Boeing is not the first company to find itself amid a massive scandal. You can think of Siemens’ bribery and corruption scandal, the VW emissions-testing scandal, the Wells Fargo fraudulent accounts scandal, or any other myriad of corporate scandals where culture failed and created a toxic culture. The question for any organization in such a situation is how to transform its culture.
In this special five-part podcast series, Sam Silverstein, the most trusted voice in America on accountability, and Tom Fox, the Voice of Compliance, look at the ways a company in the depths of such a situation can plan out and take concrete steps to turn around and rebuild its culture. In this concluding Part 5, we explore the dynamism of culture and why ongoing monitoring and continuous improvement are so critical for a true culture transformation.
Leaders must set a clear vision for a positive culture, emphasizing values such as excellence, safety, and community involvement, and stress the importance of proactive actions to foster a culture of excellence. However, even after assessing a culture, the culture transformation strategy, andthe plan’s implementation, the culture transformation must be nurtured through ongoing monitoring and continuous improvement. Leaders must make culture a primary objective, consistently demonstrating core values while advocating for continuous culture monitoring and improvement. Both agree that cultivating a solid culture improves the organization’s bottom line, enhances the quality of products, and contributes to the betterment of communities.
What happens when two top compliance commentators get together? They talk about compliance, of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode!
In this episode, Tom and Kristy take on a wide variety of compliance related topics.
One of the key issues they look at are reports suggesting China is strategically relocating forced labor from the Uyghur region to different parts of the country in an attempt to bypass US laws prohibiting goods sourced from areas associated with forced labor.
This could trigger wider limitations on goods originating from China, stressing the necessity for intensive audits and transparency in business operations. This issue has sparked bipartisan concern, hinting at potential upcoming legal actions.
Tom stresses the need for companies to react effectively to reduce risks, possibly through on-the-ground audits and increased accountability in business operations in China. Kristy underscores the need for thorough audits and proactive measures in response to the risks associated with forced labor in China. She raises the possibility of legal consequences for companies found to be misleading about their involvement with forced labor. Both perspectives serve to underline the gravity and complexity of this issue.
Highlights Include:
An ex-McKinsey partner says he was scapegoated. (Reuters)
Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.
Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.
Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.
Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.
In this episode, we explore how a culture of speaking up improves corporate culture.
For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.
Ronald Yu is the director and co-founder at MakeBell Limited. He is also a visiting fellow at the City University of Hong Kong’s (CityU’s) School of Law and a part-time law lecturer at Peking University.
As a scholar and author, his areas of interest are the nexus of law and tech: intellectual property (IP) and non-fungible tokens (NFTs), artificial intelligence (AI) and its legal ramifications, cross-border data flows across APAC, as well computer forensics. At The University of Hong Kong (HKU), he has taught courses on patents, as well as IP information technology. He has also lectured on FinTech at CUHK while also teaching courses on the commercialization of IP and patent law at CityU. He has also taught IP strategy at the Hong Kong University of Science and Technology and the Hong Kong Polytechnic University.
Donald Day is the chief operating officer of FinTech start-up firm VDX, which is building a digital asset ecosystem for institutional investors. He was also an in-house cryptocurrency/digital asset expert at Hong Kong’s capital markets regulator, the Securities and Futures Commission, where he helped shape the licensing regime for virtual asset trading platforms and designed and led the supervision of virtual asset fund managers and trading platforms.
In this episode of Regulatory Ramblings, Ron and Donald chat with host Ajay Shamdasani on the potentially pernicious consequences of non-technically trained lawyers – specifically, those without degrees or substantial experience in science, technology, engineering or math (STEM) – offering advice in situations where technology is either implicated or at the core of the matter. The law can be unforgiving to those who are ignorant of its often arcane ways, and ultimately, it is clients who pay for what lawyers either do not know or assume the guests share. In an age of AI, machine learning, and large language models (LLMs) – they do not go as far as to say lawyers need to learn how to code, but counsel needs to understand the practical legal, business, financial, and reputational implications of such technologies for their clients.
Technology can, at times, change the rules of the game, Ron and Donald stress. Yet, they also point out that sometimes lawyers suggest contractual terms that are legally feasible but, based on current technology, impractical – such as the Bitcoin 10-second consensus period, a performance requirement that is not possible to do. As our guests explain, if there are terms in a contract that are unworkable, it could lead to a lawyer killing a deal either out of ignorance of the underlying technology or a lack of commercial acumen.
The discussion moves onto how rare it is to find those who are technically trained and also licensed practicing lawyers. Clearly, the more technical a subject, the less likely an average dispute resolution practitioner at the typical multinational, Anglo-American law firm is going to be up to the task. Our guests acknowledge that leaves clients with a very narrow field of specialists to choose from if they want to be represented by lawyers who understand both the law and the underlying technology involved.
Yet, as Ron Yu notes, even ‘non-techies’ can get up to speed by educating themselves, pointing to the living example of US federal judge Randall R. Rader—as has been the case with FinTech and cryptocurrencies.
Lawyers often view technology through the lens of its legal and regulatory compliance implications, with less focus on its implementation. How it will work and how and where best to use it is an afterthought. As for cybersecurity, it is regarded as an IT issue, they say. If a lawyer overlooks cybersecurity issues, Yu said, then they are glossing over important technical details that can harm a client.
The conversation concludes on the point that when it comes to ‘tech lawyers’, it certainly seems that, generally speaking in APAC, those practitioners that market themselves well have the biggest platforms and the loudest voices and are, therefore, regarded as authorities in their respective fields.
Clearly, there are times when the right kind of technical background is not substituted. For example, as Donald Day recalls, patent litigators do not infrequently have to deal with solicitors who don’t understand the tech, and those solicitors soon become a hindrance.
