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31 Days to More Effective Compliance Programs

One Month to More Effective Written Standards: Day 13 – Policies on Political Contributions

The FCPA states, “The FCPA’s anti-bribery provisions apply to corrupt payments made to (1) “any foreign official”; (2) “any foreign political party or official thereof”; (3) “any candidate for foreign political office”; or (4) any person, while knowing that all or a portion of the payment will be offered, given, or promised to an individual falling within one of these three categories. Although the statute distinguishes between a “foreign official,” “foreign political party or official thereof,” and “candidate for foreign political office,” the term “foreign official” in this guide generally refers to an individual falling within any of these three categories.” Government policies affect the commercial environment. A company is subject to legislation and regulation that affects how it conducts its business and generates value for its investors. Participating in the political process is part of a business strategy to protect a company’s interests.

Most international businesses have strategy to engage in the political process with a view to the long-term interests of the company and to promote and protect its interests. All political contributions and expenditures on behalf of the Company and management reports on these political contributions and expenditures should be reported to the Board of Directors annually. No political contributions may be made or promised unless written pre-approval has been obtained from the corporate compliance function.

Three key takeaways:

  1. Political candidates are covered by the FCPA.
  2. What is the business purpose for the contribution?
  3. Do not make contributions towards candidates who can award your company business.

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

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The ESG Report

The ESG Report – Kai Gray on ESG: The Compliance Officer’s New Frontier

The ESG Report podcast is hosted by Tom Fox. Looking for innovative solutions to tackle climate change? Look no further than The ESG Report! In this episode, Tom speaks with Kai Gray, CEO and co-founder of Motive, a software company focused on ESG data management.

In this podcast conversation with Tom Fox, they discuss the growing significance of ESG in various industries and its connection to compliance. They explore the role of compliance officers in ESG, the influence of large corporate customers on driving ESG down the supply chain, and the need for standardized measures and reporting. The discussion also delves into the expanding role of compliance in incorporating external stakeholder feedback and addressing non-financial metrics. The future of ESG is predicted to involve more companies integrating it into annual reports, stricter regulations, penalties for greenwashing, and the evolution of ESG ratings. The conversation highlights the importance of clarity and understanding within the ESG industry.

Key Highlights

·       Kai Gray’s Journey into ESG

·       Evolution of a Company’s Focus

·       ESG as a Business Driver

·       ESG’s Influence on Compliance

·       ESG Regulation and the Future

Resources

Kai Gray on LinkedIn

Motive

Tom Fox 

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Blog

Managing Culture Risk

Welcome to a special five-part blog series on building a stronger culture of compliance, sponsored by Diligent. In this series I will visit with Yvette Hollingsworth-Clark, Viktor Cuijak, Jessica Czeczuga; Michael Parker; and Alexander Cotoia. In this series, we will consider what is culture, how to assess culture, putting together a strategy to manage culture based upon this assessment, the monitoring of that strategy going forward and using information from your monitoring to engage in continuous improvement of your culture.

Many compliance professionals struggle with the ‘softness’ of culture. However, properly viewed culture can be seen as another type of risk for any organization. Viewed through this lens, culture can then be assessed, managed, monitored and improved as any other business risk. This has become even more important since the announcement in October 2021 by Deputy Attorney General Lisa Monaco, that the Department of Justice would assess corporate culture as a part of corporate compliance enforcement action. In this Part 3, we consider how to manage your culture risk through the crucial role of managers with assess your culture with Jessica Czeczuga.

Jessica Czeczuga is a seasoned professional with over two decades of experience in the training and development field, specializing in areas such as finance, quality, compliance and ethics, leadership, and communication training. Jessica brings a unique perspective to the compliance space, emphasizing the pivotal role of managers in shaping and reinforcing company culture. She believes that managers, being the most influential group within an organization, should be adequately trained to align with the desired culture and equipped with the necessary tools to effectively communicate and reinforce cultural values. Jessica also advocates for the collaboration between compliance professionals and HR to improve culture, leveraging their counseling skills and creating clear processes for reporting and addressing culture-related issues.

According to Czeczuga, managers are the most influential group in an organization when it comes to shaping company culture. They are the boots on the ground, constantly interacting with the employees that report to them. Their ability to talk and influence gives them a lot of power in driving the desired culture. Therefore, it is crucial for organizations to reach out to managers and get them on board with the desired culture, as they will naturally drive that message deeper into the organization.

She emphasized the importance of managers in shaping and reinforcing company culture was discussed. Managers play a significant role in driving the desired culture deeper into the organization, as they are in constant contact with employees and have the ability to support, promote, permit, or ignore certain behaviors and values.

