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The Ethics Experts

Episode 166 – Angela Stopper

In this episode of The Ethics Experts, Nick welcomes Angela Stopper. Dr. Angela L.M. Stopper is the Chief Learning Officer at UC Berkeley where she leads the team that creates and delivers campus-wide workforce education programs, career and professional development initiatives, and organization development and change management consulting services for the campus. She is an author, researcher, and global thought leader in areas of learning and organization development and strategic workforce planning. She has a deep passion for coaching and advising executives and leaders from around the world as they explore ways to ensure that their organization and their workforce, is future future-ready.

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Sunday Book Review

Sunday Book Review: November 12 , 2023 The Corporate Governance (Larcker and Tayan) Edition

In the Sunday Book Review, I consider books that would interest the compliance professional, the business executive or anyone who might be curious. It could be books about business, compliance, history, leadership, current events or anything else that might interest me. In today’s edition of the Sunday Book Review, Tom considers three books by Stanford professors David Larcker and Brian Tayan on corporate governance.

  • The Art and Practice of Corporate Governance by Larker and Tayan
  • Corporate Governance Matters (3rd ed)  by Larker and Tayan
  • A Real Look at World Corporate Governance by Larker and Tayan
Categories
10 For 10

Top Compliance Stories For the Week Ending November 11, 2023

Welcome to 10 For 10, the podcast that brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance, brings the compliance professional the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes, hear about the stories every compliance professional should be aware of from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

  • ESG helps in hiring the best and brightest.  (FT)
  • The UK hits Russia with new sanctions. (WSJ)
  • Indian anti-corruption journalist targeted in spy op. (Reuters)
  • GE Aerospace to pay $9.4M in DOJ false claims case. (Compliance Week)
  • WeWork files for bankruptcy.  (FT)
  • ICO apologizes to ex-Nat West chief.  (FT)
  • Integrity in cricket. (University of Sussex)
  • Portuguese PM resigns over corruption. (The Guardian)
  • Supreme Court refuses to take up PdVSA bribery case. (LatinLawyer)

You can check out the Daily Compliance News for four curated compliance and ethics-related stories each day, here.

Connect with Tom 

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Kerrville Weekly News Roundup

Kerrville Weekly News Roundup: November 11, 2023

Welcome to the Kerrville Weekly News Roundup. Each week, veteran podcaster Tom Fox and his colleagues Andrew Gay and Gilbert Paiz get together to go over a couple of their favorite stories from the past week from Kerrville and the greater Hill Country. Sit back, enjoy a cup of morning coffee, and listen in to get a wrap-up of the Kerrville Weekly News. We each consider two of our favorite stories and talk about the upcoming weekend’s events which we will enjoy or participate in this weekend.

In this episode, Tom is on assignment so Gilbert and Andrew take the helm to discuss the following stories that caught his attention over the past week.

  • A new Kerr County County Clerk is formally appointed.
  • New crosswalk art at Clay and Water Street.
  • State voter-approved property tax relief.
  • Star Party at Schreiner University.
  • Happy Birthday to the Marine Corps.
  • Thank a Veteran.

Resources:

Tom Fox on LinkedIn

Gilbert Paiz on LinkedIn

Andrew Gay on LinkedIn

Texas Hill Country Podcast Network

Categories
2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 18 — Florida Man Games

What happens when two top compliance commentators get together? They talk compliance of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode! In this episode, Tom and Kristy take on various topics including the state image of Florida Man.

In the complex world of corporate governance, the issues of corporate misconduct, leadership accountability, and professional productivity are of paramount importance. Tom emphasizes the need for thorough due diligence when appointing leaders, particularly those with a history of misconduct. He also advocates for detailed record-keeping as a tool for managing workload and enhancing productivity. Kristy echoes these sentiments, highlighting the significance of ethical leadership and effective compliance measures. She also offers practical strategies for dealing with workplace challenges such as micromanagement and office politics. Join Tom Fox and Kristy Grant-Hart as they delve deeper into these topics in this award-winning 2 Gurus Talk Compliance podcast episode.

