Categories
Innovation in Compliance

Ethics and Compliance In The Morning Show with Sean Freidlin


 
This week’s guest on the Innovation In Compliance show is Sean Freidlin, Director of Product Marketing at SAI Global. He and Tom Fox chat about the article he recently posted on LinkedIn, Rise and Shine: The Morning Show’s Wakeup Call to Corporate America.
 

 
Overlapping Themes
Sean says that the central themes in movies often overlap with the common themes in ethics and compliance programs. In particular, he noticed that Apple’s flagship program, The Morning Show, tackles almost every issue that compliance teams build training about or write about in their code of conduct. Issues such as sexual harassment, diversity and inclusion, whistleblowing and retaliation are issues that many companies deal with. Sean comments that he applauds the risk Apple took to make the show, which shows their commitment to speak up about abuse of power when they see it.
Compliance and Ethics Issues
Tom asks Sean what is the general story arc of The Morning Show. Sean summarizes the plot, which includes a sexual harassment scandal, and comments that the show explores the butterfly effect on the culture and the people working there, as well as the corporate politics that are involved in managing a scandal. Sexual harassment is one of the top two issues that ethics and compliance professionals have focused on in the last year, according to Sean. He highlights several lessons ethics and compliance professionals can garner from the show, including:

  • Some people don’t know what isn’t allowed;
  • There should be a deeper commitment to communicating company values and policies;
  • The show highlights the role personal connections and relationships play in perpetuating a culture where people don’t do the right thing.

A Dilemma
You might find it harder to do the right thing if you like your boss or your colleague, but you know they’re doing something wrong. Your relationship with that person may cloud your judgment, Sean says. A positive and ethical leader has a positive influence on employees’ behavior; but a manager or leader who disregards the rules, policies and values of the company, will negatively affect everyone else. The bottom line, Sean points out, is that relationships are an essential part of a compliant organization or a culture where people do the right thing. 
Tom quotes a line from Sean’s article, “Successful and powerful men can manage to survive and even thrive on their charm and influence, despite the unethical and immoral choices they make.” He and Sean discuss the moral and ethical dilemma of doing the wrong thing if it will help you be more successful.
The Reality of Whistleblowing
Sean says that The Morning Show does an excellent job of exploring what happens after you blow the whistle. A common mantra today is ‘If you see something, you should say something,’ However, saying something is just the beginning, Sean says. The one who blows the whistle faces more than just retaliation: the emotional impact is even weightier. That person has to live with the stress of knowing that the misconduct they reported is ultimately going to be the catalyst for so much drama, such as people losing their jobs, and the company losing money.
Resources
Rise and Shine: The Morning Show’s Wakeup Call to Corporate America 
Sean Freidlin on LinkedIn
SAIGlobal.com
sean.freidlin@saiglobal.com

Categories
FCPA Compliance Report

Airbus-Part 2, Mike Volkov on ITAR and Trade Sanction Enforcement


In this special 5-part podcast series on the FCPA Compliance Report, I am considering the Airbus international anti-corruption enforcement action from a variety of perspectives from some of the top world’s top compliance practitioners and commentators on compliance. They include, Jay Rosen-Mr. Monitor; Mike Volkov-Editor of Corruption Crime and Compliance; Jonathan Armstrong-partner at Cordery Compliance in London; Cecilia Fellouse-Guenkel-Secretary General, The Circle of Compliance and Tom Fox-the Compliance Evangelist. In today’s Episode 2, Mike Volkov considers that US trade sanction enforcement involving Airbus.
Highlights include:

  • How was Airbus subject to US trade sanction jurisdiction?
  • This is one of the few cases where the DOJ focused on anti-corruption and trade sanctions.
  • Airbus had complete absence of commitment to compliance.
  • Airbus had a completely broken culture.
  • What were the three categories of ITAR violation identified by the DOJ?

Resources
Mike Volkov’s review of the ITAR portion of the US enforcement action here.
 

Categories
Daily Compliance News

February 25, 2020, the Cocker Spaniel edition


In today’s edition of Daily Compliance News:

  • Harvey Weinstein found guilty. (NYT)
  • Warren Buffett says too many independent directors are ‘cocker spaniels’. (NYT)
  • NRA’s claim that CA trumps Court Subpoena rejected (by the courts). (WSJ)
  • Derek Jeter says Astros sign-stealing scandal was black eye for baseball. (Houston Chronicle)
Categories
Daily Compliance News

February 24, 2020, the Coronavirus edition


In today’s edition of Daily Compliance News:

  • The downside of caretaker management. (FT)
  • What has been the impact of coronavirus on your business? (NYT)
  • Global supply chain at risk due to coronavirus. (WSJ)
  • Coronavirus shuts down Venice Carnival. (FT)
Categories
FCPA Compliance Report

Airbus, Part 1-Jay Rosen on the FCPA Enforcement


In this special 5-part podcast series on the FCPA Compliance Report, I am considering the Airbus international anti-corruption enforcement action from a variety of perspectives from some of the top world’s top compliance practitioners and commentators on compliance. They include, Jay Rosen-Mr. Monitor; Mike Volkov-Editor of Corruption Crime and Compliance; Jonathan Armstrong-partner at Cordery Compliance in London; Cecilia Fellouse-Guenkel-Secretary General, The Circle of Compliance and Tom Fox-the Compliance Evangelist. In today’s Episode 1, Jay Rosen considers the FCPA enforcement involving Airbus.
Highlights include:

  • What was the procedural history of the enforcement action?
  • Why companies who do business with the government need robust compliance.
  • Airbus was clearly incentivized to cooperate with the DOJ.
Categories
Sunday Book Review

February 23, 2020, the LOA-1960’s Science Fiction-Part II edition


In today’s edition of Sunday Book Review:

  • Past Master by RA Lafferty
  • Picnic on Paradise by Joanna Russ
  • Nova by Samuel Delaney
  • Emphyrio by Jack Vance
Categories
Daily Compliance News

February 22, 2020, the $3bn Club edition


In today’s edition of Daily Compliance News:

  • Did SFO employee leak investigation information? (Reuters)
  • Wells Fargo joins the $3bn club. (WSJ)
  • Grand Jury wants to know if Boeing top pilot lied to FAA. (WSJ)
  • “I don’t think I should be held accountable” (Tone really does start at the top). (WSJ)
Categories
Accountability: The Heart of Compliance

Boeing, Part 3-Creating An Accountable World


We have been getting accountability all wrong in the compliance profession. It’s not a set of tasks – it’s a way of thinking and it has to come from the heart as well as the head. On Accountability: The Heart of Compliance Tom Fox and Sam Silverstein dig into what accountability means to the corporate compliance function and business organizations and most significantly, how to make it an integral part of your culture. In this episode Sam and I conclude our three-part series to considering the current disaster Boeing finds itself in from the accountability perspective and what it might do to crawl out of the deep hole it finds itself in. In this Part 3, we consider accountability to other stakeholders and what accountability means in a heavily regulated industry. Some of the highlights include:

  • What is the role of honor in accountability?
  • What are the three standards of an accountable legacy?
  • The role of culture is well understood in the compliance community. What is the role of accountability in creating and sustaining a great culture?

For more information on Sam Silverstein and his work on accountability, click here.

Categories
This Week in FCPA

Episode 193 – the Astros Blowback Continues edition

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As the blowback on the Astros, MLB, Commisioner Rob Manfred continues to get worse, Jay and Tom are back to consider some of the top compliance articles and stories which caught our eye this week.

  1. Airbus still making news. Asher Miller provides 5 key takeaways for the compliance practitioner in the FCPA Blog. Dylan Tokar reports on more follow on investigations in the WSJ Risk & Compliance Journal. Joanne Taylor joins Tom on the FCPA Compliance Report to consider the UK perspective. Tom considers the French enforcement perspective in the FCPA Compliance and Ethics Blog.
  2. Another sentencing in the PdVSA ongoing bribery scandal. See the DOJ Press Release.
  3. What are WOW moments in compliance? Geert Vermeulen begins a 5-part series in Risk and Compliance Platform Europe.
  4. How do compliance officers show their worth? Dick Cassin explain in the FCPA Blog.
  5. Is it time to rebalance your 3rd party risk management strategy? Mike Volkov reports in Corruption Crime and Compliance. Mike writes about the importance of classifying your 3rd parties in Navex Global’s Ethics & Compliance Matters blog.
  6. Is the tide turning against whistleblowers? Aaron Nicodemus explores in Compliance Week. (sub req’d)
  7. Civil damages for corruption claims? Rick Messick considers on the Global Anti-Corruption Blog.
  8. New round of Alstom employee indictments. Dick Cassin reports in the FCPA Blog.
  9. What is a moral hazard moment? Jeff Kaplan explains on the Conflict of Interest blog.
  10. On the Compliance Podcast Network, Tom begins a one month look at the role of HR in compliance on 31 Days to a More Effective Compliance Program.This week saw the following offerings: Monday-succession planning and compliance; Tuesday-compliance performance appraisal review; Wednesday-Hiring a CCO: developing a job profile; Thursday-sales incentives and compliance;Friday-the exit interview. Note 31 Days to a More Effective Compliance Program now has its own iTunes channel. If you want to binge out and listen to only these episodes, click here.
  11. Join Tom to watch Jay on the panel with other compliance experts in the Dow Jones Refining Compliance Risk event in Hosuton on Tuesday, February 25 from 10 AM to 12 PM. For information and registration click here.
  12. Join Tom in NYC on Thursday, March 12 as Convercent is hosting an Innovation Forum from 3:30-7 PM at Sabrina. This event will allow you to network with like-minded individuals within the ethics and compliance space and hear from Thomas Fox and Philip Winterburn as well. For more information and registration click here.

 
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.

Categories
Daily Compliance News

February 21, 2020, the Keeping Millennials Happy edition


In today’s edition of Daily Compliance News:

  • Kuwait launches probe into Airbus bribery. (ArabNews)
  • Nigerian businessman to stand trial in Italy for bribery. (Reuters)
  • Diageo settles channel stuffing claim. (WSJ)
  • Keeping your millennial workers happy. (NYT)