Day: October 6, 2023

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Innovation: Day 5 – Communication to see Around Corners

The more you can operationalize compliance, the more it works to operationalize culture in your organization. It works for all levels of a company, literally from the Boardroom to the shop floor. The DOJ and SEC recognized this when they noted in their 2020 FCPA Resource Guide, “A compliance program should apply from the board room to the supply room – no one should be beyond its reach.” Yet culture can provide more than simply an ethical foundation, and it is also a part of the business foundation of an entity.

Using such an approach to communications allows a CCO to “see around corners” and can be one of the greatest strengths of a best practices compliance program. The reason is listening. Listening is a key leadership component, and there are certainly many ways to listen. You can sit in your office and wait for a call or report on the hotline, or you can go out into the field and find out what challenges employees are facing. From this, you can work with them to craft a solution that works for the company and holds to the company’s ethical and compliance values.

Using social media tools, a CCO can move towards Thomas’ next key ingredient of a successful corporate culture, which is trust. Thomas said, “I’m obsessive about the culture that we create specifically around trust, and this is an adjustment for some people when they come here. If you join our team, there’s trust by default here. That means you trust in the competence of your teammates. You trust in their intentions and what they’re saying. At some companies, the culture is that trust is earned over time, but that means if everyone in the organization says you have to earn trust, the amount of energy that actually goes into the trust-earning process is a distraction from our mission.”

Three key takeaways:

  1. A company can fail if it does not get its culture right.
  2. Using communications to “see around corners.”
  3. Trust works as a business strategy.

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

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Report from IMPACT 2023

Report from IMPACT 2023: Robert Mascola on Creating the Future of Corporate Compliance Education

ECI’s IMPACT 2023 was one of the leading compliance events in 2023. At this conference, Tom Fox, the Voice of Compliance, was able to visit with several of the speakers, exhibitors, participants, and one group of ethically-minded Girl Scout Troop. In this limited podcast series, Report from IMPACT 2023, Tom explores many of the most cutting-edge topics in ethics and compliance through short podcast episodes. Check out the full series of interviews. You will be enlightened and informed and come away with a fuller and more thorough understanding of the most cutting-edge topics in ethics and compliance. In this episode, Tom visits Robert Mascola, currently the CCO at Juul Labs.

Robert Mascola is a seasoned professional in corporate compliance and previously was the Senior Director at the Fordham Law School Program of Corporate Ethics and Compliance. He views Fordham Law School’s online master’s program in corporate compliance as a valuable opportunity for non-lawyers to gain education and training in the compliance field. Mascola acknowledges that while the compliance profession originally developed as an outgrowth of law departments, the skills required for building an ethics compliance program are common to lawyers. He believes that law schools like Fordham recognized this need and created a master’s program that does not require a law degree. Mascola also emphasizes the importance of having a diverse range of academic backgrounds in the program, as it brings different perspectives and expertise to the field of compliance. Join Tom Fox and Robert Mascola on this episode of the Report from Impact 2023 podcast to learn more.

Highlights Include: 

  • Master’s Program in Corporate Compliance
  • Corporate Compliance Education for Working Professionals
  • Diverse Academic Backgrounds in Corporate Compliance

 Resources: 

Robert Mascola on LinkedIn

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Popcorn and Compliance

Popcorn and Compliance: Monster Movie Month – Murders in Rue Morgue

Tom Fox is back with his Classic Monster Movie Month, where he reviews a Classic Monster Movie from Universal Pictures from its Classic Monster Movie era of 1931 to 1947. This year, I want to take a look at some of the lesser-known movies and mine them for both leadership and ethical lessons. We begin our journey with the 1932 Bela Lugosi class Murders in Rue Morgue.

The movie “Murders in the Rue Morgue” is a classic horror film that delves into the themes of consent, personal autonomy, and ethics. It tells the story of Dr. Mirakle, a mad scientist who conducts experiments on kidnapped women without their consent. This raises important questions about the disastrous consequences of disregarding individual rights for personal or scientific pursuits.

The film serves as a cautionary tale, highlighting the dangers of unchecked power and the potential for abuse. Dr. Mirakle’s blind obsession with proving his theory leads him to commit heinous acts, demonstrating the importance of leaders remaining balanced, open-minded, and willing to change their course of action based on new information or evidence.

One of the key ethical concerns raised in the movie is the exploitation of vulnerable populations. Dr. Mirakle specifically targets women whom he believes society won’t miss, prompting reflection on the morality of exploiting those who are already marginalized. This raises important questions about the ethical implications of using vulnerable individuals for personal or scientific gains.

The film also touches on the importance of consent and personal autonomy. Dr. Mirakle’s kidnapping and experimentation of unsuspecting individuals grossly violate the principle of consent and infringe upon their autonomy. Every individual has the right to control what happens to their own body, and this film serves as a stark reminder of the importance of respecting those rights.

Furthermore, “Murders in the Rue Morgue” raises questions about the limits of science. While science and research are crucial for human advancement, there are ethical boundaries that should never be crossed. Dr. Mirakle’s actions demonstrate the disastrous consequences that arise when someone disregards the sanctity of life in pursuit of personal or scientific objectives.

The film also explores the themes of responsibility for one’s actions and the questioning of morality versus legality. Dr. Mirakle faces consequences for his unethical practices, highlighting the idea that actions have repercussions and that individuals must be held accountable for their deeds. It also emphasizes the difference between what is legal and what is ethical, prompting viewers to consider the importance of aligning their actions with their moral compass.

