Categories
Blog

Yee Chow on Shifting Responsibilities of ESG at the Management Level

I recently had the opportunity to visit with folks from Diligent. We look down the road at key issues in 2024 in a podcast series sponsored by Diligent entitled Compliance Professionals Adapting to Change: Industries, Regulations, and Beyond. I was able to chat with Nicholas Latham, Renee Murphy, Jessica Czeczuga, Yee Chow, and Alexander Cotoia. Over this series, we discussed compliant communications in regulated industries, managing conflicts of interest at the Board level, the Board’s role in compliance training and communications, navigating the current ESG landscape, and professional growth and mentorship in compliance. In this Post 4, we discuss the continuing evolving landscape of ESG with Yee Chow.

The Chief Compliance Officer (CCO) role has undergone a significant evolution in the realm of Environmental, Social, and Governance (ESG) compliance. What was once a secondary focus has now become a vital part of the agenda for global corporations. This shift has led to CCOs taking on the responsibility of overseeing compliance with ESG standards at the highest organizational level.

One of the key factors driving this evolution is the rise in regulation and mandatory reporting on ESG factors. Governments, stock exchanges, and regulatory bodies have pushed for compulsory reporting, bringing new challenges for companies. They are now required to provide more detailed operational and value chain information. For example, companies are expected to report not only on their climate impact but also on the climate impact of their customers and suppliers. This increased level of reporting necessitates gathering extensive data, which can be a challenge for organizations.

Companies need to establish a clear leadership structure for ESG compliance to address these challenges. The specific system may vary from company to company, but some key components should be in place. Firstly, there needs to be a point of contact within the organization responsible for coordinating ESG efforts and ensuring compliance. This role is often filled by a sustainability professional who works closely with different business units. Secondly, there needs to be accountability for the ESG program, which usually falls under the purview of the Chief Compliance Officer or even the Chief Executive Officer. The accountability for ESG compliance should ultimately rest with the organization’s highest leadership levels.

In addition to a clear leadership structure, companies recognize the importance of involving various stakeholders in the ESG compliance process. It is no longer a single department’s responsibility but a team effort that consists of all business units and leaders within the company. Committees are often established to drive the ESG strategy and agenda forward, ensuring that all relevant parties are involved.

Educating the Board of directors on their role in ESG compliance is crucial. While not every board member needs to be an expert in the details of ESG, they should have a high-level understanding of its implications for business growth, drivers, and regulatory compliance. ESG should be integrated into board meetings and discussions, driven by the compliance and regulatory space and the demands of customers and stakeholders. This level of involvement from the Board helps drive change within the organization and ensures that ESG compliance is taken seriously.

The evolution of the CCO’s role in ESG compliance is driven by the need to meet regulatory requirements, provide detailed reporting, and address stakeholders’ expectations. Companies are recognizing the value of non-financial data for business performance and opportunities. By establishing clear leadership structures, involving various stakeholders, and educating the Board, organizations can navigate the challenges associated with ESG compliance and make informed decisions that align with their values and goals.

In conclusion, the evolution of the Chief Compliance Officer’s role in ESG compliance reflects the growing importance of ESG in the corporate world. With the rise in regulation and mandatory reporting, companies face new challenges in gathering and reporting ESG data. However, by establishing clear leadership structures, involving stakeholders, and educating the Board, organizations can successfully navigate these challenges and embrace ESG compliance opportunities.

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 conclude our series with a review of professional development and mentoring for compliance professionals.

Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Data Analytics: Day 9 – Enhancing Compliance Through Automation

“Reg Ops” or Regulatory Operations has the potential to revolutionize compliance. Reg Ops focuses on automating software development and compliance artifact creation, making it easier for compliance professionals to create it and for employees and other stakeholders to consume compliance content through automation and user-friendly interfaces. This approach aims to leverage the best of both worlds – the capabilities of machines and the expertise of humans – to enhance compliance programs. Or as Carsten Tams continually reminds us, it is all about the user experience.

The goal is to integrate existing security and compliance tools to gather evidence in near real-time, automate the creation of compliance gap tickets, generate real-time reports, and provide a comprehensive view of an organization’s compliance state. By leveraging the power of APIs and customer-centric design, the compliance process can be more effective and efficient.

