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Daily Compliance News

Daily Compliance News: November 9, 2023 – The ESG Helps Hiring 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.

  • 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 a DOJ false claims case (Compliance Week)
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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Culture: Day 7- To Improve Culture, Engage More

One thing I have learned in working with Carsten Tams is that one of the very top keys to a successful compliance program is employee engagement. Tams and I explored this topic in the popular podcast series Design Thinking in Compliance. It also appears that attention can lead to excellent business resiliency based upon an article entitled The Top 10 Findings on Resilience and Engagement, by Marcus Buckingham.

Not surprisingly, trust is the number 1 factor in engagement and resilience. Astoundingly, the author found that “employees who said they completely trust their team leader were 14 times more likely to be fully engaged.” Moreover, those employees who completely trusted their colleagues, team leader, and senior leaders “were 42 times more likely to be highly resilient.” The reason should seem obvious as it is undoubtedly “easier to engage in our best work when we don’t have to expend mental resources looking over our shoulders or protecting ourselves against dysfunctional workplace practices that erode trust, like bullying or micromanaging. When it comes to building engagement and resilience, trust is everything.”

Teamwork is also a key factor. Although this is not something I have experienced over the past 12 years of working alone, the author found, “Those who said they are on a team were 2.6 times more likely to be fully engaged and 2.7 times more likely to be highly resilient than those who didn’t identify as team members. For millennia, humans have experienced psychological well-being only when they feel connected to and supported by a small group of people around them.” When the pandemic hit, working from home was not new to me as I had been doing it since 2010, but even in the WFH or Hybrid Work era, most employees need to feel like they are part of a team.

Every CCO and compliance professional must work to lessen or dissolve the disconnect between senior leadership and front-line workers. Your front-line business folks will make or break your compliance program. Getting your senior management more engaged will create and establish the trust your employees will need to show resilience in the face of the following primary business location, whether a pandemic or military invasion.

 Three key takeaways:

  1. The concepts from Design Thinking can improve your culture.
  2. A key factor in culture is engagement.
  3. You can improve culture by dissolving the disconnect between senior leadership and front-line workers.

Do you want to improve your culture? How can you assess your culture and come up with a strategy to improve it going forward? Find out 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.

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The Hill Country Podcast

Hill Country Podcast – Educational Leadership in Kerrville and Kerr County, Part 2

Welcome to the award-winning The Hill Country Podcast. The Texas Hill Country is one of the most beautiful places on earth. In this podcast, Hill Country resident Tom Fox visits with the people and organizations that make this the most unique area of Texas. Join Tom as he explores the people, places, and activities of the Texas Hill Country. In this episode, I begin a special two-part episode on primary and secondary education in Kerrville, Kerr County, and the Hill Country. In this exploration, I am joined by Dr. Robert Templeton, Superintendent of the Independent Ingram School District, Dr. Brent Ringo, Superintendent of the Kerrville Independent School District, and Dr. Charlie McCormick, President of Schreiner University in Kerrville.

Dr. Brent Ringo, Dr. Charlie McCormick, and Dr. Robert Templeton are all dedicated educators with a shared passion for developing entrepreneurial spirit and adaptability in students for the future job market. Dr. Ringo discussed expanding students’ horizons and helping them exceed their own expectations through exposure to various industries and opportunities. McCormick focused on developing transcendent skills such as collaboration, critical thinking, and curiosity in students, preparing them for an unpredictable future. Dr. Templeton, while initially skeptical of online education, has come to recognize the potential of technology in education and emphasizes the importance of flexibility and exposure to different opportunities. Join Tom Fox, Dr. Brent Ringo, Dr. Charlie McCormick, and Dr. Robert Templeton on this episode of the Hill Country Podcast to delve deeper into their perspectives on fostering entrepreneurial spirit and adaptability in students for the future job market.