To effectively manage culture, compliance professionals need to empower and train managers. Just like any other training program, a strong training program should be set up for managers, focusing not only on providing them with information about the desired culture but also on practical application. Role-playing and conversations with employees are key to driving behavior change and ensuring that managers are equipped to deliver the desired cultural messages.

The collaboration between HR and compliance departments is also important in reinforcing the importance of culture and driving a culture of reporting. HR, with its extensive touchpoints with employees, plays a crucial role in reinforcing compliance and culture messages. By partnering with HR, compliance professionals can ensure that the messages about culture are consistent and delivered from multiple angles, making them stronger and more impactful.

HR can also provide valuable insights and skills to the compliance function. HR has as many touchpoints with employees as any other corporate function, making it an ideal partner for compliance in reinforcing culture. HR can help compliance professionals in delivering messages about culture to different levels of employees and can provide guidance on how to address culture issues in conversations with employees.

The key takeaway is that managers have a crucial role in shaping and reinforcing company culture. They are the gatekeepers of culture and have the power to drive the desired culture deeper into the organization. To effectively manage culture, compliance professionals should focus on empowering and training managers, while also collaborating with HR to reinforce culture messages. Practical application, such as role-playing and conversations with employees, is key to driving behavior change and ensuring that managers are equipped to deliver the desired cultural messages.

In conclusion, the role of managers in shaping and reinforcing company culture cannot be underestimated. They have the ability to support, promote, permit, or ignore certain behaviors and values, making them the most influential group in an organization when it comes to culture. By empowering and training managers, and collaborating with HR, compliance professionals can effectively manage culture and drive the desired behaviors and values throughout the organization.

Join us tomorrow where we explore monitoring culture.

Tune into Jessica Czeczuga on the Diligent podcast series Unlocking Success: The Crucial Role of Culture in a Best Practices Compliance Program.

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Compliance Into the Weeds

Compliance into the Weeds: MGM Grand Data Breach

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on sanctions compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt consider the recent MGM Reports data breach and what it may mean for CCOs and Danny Ocean.

The MGM Grand data breach, a significant cyber-attack that disrupted MGM Resorts’ operations across the U.S., has raised serious concerns about cybersecurity and regulatory requirements. Tom and Matt discuss the potential financial impact and regulatory investigations that may arise from the breach, emphasizes the severity of the situation and the potential consequences for MGM.

They also question MGM’s disaster recovery and business continuity plans and raises concerns about the network design vulnerabilities that allowed the attack to have such a widespread impact. He also discusses the implications of the breach in relation to new SEC rules mandating the disclosure of material cybersecurity events by public companies. Join Tom Fox and Matt Kelly as they delve deeper into these issues in this episode of the Compliance into the Weeds podcast.

 Key Highlights

·      MGM Grand Cyber Attack Disrupts Operations

·      Understanding the Impact of Qualitatively Material Cybersecurity Incidents

·      Navigating Material Cybersecurity Event Disclosure Requirements

·      Inadequate backup plans leading to operational disruptions

·      MGM’s Ransomware Attack and Business Continuity

 Resources

Matt in LinkedIn

Matt on Radical Compliance

Tom 

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The Hill Country Podcast

The Hill Country Podcast – Local Kerrville Business Environment

Welcome to award-winning The Hill Country Podcast. The Texas Hill Country is one of the most beautiful places on earth. In this podcast, Hill Country resident Tom Fox visits with the people and organizations that make this the most unique areas of Texas. Join Tom as he explores the people, places and their activities of the Texas Hill Country. In this special episode, I am joined by Andrew Gay, Kenneth O’Neal and Gilbert Paiz to discuss the local business environment in Kerrville.

Gilbert Paiz is a successful entrepreneur with a background in community outreach and thought leadership. Andrew Gay is a seasoned business professional with a wealth of experience in the industry. Kenneth O’Neal is a passionate advocate for mental health and well-being in business, all share a common perspective on the importance of prioritizing mental health and well-being in business, especially amid the pandemic. Gilbert and Andrew, who started their own business believe in keeping the customer at the forefront while also caring for the mental health and well-being of their employees. Kenneth, with his extensive experience advocating for a shift in mindset towards mental health and well-being, sees the pandemic as an opportunity for businesses to change their approach and prioritize the well-being of their employees. Join Tom Fox, Gilbert, Andrew, and Kenneth on this episode of the Hill Country Podcast to delve deeper into their perspectives and experiences on prioritizing mental health and well-being in business amid the pandemic.

Key Highlights

  • Prioritizing Mental Health in the Workplace
  • Thriving Local Businesses Making a Positive Impact
  • Building a Culture of Community and Success
  • Creating a Harmonious Work Environment through Goal Alignment
  • Building a Pipeline Through Social Media
  • Embracing Challenges and Continuous Improvement
  • Embracing the Gift of Each Day

 Resources

Tom Fox

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Daily Compliance News

Daily Compliance News: September 20, 2023 – The Sins of The Parents 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.

·       SEC probes Musk corporate perks.   (WSJ)

·       CBRE busted over pre-taliation. (Radical Compliance)

·       FTX sues SBF’s parents. (FT)

·       BASF fights ‘conspiracy jurisdiction’. (Reuters)

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31 Days to More Effective Compliance Programs

One Month to More Effective Written Standards: Day 12 – Policies on Charitable Donations

What should your compliance policy and procedures on charitable donations look like? What should you prohibit or even caution against? The starting point is the 2012 FCPA Guidance regarding charitable donations. The information on the red flags from the Opinion Releases and the best practices, as set out in the 2020 FCPA Resource Guide, have been available for some time. From the Schering-Plough and Lilly enforcement actions, your policy should consider the timing of charitable donations to see if they are at or near the time of the awarding of new or continued business. Finally, in managing the relationship, you now need to look at overall increases in sales to determine if they are tied to a pattern of charitable donations. By looking at the timing and quantum of charitable donations, internal audit may be able to ascertain that a spike in sales is tied to corrupt conduct.

Three key takeaways:

1.What are the basic inquiries to make around charitable donations?

2.Use all of the communication tools the DOJ has provided; written guidance, enforcement actions and Opinion Releases to inform your charitable donation policy.

3. Document, Document, and Document the basis of your charitable donations risk assessment.

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

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Innovation in Compliance

Unlocking Success: The Crucial Role of Culture in Compliance: Part 3 – Jessica Czeczuga on Creating a Strategy to Manage Culture

Welcome to a special series on building a stronger culture of compliance through targeted and effective training sponsored by Diligent. I will visit with Yvette Hollingsworth-Clark, Viktor Culjak, Jessica Czeczuga, Michael Parker, and Alexander Cotoia. Over this series, we will consider what culture is, how to assess culture, putting together a strategy to manage culture based upon this assessment, monitoring that strategy in the future, and using information from your monitoring to improve your culture continuously. In Part 3, we visit with Jessica Czeczuga on how to develop a strategy to manage your culture risk.

Jessica Czeczuga is a seasoned professional with over two decades of experience in training and development, specializing in areas such as finance, quality, compliance and ethics, leadership, and communication training. Jessica brings a unique perspective to the compliance space, emphasizing the pivotal role of managers in shaping and reinforcing company culture. She believes that managers, the most influential group within an organization, should be adequately trained to align with the desired culture and equipped with the necessary tools to communicate and reinforce cultural values effectively. Jessica also advocates for collaboration between compliance professionals and HR to improve culture, leveraging their counseling skills and creating clear processes for reporting and addressing culture-related issues. Join Tom Fox and Jessica Czeczuga as we dive deeply into this topic in this Unlocking Success: The Crucial Role of Culture podcast episode.

Key Highlights: 

  • The Impact of Managers on Company Culture
  • Collaborative Partnership: HR and Compliance Driving Reporting
  • The Role of Managers in Shaping Culture

Ready for Purpose-Driven Compliance? Diligent equips leaders with the tools to build, monitor, and maintain an open, transparent ethics and compliance culture. For more information and to book a demo, visit Diligent.com.

 Join us tomorrow, where we consider how to monitor culture going forward.

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Innovation in Compliance

Unlocking Success: The Crucial Role of Culture in Compliance: Part 2 – Viktor Culjak on Assessing Culture

Welcome to a special series on building a stronger culture of compliance through targeted and effective training sponsored by Diligent. I will visit with Yvette Hollingsworth-Clark, Viktor Culjak, Jessica Czeczuga, Michael Parker, and Alexander Cotoia in this series. Over this series, we will consider what culture is, how to assess culture, putting together a strategy to manage culture based upon this assessment, monitoring that strategy in the future, and using information from your monitoring to improve your culture continuously. In Part 2, we visit with Viktor Culjak to discuss assessing culture.