 Highlights Include: 

1. FCA bans Jes Staley (Compliance Week)

2. What is the purpose of a policy: Integrity in cricket? (University of Sussex)

3. CA gun shop owner pleads guilty to bribing former county sheriff.   (CSB-SF)

4. US Bankruptcy trustee seeks return of fees award to law firm of paramour. (Reuters)

5. ICO apologizes to ex-Nat West chief.   (FT)

6. Lawmakers Press Costco on China Forced Labor (WSJ)

7. Sam Bankman-Fried convicted of multi-billion dollar FTX fraud (Reuters)

8. UK Parliament Enacts Sweeping New Fraud Legislation Aimed at AML/TF Activities (Volkov)

9. Ever Thought ‘Just Leave Me Alone to Do My Job’? This Is for You (WSJ)

10. Which Florida Man best embodies the state’s spirit? A new contest will decide. (Washington Post)  

 Resources 

Kristy Grant-Hart on LinkedIn

Spark Consulting

Tom

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LinkedIn

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Culture: Day 8-A Listening Tour to Improve Culture

Any top CEO must first listen. But it is more than simply listening to rebuild trust, it is rebuilding employee engagement by making them and their ideas part of the solution. Today, we consider how a compliance listening tour can improve culture.

A.    Engagement

Start off by meeting as many compliance stakeholders as possible. You can use town hall settings or go smaller, meeting with key employee leaders, key stakeholders, and employees identified as high-risk who you can meet with individually or in smaller groups. Listen to their compliance concerns and take their compliance ideas back to the home office. After returning to your office, winnow down their ideas and suggestions to form the basis of enhancements to your culture. This employee engagement will lead to greater stakeholder buy-in for your culture.

B.    Education

But during the town hall meetings, and the smaller more informal group meetings, you can do more than listen, you can also train. This training is on ethics and how the employees could use compliance as a business tool. Moreover, this lays the groundwork for enhancing your culture and the training that will occur as the enhancement is rolled out.

C.    Risk Assessment

Now, think about this same approach from the risk assessment perspective. Listen to your employee’s concerns and listen to the compliance issues raised. From there you can begin to ask questions about what was done and why. This approach is not adversarial or an interrogation. Still, it is ferreting out the employee’s concerns while having the employees educate your compliance team on the actual procedures that are used. By listening, and gently questioning, you should be able to garner enough information to create a risk assessment profile that can inform and even become the basis of compliance program enhancements.

Three key takeaways:

1. A listening tour can be used to improve your culture.

2. Listening improves engagement, which improves culture.

3. Culture lessens if employees think you don’t care.

Do you want to improve your culture? How can you assess your culture and develop a strategy to improve it going forward? In this free webinar on the new tool, The Culture Audit with Tom Fox and Sam Silverstein on Tuesday, November 28, 12 CT. For more information and registration, click here.

Categories
Daily Compliance News

Daily Compliance News: November 10, 2023 – The €14BN Question 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 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:

  • Delta cutting carbon footprint. (WSJ)
  • Will Apple pay $23BN tax in Ireland? (BBC)
  • Altice France is now under investigation. (Bloomberg)
  • Corruption still clouds Ukraine’s rebuild. (WSJ)
Categories
Blog

Real-Time Fraud Detection: The Power of Behavioral Analytics

The uses of data analytics in compliance is almost unlimited. When you pair data analytics with human behavioral analytics, you can create a very powerful tool in the worldwide fight against fraud directed at corporations. Fraud has become a silent enemy that is killing companies worldwide, according to., Marta Cadavid, CEO of NoFraud Latam. To combat this growing problem, she and her colleagues have developed an AI-based software called the Fraud Explorer. This innovative software utilizes artificial intelligence, behavioral analytics, natural language processing, and triangle analytics to predict, prevent, and detect fraudulent activities in real time.

The Fraud Explorer is not just a tool for fraud detection; it is a proactive approach to fraud prevention. By analyzing human behavior and understanding the intentions behind it, the software can identify potentially fraudulent activities before they occur. This is achieved by reading and analyzing the communications of individuals within the corporate environment.

The software is built on a methodology that combines technology, people, and processes. It allows for the articulation of communication strategies within the company, enabling the software to read and understand communications across various business units and industries. This adaptability ensures that the Fraud Explorer can effectively operate in different communication styles and cultural contexts.

One of the key features of the Fraud Explorer is its ability to create a comprehensive behavioral library. This library consists of over 100,000 expressions related to opportunities, rationalizations, misbehaviors, and sociocultural issues. By understanding the culture in different countries and languages, the software can effectively detect potentially fraudulent activities across different regions.

The Fraud Explorer’s approach is based on the fraud triangle, which includes the factors of rationalization, pressure, and opportunity. By utilizing this established methodology, the software can explain its underlying basis to customers, corporations, and compliance officers. This helps build trust and understanding of how the software operates and its potential benefits.

One of the key advantages of the Fraud Explorer is its focus on prevention rather than detection. While traditional approaches to fraud risk management rely on audits and forensic accountants to identify past fraudulent activities, the Fraud Explorer uses data analytics to prevent fraud before it occurs. This proactive approach can save companies significant financial losses and reputational damage.

To effectively manage human risk, the Fraud Explorer utilizes behavioral analytics. By combining artificial intelligence, natural language processing, and triangle analytics, the software can predict, prevent, and detect human behavior in real time. This allows companies to understand and address a wide range of human risks, including fraud, compliance, cybersecurity, bullying, discrimination, and harassment.

Implementing the Fraud Explorer requires a multidisciplinary team with diverse backgrounds, including lawyers, data science professionals, and certified fraud examiners. This collaborative approach ensures that the software’s strategy aligns with the company’s overall risk mitigation efforts. Human resources also play a crucial role in preventing and detecting misbehaviors, as human risk extends beyond fraud and corruption to encompass a wide range of illegal activities.

In conclusion, the AI-based fraud prevention software developed by NoFraud Latam offers a comprehensive and proactive approach to combating fraud. By leveraging artificial intelligence, behavioral analytics, and natural language processing, the Fraud Explorer can predict, prevent, and detect fraudulent activities in real time. Its focus on human behavior and understanding cultural contexts makes it a versatile tool for companies across various industries and regions. With the Fraud Explorer, companies can take a proactive stance against fraud, saving themselves from significant financial losses and reputational damage.

Categories
Blog

The Impact of PFAS ‘Forever Chemicals’ in Product Compliance

I recently had the opportunity to visit with Cally Edgren, a Senior Director of the Regulatory Expert team at Assent, who has nearly three decades of experience in manufacturing and has dedicated her career to helping manufacturers comply with regulations. We took a deep dive into the next serious matter for product compliance, forever chemicals. Every compliance professional needs to be aware of this upcoming issue for product manufacturers.

PFAS chemicals, commonly known as ‘forever chemicals’, have been used in manufacturing for approximately 85 years due to their durability and resistance to water and oil. However, these chemicals have been linked to various health effects and have been detected in water supplies and soil contamination. As a result, regulators and litigators are focusing on incorporating PFAS chemicals into regulatory instruments and holding manufacturers accountable for their use.

States like Maine and Minnesota have taken proactive measures by implementing laws to restrict the use of PFAS chemicals. For instance, Maine has released a law that requires all manufacturers selling products in the state to register any PFAS use in those products and pay a fee for registration. By the year 2030, the state plans to ban the use of PFAS in all products sold unless it is deemed an essential use by the Maine Department of Environmental Protection. Minnesota has followed suit, with even more aggressive regulations, including a reporting rule in 2026, a full PFAS ban in 2032, and a prohibition on certain products containing PFAS starting in 2025.

Manufacturers now face the challenge of assessing their supply chain to ensure compliance and avoid potential disruptions. The discontinuation of PFAS production by major manufacturer 3M by the end of 2025 poses a significant risk for manufacturers, as it could lead to supply chain disruptions. It is crucial for manufacturers to consider the broader risks associated with PFAS contamination and take proactive measures to assess their supply chain and find alternative solutions.

The Toxic Substance Control Act (TOSCA) is the primary chemicals management regulation in the United States. Under TOSCA, a recent requirement calls for the creation of an inventory of PFAS use in the country. This inventory will provide valuable information for regulators and manufacturers to better understand the extent of PFAS usage and its potential impact on human health and the environment.

One of the challenges in addressing PFAS regulation is the limited availability of test methodologies. With tens of thousands of different PFAS chemicals, there are only test techniques available for approximately 50 to 60 of them, mostly restricted to drinking water testing. As a result, regulators, including the Environmental Protection Agency (EPA) and the state of Maine, suggest inquiring via the supply chain to determine if PFAS chemicals have been added to products. This approach involves asking suppliers about the presence of PFAS in the materials they sell and understanding the specific PFAS chemicals and concentrations involved.

The regulation of PFAS chemicals differs from previous materials regulations due to additional factors beyond regulatory compliance. Litigation and financial implications surrounding PFAS are growing concerns for manufacturers and companies. While litigation primarily targets the manufacturers of PFAS, it is starting to extend to companies that use these chemicals in their products. This shift in litigation poses a significant risk for manufacturers, as they may face legal consequences and reputational damage.

Considering the potential supply chain disruptions and litigation risks, manufacturers cannot solely rely on assessing the impact of regulations. Waiting to see how regulations unfold may ignore the bigger risk of supply chain disruptions caused by the discontinuation of PFAS production. Manufacturers must take a broader approach to assess the impact of PFAS, considering the potential disruptions to their operations and the availability of alternative materials.

The regulation and impact of PFAS ‘forever chemicals’ in manufacturing require a careful balance of various factors. While the health concerns associated with PFAS chemicals are significant, manufacturers must also consider the potential disruptions to their supply chain and the financial implications of litigation. By proactively assessing their supply chain, exploring alternative materials, and staying informed about evolving regulations, manufacturers can navigate the challenges and make informed decisions that prioritize both human health and operational sustainability.

Categories
The ESG Report

The ESG Report – Cally Edgren on Forever Chemicals

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 Cally Edgren about Forever Chemicals.

Cally Edgren, a Senior Director of the Regulatory Expert team at Assent, has nearly three decades of experience in manufacturing and has dedicated her career to helping manufacturers comply with regulations. Edgren’s perspective on the regulation and impact of PFAS “forever chemicals” in manufacturing is that it is a game changer in the materials compliance world. She explains that PFAS are synthetic chemicals with tight carbon-fluorine bonds that have been used for their fantastic material properties, but these chemicals do not break down and have been found in water supplies and soil, raising health concerns. Edgren notes that regulators are starting to include PFAS chemicals in regulatory instruments, and states are being aggressive in addressing the contamination. She also highlights the supply chain disruption that will occur as major manufacturers like 3M discontinue products containing PFAS, emphasizing the need for manufacturers to consider the broader impact of PFAS regulations on their operations. Join Tom Fox and Cally Edgren on this episode of the ESG Report podcast to learn more about this critical issue.

Key Highlights:

  • The Persistence of PFAS Chemicals
  • The Broader Risks of PFAS Contamination
  • Implications of PFAS Regulations on Manufacturers
  • Stricter State Regulations on PFAS Use
  • PFAS Litigation and Industry Disruption

Resources

Cally Edgren on LinkedIn

Assent

Tom Fox

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