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2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 15 – The I Don’t Like it Edition

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 a wide variety of topics, including a visit to Florida Women.

The landscape of corporate compliance is ever-evolving, with recent developments posing new challenges and opportunities for businesses. Compliance is a dynamic process that requires constant monitoring and retrospective reviews to identify potential risks and changes. He also emphasizes the importance of involving compliance officers early in the due diligence process of mergers and acquisitions and acknowledges the complexities of managing conflicts of interest in networking and hiring. Tom and Kristy advocate for a proactive approach to compliance, highlighting the importance of regulatory resources such as the New York State Department of Financial Services’ cybersecurity rules. She also stresses the need for clarity and certainty in compliance practices, particularly in areas like mergers and acquisitions and conflicts of interest. Join Tom Fox and Kristy Grant-Hart as they delve deeper into these issues in the latest episode of the 2 Gurus Talk Compliance podcast.

 Highlights Include:

  1. Albemarle FCPA enforcement action. (FCPA Blog)
  2. DAG Monaco on more credit for self-disclosure, this time in M&A. (Radical Compliance)
  3. NYDFS Comments on proposed cyber disclosure amendments. (Compliance and Enforcement Blog)
  4. Michael Lewis and SBF. (The Dig)
  5. Identifying compliance blind spots. (CCI)
  6. Lawmakers Press NBA, Players Union on Forced Labor (WSJ)
  7. Can you tell the difference between acceptable networking and wrongful hiring practices? (FCPA Blog)
  8. Crypto Sector Seeks Lawyers, Compliance Officers After Reputational Hits (WSJ)
  9. Stop Obsessing About Work All the Time (WSJ)
  10. Two women stole bags of food from Florida Taco Bell during armed robbery, deputies say (Fox 25 Orlando)

Resources 

Kristy Grant-Hart on LinkedIn

Spark Consulting

Tom

Threads

Instagram

Facebook

YouTube

Twitter

LinkedIn

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Report from IMPACT 2023

Report from IMPACT 2023: Pat Harned on Collaborative Partnership for Ethics and Compliance

ECI’s IMPACT 2023 was one of the leading compliance events in 2023. At this conference, Tom Fox, the Voice of Compliance, was able to visit with several of the speakers, exhibitors, participants, and one group of ethically-minded Girl Scout Troop. In this limited podcast series, Report from IMPACT 2023, Tom explores many of the most cutting-edge topics in ethics and compliance through short podcast episodes. Check out the full series of interviews. You will be enlightened and informed and come away with a fuller and more thorough understanding of the most cutting-edge topics in ethics and compliance. In this episode, Tom visits Pat Harned, CEO at ECI.

Pat Harned, the CEO of the Ethics & Compliance Initiative (ECI), has spent many years observing the evolution of the ethics and compliance profession and has played a pivotal role in creating initiatives to keep professionals engaged in the field. Pat’s perspective on consumer behavior, corporate ethics, and compliance evolution is that these fields are converging, with employees and consumers increasingly expecting companies to be purpose-driven and have a positive global impact. She emphasizes the need for the ethics and compliance profession to take a thought leadership role in this convergence or risk being overshadowed by the growing prominence of ESG (Environmental, Social, and Governance) efforts. Pat’s views are shaped by her active involvement in dialogues with the Department of Justice and other regulators and her current leadership in establishing a Blue Ribbon Commission focusing on effective ESG efforts. Join Tom Fox and Pat Harned on this episode of the Report from Impact podcast to delve deeper into these insights.

 

Highlights Include:

  • The Rise of Purpose-Driven Consumerism
  • The Value of Experienced Professional Advisors
  • Collaborative Partnership for Ethics and Compliance

 Resources

ECI

Categories
Innovation in Compliance

2023 Global Business Ethics Survey: Part 5 – Improving Ethics and Compliance Programs: Insights from 2023 GBES

The Global Business Ethics Survey (GBES) conducted by the Ethics & Compliance Initiative (ECI) provides valuable insights into workplace ethics and compliance from the perspective of employees. Tom Fox recently had the opportunity to visit with ECI CEO Pat Harned on the 2023 GBES. This survey has become a reliable benchmark for organizations to compare their workplace culture with third-party research, allowing them to identify areas for improvement and address potential risks.

Over the past 30 years of GBES research, ECI has identified and proven that certain “outcome” metrics are indicative of the well-being of workplaces from an ethics & compliance perspective. In this, the largest and latest update to the GBES body of research, employees in 42 countries around the world told us that there is reason for concern.

In Part 5 of a five-part podcast, we why companies need a strong ethical culture and high-quality compliance program.

Pat Harned, CEO of ECI (Ethics & Compliance Initiative) and a leading expert in workplace ethics and compliance programs, has extensive experience in the field and has led the 2023 Global Business Ethics Survey. Pat firmly believes that workplace ethics concerns are a significant issue and that compliance programs are necessary to address these concerns. Her perspective is shaped by alarming data showing high levels of pressure, increased observations of misconduct, and worrying rates of retaliation in the workplace. Pat advocates for the implementation of high-quality ethics and compliance programs, emphasizing the importance of manager engagement, regular reminders of reporting resources, anti-retaliation programs, and holding all employees accountable for ethical behavior. She also recommends regular assessments of these programs and their impact to ensure their effectiveness. Join Tom Fox and Pat Harned as they delve deeper into these issues in the upcoming episode of the 2023 GBES podcast.