Viktor Culjak is a chartered accountant with a strong finance, audit, and risk consulting background. Currently serves as the Director of Customer Success and Services at Diligent. With a decade of experience in the Big Four and a focus on governance, risk, and compliance (GRC) objectives, Viktor firmly believes in assessing and managing organizational culture as a risk factor. He views culture as a dynamic risk that can have significant consequences if not properly managed and advocates for standardized and benchmarked culture assessments to provide valuable insights for risk management. Viktor emphasizes the need for practical guidance on implementation, highlighting the significance of tone at the top and other artifacts such as policies, procedures, and feedback mechanisms in culture assessments. Join Tom Fox and Viktor Culjak as we delve deeper into assessing culture on this episode of the Unlocking Success: The Crucial Role of Culture podcast.

Key Highlights: 

·      Assessing and Auditing Organizational Culture

·      Creating a Culture of Effective Communication

·      Evaluating Culture Alignment for Continuous Improvement

Ready for Purpose-Driven Compliance? Diligent equips leaders with the tools to build, monitor, and maintain an open, transparent ethics and compliance culture.

For more information and to book a demo, visit Diligent.com

 Join us tomorrow, where we consider how to create a culture management strategy.

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Principled Podcast

Season 10 Episode 2 – The Importance of Humanizing Ethics and Compliance Programs

What you’ll learn on this podcast episode

Keeping the focus on the human element of ethics and compliance can help E&C programs move from “cop” to “coach.” But what does that look like in practice? In this episode of the Principled Podcast, host Susan Divers talks about the importance of humanizing ethics and compliance with Adam Balfour, the author of Ethics & Compliance for Humans. Listen in as the two discuss best practices that Adam has used over the course of his E&C career, managing regional and global ethics and compliance programs as well as leading areas of global risk management and privacy. 

Guest: Adam Balfour

Adam Balfour – Grayscale

Adam Balfour is on a mission to help make ethics and compliance more relatable and relevant for his fellow human beings. He likes to design ethics and compliance programs that employees can actually relate to, engage with and find useful. Originally from Scotland, Adam worked for a number of years as an attorney for two international law firms in New York before moving to Nashville, Tennessee to work for Bridgestone. He is an active member in the ethics and compliance community, a co-editor of the “Compliance and Ethics: Ideas & Answers” newsletter together with Joe Murphy, Jeff Kaplan, and Rebecca Walker, and CCEP certified. His first book, Ethics & Compliance for Humans, was published by CCI Press and is available now.    

Host: Susan Divers

Headshot_Susan_Divers_S7E18_Principled_Podcast

Susan Divers is a senior advisor with LRN Corporation. In that capacity, Ms. Divers brings her 30+ years’ accomplishments and experience in the ethics and compliance area to LRN partners and colleagues. This expertise includes building state-of-the-art compliance programs infused with values, designing user-friendly means of engaging and informing employees, fostering an embedded culture of compliance and substantial subject matter expertise in anti-corruption, export controls, sanctions, and other key areas of compliance.

Prior to joining LRN, Mrs. Divers served as AECOM’s Assistant General for Global Ethics & Compliance and Chief Ethics & Compliance Officer. Under her leadership, AECOM’s ethics and compliance program garnered six external awards in recognition of its effectiveness and Mrs. Divers’ thought leadership in the ethics field. In 2011, Mrs. Divers received the AECOM CEO Award of Excellence, which recognized her work in advancing the company’s ethics and compliance program.

Mrs. Divers’ background includes more than thirty years’ experience practicing law in these areas. Before joining AECOM, she worked at SAIC and Lockheed Martin in the international compliance area. Prior to that, she was a partner with the DC office of Sonnenschein, Nath & Rosenthal. She also spent four years in London and is qualified as a Solicitor to the High Court of England and Wales, practicing in the international arena with the law firms of Theodore Goddard & Co. and Herbert Smith & Co. She also served as an attorney in the Office of the Legal Advisor at the Department of State and was a member of the U.S. delegation to the UN working on the first anti-corruption multilateral treaty initiative.

Mrs. Divers is a member of the DC Bar and a graduate of Trinity College, Washington D.C. and of the National Law Center of George Washington University. In 2011, 2012, 2013 and 2014 Ethisphere Magazine listed her as one the “Attorneys Who Matter” in the ethics & compliance area. She is a member of the Advisory Boards of the Rutgers University Center for Ethical Behavior and served as a member of the Board of Directors for the Institute for Practical Training from 2005-2008.

She resides in Northern Virginia and is a frequent speaker, writer and commentator on ethics and compliance topics. Mrs. Divers’ most recent publication is “Balancing Best Practices and Reality in Compliance,” published by Compliance Week in February 2015. In her spare time, she mentors veteran and university students and enjoys outdoor activities.