Categories
FCPA Compliance Report

FCPA Compliance Report-Episode 427, Hanzo Q1 2019 Compliance, Risk, and Regulations Research Roundup

In this episode I take things in a bit of a different direction as I am interviewed by Sean Freidlin, Senior Product Marketing Manager, Compliance at Hanzo, on a project commissioned by Hanzo which became a part of the Hanzo Q1 2019 Compliance, Risk, and Regulations Research Roundup. Sean explains what the resulting white paper provides and then queries me on some of the deep dives I took into several areas.  Some of the highlights from the podcast include:

  • What is the Hanzo Q1 2019 Compliance, Risk, and Regulations Research Roundup?
  • The approach in writing the Roundup.
  • What were key macro highlights from the WEF Global risk Report 2019?
  • What were key micro business highlights from the Allianz Business Risk Barometer-Top Business Risks?
  • What are some of the key regulatory enforcement priorities going forward into 2019?
  • Where has compliance been over the past 18 months and where is it headed going forward?
  • Where listeners can go for more information.

To obtain a full copy of the  Hanzo Q1 2019 Compliance, Risk, and Regulations Research Roundup, click here.

Categories
Daily Compliance News

Daily Compliance News: April 24, 2019-the bit player edition

In today’s edition of Daily Compliance News:

  • Opioid distributor faces criminal charges. (New York Times)
  • NCAA scandal; little fish=big charges. (New York Times)
  • Walmart investigates Flipkart’s compliance lapses and bribe paid to govt officials. (EnTracker)
  • How does the rest of the world see FCPA enforcement? (AsiaTimes)
Categories
Compliance Into the Weeds

Compliance into the Weeds: Episode 120-On the Ethical Tarmac

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. In this episode, Matt Kelly (the coolest guy in compliance) and I take a deep dive into continued ethical, reputational and business imbroglio which Boeing finds itself in around the 737 MAX airliner, as the company finds itself on the ethical tarmac.
Some of the highlights include:

  • Where does compliance come into a sales strategy?
  • Who is responsible for entailing safety – the buyer or seller?
  • What does it mean from the compliance perspective is a safety upgrade is optional?
  • How does regulatory capture affect overseas sales?
  • What is the legal analysis around safety and options for safety upgrade on products?
  • Who should regulate the supply side-the government or the market?

For more reading check out Matt’s blog post “More on Boeing and Business Ethics

Categories
Daily Compliance News

Daily Compliance News: April 25, 2019-the Give a Hoot edition

In today’s edition of Daily Compliance News:

  • Give a hoot: don’t pay bribes and you won’t go to jail. (BBC)
  • My boss told me to break the law-now what? (Washington Post)
  • What is ‘naked indecency’? (New York Times)
  • Boeing admits the obvious, sales in the tank in the wake of the 737 MAX scandal? (Washington Post)
Categories
Everything Compliance

Everything Compliance-Episode 45, the Drinkin’ the Kool-Aid edition

Welcome to the only roundtable podcast in compliance. Today, in Episode 45 we celebrate our newest addition to the Everything Compliance gang; Sarah Hadden. Sarah is the Publisher at Corporate Compliance Insights, taking the helm from founder Maurice Gilbert earlier this year. She is a journalist by profession and has been working in the compliance space, largely at CCI for the past six years. She brings a wealth of talent, knowledge and perspective to our happy band of commentators and help us to ‘drink the Kool-Aid’.

  1. Sarah Hadden discusses experiential learning. She uses that as a basis to consider what is effective training and how interactive training can lead to a new level of not simply effectiveness but awareness to recency bias which can cloud decision making. Sarah shouts out to internet service providers everywhere who were able to make the Mueller report available as soon as it was released.
  1. Matt Kelly discusses best practices around disclosing reporting data and using interactive technologies to improve Codes of Conduct, compliance policies and procedures. Matt rants on former White House Ethics Counsel, Stefan Passantino who urged Mazars USA not to comply with a subpoena that House Oversight Committee issued for Trump’s financial documents. That is ethics for you in TrumpWorld.
  1. Jay Rosen talks about repositioning compliance as a business generator. He discusses companies which see compliance as a business advantage and details how they do so. Jay shouts out to former White House counsel Don McGahn for being a “real lawyer” because he takes notes.
  1. Tom Fox, sitting in on this episode, uses the top three FCPA settlements of 2019 (MTS, Cognizant and Fresenius) to illustrate how the FCPA Corporate Enforcement Policy, announced in 2017 is being used in practice. He compares the three different types of resolutions used by the Justice Department and what it might mean for compliance going forward. Tom rants about Charles Van Doren and the quiz show scandals from the late 1950s.