In addition to these ethical considerations, the film offers leadership lessons. The protagonist, Pierre Dupont, exemplifies courage in adversity, questioning authority, and understanding team motivations. He bravely pursues the truth and saves his fiancé, demonstrating the importance of leaders being prepared to face challenges head-on and take risks when necessary to achieve their objectives and protect their team.

Overall, “Murders in the Rue Morgue” is a thought-provoking film that raises important ethical questions about consent, personal autonomy, and the limits of science. It serves as a reminder of the disastrous consequences that can arise when individual rights are disregarded for personal or scientific pursuits. The film prompts reflection on morality, science, and the importance of considering the impact on others when making decisions about consent, personal autonomy, and ethics.

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From the Editor's Desk

From the Editor’s Desk – September and October, 2023 in Compliance Week

Welcome to From the Editor’s Desk, a podcast where co-hosts Tom Fox and Kyle Brasseur, EIC at Compliance Week, unpack some of the top stories that have appeared in Compliance Week over the past month, look at top compliance stories upcoming for the next month, talk some sports and generally try to solve the world’s problems.

Tom Fox and Kyle Brasseur are back. In this edition, they discuss the importance of robust compliance programs and proactive disclosures that must be balanced in today’s complex regulatory landscape. Tom underscores the significance of effective compliance measures and the innovative use of data analytics in enhancing compliance programs. He advocates for companies to prioritize these aspects to mitigate risks and improve their overall compliance posture. On the other hand, Brasseur emphasizes the need for companies to take proactive measures and implement effective compliance programs, citing a case where a bank’s failure to heed warnings resulted in a hefty financial penalty. He stresses that companies cannot afford to wait for regulatory action or assume that things will change in their favor. Join Tom Fox and Kyle Brasseur on this episode of the From the Editor’s Desk podcast as they delve deeper into this critical topic.

Highlights Include:

  • FCPA Settlement: Innovative Data Analytics Compliance
  • Deutsche Bank Affiliate’s Climate Disclosure Settlement
  • Shinhan Bank’s Lack of Compliance Program
  • Anti-Money Laundering Landscape in Europe
  • AI’s Impact on Compliance Landscape
  • Compliance Insights: Unveiling the CCO’s Perspective
  • NFL season to date
  • MLB playoffs are here
  • Dame Lillard trade and it’s fallout

 Resources:

Kyle Brasseur on LinkedIn

Compliance Week

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Daily Compliance News

Daily Compliance News: October 6, 2023 – The Backdoor Man Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings 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.

Stories we are following in today’s edition:

  • DOJ offers self-disclosure incentives in M&A. (WSJ)
  • SBF-Backdoor Man? (NYT)
  • A car wreck, death, and corruption? (Vanity Fair)
  • Alibaba accused of ‘possible espionage’. (FT)

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Blog

Pat Harned on Consumer Behavior, Corporate Ethics, and Compliance Evolution

I recently had the opportunity to visit with ECI President Pat Harned. We discussed consumer behavior, corporate ethics, and compliance evolution, which are three interconnected factors that play a crucial role in shaping the business landscape of today. We considered some of the key factors that impact them and the challenges associated with different approaches.

One of the major trends discussed in the episode is the growing importance of consumer behavior and responsibility. Consumers are increasingly willing to pay more for products from companies that are conscious of their global impact. This shift in consumer preferences has led to a rise in purpose-driven companies that prioritize ethical practices and sustainability. Employees, too, now prefer to associate themselves with organizations that have a positive impact on the world. As Tom Fox aptly puts it, “Employees are increasingly at the future workforces coming into workplaces with an expectation that they’re going to work for purpose-driven companies.”

This changing landscape has significant implications for corporate ethics and compliance. The ethics and compliance profession is evolving to emphasize corporate values and purpose. The Ethics & Compliance Initiative (ECI) aims to lead in this area by equipping professionals with the tools they need to navigate the complex regulatory environment. Experienced professionals in the ethics and compliance field are crucial for organizational success, and ECI engages senior advisors to mentor leaders and provide guidance.

However, this evolution also brings forth challenges. The role of the compliance officer is becoming more tied to senior levels of the organization, with liability attached to it. Compliance officers now have a seat at the table, but with that comes the responsibility to take action on the big problems that society is increasingly facing. As Tom Fox points out, “The next generation of employees is looking at companies and saying when are they going actually to be taking action on some of these big problems?”

To address these challenges, collaboration with regulatory bodies such as the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) is vital. The DOJ and SEC will often seek input from ethics and compliance practitioners on essential topics that impact compliance officers and businesses. This is a key role for ECI to help play with the compliance community to facilitate this public/private partnership. This partnership ensures that the compliance profession plays a leadership role in ethics, sustainability, and governance. As Tom Fox mentions, “It has been a very nice development to see that they’re interested in the input from our profession.”

The episode also highlights the importance of ECI’s role as a thought leader in the ethics and compliance space. With the convergence of various fields, such as ESG (Environmental, Social, and Governance), ethics and compliance professionals need to stay ahead of the curve. ECI is putting together a blue-ribbon commission to examine what an effective ESG effort looks like and how it ties to corporate purpose and values. This initiative aims to help companies meet the growing expectations of employees and consumers.

In conclusion, consumer behavior, corporate ethics, and compliance evolution are intertwined factors that shape the business landscape. The preferences of consumers and employees are driving the rise of purpose-driven companies, emphasizing the need for ethical practices and sustainability. The ethics and compliance profession is evolving to meet these demands, with ECI leading the way. Collaboration with regulatory bodies and thought leadership initiatives are crucial for navigating complex challenges and ensuring a positive impact on society. As we move forward, organizations need to consider the effect on consumer behavior, corporate ethics, and compliance evolution when making decisions.