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What is a Speak Up Culture?

I recently concluded a podcast series with Case IQ. Over this series, I visited with Sharlyn Lauby, Jakub Ficner, Kenneth McCarthy, and Meric Bloch on the different facets of a great speak-up regime and how each of those facets will improve your corporate culture. We tackled such topics as the indicia of a great corporate culture, the importance of triage and internal investigations in improving corporate culture, non-retaliation and protections for those who speak up, tying your entire system of speaking up to improving culture, and will conclude with some thoughts on how an entire system of speaking up drives corporate culture to be better run and, at the end of the day, more profitably. This blog post series will expand on these topics. In Part 1, I visited with Sharlyn Lauby to learn about the speak-up culture.

Sharlyn is the author of HR Bartender and president of ITM Group Inc., a Florida-based training and human resources consulting firm focused on working with companies to retain and engage talent. She sees human resources as a strategic partner—the marketing department for a company’s internal clients—rather than an administrative one. During her 20+ years in the profession, she earned a reputation for bringing business solutions to reality. Her areas of expertise include organizational development, training, employee relations, and job design. She has a broad knowledge of workplace social media, strategic planning, and recruitment. And I’m skilled in new program design, project management, and human resources compliance.

In this concept of fostering a speak-up culture, we explored the workplace. A speak-up culture is a work environment where open communication is encouraged, fostering trust and innovation. This culture is built on leadership that values listening and employee involvement in problem-solving. One of the key factors in fostering a speaking-up culture is protecting employees from retaliation. Anti-retaliation policies and procedures, training for middle managers, and a consistent, transparent process for investigating concerns are crucial to maintaining this culture. The fair process doctrine, which emphasizes transparency, consistency, and protection from retaliation, plays a significant role in building trust, encouraging engagement, and enhancing the overall organizational culture.

Sharlyn highlighted the importance of addressing negative concerns and encouraging employees to share their ideas with management. When employees feel empowered to contribute their ideas, it can lead to significant positive outcomes for the organization. Sharlyn shared a powerful example of an organization that faced a budget challenge and involved employees in finding solutions. By offering incentives for revenue-raising or cost-saving ideas, the company not only met its budget goals but exceeded them, generating $5 million in savings. This story illustrates the potential for great things when organizations listen to their employees and value their input.

However, fostering a speak-up culture goes beyond just listening. It requires implementing policies and procedures to protect employees who have the courage to speak up. Employees need to feel confident that their concerns will be taken seriously and properly investigated. This is crucial for building trust and ensuring that employees feel comfortable bringing forward their concerns. Retaliation should never be tolerated, and organizations must make it clear that it will not be accepted under any circumstances.

Middle managers play a vital role in fostering a speak-up culture. They need to be trained to listen, accept information, and report it to the appropriate channels. Middle managers should also support employees throughout the process, helping them navigate any challenges they may face. Building relationships with managers is essential, as it encourages open communication and creates an environment where managers feel comfortable seeking guidance when needed.

Consistency and transparency in the investigation process are also key components of a speak-up culture. Organizations must have a clear process in place for investigating concerns, and employees should be aware of this process. When employees know that their concerns will be taken seriously and investigated, it builds confidence in the organization and encourages them to speak up when necessary.

The Department of Justice has emphasized the importance of consistency and transparency in investigations, as they contribute to institutional justice and fairness within a corporation. Organizations must communicate to employees that concerns will be thoroughly investigated, regardless of the number of ongoing investigations at any given time. This ensures that employees feel heard and that their concerns will be addressed appropriately.

In conclusion, fostering a speak-up culture in the workplace is crucial for building trust, encouraging engagement, and enhancing the overall organizational culture. It requires leadership that values listening and employee involvement, as well as policies and procedures to protect employees from retaliation. Middle managers play a vital role in supporting employees and facilitating open communication. Consistency and transparency in the investigation process are essential for building trust and ensuring that employees feel comfortable bringing forward their concerns. By fostering a speak-up culture, organizations can create an environment where employees feel empowered to contribute their ideas and make a positive impact on the workplace.

