In today’s edition of Daily Compliance News:
Russ Berland is back on this episode of The Compliance Life to share how he uses creative communication to change compliance culture.
Changing Culture at BearingPoint
Tom Fox credits Russ with being one of the first persons to come up with a compliance movie. Russ relates that the lack of an integrated culture was one of the biggest issues at BearingPoint in 2007. His goal was to build company culture, and expectations around the same. Research suggested that they should start with their training, so Russ and his team came up with the idea of a series of videos – a “mockumentary” – similar to The Office. The team gathered stories from employees, which became inspiration for the script.
The first series of videos about the fictional Agreva Group was a phenomenal success. Russ relates that the “magic for us was that because they were our own stories, the people at BearingPoint recognized them and empathized with them…” After each six minute episode, a senior official would talk about the policies that applied to the situation portrayed in the video, and what the characters should have done. Russ comments that the training was the talk of the company: people eagerly looked forward to the release of the next episode, and diagnostic surveys showed marked cultural change as a result. One of their employees even became a local celebrity from acting in the series. They subsequently created a column and a second series of videos.
Tom comments that using the employees’ stories not only made them more targeted and engaged in the series, but also allowed Russ to gather information. Their post-diagnostic surveys helped them to measure the effectiveness of the training. Russ adds that engaging the senior leadership to talk on the videos made them the mouthpiece for the culture they were trying to create, while setting the tone from the top.
Resources
Aventiv Technologies
In EMBARGOED!’s inaugural FAQ episode, Brian and Tim tackle a wide array of questions and give actual, coherent answers (or try to, anyway; you decide). Questions cover: brand new restrictions on U.S. exports of PPE in response to the COVID-19 crisis; other COVID-19-related export control considerations in the medical research field; the U.S.’s proposed democratic transition framework for Venezuela and prospects for sanctions relief; a significant sanctions penalty out of the U.K. against Standard Chartered; the three most notable aspects of the “weird” Cuba sanctions program; prospects for leniency from U.S. enforcers for trade-related violations during the COVID-19 crisis; and is it possible to sue your way off the SDN List?
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Questions? Contact us at podcasts@milchev.com.
EMBARGOED! is not intended and cannot be relied on as legal advice; the content only reflects the thoughts and opinions of its hosts.
EMBARGOED! is intelligent talk about sanctions, export controls, and all things international trade for trade nerds and normal human beings alike, hosted by Miller & Chevalier Members Brian Fleming and Tim O’Toole. Each episode will feature deep thoughts and hot takes about the latest headline-grabbing developments in this area of the law, as well as some below-the-radar items to keep an eye on. Subscribe for new bi-weekly episodes so you don’t miss out!
Timestamps:
0:12 Introduction
Questions and Answers
3:23 FAQ 1: Under FEMA’s newly issued Temporary Rule restricting the export of certain categories of personal protective equipment (PPE), the prospects of ultimately obtaining approval from FEMA seem dim. What, if anything, should I do before attempting to export such items from the U.S.?
18:20 FAQ 2: I work in the medical research field. Given the unprecedented level of collaboration and coordination going on right now across the global research community relating to COVID-19, are there any specific U.S. export control related considerations I need to be aware of?
24:50 FAQ 3: I’ve seen recent press reports detailing the U.S. proposal for a transitional government in Venezuela. Assuming that proposal, or something resembling it, were to be adopted, would U.S. sanctions targeting Venezuela go away?
37:28 FAQ 4:For years, sanctions watchers have been speculating whether a non-U.S. enforcer would step up and take aggressive action in a manner that would demand attention at or near that given to OFAC. With the big penalty levied against Standard Chartered by OFSI in the U.K., has that day finally come?
48:46 FAQ 5: Despite being the oldest of the U.S. sanctions programs, or perhaps precisely because it is the oldest, the Cuba program seems to be the most consistently misunderstood and misinterpreted. What are the three most interesting or important aspects of this unique program that people should keep in mind when evaluating Cuba sanctions questions?
59:05 FAQ 6: I am a trade compliance professional at a multinational company. Given the state of the current global economy, my company has been forced to consider a number of transactions – both to address supply chain disruptions and increase liquidity – with unfamiliar parties and on timelines that are unprecedented. How worried should I be that the company (or even me personally) is going to open itself up to exposure if we miss something in the course of what feels like a constant cycle of hyper-speed due diligence?
1:06:47 FAQ 7: I saw recently that an Iranian company lost its case in federal district court challenging its inclusion on the SDN List. How often are SDNs actually successful in suing their way off the List?
1:18:15 Final Thoughts
***Stay sanctions free.***
Consider how a fraud audit using data analytics can help to detect or prevent bribery and corruption where the primary sales force used by a company are China based employees defrauding their company by using false expense reports to create a pot of money to use as a slush fund to pay bribes. Here you can think back to the Eli Lilly FCPA enforcement action up to the GSK problems as examples of where employees used their expense accounts not for personal use but for greater corporate malfeasance.
This double dipping technique led to two anti-bribery compliance enforcement actions. One in the U.S. involving Eli Lily and a second in China involving the U.K. pharmaceutical entity GSK. The risk is real and by using ongoing data monitoring you might not only get ahead of the legal violation, but you would have a much more efficient business process going forward.
Three key takeaways:
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:
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:
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:
