Day: July 31, 2023

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Sustainability Leadership

Sustainability leadership is an important concept that has become increasingly relevant in recent years. Companies have realized the importance of sustainability and have embraced it as an opportunity to increase profitability. I recently discussed the success stories of companies like Nike, Interface, and Unilever, who have implemented sustainability leadership strategies and have seen increased profitability as a result, for our podcast series Sustainability: the Business Opportunity of the 21st Century.

Part of successful sustainability leadership is understanding the concept of materiality. Materiality is a measure of the importance of strategic decisions and their impact on the business and its stakeholders. By analyzing materiality, companies can set priorities around sustainability activities. To do this, companies need to get feedback from stakeholders to determine the importance of issues and the impacts on its stakeholders and the communities they serve. This feedback can be collected through reading reports, getting studies, direct interviews, and other methods.

Richard Blundell, in his article for the Rotman School of Management, highlighted the importance of passion, vision, and purpose for successful sustainability leadership. Ray Anderson, the founder of Interface, created a consulting arm called Rays to help other companies transition to a lower carbon world. In a meeting, the executive present was being very disruptive and obstructive. However, he was struck by the passion and message Ray had created and generated for the purpose of their journey, which he called Mount Sustainability. Anderson created an image of a mountain with seven or eight steps to reach the goal. Paul Pullman said that if you work for an organization with a greater purpose, you get more energy out of the organization.

In 2019, the Business Roundtable released the Statement on the Purpose of a Corporation, which stated that corporations should answer to stakeholders, not just shareholders. It is an imperative to move the discussion to the stakeholders identified by the Business Roundtable.

Sustainability is a mindset first and foremost, and great leaders in this space have viewed it as an opportunity. Transitioning to sustainability can lead to increased profitability and outperforming the market. Companies should strive to leave the business in better shape than when they arrived in the morning. Passion, vision, and purpose are essential for successful sustainability leadership. Communication should be simple, clear, and consistent.

Fossil-based energy companies can extend the life of their fuels by diversifying their fuel base. Climate change is a major factor in the need for sustainability, and CO2 is one of the biggest culprits. Dong Ltd. a Danish based company has transitioned from a 90% fossil fuel-based energy generation business to a 90% offshore wind business in a very short period of time. Neste, a Finnish oil company, is now the largest renewable fuels company. Oil and gas companies have the skills to transition to renewable energy sources. The CEO of Dong was proudest of the transition without losing jobs, upskilling the workforce instead.

Incremental change is very predictable and does not deliver competitive advantage over time. Large transitions, large transformations, and bold strategies are necessary for successful change. Leaders must be passionate about their visions, their people, their customers, and their stakeholders. Tone at the top is essential for successful sustainability leadership. Interface is an example of a company that has successfully implemented sustainability leadership.

Sustainability is a journey, not a destination, and companies like Nike, Interface, and Unilever have viewed it that way. Leaders must commit to action in an environment that is constantly changing. Companies should strive to leave the business in better shape than when they arrived in the morning. Passion, vision, and purpose are essential for successful sustainability leadership.

In conclusion, sustainability leadership is an important concept that has become increasingly relevant in recent years. Companies need to go through a process of analyzing materiality to determine how to set priorities around sustainability activities. Passion, vision, and purpose are essential for successful sustainability leadership, as well as the need for bold strategies and communication to ensure success. Companies should strive to leave the business in better shape than when they arrived in the morning. Transitioning to sustainability can lead to increased profitability and outperforming the market. Interface is an example of a company that has successfully implemented sustainability leadership.

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FCPA Compliance Report

FCPA Compliance Report – Peter Grossman and Duane Stumpf on Crafting Impactful Compliance Campaigns

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom welcomes Peter Grossman, Co-Founder, Chief Strategist at Labyrinth Training, and Duane Stumpf, Global Head of Integrity and Compliance at Alcon.

Starting with a 70s-style rock and roll music number, Alcon Vision’s interactive, animated compliance training program, developed in conjunction with Labyrinth Training, has been recognized with high praise, receiving an Anthem Award and two Telly Awards. This program was created to make the company’s Lens Policy more memorable and engaging.

This podcast episode focuses on creating impactful campaigns and stresses the need for creativity, mission, and quality work. This episode features Tom Fox, Peter Grossman, and Duane Stumpf discussing how the program’s success effectively delivers important lessons in ways people will remember and enjoy. Through this episode, the trio offers great insight into developing meaningful campaigns that will have a lasting impact.

