to hospitals and to the doctors and nurses directly, sending individuals to five-star resorts for fake conferences and speeches, and paying for articles that were never published. Any prior SCC reinforcement action is already a red flag.
✔️ The Eli Lilly case has made companies warier of working with government officials as a Polish state-owned health organization was involved. Also, the intent of the fraudulent talks and events was fairly obvious from a prosecutorial perspective.
✔️ Michael DeBernardis and Thomas Fox share advice on how companies should approach charitable donations: Know where your money is going, do background checks on the receiving organization and publicize all donations.
✔️ Eli Lilly’s exceeding discount for a certain distributor was pushed to the spotlight. Overriding internal controls requires documenting for a business reason. Most due diligence problems can be solved by looking closer at business justifications.

Categories
Innovation in Compliance

The Real Cost of Returning to the Office With Dr. Gleb Tsipursky


 
Dr. Gleb Tsipursky is the thought leader and CEO of Disaster Avoidance Experts, a boutique future-of-work consultancy that helps tech and insurance executives drive collaboration, innovation, and retention in hybrid work. Currently, he is focusing on normalizing hybrid and remote work, which he further discusses in his book, Leading Hybrid and Remote Teams. Tom Fox welcomes him to this week’s show to talk about Elon Musk’s misinformed views on remote work and why working from home is better for productivity levels. 
 

 
Remote Work v. Working From the Office
Tom asks Dr. Gleb what drove him to write the article entitled, Elon Musk’s back-to-the-office order will undermine Tesla’s future. It was his response to Musk’s announcement to abolish remote work on the grounds that it made his employees unproductive, Dr. Gleb tells Tom. He has been researching hybrid remote work since the beginning of the pandemic, and found that remote workers are much more productive. A study at Stanford determined that productivity improved by 5% as office workers worked remotely. “They [workers] don’t have to do the unpaid labor of the commute and they can focus more on productive activities because they’re not interrupted,” Dr. Gleb explains. 
 
Authoritarian Workplace
Tom asks Dr. Gleb if he believes a top-down command and control approach to leadership would work in 2022 and beyond. Dr. Gleb replies that this kind of leadership can only be successful in narrow environments. He believes that it is most successful in environments like warehouses “where you don’t need to be skilled, or a kind of manufacturing job where …you don’t need to do much innovative work.” However, since Tesla is an innovative company, command and control will undermine Tesla’s future. It is a company that requires knowledgeable and creative thinkers and those types of people would suffer under micromanagement. He also points out that demanding his employees to return to the office because he believes they are not working remotely, signals a lack of trust which is a very dangerous corporate culture. 
 
The Fate of Tesla
Many of Tesla’s employees are innovators and creators; these include research and development staff and software engineers. Throughout the pandemic, these employees have been successfully and productively working from home, but now they are being forced to go out to the office. Naturally, these accomplished innovators would seek employment elsewhere, where they have comfortable working conditions. This leaves Tesla with employees who are conformists, who are okay with the authoritarian culture being imposed on them, and these people are less creative and innovative. Over time this will cause Tesla to lose the edge that makes them unique, Dr. Gleb argues.
 
Resources
Dr. Gleb Tsipursky | LinkedIn | Twitter 
Disaster Avoidance Experts | Book – “Leading Hybrid and Remote Teams” 
 

Categories
Daily Compliance News

July 19, 2022 the Like a Good Neighbor edition


In today’s edition of Daily Compliance News:

  • Clean up your China Supply Chain now. (WSJ)
  • Why does the US have a stake in Mexico’s ABC efforts? (Albuquerque Journal)
  • BOA reserves $200MM. (Reuters)
  • Europe prepares for heat apocalypse. (WaPo)