Where does creativity fit into compliance? In more places than you think. Problem-solving, accountability, communication, and connection – they all take creativity. Join Tom Fox and Ronnie Feldman on Creativity and Compliance, part of the Compliance Podcast Network. With this episode Ronnie and Tom begin a five-part series on creative ideas you can use during the 2021 Corporate Compliance and Ethics Week.
In this Part 1, we discuss what we will communicate in the series. In our first Siskel and Ebert Point/Counter-Point, Ronnie comes in smoking on what he thinks about Corporate Compliance and Ethics Week and Tom has a more lawyerly, measured approach. Tom and Ronnie both agree that Corporate Compliance and Ethics Week initiatives should only be seen as a starting point and must be followed up throughout the year.
Some of the ideas include:
§ You should promote your compliance program and its resources.
§ Endeavor to be welcoming and positive and approachable.
§ Demonstrate how compliance integrates and embeds into the business.
§ Any initiatives you begin must be followed up throughout the year.
Resources:
Ronnie Feldman (LinkedIn)
Learnings & Entertainments (LinkedIn)
Ronnie Feldman (Twitter)
Learnings & Entertainments (Website)
60-Second Communication & Awareness Shorts – A variety of short, customizable, quick-hitter “commercials” including songs & jingles, video shorts, newsletter graphics & Gifs, and more. Promote integrity, compliance, the Code, the helpline and the E&C team as helpful advisors and coaches.
Workplace Tonight Show! Micro-learning – a library of 1-10-minute trainings and communications wrapped in the style of a late-night variety show, that explains corporate risk topics and why employees should care.
Custom Live & Digital Programing – We’ll develop programming that fits your culture and balances the seriousness of the subject matter with a more engaging delivery.
Tom Fox believes that the compliance department is best positioned to lead the ESG function, and in this solo episode, he continues to explain why. He focuses on reporting and ongoing monitoring which, he says, should lead to continuous improvement.
ESG Reporting
At first glance, ESG reporting may seem outside the scope of the compliance professional; if you look deeper, however, you’d realize that it’s a large part of what they do every day. Compliance understands and leads the process of detailed documentation in order to satisfy regulatory requirements. The problem for ESG is that there are no universally accepted reporting standards. Regulatory bodies around the world, particularly in the EU, have started to come out with ESG reporting frameworks, so the process is evolving. Compliance professionals should keep abreast of these developments. Tom comments that many companies are already doing ESG reporting in some form, as evidenced by their corporate reports which include ESG information. This matters, he says, because “companies with good ESG practices have lower cost of capital, better operational performance, and better share price.” These companies also are more attractive to investors and potential employees.
ESG Reporting for Compliance Professionals
What should compliance professionals think about with regard to ESG reporting? Tom lists 6 key areas, including:
- understand what your company is already doing on sustainability;
- carry out an assessment of stakeholder ESG behaviors;
- don’t disregard sustainability as simply a cost, but see it as a way to make you a better company.
The efforts you make as a company to operate sustainably impact the wider community, and your reports are a way to have those efforts acknowledged. “The bottom line is that much of the work done by compliance can be used as a basis for your ESG reporting,” Tom reminds listeners. “Verifiable ESG reporting …allows stakeholders to compare performance and make meaningful decisions. Transparency is critical to the process. …This transparency and its reporting enables shareholders and stakeholders to gain a clearer picture of companies direction and progression.” He shares some additional ways companies can improve their ESG reporting, including integrating ESG data and mindset into everyday business operations.
ESG Monitoring
You can’t manage what you don’t measure, Tom points out. Shareholders, investors, and stakeholders want to confirm that a proper plan is in effect to monitor ESG KPIs. Companies that take ESG seriously must have a central management committee. “The key is a standardized approach to ESG data collection and monitoring; this is because, without standardization leading to consistent reporting practices across an organization, it can be challenging to understand and compare performance progress towards targets,” he explains. Your framework must include quantitative and qualitative metrics. He gives some examples of ESG metrics, including those set by the World Economic Forum. These ideas are nothing new to compliance professionals, he remarks; another reason why they are best suited to lead the ESG function.
Resources
Tom Fox email
FCPA Compliance and Ethics blog
In this Episode of the FCPA Compliance Report, I have thrilled to have back fan favorite Mike DeBernardis, partner at Hughes Hubbard. Mike is back for our quarterly FCPA and compliance review and in this episode, we look at highlights from Q3 2021. Highlights of this podcast include:
- FCPA Enforcement Actions-WPP and Credit Suisse. What are the key lessons learned?
- What does it mean to extend at DPA?
- Pandora Papers-how do you think this will drive the move for greater transparency around trusts and other opaque corporate forms?
- SEC
a. Increased enforcement and admissions of liability in settlement docs.
b. ESG Reporting requirements-what does this mean for corps
c. Increased scrutiny for both crypto and SPACs
5. National Security Directive coming out in December.
6.HughesHubbard annual FCPA alert
Resources
Mike DeBernardis on Hughes Hubbard website.
In today’s edition of Sunday Book Review:
- To Kill a Mockingbird by Harper Lee
- The Hate You U Give by Angie Thomas
- All the Light You Cannot See by Anthony Doerr
- The Twelve Lives of Samuel Hawleyby Hannah Tinti
- The Bear by Andrew Krivak
- When Ghosts Come Home by Wiley Cash
The US designates 6 involved in Iran’s destabilizing unmanned aerial vehicle activities. Stop by to get the scoop.
Are your words not having the effect you wish they’d have at work? I have a tip to share with you to help you change the results you’re getting from your communication efforts.
In today’s episode, I’m sharing two stories with you. One story is about the frustration of a manager in a class I led recently. The other story is about a mistake I made. There is one goal here…to help you be more successful in your own leadership journey. It is my hope that after today’s episode, that you’ll have your eyes, heart, and mind opened to a new way to better move forward as you communicate, connect, and lead your employees.
Wishing you huge success!
———-
If you’re looking for tangible action steps and refreshing insights to help ignite the power of your own leadership journey, sign up for my weekly leadership blog HERE.
If your business would benefit from higher-performing leaders, check out more information about the comprehensive leadership development training I do HERE.
If you want to reach out to me directly, email alyson@vanhooser.com.
If you enjoyed this episode, will you please subscribe and leave a review? Your reviews help this show get discovered by more incredible leaders just like you. I’m obsessed with helping leaders ignite their performance results and I’d love to have you help me make an impact! Thank you so much!
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As Tom mourns the Astros loss, he tips his cap to the WS Champs Atlanta Braves. He and Jay reflect on some of the top compliance and ethics stories in the World Series Champs edition.
Stories
1. DAG Lisa Monaco announces changes to white collar enforcement. Matt Kelly in Radical Compliance. Tom in the FCPA Compliance and Ethics Blog. Tom and Matt Kelly in Compliance into the Weeds.
2. Why health should be a part of ESG. John Godfrey in CCI.
3. Keeping track of 3rd party risks. Mike Volkov in Corruption Crime and Compliance.
4. What is ‘effective compliance’? Dick Cassin explores in the FCPA Blog.
5. ABC Compliance: Good Governance issue. Joe Grady in GAB.
6. Did a dysfunctional culture on the Rush movie set lead to a death? Sonia Rao in the Washington Post.
7. Unclear values can lead to ethical lapses. Brett Beasley in ND Center for Ethical Leadership.
8. New ABC law coming? Matt Kelly in Radical Compliance.
9. Simplifying data governance. Alym Rayani in CCI.
10. Gensler says crypto needs oversight. Mengqi Sun in the WSJ Risk and Compliance Journal.
Podcasts and Events
11. Compliance Week 2022 opens for registration. Sign up here.
12. Welcome to the newest addition to the Compliance Podcast Network, Hidden Traffic, hosted by Gwen Hassan. In this podcast, host Gwen Hassan helps compliance professionals assess human trafficking risk and leverage their organization’s resources to root out this tragic problem. Check out Episode 1, where Gwen visits with Matt Friedman.
13. Are you exasperated? Then check, F*ing Argentina. In this podcast series co-hosts Tom Fox and Gregg Greenberg, author of F*ing Argentina explore the current American psyche of being overworked, over leveraged, overtired and overwhelmed. Find out about modern America’s exasperation with well…exasperation. In Episode 8, an exasperating meeting with a dog and its owner on the streets of NYC.
14. This month on The Compliance Life, I visit with Wendy Badger, CCO at Tennant. In Part 1, she details her academic career and early professional life.
15. How does a Compliance Bible become a best-seller? Check out Tom’s appearance on the C-Suite Network’s Best Seller TV to find out. Purchase The Compliance Handbook, 2nd edition here.
Tom Fox is the Voice of Compliance and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.