 Three key takeaways:

1. Enhancing compliance programs through automation is a critical step for compliance functions and businesses to improve decision-making, efficiency, and overall compliance effectiveness.

2. Automation can help compliance functions meet the need for near real-time reporting for a variety of different stakeholders.

3. Balancing the need for real-time reporting with data accuracy and security is crucial.

For more information on our sponsor, KonaAI, click here.

Categories
Innovation in Compliance

Compliance Professionals Adapting to Change: Industries, Regulations, and Beyond: Part 3 – Jessica Czeczuga on the Role of a Board of Directors in Training and Communications

Welcome to a special series sponsored by Diligent, where we look down the road at key issues in 2024 and beyond. In this series, I will visit with Nicholas Latham, Renee Murphy, Jessica Czeczuga, Yee Chow, and Alexander Cotoia. Over this series, we will consider compliant communications in regulated industries, managing conflicts of interest at the Board level, the Board’s role in compliance training and communications, navigating the current ESG landscape, and professional growth and mentorship in compliance. In Part 3, we review the role of a Board of Directors in compliance training and communications with Jessica Czeczuga.

Jessica Czeczuga is a seasoned corporate training and compliance professional, currently serving as the Principal Instructional Designer at Diligent. Jessica’s perspective on the importance of Board oversight in corporate training and compliance is shaped by her extensive experience and deep understanding of compliance programs. She emphasizes the crucial role of the Board in setting the tone for the organization’s culture, advocating for active communication from the Board about the importance of training to all employees. Jessica also suggests that the Board should be more significant in discussions about your organization’s compliance efforts, ensuring it meets its stated commitments. She views the Board as another group within the organization that requires tailored training and active involvement in promoting a culture of compliance. Join Tom Fox and Jessica Czeczuga as they delve deeper into this topic.

Key Highlights:

  • Driving Compliance and Training Messaging
  • Fostering Alignment Through Board Involvement
  • Assessing the Impact of Multinational Training

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 as we consider navigating the current ESG landscape.

Categories
Daily Compliance News

Daily Compliance News: December 13, 2023 – The Not Soft on Crime Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings 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.

Stories we are following in today’s edition:

  • DOJ says it’s not soft on corporate crime. (WSJ)
  • COP28 reaches a historic deal. (FT)
  • The lure of corruption is omnipresent. (Catholic News Agency)
  • The epic verdict adds to Google int’l antitrust woes. (Reuters)
Categories
Compliance Into the Weeds

Compliance Into The Weeds: The Importance of Empathy and Moral Clarity in Campus Anti-Discrimination

The award-winning, Compliance into the Weeds is the only weekly podcast that 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 take a deep dive into data analytics and highlight the Bank Of America CFPB enforcement action for failures in a data analytics program.

The recent congressional testimonies of university presidents from Harvard, MIT, and the University of Pennsylvania have ignited a heated debate over their handling of anti-Semitism and discrimination on campuses. Tom criticizes the presidents for their lack of moral clarity and empathy in their responses to questions about anti-Semitism on campus. He emphasizes the crucial role of chief compliance officers in guiding ethical leadership and decision-making in such sensitive situations. Matt echoes Fox’s sentiments, stressing the importance of empathy, moral clarity, and ethical values in addressing and preventing campus discrimination. He criticizes the presidents for their inability to effectively express these qualities in their responses to questions about discrimination policies. Join Tom Fox and Matt Kelly as they delve deeper into this issue on this episode of Compliance into the Weeds.

Highlights

  • Fallout from Private College Testimony on Anti-Semitism
  • Navigating Multiple Stakeholders in Universities
  • The Power of Wealthy Donors and Alumni
  • The Role of Empathy in Ethical Leadership

Resources

Matt Kelly on LinkedIn

Tom

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Great Women in Compliance

Great Women in Compliance – Lisa Beth Lentini Walker on Compliance Career Connections

Welcome to the Great Women in Compliance Podcast. Today Lisa Fine visits with Lisa Beth Lentini Walker on her career in compliance and how compliance career connections can help one’s journey in compliance.

Lisa Beth Lentini Walker is a renowned figure in the ethics and compliance field, currently serving as the Associate General Counsel, Corporate Legal and Assistant Secretary at Marqeta, and the CEO and founder of Lumen Worldwide Endeavors. With a rich background as a securities lawyer and a Chief Compliance Officer, Lisa Beth has a unique perspective on ethics and compliance. She believes in the power of values and intentions in shaping one’s professional journey and emphasizes the importance of networking and connections in the compliance industry. Her philosophy revolves around putting values into action and helping organizations align their actions with their ethical principles. She has made a significant impact in the field through her work and the Compliance Career Connection, a platform she started to support and connect professionals in the field. Join Lisa Fine and Lisa Beth Lentini Walker on this episode of the Great Women in Compliance podcast to learn more about her insights and experiences.

Key Highlights:

  • Lisa Beth’s Impact on Ethics and Compliance
  • Lisa Beth’s Journey in Ethics and Compliance
  • Embracing Pauses for Personal Growth and Success
  • Aligning Choices with Core Values and Goals
  • Designing a Fulfilling Life Through Reflection

Resources:

Join the Great Women in Compliance community on LinkedIn here.

Categories
Blog

Jessica Czeczuga on the Crucial Role of Board Oversight in Compliance Training and Communications

I recently had the opportunity to visit with folks from Diligent. We look down the road at key issues in 2024 in a podcast series sponsored by Diligent entitled Compliance professionals adapting to change: Industries, Regulations, and Beyond. I was able to chat with Nicholas Latham, Renee Murphy, Jessica Czeczuga, Yee Chow, and Alexander Cotoia. Over this series, we discussed compliance communications in regulated industries, managing conflicts of interest at the board level, the board’s role in compliance training and communications, navigating the current ESG landscape, and professional growth and mentorship in compliance. In this post, we discuss the role of the Board of Directors in compliance training and communications with Jessica Czeczuga.

Jessica, the Principal Instructional Designer at Diligent, emphasized the need for the board to underscore the importance of compliance, communication, and training and to provide messaging to employees that reinforces the significance of completing training. One of the key takeaways from the episode was the idea that the board sets the tone at the top. The board’s priorities are seen as priorities by the rest of the organization. By prioritizing compliance, communication, and training, the board can foster a culture of compliance and ensure that employees understand the importance of these initiatives.

Jessica also suggested that boards should consider providing messaging directly to the general population of their organization, highlighting the importance of completing training. This can help drive the messaging deeper into the organization and ensure that employees understand the significance of their training obligations.

We also discussed the need for boards to assess the effectiveness of training programs, particularly in multinational corporations. Computer access and language barriers should be considered when evaluating training effectiveness. By understanding employees’ challenges in different regions, the board can make informed decisions about training programs and ensure that they are effective and accessible to all employees.

Regarding board oversight of training, there are tradeoffs and challenges to consider. On one hand, the board must clearly understand the compliance program and what is required to support it. This may involve requesting additional metrics and information from the individuals responsible for training. The board can provide better oversight and support by having a deeper understanding of the program.

On the other hand, the board needs to strike a balance between oversight and micromanagement. Boards should trust the individuals responsible for training and compliance to do their jobs effectively. Micromanaging can hinder the effectiveness of training programs and create unnecessary bureaucracy.

We highlighted the importance of board oversight in corporate training and compliance. The board is crucial in driving compliance and training messaging throughout the organization. By setting the tone at the top and emphasizing the importance of compliance, communication, and training, the board can foster a culture of compliance. Additionally, the board should assess the effectiveness of training programs, considering factors such as computer access and language barriers. Balancing oversight and trust is essential for effective board oversight of training and compliance.

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 as we consider navigating the current ESG landscape.

Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Data Analytics – Day 8 – Data Democratization

In the world of compliance, data analysis plays a crucial role in identifying risks, making informed decisions, and ensuring legal and regulatory compliance. It enables companies to make fact-based decisions and mitigate risks effectively. By leveraging AI, organizations can identify high-risk payments and reduce investigation costs. This not only saves time and resources but also ensures that compliance teams can present risk in a timely and data-driven manner. We previously noted that it is not simply about having the data but also accessing it and then using it.

A key in this process is the implementation of data warehouses and cloud data warehousing solutions. The goal is to eliminate data silos and enable easy data access and analysis. By implementing a modern data stack, companies centralize their data, making it compliance-friendly as mandated by the DOJ (in the 2020 Evaluation of Corporate Compliance Programs) and more generally accessible to employees across the organization.

AI-driven data analysis and compliance solutions are revolutionizing the way organizations approach compliance and data utilization. By leveraging AI technology, these companies enable businesses to make fact-based decisions, identify risks, and ensure regulatory compliance. Investing in data governance and business intelligence tools is crucial for extracting value from data and driving business success. With the democratization of data access, organizations can empower employees to be data-informed and achieve greater efficiency.

 Three key takeaways:

  1. Data analysis is not simply about having the data but also accessing it and then using it.
  2. Data democratization recognizes that effective data utilization is linked to compliance and good business practices.
  3. With the democratization of data access, organizations can empower employees to be data-informed and achieve greater business efficiencies.

For more on KonaAI, click here.

Categories
Innovation in Compliance

Compliance Professionals Adapting to Change: Industries, Regulations, and Beyond: Part 2 – Renee Murphy on Managing Conflicts at the Board

Welcome to a special series sponsored by Diligent, where we look down the road at key issues in 2024 and beyond. In this series, I will visit with Nicholas Latham, Renee Murphy, Jessica Czeczuga, Yee Chow, and Alexander Cotoia. Over this series, we will consider compliant communications in regulated industries, managing conflicts of interest at the Board level, the Board’s role in compliance training and communications, navigating the current ESG landscape, and professional growth and mentorship in compliance. Part 2 considers how an organization can manage conflicts of interest with Renee Murphy on the Board of Directors.

Renee Murphy has a rich compliance, governance, and risk management background. Having served as both an internal and external auditor and currently the Chief Evangelist of Diligent, she brings a unique perspective to managing board-level conflicts of interest and implementing ESG practices. Renee believes that conflicts of interest at the board level can have serious implications and emphasizes the importance of identifying and addressing these conflicts to prevent financial misconduct. She also advocates that boards prioritize disclosing their ESG practices and carbon emissions, as stakeholders will increasingly demand this. Her expertise and insights are shaped by her diverse experiences, including her role as a lead analyst at Forrester Research and her work with Fortune 500 companies. Join Tom Fox and Renee Murphy as they delve deeper into these topics on the next episode of the Diligent Podcast.

Key Highlights:

  • Board Members Sitting on Multiple Boards
  • Conflicts of Interest at the Board Level
  • ESG Reporting for Long-Term Risk Management
  • The Role of Compliance in Board Governance

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 as we consider the role of the Board of Directors in compliance training, messaging, and communications.

Categories
Data Driven Compliance

Data Driven Compliance: Jim Dawson on Data Driven Compliance in Pharma

Are you struggling to keep up with the ever-changing compliance programs in your business? Look no further than the award-winning Data-Driven Compliance podcast, hosted by Tom Fox, this podcast features an in-depth conversation around the uses of data and data analytics in compliance programs. Data-Driven Compliance is back with another exciting episode. Today, I visited with James Dawson, Chief Compliance Officer at Qordata on using data-driven compliance in the pharmaceutical arena.

Jim Dawson is a seasoned professional with a robust background in sales, pharmaceutical sales, and compliance. He currently serves as the vice president of Compliance Solutions at Core Data, where he plays a crucial role in the development of compliance solutions. Dawson’s perspective on “data-driven compliance in pharmaceutical companies” is that data is a vital tool for improving compliance programs and preventing potential issues. He emphasizes the importance of data analysis to identify patterns and behaviors that may indicate potential compliance risks and believes in the power of predictive analytics to proactively implement controls. Dawson also underscores the significance of data in state price transparency reporting and auditability. He sees data as a valuable tool for monitoring, assessing, and improving compliance programs in pharmaceutical companies. Join Tom Fox and Jim Dawson on this episode of Data Driven Compliance to learn more about his insights and experiences.

Highlights Include:

  • Enhancing Compliance Programs with Data Analysis
  • Monitoring and Justifying Pharmaceutical Price Increases
  • Increased Scrutiny of Physician Payments and Compliance
  • Managing Conflicts of Interest in Pharmaceutical Companies

Resources:

Jim Dawson on LinkedIn

Qordata

 Tom Fox 

Connect with me on the following sites:

Instagram

Facebook

YouTube

Twitter

LinkedIn