Both guests underscore the lingering perception that it is not ideal to engage in IP-related litigation in Hong Kong because of the lack of talent; even if a specialist carefully explains something to a solicitor, the latter will invariably get it wrong or simply not understand the subject matter.
Podcast Discussion:
03:24 Intersecting Realms: Non-Technical Lawyers and Technical Expertise in Legal Practice
09:02 Deciphering the Code: The Role of Legal Practitioners in an Increasingly Technical World
17:45 Tech Literacy for Lawyers: Navigating Smart Contracts and Beyond
25:32 Tech Savvy and Legal Deals: Avoiding Pitfalls
40:17 Beyond Technology: Complex IP and Financial Considerations in Legal Practice
45:08 Balancing Expertise and Common Sense in Legal Proceedings
54:13 Ensuring Legal and Technical Competency in Virtual Asset Licensing
1:04:11 Adapting to Change at the Intersection of Law and Technology in Fintech
In this edition of TechLaw10, Jonathan Armstrong, Director—L-EV8, talks to Professor/Attorney Eric Sinrod from his home in California. They discuss enforcing data protection and privacy laws in the US and the EU.
The questions they consider include:
Is CCPA in California being enforced?
What does CCPA require?
Does CCPA have extra-territorial reach?
What is causing the rise in CCPA litigation?
Which industries are seeing the most cases?
What is the average CCPA settlement?
Is GDPR in the EU & UK being enforced?
Which EU data protection regulators are the most active?
How are class actions fair in Europe?
How is data protection law changing the world of advertising?
Jonathan and Eric examine the latest statistics on enforcement activity and the future.
Discover L-EV8 as a new training business with Jonathan Armstrong
You can listen to earlier TechLaw10 audio podcasts with Eric and Jonathan at www.techlaw10.com.
You can find out more about Eric here at Duane Morris LLP and more about Jonathan here at L-EV8
Boeing is not the first company to find itself amid a massive scandal. You can think of Siemens’ bribery and corruption scandal, the VW emissions-testing scandal, the Wells Fargo fraudulent accounts scandal, or any other myriad of corporate scandals where culture failed and created a toxic culture. The question for any organization in such a situation is how to transform its culture. Currently running on the Culture Crafters podcast on the Compliance Podcast Network is a 5–part of podcast series with myself and Sam Silverstein, the most trusted voice in America on accountability. (The Culture Audit™ is the sponsor of this blog post series.)
In this companion, 5-part blog post series, we have looked at how a company in the depths of such a toxic culture can begin to make a comeback by planning and taking concrete steps to turn around and rebuild its culture. In this concluding Part 5, we show why you must not simply stop after implementation but must monitor your culture continuously and work to improve it continuously. It is an ongoing work in progress, and you can always continue working on your corporate culture.
Ongoing monitoring is not something compliance professionals are unaware of or have never heard about. This concept must be used in your culture management strategy as well. You must assess how your culture management strategy is doing continuously. This is one of the power outcomes of The Culture Audit™ (the sponsor of this blog post series). Not only have you created a baseline of where your culture is at any point in time, but through ongoing use of the Culture Audit, you can measure your specific indices of culture on a go-forward or ongoing basis. You can then continually work to update as appropriate. If your organization needs greater trust, you can put further work into this through your speak-up culture.
Creating an organization’s speak-up culture is essential for fostering open communication, transparency, and employee trust. Such a culture encourages individuals to raise concerns, flag potential issues, and contribute to a safer and more accountable work environment. By prioritizing a speak-up culture, companies can proactively address challenges, prevent safety risks, and promote a culture of continuous improvement.
The significance of a speak-up culture must be balanced as a critical factor in ensuring organizational success and psychological safety. Silverstein emphasized the need for employees to feel safe, valued, and empowered to voice their opinions without fear of reprisal. He highlighted the role of trust and psychological safety in enabling individuals to speak up, noting that a culture that supports open communication leads to better decision-making processes and overall performance. The insights shared underscored the pivotal role of a speak-up culture in shaping a positive and proactive organizational environment.
Accountability in leadership is fundamental in setting the tone for organizational culture and fostering a sense of responsibility and integrity among team members. Leaders who demonstrate accountability model desired behaviors and create a culture where individuals take ownership of their actions and outcomes. By holding themselves and others accountable for their commitments and decisions, leaders cultivate a culture of trust, respect, and ethical conduct.
Leadership will always have a transformative impact on organizational dynamics. Emphasizing that accountability is a way of life rather than a mere task demonstrates leaders’ profound influence in shaping the values and norms within their teams. There must be consistency and fairness in holding individuals accountable. Leaders play a pivotal role in setting expectations and driving cultural change. The discussion underscores the critical role of leadership accountability in fostering a culture of integrity and excellence within organizations.
Changing organizational culture is a complex and multifaceted endeavor that requires a deliberate and strategic approach. Organizations seeking to shift their culture must assess the existing norms, values, and behaviors that shape their environment. By identifying areas for improvement and aligning cultural practices with desired outcomes, companies can embark on a journey of cultural transformation that enhances employee engagement, performance, and overall organizational success.
Companies can initiate meaningful change by defining and measuring the current culture, investing in training and education, and holding individuals accountable for upholding cultural values. You must align cultural initiatives with business objectives and ensure that cultural transformation efforts are embedded in every aspect of the organization. Organizations face challenges and opportunities when navigating cultural change, highlighting the critical role of leadership in driving lasting transformation.
The crucial role of leadership in shaping organizational culture provided valuable insights into the steps leaders can take to create a positive and thriving workplace environment. By prioritizing values, fostering open discussions about culture, and making data-driven decisions, organizations can pave the way for long-term success and employee well-being.