Key Highlights:

  • The Lens Policy
  • Creating Compliance Storytelling
  • Compliance Training Musical
  • Dr. Louis’ Musical Number
  • Award-Winning Compliance Training
  • Creating Impactful Campaigns

Resources:

Peter Grossman on LinkedIn

Labyrinth Training

Duane Stumpf on LinkedIn

THE LENS

CALL DR LOUIS

Tom Fox

Threads

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YouTube

Twitter

LinkedIn

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Daily Compliance News

Daily Compliance News: July 31, 2023 – The Clear or PreCheck Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

  • BNP Paribas to settle instant messaging allegations. (WSJ)
  • Vietnam has mass bribery and corruption roundup. (AlJazeera)
  • Clear v. PreCheck. (WaPo)
  • Top Gun CEOs. (NYT)
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The Ethics Experts

Episode 152 – Brian Frasier

In this episode of The Ethics Experts, Nick welcomes Brian Frasier. Brian Frasier is currently the Director of Compliance Audit for RPM International Inc. RPM International Inc. is a $6.7 billion, multinational company with subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. From homes and workplaces to infrastructure and precious landmarks, RPM’s market-leading brands are trusted by consumers and professionals alike to help build a better world.
https://www.linkedin.com/in/brianf-compliance-ethics-audit/

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Adventures in Compliance

Adventures in Compliance – Leadership Lessons from the Five Orange Pips

Welcome to a review of all the Sherlock Holmes stories which are collected in the work, “The Adventures of Sherlock Holmes.” The appeared in the Strand Magazine from July 1891 to June 1892. Over 12 episodes, I will be reviewing each story and mine them for leadership, compliance and ethical lessons. In this episode, I consider “The Five Orange Pips” which was originally published on the Strand Magazine in November 1891 and is included in the collection of stories found in the book ‘The Adventures of Sherlock Holmes’.

Summary

The story begins when a young man named John Openshaw seeks Holmes’ help. John has received a mysterious letter from abroad containing five dried orange pips and the initials “K.K.K.”, along with a demand to “put the papers on the sundial”. Both his uncle, Elias, who lived in America for several years, and his father had previously received similar letters and subsequently died under suspicious circumstances.

Sherlock deduces that K.K.K. represents the Ku Klux Klan, a racist group from the United States, and the five orange pips are a death threat, previously sent to John’s relatives who had disobeyed the order to surrender certain papers. Elias Openshaw, John’s uncle, had made enemies during his time in the US due to his involvement with the group, and the papers likely hold some dangerous information about them.

Holmes advises John to return home, find the papers, and turn them over. Unfortunately, before this could happen, John is found dead, apparently drowned after falling into a small river.

Holmes sends a reply to the Klan’s address in America, mimicking their style by including five orange pips in the envelope. He suspects that the people responsible for John’s death were on a sailing ship called the Lone Star. While Holmes is unable to bring the criminals to justice directly, the Lone Star is reported to have been lost at sea in a storm, implying a form of poetic justice.

This story ends on a somber note, as it is one of the few cases that Holmes is unable to solve in time to prevent a tragic death. 

Leadership Lessons 

1.         Be proactive: Holmes was proactive in investigating the case of the five orange pips, even when there was limited information available. Leaders should also be proactive and take the initiative to solve problems and achieve their goals.

2.         Persevere: Holmes persevered in his investigation of the case, even when the trail seemed to have gone cold. Leaders should also persevere and not give up in the face of challenges or obstacles.

3.         Stay focused: Holmes stayed focused on his investigation and did not let distractions or other cases interfere with his work. Leaders should also stay focused on their goals and avoid being sidetracked by distractions.

4.         Use creative thinking: Holmes used his creative thinking and innovative approaches to solve the case of the five orange pips. Leaders should also encourage and embrace creative thinking, as it can lead to new solutions and breakthroughs.

5.         Be vigilant: Holmes was vigilant and kept a watchful eye for any clues or developments in the case of the five orange pips. Leaders should also be vigilant and keep a watchful eye for any opportunities or threats that may impact their organization.

Resources

The New Annotated Sherlock Holmes

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Corruption, Crime and Compliance

CFPB and OCC Hit Bank of America with $250 Million Penalty for Consumer Abuse Practices

Bank of America joins the infamous club of consumer abusers in the banking industry, despite the alarm bells set off by the notorious Wells Fargo case. On this week’s episode of Corruption, Crime and Compliance, host Michael Volkov explores the shocking details of Bank of America’s recent $250 million settlement for account fraud and abuse with the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC). This episode shines a light on corporate complacency, the inherent risk of ill-conceived sales incentives, and the importance of internal risk assessment in the wake of industry scandals.

You’ll hear Michael discuss:

  • The fraudulent practices perpetrated by Bank of America, compared to the infamous Wells Fargo scandal. He examines the similarities in the unethical practices and failure to adhere to consumer protection laws, and the recurring patterns in the banking industry’s consumer abuse cases.
  • The pitfalls of sales incentives structures, particularly when they lack appropriate checks and balances. Mike elaborates on how ill-considered incentives can encourage misconduct among salespeople.
  • The enforcement actions brought by the CFPB and OCC against Bank of America: fines amounted to $250 million—$190 million for consumer harms and penalties to the CFPB and $60 million in penalties to the OCC.
  • Unscrupulous methods adopted by Bank of America employees to reach their sales targets included illegally applying for and opening credit card accounts and charging customers multiple overdraft fees for the same transactions, significantly hurting consumers financially.
  • Michael dissects the bank’s promotional tactics, particularly the false advertising of special offers and the denial of sign-up bonuses due to inherent failures in their business systems. He discusses the negative impact of these practices on customers and the bank’s reputation.
  • Highlighting the current stringent regulatory environment, Michael stresses the need for organizations, especially banks, to maintain stringent internal audits and compliance measures. 
  • Based on the recent enforcement actions, Michael makes informed predictions about potential regulatory actions against Bank of America and discusses the bank’s responsibilities moving forward.