Join us tomorrow when we take up non-retaliation and protections for those who speak up.

Listen to Sharlyn Lauby on Innovation in Compliance here.

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Daily Compliance News

Daily Compliance News: September 25, 2023 – The Accountants Quitting 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.

·       Sen. Scott says fire all strikers.   (WaPo)

·       Sen. Menendez indicted for accepting bribes.  (NYT)

·       Polish visa selling scandal. (FT)

·       Accountants quitting. (WSJ)

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The Ethics Experts

Episode 159 – Mita Mallick

In this episode of The Ethics Experts, Nick welcomes Mita Mallick. Mita is a corporate change-maker with a track record of transforming businesses. She gives innovative ideas a voice and serves customers and communities with purpose. She has had an extensive career as a marketer in the beauty and consumer product goods space, being a fierce advocate of including and representing Black and Brown communities. Her book “Reimagine Inclusion: Debunking 13 Myths to Transform Your Workplace” comes out October 2023 published by Wiley.
LinkedIn:
https://www.linkedin.com/in/mita-mallick-2b165822/

Instagram:
mita_mallick13

X
@MitaMallick2

Book Link:
Reimagine Inclusion: Debunking 13 Myths to Transform Your Workplace
By Mita Mallick

Categories
Innovation in Compliance

Breaking the Silence: How Speaking Up Enhances Corporate Cultures – Sharlyn Lauby on What is a Speak Up Culture?

Welcome to a special five-part podcast series on enhancing your corporate culture through a great speak-up regime. This podcast series is sponsored by Case IQ. Over this series, Tom Fox will visit with Sharlyn Lauby, Jakub Ficner, Kenneth McCarthy, and Meric Bloch on the different facets of a great speak-up regime and how each of those facets will improve your corporate culture. They will tackle such topics as the indicia of a great corporate culture, the importance of triage and internal investigations in improving corporate culture, non-retaliation and protections for those who speak up, tying your entire system of speaking up to improving culture, and conclude with some thoughts on how an entire system of speaking up drives corporate culture to be better run and, at the end of the day, more profitably. In Part 1, Tom Fox visits Sharlyn Lauby to consider what a speak-up culture is.

Sharlyn Lauby is a seasoned human resources professional with over 15 years of experience in various industries, including theme parks, hotels, and airlines. She strongly advocates for fostering a speak-up culture in the workplace, a perspective shaped by her extensive experience in organizational development and her role as the former vice president of human resources for a global consulting firm. Sharlyn believes that a speak-up culture is characterized by open and effective communication, where employees feel comfortable expressing their concerns and sharing their ideas. She emphasizes the importance of listening as a key leadership trait, the need for policies to protect employees from retaliation, and the crucial role of middle managers in creating a supportive environment. Join Tom Fox and Sharlyn Lauby as they delve deeper into this topic in this episode.

 Key Highlights:

  • Open communication and employee empowerment
  • Creating a Speak-Up Culture to Drive Positive Outcomes
  • The Power of Fair Processes in Organizations

Resources

Sharlyn Lauby on LinkedIn

ITM Group

Case IQ

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31 Days to More Effective Compliance Programs

One Month to More Effective Written Standards: Day 15 – Enforcement Actions Featuring Facilitation Payments

One of the more confusing areas of the FCPA is in that of facilitation payments. Facilitation payments are small bribes but make no mistake about it, they are bribes. For that reason, many companies feel they are inconsistent with a company culture of doing business ethically and in compliance with laws prohibiting corruption and bribery. Further, the 2020 FCPA Resource Guide specified, “while the payment may qualify as an exception to the FCPA’s anti-bribery provisions, it may violate other laws, both in Foreign Country and elsewhere. In addition, if the payment is not accurately recorded, it could violate the FCPA’s books and records provision.” Additionally, the 2020 FCPA Resource Guide stated, “Whether a payment falls within the exception is not dependent on the size of the payment, though size can be telling, as a large payment is more suggestive of corrupt intent to influence a non-routine governmental action. But, like the FCPA’s anti-bribery provisions more generally, the facilitating payments exception focuses on the purpose of the payment rather than its value.”
In addition to these clear statements about whether the FCPA should continue to allow said bribes; you should also consider the administrative nightmare for any international company. The U.K. Bribery Act does not have any such exception, exemption or defense along the lines of the FCPA facilitation payment exception. This means that even if your company allows facilitation payments, it must exempt out every U.K. Company or subsidiary from the policy. Further, if your company employs any U.K. citizens, they are subject to the U.K. Bribery Act no matter who they work for and where they may work in the world, so they must also be exempted. Finally, if your U.S. Company does business with a U.K. or other company subject to the U.K. Bribery Act, you may be prevented contractually from making facilitation payments while working under that customer’s contract. As I said, an administrative nightmare.