The members of the Everything Compliance panelist are:

  • Jay Rosen– Jay is Vice President, Business Development Corporate Monitoring at Affiliated Monitors. Rosen can be reached at JRosen@affiliatedmonitors.com
  • Mike Volkov– One of the top FCPA commentators and practitioners around and the Chief Executive Officer of The Volkov Law Group, LLC. Volkov can be reached at mvolkov@volkovlawgroup.com.
  • Matt Kelly– Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com
  • Jonathan Armstrong–is our UK colleague, who is an experienced lawyer with Cordery in London. Armstrong can be reached at armstrong@corderycompliance.com
  • Sarah Hadden– the newest addition to our panel. Sarah is the Publisher at Corporate Compliance Insights. Hadden can be reached at Sarah@corporatecomplianceinsights.com

The host and producer (and sometime panelist) of Everything Compliance is Tom Fox the Compliance Evangelist. Everything Compliance is a part of the Compliance Podcast Network.
For additional reading, check out the follow resources:
Matt Kelly’s blog post, Three Ideas on Codes, Policies, and Tech in Radical Compliance.
For additional reading on the 3 top FCPA cases and how they were handled under the FCPA Corporate Enforcement policy, see Tom’s blog post FCPA Enforcement Going Forwardin the FCPA Compliance Report.
Jay Rosen’s article How to Reposition Compliance as a Revenue Generator on Corporate Compliance Insights.

Categories
Daily Compliance News

Daily Compliance News: April 26, 2019-the Endgame edition

In today’s edition of Daily Compliance News:

Categories
This Week in FCPA

This Week in FCPA-Episode 151 – the World Domination edition

Is the US utilizing FCPA enforcement for world domination? Recovering screenwriter Jay Rosen and frustrated novelist Tom Fox consider this while they also take a look at some of this week’s top compliance and ethics stories which caught their collective eyes this week. Stories include:

  1. Does the statute of limitations run while Trump is in office? Sara Kropf on Grand Jury Target.
  2. What is the compliance response to the Varsity Blues scandal? Sandra Erez reports on Corporate Compliance Insights.
  3. NYDFS cybersecurity requirements are live, is your organization ready? Michael McGrath in Corporate Compliance Insights.
  4. Matt Kelly has a twitter storm on Boeing, sales strategy and ethics. Check out the full storm on Radical Compliance. Tom and Matt take a deep dive into the imbroglio on Episode 120 of Compliance into the Weeds.
  5. Is the US using FCPA to garner world domination? Henry Astier opines on BBC.com.
  6. What are the best practices for managing employee hotline reports? Jaclyn Jaeger reports in Compliance Week. (sub req’d)
  7. What do the WME companies have in common? Aarti Maharaj in the FCPA Blog.
  8. Transparency challenges in CSR. Dunstan Allison-Hope in BSR.org.
  9. Tom is speaking at ECI’s IMPACT 2019 next week in Dallas about the importance of measuring the quality and maturity of your high quality E&C program. Regisration and information is availablehere.
  10. Join Tom and Jay at Compliance Week 2019 on May 20-22, in Washington DC. Listeners to this podcast can receive a $300 discount by using the code TOM300. You can check out the full agendasee who’s speaking, and review registration information
  11. This week Tom visits with the team from Assent Compliance on Supply Chain Risk Management. Check out the following: Part 1-Who is Assent?; Part 2– Introduction to Supply Chain risk management; Part 3– Development of Supply Chain risk management; Part 4-Supply Chain failures; and Part 5-Market drivers for continued development. The podcast is available on multiple sites: the FCPA Compliance Report, iTunes, JDSupra, Panoplyand YouTube. The Compliance Podcast Network is now also on Spotify and Corporate Compliance Insights.
  12. Sarah Hadden joins the Everything Compliance as our latest panelist. Listen in on Episode 45, the Drinkin’ the Kool-Aid

Tom Fox is the Compliance Evangelist and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.

Categories
Innovation in Compliance

How Strong HR Processes Can Mitigate Risk with Deb Muller


Do you have HR processes in place? Join us on this episode of the Innovation with Compliance Podcast with Deb Muller, the CEO and Founder of HR Acuity, and we’re chatting about how human resources related technology and processes can help mitigate risks and create a safer workplace for everyone.

No rhyme or reason
Deb noticed that most of the investigations being done within HR in an organization had no rhyme or reason. There were no processes as to how they should be done. Talking to clients, she recognized the need to incorporate technology and consistency into the investigation lifecycle, because someone can just walk in the door with something to tell you and upend your entire day — not to mention pose an incredible amount of risk for the organization.
Having a system
Human resources are your most expensive resources, yet most companies don’t think about it when they think about risk or compliance. What happens when someone makes an allegation?  A proper compliance process will make sure you get to the right result, stop the behavior, and mitigate the risk.
What HR Acuity’s system allows you to do is identify if you’ve had similar issues in the past, spot the trends in behavior, and get ahold of them before they lead to something else. You can nip situations in the bud, and the data allows you to get smarter about your people and figure out how you’re going to train them.
Interpreting data
What’s great about the data is that you can see the outliers. Once you know your norm or your benchmark, you’ll be able to spot the spikes and dips — things that are unexpected. You might now know what that actually tells you, but what that does is it gives you the information to go and ask the questions and find out what’s going on. What changed? What’s different? Did something happen internally? Externally?
10 Ways Technology Can Impact Your Employee Relations Strategy
This blog entry goes through all the different things you can get from technology. Many clients rely on the data to see if they’re at risk for class action suits, for example, where legal can just check the data as a “single source of truth,” go through historical information, and see if there’s anything they need to get on top of before it becomes a bigger issue.
It’s not the issue, it’s how you handle it
If a process exists that people see and believe in, they are going to be more accepting of the outcome. We hear that 75% of people don’t come forward, and Deb believes it’s not because they don’t know how to come forward. It’s because they don’t know what to expect when they come forward. It can be scary: Am I going to be retaliated against? Am I going to have to recount my story in front of the person? Are they not going to do anything about it at all? Will it be held against me?
One important thing about having a process in place is sending a message that you have a process in place. When someone has an issue, they’re going to feel much more comfortable coming forward, so having processes in place is so important in helping to create that safe workplace.
Resources
Deb Muller
HR Acuity
10 Ways Technology Can Impact Your Employee Relations Strategy

Categories
Innovation in Compliance

Leading with Accountability with Sam Silverstein


What does it mean to be accountable and lead with accountability? Sam Silverstein is a consultant and author whose mission is to empower people to live accountable lives, transform the way they do business, and thrive at extraordinary levels. Join us as we take a deep dive into the subject of accountability and how it can impact the way we live and work. 

Accountability vs. transparency
These are two totally different elements.
Transparency is being open and honest: admitting that you have made a mistake and saying you’re on it and fixing it. You’re not trying to hide it or pretend it didn’t happen, you’re just being human. This is critical, and transparency is an element that will help you toward a life of accountability as an individual or as a leader.
But accountability is keeping your commitment to people. We talk about it a lot but many people have yet to figure out what it is. Accountability is not a way of doing, it’s a way of thinking, specifically, how we think about people. It isn’t just keeping your commitments to appointments and deadlines; it goes far deeper, like your commitment to the truth and to your values.
Accountability Index
The Accountability Index is a tool that measures an organization’s culture across 15 different indices. This gathers valuable information that ranges from engagement to an actual accountability score, and, using this data, helps an organization fine-tune their culture so they’re inspiring accountability up and down the organization.
It’s the leadership’s responsibility to be accountable first, and then create that environment that inspires accountability. In a culture like this, accountability isn’t coerced. It’s simply that people want to take it upon themselves to get the job done and do it right.
Culture
Every organization has a culture, either a culture by default, or a culture by design. Most organizations have cultures by default. When leadership takes the time to decide that this is what our culture is going to be, and creates an environment that values people and allows people to feel like they’re a part of the conversation and the solution, then that is a culture that inspires them to want to do their best. That’s the real power of accountability.
The Accountability Movement, The Accountability Roundtable, and The Accountability Community Project
The Accountability Movement is about trying to get people on board with wanting to live a more accountable life individually, as well as being part of a more accountable world.
The Accountability Roundtable is when, for example, clients who have already gotten on board with accountability invite leaders from different segments of the community, and, with Sam, talk about accountability over breakfast or lunch, discussing what it can do for their organizations and how it can impact the community.
The Accountability Community Project is where they work with civic leaders in the community. This is when they roll up their sleeves and make an investment in time and energy resources, helping them put these principles into action to build a more accountable community.
Resources for Sam Silverstein
LinkedIn
Website
YouTube

Categories
Shakespeare on Compliance

Shakespeare on Compliance –The Fool (In theater and in business)

In this podcast series, I have used the current Broadway performance by Glenda Jackson as King Lear to introduce several compliance topics. Today, I want to discuss the role of The Fool. Initially I should note that the actor who played it, Ruth Wilson, also played Cordelia; which in and off itself is rather amazing. The Fool did well to speak truth to power during the play and Wilson was excellent in both roles.

Wilson’s performance as The Fool added a shading of interpretation that certainly works. It also informs today’s review topic which is who was the fool and who was the criminal in one of the most notorious acquisitions in recent memory, the Hewlett-Packard (HP) acquisition of the UK company Autonomy.  The matter is now on trial in London, it being the largest UK civil trial in history with HP claiming some $5 billion in damages. The former Autonomy CEO Mike Lynch is in the dock as he will be in the US when his criminal case goes to trial sometime after the conclusion of this civil action.
The trial began last month and the fireworks have already started, with HP claiming Lynch and his former CFO engaged in massive fraud; the trial judge asking HP what accounting standards they used to evaluate HP and Lynch basically saying HP dropped the ball completely in both the acquisition and after closing for a variety of reason. Based upon all of this tomfoolery I thought a review of HP actions was warranted today.
Perhaps the simple truth is that everyone involved in this matter was a Fool.