Key Highlights:

  • Expanding Horizons: Unleashing Entrepreneurial Potential
  • Preparing Students for an Evolving Future
  • The Evolving Landscape of Education Delivery
  • Adapting Education to the Evolving Job Market
  • Navigating the Unscripted Future: Transcendent Skills
  • The Transformative Impact of COVID-19 on Education
  • Bridging the Rural-Urban Digital Divide

 Resources:

Dr. Robert Templeton

Dr. Brent Ringo

Dr. Charlie McCormick

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Great Women in Compliance

Great Women in Compliance – The State of the Profession

As we move towards the end of 2023, and after the major conferences of the year, it seemed like a good time to reflect on the state of the profession.  Gwen Hassan, Deputy Chief Compliance Officer at Unisys and host of the #HiddenTraffic podcast, and Kim Yapchai, member of the Board of Directors for DirectWomen and former Senior Vice President, Chief Environmental, Social and Governance Officer at Tenneco joined Ellen Hunt and Lisa Fine talk about where the ethics and compliance profession has been, where we are today, and where we are going.  They discuss what makes them optimistic, and what gives them pause.

The Great Women in Compliance Podcast is on the Compliance Podcast Network with a selection of other Compliance-related offerings. GWIC is also sponsored by Corporate Compliance Insights, where we have a page where you can hear every episode. If you are enjoying this episode, please rate it and/or provide a review.

Corporate Compliance Insights is a much-appreciated sponsor and supporter of GWIC, including affiliate organization CCI Press publishing the related book; “Sending the Elevator Back Down, What We’ve Learned from Great Women in Compliance” (CCI Press, 2020). If you enjoyed the book, the GWIC team would be very grateful if you would consider rating it on Goodreads and Amazon and leaving a short review.  Don’t forget to send the elevator back down by passing on your copy to someone who you think might enjoy reading it when you’re done, or if you can’t bear parting with your copy, consider it as a holiday or appreciation gift for someone in Compliance who deserves a treat.

If you enjoyed the book, the GWIC team would be very grateful if you would consider rating it on Goodreads and Amazon and leaving a short review.  Don’t forget to send the elevator back down by passing on your copy to someone who you think might enjoy reading it when you’re done, or if you can’t bear parting with your copy, consider it as a holiday or appreciation gift for someone in Compliance who deserves a treat.

You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.

Join the Great Women in Compliance community on LinkedIn here.

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Culture: Day 6 – Attributes of a Toxic Culture

Corporate culture is finally being acknowledged as a key ingredient in a successful business, particularly one that operates ethically and in compliance. But what are some indicia of good culture and more importantly what are some indicia of a toxic culture? A recent article in the MIT Sloan Management Review provided some guidance. In Why Every Leader Needs to Worry About Toxic Culture, the authors posited that by pinpointing the elements of toxic culture in a company, its leaders focus on addressing the issues that lead employees to disengage and quit. These ideas have significant importance for the compliance function as it navigates corporate culture, both in assessing and improving it.

Moreover, the Chief Compliance Officer and corporate compliance function were identified in the 2023 3 Evaluation of Corporate Compliance Programs as the keepers of institutional justice and institutional fairness. This means recognizing and then preventing a toxic culture from spreading and infecting your entire organization squarely in the compliance wheelhouse. The article lays out key red flags for every CCO and compliance professional to look for in assessing culture. Finally, for any company with a toxic culture, the chances are much greater to be defrauded by its own employees or to defraud others through bribery and corruption by violating such laws as the Foreign Corrupt Practices Act (FCPA).

The authors identify behaviors that they call “the Toxic Five attributes”, being “disrespectful, noninclusive, unethical, cutthroat, and abusive – poison corporate culture in the eyes of employees. While organizational culture can disappoint employees in many ways, these five elements have by far the largest negative impact on how employees rate their corporate culture and have contributed most to employee attrition throughout the Great Resignation.” As a CCO or compliance professional you need to be on the watch for them and take steps to remedy them if you see or hear about them.

 Three key takeaways:

1. Are the attributes of a toxic culture present in your organization?

2. The 2020 Update to the Evaluation of Corporate Compliance Programs mandated the compliance lead this effort.

3. Does your organization have abusive behavior?

Check the 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.

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Compliance Into the Weeds

Compliance into the Weeds – Remediation During an Enforcement Action

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 compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into the issue of how and whether you should remediate during an enforcement action.

The importance of early and continuous remediation of compliance issues cannot be overstated. It is a critical aspect of maintaining a healthy relationship with regulators and ensuring effective strategies are in place to address any uncovered issues. Tom firmly believes in the necessity of initiating the remediation process as early as possible, even during the investigation phase. He emphasizes the importance of regular communication with regulators and the potential risks of delaying remediation.

Matt echoes Fox’s sentiments. He highlights the confidence that early remediation brings to compliance officers and the increased likelihood of successful resolution. Join Tom Fox and Matt Kelly as they delve deeper into this topic in this episode of the Compliance into the Weeds podcast.

 Key Highlights:

  • Proactive Remediation for Effective Compliance Management
  • Navigating Personnel Matters During Remediation
  • Logical and Consistent Employee Discipline Compliance
  • Remediation Strategies for Confident Compliance Officers

 Resources:

Matt on Radical Compliance

Tom 

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Daily Compliance News

Daily Compliance News: November 8, 2023 – The Farewell to WeWork 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:

  • WeWork files for bankruptcy.  (FT)
  • Congress must aid in the fight against illicit crypto. (WSJ)
  • The Portuguese PM resigns over corruption. (The Guardian)
  • The Supreme Court refuses to take up the PDVSA bribery case. (LatinLawyer)
Categories
Blog

GWIC Roundtable: The Importance and Challenges of Compliance in Corporate America

The compliance profession plays a crucial role in ensuring ethical practices and maintaining regulatory compliance within corporate America. In a recent episode of the Great Women in Compliance Podcast, Lisa Fine and Ellen Hunt, a former Chief Ethics and Compliance Officer, chief Audit Officer and Chief Privacy Officer, and currently Principal Consultant and Advisor with Spark Consulting;  hosted Gwen Hassan, Deputy Chief Compliance Officer at Unisys (and host of the award winning Hidden Traffic podcast) and Kim Yapchai, currently a board member of Direct Women, which is a nonprofit focused on promoting women to be public company board members and expert in a variety of corporate areas including ESG, corporate governance, M&A, compliance and Supply Chain. They discussed the importance and challenges of the compliance profession in today’s corporate landscape.

One of the key challenges highlighted by Yapchai is the struggle for recognition and resources within organizations. Compliance professionals often report to the General Counsel (GC) rather than the CEO, which can hinder their ability to have a seat at the table and influence decision-making processes. Additionally, limited access to data and budget constraints can further impede the effectiveness of compliance programs.

Yapchai see Compliance 1.0 as “being the police. Compliance 2.0, looking at culture and working with HR. Compliance 3.0 I think is really the type of ESG role that I had in my last role and reported to the CEO as part of the executive leadership team.” She believes this is another step in the compliance function being changed. It has moved to “to revenue protector, brand protector incorporating know and it is the people that drive everything. And all of this leads to better profits, it’s better risk management.”

To overcome these challenges, the speakers emphasize the need for compliance professionals to build key relationships, understand the nuances of the business, and effectively communicate the value of compliance programs. Hassan suggests that speaking the language of the business, using terms like return on investment (ROI), and showcasing the financial impact of compliance efforts can help gain traction and support from the C-suite and the board. By demonstrating the value of compliance in dollars, compliance professionals are more likely to capture the attention of business leaders who think in terms of profit margins and ROI.

The speakers also stress the importance of continuous growth and adaptation in the compliance profession. As the business landscape evolves, compliance professionals must stay abreast of new challenges, such as ESG (Environmental, Social, and Governance) and AI (Artificial Intelligence). They need to actively seek opportunities to expand their roles beyond traditional compliance functions and become revenue protectors and brand protectors. By incorporating culture and working closely with HR, compliance professionals can contribute to better risk management and overall profitability.

However, the speakers caution against complacency and the risk of devaluing the work of compliance professionals. Hassan believes that if the profession fails to grow and adapt, it could contribute to the moral decline of corporate America. Compliance professionals have a unique opportunity to shape the values and impact of organizations, not just in terms of financial success but also in making the world a better place for all stakeholders. By embracing a holistic view of what a company represents, compliance professionals can help drive positive change and ensure ethical practices.

Hassan went on to say she has ‘tempered optimism’ for the compliance profession. She believes that employees know what our intent and what we are trying to do. She notes that the compliance profession has “done herculean work in some particularly crazy times, especially over the last ten to 15 years.” Yapchai agreed and related that “when I started, the concept of a compliance officer and a compliance function was something that was brand new and really a heavy lift when talking to companies about compliance because it was almost unheard of to have a separate compliance department and a separate compliance team and report into the board.” In many ways compliance was seen as an  “offshoot of what the law department was already doing” but there has been much improvement in that view.  The status of the profession has been elevated and there are now colleges and law schools that are now teaching separate programs in compliance. This means that Gen Z and Millennials are studying compliance as a specific degree.

Creating a supportive community, or what the speakers refer to as a “Blue Zone,” is also crucial in combating the stress and loneliness that can come with the compliance profession. It helps people live longer and healthier, but the concept that you can create your own right with your surroundings and the way your daily habits and other things you can create your own. All of the speakers feel that it is important for ethics and compliance professionals to have their blue zone or their network or their support group by connecting with peers and sharing experiences, compliance professionals can find support and inspiration to navigate the challenges they face.”

In conclusion, the compliance profession in corporate America is of utmost importance in ensuring ethical practices and regulatory compliance. However, it faces challenges such as limited resources, lack of recognition, and the need to continuously adapt to a changing business landscape. By building relationships, understanding the business, and effectively communicating the value of compliance programs, compliance professionals can overcome these challenges and contribute to the success and ethical standing of their organizations.

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Principled Podcast

Principled Podcast – S10E9: What are the Latest Global Standards and Trends in E&C Program Effectiveness?

What you’ll learn on this podcast episode

Since 2014, LRN has published an annual Ethics & Compliance Program Effectiveness Report that reflects the input of ethics, compliance, and legal professionals from around the world. These reports aim to identify key differentiators that make some E&C programs more effective than others—especially in the midst of global risks and crises. But the risk landscape has shifted dramatically over the last few years; we’ve experienced the COVID-19 pandemic, worldwide political upheaval, and the start of the war in Ukraine. How are E&C programs weathering these challenges? What changes have they made to adapt, and what global trends are emerging as a result? In this episode of LRN’s Principled Podcast, LRN Advisory colleagues Emily Miner and Susan Divers discuss key findings from a special Global Standards Edition of LRN’s E&C Program Effectiveness Report. 

Download the LRN E&C Program Effectiveness Report – Global Standards Edition. 

Take this 10-minute survey and share your experiences for LRN’s 2024 E&C Program Effectiveness research. Results will be published in February. 

Guest: Susan Divers

Susan_Divers_Principled_Podcast

Susan Divers is a senior advisor with LRN Corporation. In that capacity, Ms. Divers brings her 30+ years’ accomplishments and experience in the ethics and compliance area to LRN partners and colleagues. This expertise includes building state-of-the-art compliance programs infused with values, designing user-friendly means of engaging and informing employees, fostering an embedded culture of compliance and substantial subject matter expertise in anti-corruption, export controls, sanctions, and other key areas of compliance.

Prior to joining LRN, Mrs. Divers served as AECOM’s Assistant General for Global Ethics & Compliance and Chief Ethics & Compliance Officer. Under her leadership, AECOM’s ethics and compliance program garnered six external awards in recognition of its effectiveness and Mrs. Divers’ thought leadership in the ethics field. In 2011, Mrs. Divers received the AECOM CEO Award of Excellence, which recognized her work in advancing the company’s ethics and compliance program.

Mrs. Divers’ background includes more than thirty years’ experience practicing law in these areas. Before joining AECOM, she worked at SAIC and Lockheed Martin in the international compliance area. Prior to that, she was a partner with the DC office of Sonnenschein, Nath & Rosenthal. She also spent four years in London and is qualified as a Solicitor to the High Court of England and Wales, practicing in the international arena with the law firms of Theodore Goddard & Co. and Herbert Smith & Co. She also served as an attorney in the Office of the Legal Advisor at the Department of State and was a member of the U.S. delegation to the UN working on the first anti-corruption multilateral treaty initiative.

Mrs. Divers is a member of the DC Bar and a graduate of Trinity College, Washington D.C. and of the National Law Center of George Washington University. In 2011, 2012, 2013 and 2014 Ethisphere Magazine listed her as one the “Attorneys Who Matter” in the ethics & compliance area. She is a member of the Advisory Boards of the Rutgers University Center for Ethical Behavior and served as a member of the Board of Directors for the Institute for Practical Training from 2005-2008.

She resides in Northern Virginia and is a frequent speaker, writer and commentator on ethics and compliance topics. Mrs. Divers’ most recent publication is “Balancing Best Practices and Reality in Compliance,” published by Compliance Week in February 2015. In her spare time, she mentors veteran and university students and enjoys outdoor activities.

Host: Emily Miner

Host - Emily Miner

Emily Miner is a vice president in LRN’s Ethics & Compliance Advisory practice. She counsels executive leadership teams on how to actively shape and manage their ethical culture through deep quantitative and qualitative understanding and engagement. A skilled facilitator, Emily emphasizes co-creative, bottom-up, and data-driven approaches to foster ethical behavior and inform program strategy. Emily has led engagements with organizations in the healthcare, technology, manufacturing, energy, professional services, and education industries. Emily co-leads LRN’s ongoing flagship research on E&C program effectiveness and is a thought leader in the areas of organizational culture, leadership, and E&C program impact.

Prior to joining LRN, Emily applied her behavioral science expertise in the environmental sustainability sector, working with non-profits and several New England municipalities; facilitated earth science research in academia; and contributed to drafting and advancing international climate policy goals. Emily has a Master of Public Administration in Environmental Science and Policy from Columbia University and graduated summa cum laude from the University of Florida with a degree in Anthropology.

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Innovation in Compliance

Innovation in Compliance – Jamie Hoyle on Finding the Needle in a Haystack for Communications Compliance

Innovation comes in many forms, and compliance professionals need to not only be ready for it but also embrace it. One of those areas is in financial services communications compliance. My guest in this episode is Jamie Hoyle, VP of Product at MirrorWeb Jamie Hoyle is a seasoned software engineer and technology executive with a strong background in compliance and communication surveillance. He currently serves as the VP of Product at MirrorWeb, where he leverages his expertise in capturing and utilizing metadata from native APIs and platforms to provide valuable business intelligence in communication surveillance.

Jamie’s perspective on the topic of “MirrorWeb: a surveillance platform for digital communication compliance” is that communications compliance is a crucial aspect of regulatory enforcement actions, which are only increasing. He emphasizes the importance of capturing insights from emerging platforms and technologies and scaling these surveillance platforms to meet the requirements of both regulated and non-regulated businesses. Join Tom Fox and Jamie Hoyle on this episode of the Innovation in Compliance podcast to learn more about Jamie’s insights and experiences.

Key Highlights:

  • Insightful Compliance Solutions for Digital Communications
  • The “Needle in a Haystack” of Communications Compliance
  • The Rise of Individual Accountability in Compliance
  • Communications Surveillance and Compliance Solutions

Resources:

Jamie Hoyle on LinkedIn

MirrorWeb

 

Tom

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