Three key takeaways:

  1. Do not forget the administrative nightmare of facilitation payments for international organizations.
  2. The Kay decision made clear how narrow the “routine government action” exception is.
  3. Facilitation payments will usually be an add-on as they are symptomatic of an ineffective compliance program.

For more information, check out The Compliance Handbook, 4th edition, here.

Categories
FCPA Compliance Report

FCPA Compliance Report: Adam Pollock – Mission Driven Law: Serving the Greater Public Good

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. In this episode, Tom Fox welcomes Adam Pollock, co-founder of PollockCohen and Qui Tam/FCA expert.

 Adam Pollock is an experienced lawyer with a unique blend of expertise in computer science and law. Having studied computer science at the University of Michigan before transitioning into law at the University of Pennsylvania, Pollock has spent over 15 years in the legal field, specializing in white-collar defense, Qui Tam cases, False Claims Act cases, whistleblower suits and public advocacy. His law firm’s impactful public advocacy cases is rooted in a mission-driven approach, focusing on cases that serve a greater public good. He cites examples such as challenging the government over the regulation of menthol cigarettes, which disproportionately affect the African American community, and fighting for the rights of New York City retirees. Pollock’s work is driven by a desire to create positive change and make a difference. Join Tom Fox and Adam Pollock as they take a deep dive into these topics and more on this episode of the FCPA Compliance Report podcast.

 Key Highlights

·      How far back Qui Tam case go in history

·      The intersection of Qui Tam, FCA and whistleblower cases

·      Mission Driven Litigation

·      Private Attorney Generals?

·      The FCA at the Supreme Court

Resources

Adam Pollock on LinkedIn

PollockCohenLLP

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

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All Things Investigations

All Things Investigations: Episode 37 – Privileges in Document Production with Mike Huneke

In this episode of All Things Investigations, host Tom Fox and guest Mike Huneke explore a complex legal case involving Cognizant Technologies and former executives facing criminal charges for alleged bribery. The court’s ruling in this case has far-reaching implications for privilege disputes, document production, and cooperation with the government. 

Mike Huneke is a partner in the firm’s Washington office. Among other things, Mike advises clients on the navigation and resolution of multi-jurisdictional criminal or Multilateral Development Bank (MDB) anti-corruption investigations. He assists companies subject to post-resolution monitorships or other commitments, and designs and executes risk-based strategies for due diligence on third parties.

 

You’ll hear Tom and Mike discuss:

  • The Coburn and Schwartz Case is an ongoing document dispute that serves as a masterclass in federal criminal and civil procedure related to document production.
  • The court categorizes documents into three categories, emphasizing their relevance to the criminal proceeding and repeatedly referencing Federal Rule of Criminal Procedure 17.
  • The court addresses supporting documentation and investigative reports, considering waiver of privilege in relation to supporting evidence. It also highlights the need to defend the documents used in an investigation.
  • Maintaining a wall between remedial activity and disclosures is crucial to prevent the remediation justification from surpassing disclosures. 
  • It is important to pause and carefully consider an investigation. While quickness and focus are essential, thoroughness should not be sacrificed. Keeping stakeholders informed is key.
  • Privilege protects certain communications from being disclosed. Internal investigations can prevent disclosure of harmful information. Rule 17 requires disclosure of relevant documents, but privileged documents are exempt. Relevance must be demonstrated.
  • Counsel who cooperate with the government face challenges in confidentiality, client protection, and legal issues. Balancing the defense of the investigation and its documents adds to the complexity.
  • The court discusses concerns raised by the chief legal officer regarding the duration and fees of the investigation. It addresses the use of discussions between the CLO and the investigative team as evidence.