 

KEY QUOTES:

“You would think that Wells Fargo’s case would have sent alarm bells throughout Bank of America to take a look at their own sales practices to make sure they don’t suffer from the same type of abuse of conduct. And what’s clear is Bank of America just kept its head down, blinders on, and then developed their own problem.” – Michael Volkov

 

“Bank of America employees illegally applied for and then enrolled customers in credit card accounts in order to reach sales incentive goals.” – Michael Volkov

“This is a tough regulatory environment, and you would think Bank of America would try to address that through some kind of mitigation and sort of risk analysis and conducting audits to make sure that they don’t run into future abuses and practices like this.” – Michael Volkov

 

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

Categories
Greetings and Felicitations

Greetings and Felicitations: The Future of Healthcare…Is Now: Part 1- Unlocking Healthcare: Passion & Patience

What is the future of healthcare and when will it arrive? To explore these and similar questions I visited with Dr. Ben Locwin and Scott Endicott in a five-episode podcast series. Over this series we will explore why the future of healthcare is now; gene and cell therapy, the use and misuse of statistics, Hippocrates and modern healthcare and where healthcare will be headed down the road. In this Part 1, we explore why the future of healthcare is now.

The global response to the COVID-19 pandemic has largely been a remarkable success, and healthcare workers have shown incredible dedication and passion in the face of extraordinary circumstances. In Part 1, guests Ben Locwin and Scott Endicott explained the need for a stronger advocacy position for healthcare, the challenges of the healthcare industry, and the importance of passion and patience in the industry. They highlighted the need for shared decision making between clinicians and patients, and the opportunities for startups to get products to market faster.

Healthcare is an ever-changing landscape, and regulatory favorability is allowing for faster approval of products to market. New therapies are already emergent and available for use, and healthcare is becoming intensely personal. The goal of the podcast series is to provide options for patients and clinicians to advocate for better healthcare.

Healthcare can be a scary place, even with the opportunity for return to health. That’s why shared decision making is an important approach. This is where the clinician and patient share the best available evidence when faced with the task of making decisions. Patients are supported to consider their options and achieve their informed preferences, and it is the most ethically appropriate pathway.

Startups in the healthcare industry have a long and difficult regulatory approval process, taking 5-7 years at best. Investment, passion, belief, and engagement are essential for success in the healthcare industry. It can be daunting to take on such a challenge, but it is worth it to bring innovative solutions to the healthcare market.

To sum up, the global response to the COVID-19 pandemic has shown that passion and dedication are essential for success in the healthcare industry. Additionally, shared decision making is an important approach to ensure that the best available evidence is shared between clinicians and patients. Finally, startups in the healthcare industry require investment, passion, belief, and engagement to get products to market faster.

Key Highlights

·      Passion in Healthcare

·      Biotech Investment

·      COVID Healthcare Impact

·      Shared Decision Making

Resources

Dr. Ben Locwin on LinkedIn

Scott Endicott on LinkedIn

Tom Fox on LinkedIn

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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – The Parameters of Privileges

The concept of privilege in an internal investigation is critical. Two important privileges are the attorney-client privilege and the work product privilege. Unfortunately, both are often misunderstood, miss-applied and consequently lost. To determine whether you have a valid privilege claim, it is incumbent to understand the parameters of the attorney-client privilege. In presentation, entitled “Attorney-Client Privilege ”, David E. Keltner, Kelly Hart & Hallman LLP, Elizabeth Brummett and Adrienne Parham, both from University of Texas Law School, wrote that under U.S. federal law, the attorney-client privilege applies when the following are present:

  1.  A client is seeking legal advice or a lawyer’s services;
  2. The person to whom the communication is made is a lawyer or his or her representative;
  3. The communication relates to a fact disclosed from a client (a representative) to a lawyer (a representative);
  4. Strangers are not present;
  5. A client requires confidentiality.

In addition to the attorney-client privilege there is another privilege which can come into play around internal investigations. It is the attorney work-product doctrine. Keltner noted, “The attorney-client privilege and the attorney work-product doctrine are often asserted interchangeably. While there is some overlap between the two, the attorney-client privilege is significantly different than the attorney work-product doctrine.” Moreover as “codified in Fed R.Civ. P. 26(b)(3), [the attorney/work product] provides a qualified protection to materials prepared by party’s counsel or other representative in the anticipation of litigation.” The doctrine exists “because it permits lawyers to “work with a certain degree of privacy, free from unnecessary intrusion by opposing parties . . .””

Three key takeaways:

  1. Note the differences in the attorney-client privilege and attorney work-product doctrine.
  2. Both can be waived intentionally or through inadvertent conduct.
  3. Take care on attorney work-product outside the U.S., where there may be no privilege at all.