In today’s edition of Daily Compliance News:
Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. As the Voice of Compliance, I wanted to start a podcast which will help to bring both clarity and sanity to the compliance practitioner and compliance profession during this worldwide health and healthcare crisis. In this episode, I am joined by Kevin Abikoff and Mike Huneke, from Hughes, Hubbard and Reed. We discuss their recent blog post on the FCPA Blog, There is no Covid-19 defense to corruption.
Check out their blog post on the FCPA Blog, by clicking here.
This podcast is sponsored by SAI Global. To learn how you can protect your business operations and workforce during these uncertain times, visit saiglobal.com/risk for free resources, expert guidance, and industry-leading technology.
This week’s guest on the Innovation In Compliance podcast is Ben Wolf, founder and CEO of Wolf’s Edge Consulting. He chats with Tom Fox about how his company helps entrepreneurs systematize their business operations to achieve their goals.
From Lawyer To Consultant
Ben describes his career path from corporate attorney to founding his own company as a “twisting and turning journey.” He relates how he was introduced to the Entrepreneurial Operating System (EOS) framework, and the success the company enjoyed as a result of implementing it. After three years, he realized that he wanted to help other organizations grow in the same way. “So I went out on my own,” he says. Today, his consulting company helps other entrepreneurs implement EOS.
The EOS Process
Tom asks Ben to describe the EOS process and how he helps entrepreneurs use EOS to grow their business. Ben responds that a business must be able to carry out its goals in order to be successful. “It’s just critical for any business to be able to have a good structure for how to set goals and then create discipline and accountability for getting those done,” he points out. The EOS is a framework for running all aspects of a business. In particular, it aims to help strengthen the six key areas of the business: vision, people, data, process, issue solving and traction. It helps companies achieve:
- Vision – getting everybody in the organization on the same page.
- Traction – getting people executing on the vision with discipline and accountability.
- Healthy – having a professional, functional, cohesive and functional leadership team.
Ben relates how companies can contract an EOS implementer like Wolf’s Edge, if they think it would be a good fit.
Ben’s Podcast
Tom says he was honored to be a guest on Ben’s podcast, Win Win – An Entrepreneurial Community. Ben shares two reasons why he started the podcast and why he chose its name.
Resources
Wolf’s Edge Consulting
bwolf@wolfsedgeconsulting.com
EOSWorldwide.com
Yet another way to consider using audit for continuous improvement is through the Integrity Audit. Mary Jo White in an article entitled “What I’ve Learned About White Collar Crime” provided insight into not only white-collar criminals but the integrity of companies. Her framework lays out a way for you to think through an underutilized tool for continuous improvement, the integrity audit.
When Mary Jo White or Jonathan Marks write, you need to read, digest what they have to say and implement their suggestions. The ideas that they forward are not new, revolutionary or in the least bit controversial. Yet integrity is not often considered by compliance professionals. With the Business Roundtable’s Statement of Corporate Purpose integrity has been driven to the forefront in the rasion d’etre of a corporation. Failing to have integrity at the top or down through your organization can lead to significant corporate calamity.
Three key takeaways:
- The Integrity Audit is an underutilized tool.
- Ego and arrogance at the CEO level can lead to catastrophic corporate failures.
- A robust report culture can demonstrate and facilitate corporate integrity.
What is organizational culture? Eric R. Feldman, SVP at Affiliated Monitors Inc. (AMI), has said it comprises the mission, vision and values of an organization. A similar way to consider it might be as a company’s values, visions, norms and beliefs. Whichever way you define it or look at it, corporate culture affects how groups within a company interact with each other. A key inquiry is whether the corporate incentive structure supports the articulated beliefs of a company. How does one measure or audit these articulations?
Companies must have a high-performance corporate culture for doing business ethically. One of the ways to do so is through the culture audit. It can also be a powerful tool for continuous improvement going forward. Find out what your employees are saying about your corporate mission, vision and values and most importantly remediate if those mission, vision and values are found wanting.
Three key takeaways:
- What are the mission, vision and values of a company?
- What are the compensation and promotion incentives in the culture?
- Is your motto “Always be closing” or closer to “doing business ethically and in compliance”?
In the Episode, I visit with James Koukios, partner at Morrison & Foerster, Editor-in-Chief of the firm’s Top 10 International Anti-Corruption Developments. We visit about the firm’s Top 10 International Anti-Corruption Developments for February 2020. Some of the highlights include:
- Lambert Motion for Acquittal Denied. We take a deep dive into the motion and the court’s ruling.
- Pemex Investigation Expands. What does it mean for US companies?
- Is each email a separate FCPA violation? What does this mean for the DOJ going forward?
- Cardinal Health FCPA resolution. Key takeaways for the compliance professional.
Resources
To a copy of the Top 10 International Anti-Corruption Developments for February 2020 Newsletter click here.
The 2020 Resource Guide stated, “In addition to considering a company’s due diligence on third parties, DOJ and SEC also assess whether the company has informed third parties of the company’s compliance program and commitment to ethical and lawful business practices and, where appropriate, whether it has sought assurances from third parties, through certifications and otherwise, of reciprocal commitments. These can be meaningful ways to mitigate third-party risk.”
You should incorporate appropriate compliance terms and conditions into in every contract with third-parties. I would suggest that you prepare a template, which can be used as a starting point for your negotiations. The advantages of such a template are several and they include: (1) the contract language is tested against real events; (2) the contract language assists the company in managing its compliance risks; (3) the contract language fits into a series of related contracts; (4) the contract language is straight-forward to administer; and (5) the contract language helps to manage the expectations of both contracting parties regarding anti-bribery and anti-corruption.
Many do not believe that they will be able to get the third-party to agree to such compliance terms and conditions. I have found that while it may not be easy, it is relatively simple to get a third-party to agree to these or similar terms and conditions. One approach to take is that they are not negotiable. When faced with such a position on non-commercial terms many third-parties will not fight such a position. There is some flexibility, but the DOJ will require the minimum compliance terms and conditions. But the best position I have found is that if a third-party agrees with these terms and conditions, they can then use that as a market differentiator.
Three key takeaways:
- Compliance terms and conditions are mandatory for any best practices compliance program.
- A key clause is the right to audit clause.
- Third-parties can favor robust compliance terms and conditions as a market differentiator.
In today’s edition of Sunday Book Review:
- William S. Burroughs and the Cult of Rock ‘N’ Roll by Casey Rae
- William S. Burroughs – Cutting up the Century – Joan Hawkins and Alex Wermer-Colan, editors
- Blade Runner: A Movie by William S. Burroughs
- Let the Mice In by Brion Gysin
Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. As the Voice of Compliance, I wanted to start a podcast which will help to bring both clarity and sanity to the compliance practitioner and compliance profession during this worldwide health and healthcare crisis. In this episode, I am joined by the co-hosts of the Great Women in Compliance Podcast, Mary Shirley and Lisa Fine who discuss their personal and professional challenges during this time of coronavirus. The podcast is cross-posted from the Great Women in Compliance podcast, on the Compliance Podcast Network.
This podcast is sponsored by SAI Global. To learn how you can protect your business operations and workforce during these uncertain times, visit saiglobal.com/risk for free resources, expert guidance, and industry-leading technology.