 

KEY QUOTES

“Talking about partial waivers. What does that mean? It means, well, waiving a little bit of a discussion, but not going for the whole discussion in a way that may be disadvantageous to the other party.” – Mike Huneke

 

“One common thread through all three categories, at least in the rulings from the magistrate judge or the recommended rulings from the magistrate judges to all three, was the importance of this being in a criminal proceeding. Time and again, the magistrate looks to Federal Rule of Criminal Procedure 17. And as that’s articulated, at least in the Third Circuit and in the District Court of New Jersey, even if there is a waiver, that doesn’t mean documents automatically have to be produced to the other party.” – Mike Huneke

 

“I think compliance professionals can rest assured that this is not an instance that will be cited back to them where they have to reveal all the nuts and bolts of how the program was designed, what choices were made about the scope of the program and how it was implemented or not.” – Mike Huneke

 

Resources

Hughes Hubbard & Reed website 

Mike Huneke on LinkedIn

Categories
Adventures in Compliance

Adventures in Compliance – Ethical Lessons from The Adventure of the Cooper Beeches

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 some of the ehtical lessons from the story, “The Adventure of the Copper Beeches” which was originally published in the Strand Magazine in June 1892 and was the final story in the collection ‘The Adventures of Sherlock Holmes’.

Summary

In the story, a young governess named Violet Hunter consults Holmes about whether to accept a strange job offer from a Mr. Rucastle, who lives at the Copper Beeches in Hampshire. The conditions are odd – she is to be paid a much higher than usual wage, she is to wear a dress that is laid out for her every day, and she is occasionally to cut her hair short and wear a blue dress to sit in a certain window. However, due to her financial circumstances, she decides to accept the position.

After some time at the Copper Beeches, Violet becomes suspicious of Mr. Rucastle’s erratic behavior, his mysterious and seemingly ill-treated wife, a locked wing of the house, and the ominous presence of a fierce dog kept on the premises. She sends for Sherlock Holmes, who comes with Dr. Watson to investigate.

Upon arrival, they discover that Rucastle’s daughter, Alice, who closely resembled Violet, had been locked away after refusing to marry a wealthy suitor who stood to inherit a fortune. Rucastle had hoped to trick the suitor into believing Alice was still at the estate and content, using Violet as a stand-in. Upon being found out, Rucastle releases his dog to chase them, but the dog attacks its owner instead.

In the end, Alice escapes with her fortune, Violet leaves her employment, and the Rucastles are left to deal with the aftermath of their deeds.

Ethical Lessons

1.         Honesty and integrity: Throughout the story, Holmes demonstrates his commitment to honesty and integrity, and he is determined to uncover the truth and restore justice. Leaders in business can learn from this by being honest and transparent in their dealings with others and by upholding their ethical principles.

2.         Respect for privacy: In the story, Holmes is careful to respect the privacy of the individuals involved and to avoid intruding on their personal lives. Leaders in business can learn from this by respecting the privacy and confidentiality of their employees and by being mindful of their actions and words.

3.         Responsibility: Holmes takes responsibility for his actions and is accountable for his decisions. Leaders in business can learn from this by being responsible and accountable for their actions and by assuming responsibility for the outcomes of their decisions.

4.         Fairness: Throughout the story, Holmes strives to be fair and impartial, and he is determined to uncover the truth regardless of the circumstances. Leaders in business can learn from this by being fair and impartial in their dealings with others and by treating everyone equally.

5.         Responsibility for the truth: Holmes recognizes the importance of uncovering the truth and restoring justice, and he takes this responsibility seriously. Leaders in business can learn from this by recognizing the importance of telling the truth and being transparent in their dealings with others.

6.         Compliance with laws and regulations: In the story, the employer’s actions are illegal and unethical. Leaders in business can learn from this by ensuring that they comply with all relevant laws and regulations and by avoiding illegal and unethical practices.

Resource

The New Annotated Sherlock Holmes

Categories
Corruption, Crime and Compliance

Corruption, Crime, and Compliance: Interview of Mary Shirley on Her New Book – Living Your Best Compliance Life

CEOs play a pivotal role in shaping an organization’s commitment to ethical practices. Involving CEOs in compliance training, having them share their experiences, and demonstrating a personal commitment to compliance initiatives sets a strong tone from the top. This engagement fosters a culture of ethics and compliance throughout the organization, reinforcing the importance of ethical conduct at all levels.

Mary Shirley is a highly regarded authority in the field of ethics, compliance, and corporate governance. She is widely recognized for her expertise in helping organizations navigate the complex landscape of compliance, mitigate risks, and promote ethical practices. With a wealth of experience and insights, Mary Shirley has become a sought-after thought leader, speaker, and author. Her book, Living Your Best Compliance Life: 65 Hacks and Cheat Codes to Level Up Your Ethics and Compliance Program, has earned acclaim for bridging gaps in existing literature on compliance programs.

 

You’ll hear Michael and Mary discuss:

  • Organizations can promote ethics and compliance by recognizing and rewarding individuals or teams who exhibit ethical behaviors. This creates a positive atmosphere throughout the company, as employees are more likely to behave ethically if they see that it is valued and rewarded. Additionally, recognizing and rewarding ethical behavior can help to set a good example for other employees and encourage them to behave ethically as well.
  • Engaging leaders from different regions and departments in compliance training programs ensures diverse perspectives and reinforces the importance of compliance at all levels. Leaders from different regions and departments will have different experiences and understanding of compliance issues. By engaging them in training programs, organizations can gain a more holistic view of compliance risks and how to mitigate them. 
  • Practical solutions and problem-solving are essential for compliance initiatives. For example, shortening documentation requirements or providing training for HR on investigation best practices can be effective solutions. These solutions can help to reduce the burden of compliance on employees and make it easier for businesses to comply with regulations.
  • One of the critical elements Mary discusses is the significance of building strong relationships within the company. Collaboration and idea implementation are key to success in the compliance world.
  • Collaboration between legal, compliance, and HR teams, along with training for HR on investigation best practices, helps streamline compliance efforts.
  • CEOs play a critical role in setting the tone for compliance within an organization. They are the ones who set the example for their employees, and their actions and words can have a significant impact on whether or not employees comply with regulations. When CEOs are involved in compliance training, it demonstrates that they are committed to ethical practices and that they take compliance seriously.
  • Mary recommends forming task forces to validate compliance ideas at an early stage, fostering a culture of innovation and problem-solving.
  • Encouraging employees to share personal anecdotes related to compliance principles humanizes the process and fosters a culture of ethical work. When employees feel like they can share their own experiences with compliance, it helps them to understand the principles on a deeper level. It also helps to create a sense of community and belonging, as employees see that they are not alone in their commitment to ethical behavior. 

 

KEY QUOTES

“One of the things that I learned way later that I wish I had was that when you involve people in the conceptualizing aspect [of] building a compliance initiative… and they feel [like they are] part of it… you’re in a much better position to get buy-in when you [implement].” – Mary Shirley

 

“A really awesome idea that I just heard of recently from a friend of mine, Samantha Callan: instead of taking just the traditional idea of giving a reward to someone who had exhibited our ideal behaviors and role modeled them… What Sam did was not just give a reward to the star team member but the entire rest of that individual’s team also got a reward…‘Yes, we’re giving recognition to the champion, but we’re also creating this really positive feeling throughout the rest of the team, getting people talking about why it is that we’re all getting rewarded for this.’” – Mary Shirley

 

“We really have a very difficult job as compliance officers because on one hand, we want to show that we’re fun and we’re human and we’re not the sheriff, but on the other, if we do things that are considered to be too inappropriate or too silly, then we’ll get mocked for it, and we’ll be worse off than if we’d never tried to adjust our reputations at all.” – Mary Shirley

 

Resources

Mary Shirley on LinkedIn 

Order Mary’s new book: Living Your Best Compliance Life