Key Highlights:

  • Ethics and Compliance Challenges in Global Workplaces
  • Creating a Culture of Retaliation-Free Workplaces
  • Evaluating Organizational Performance with Global Benchmarks

Resources:

ECI

2023 Global Business Ethics Survey

Blog Post on the 2023 GBES, Part 5

Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Innovation: Day 9 – The Competitive Advantage of Data

The DOJ and SEC have both made it clear that they expect companies to be more robust in their use of data analytics in compliance programs. This means using data not only to detect and prevent illegal conduct but also in the remediation prong of any best practices compliance program through continuous improvement. In 2019, former Deputy Assistant Attorney General Matthew Miner said in a speech that the DOJ will inquire whether compliance departments have access to internal data that could help them identify misconduct and whether compliance officers make adequate use of data analytics in their reviews of companies under investigation. Since at least 2016, in the FCPA enforcement action involving Key Energy Services, Inc., the SEC has been communicating to compliance professionals the need for increased use of data and data analytics in any compliance program.

The bottom line is that it is not if but when you begin to incorporate corporate information into your compliance program to make your compliance program more efficient, and your business process run more effectively. Let’s start now to identify the data you have access to and the data to which you currently do not have access. Find a way to bridge that gap.

Three key takeaways:

  1. DOJ pronouncements mandate CCO availability to and use of data.
  2. Data can be an actionable solution across geographic and business lines.
  3. Use data as a business strategy.

For more information, check out The Compliance Handbook, 4th edition, here.

Categories
Innovation in Compliance

2023 Global Business Ethics Survey: Part 3 – The Pervasive Issue of Retaliation in the Workplace

The Global Business Ethics Survey (GBES) conducted by the Ethics & Compliance Initiative (ECI) provides valuable insights into workplace ethics and compliance from the perspective of employees. Tom Fox recently had the opportunity to visit with ECI CEO Pat Harned on the 2023 GBES. This survey has become a reliable benchmark for organizations to compare their workplace culture with third-party research, allowing them to identify areas for improvement and address potential risks.

Over the past 30 years of GBES research, ECI has identified and proven that certain “outcome” metrics are indicative of the well-being of workplaces from an ethics & compliance perspective. In this, the largest and latest update to the GBES body of research, employees in 42 countries around the world told us that there is reason for concern. In Part 3 of a five-part podcast, we consider addressing workplace misconduct.

The 2023 GBES showed that within workplace ethics, retaliation, and whistleblower protection issues, retaliation is a pervasive issue in the workplace, with a significant number of individuals who report misconduct experiencing some form of retribution. The GBES revealed that retaliation remains unacceptably high, with many victims of harassment or discrimination choosing not to report due to fear of further retaliation. Pat emphasizes the importance of educating supervisors and coworkers to recognize and address retaliation, as well as supporting and educating employees who come forward about what retaliation might look like and how to handle it. Join Tom Fox and Pat Harned as they delve deeper into these issues on the 2023 GBES podcast.

Key Highlights:

  • Pressure to Compromise Workplace Standards
  • Lack of Support for Whistleblowers
  • What is retaliation?

Join us in Part 4, where we ask ‘what is an ethical culture”?

Resources:

ECI

2023 Global Business Ethics Survey

Blog Post on the 2023 GBES, Part 3

Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Innovation: Day 7 – Skills for the Compliance Professional in 2025 and Beyond

What should compliance practitioners do to move themselves forward professionally in 2025 and beyond? To consider this question, I drew inspiration from the Financial Times (FT) piece entitled “Work in the 2020s: 5 essential skills to succeed” by Lyndsey Jones. In this article, Jones laid out five areas where workers need to have skills that will keep abreast of the ever-evolving marketplace. They are: (1) Adapt to thrive, (2) Be creative, (3) Develop emotional intelligence, (4) Become tech-savvy, and (5) Build your brand.

Being a compliance professional in the coming decade will be one of the most challenging, rewarding, and exciting professions for anyone to engage in. You have the opportunity to help lead not only your organization but also your profession. To paraphrase Alyson Van Hooser, will you put your (compliance) stake in the ground and own it? For your sake and the sake of the compliance profession going forward, I hope you will do so.

Three key takeaways:

  1. Adapt to thrive as you are only limited by your imagination.
  2. Build your brand and deliver.
  3. Be creative.

For more information, check out The Compliance Handbook, 4th edition, here.

Categories
Innovation in Compliance

2023 Global Business Ethics Survey: Part 2 – Addressing Workplace Misconduct

The Global Business Ethics Survey (GBES) conducted by the Ethics & Compliance Initiative (ECI) provides valuable insights into workplace ethics and compliance from the perspective of employees. Tom Fox recently had the opportunity to visit with ECI CEO Pat Harned on the 2023 GBES. This survey has become a reliable benchmark for organizations to compare their workplace culture with third-party research, allowing them to identify areas for improvement and address potential risks.

Over the past 30 years of GBES research, ECI has identified and proven that certain “outcome” metrics are indicative of the well-being of workplaces from an ethics & compliance perspective. In this, the largest and latest update to the GBES body of research, employees in 42 countries around the world told us that there is reason for concern. In Part 2 of a five-part podcast,  we consider addressing workplace misconduct.

Pat’s views on workplace misconduct have been shaped by her belief in the importance of a strong relationship between employees and their supervisors, which she sees as crucial to encouraging reporting of misconduct and ensuring satisfaction with the outcome. She advocates for training managers to respond supportively to reports and emphasizes the need for organizations to educate employees on the importance of reporting misconduct internally rather than resorting to social media or external agencies. With her extensive research and expertise, Harned has made significant contributions to promoting ethical practices in the workplace. Join Tom Fox and Pat Harned as they delve deeper into this topic on the 2023 GBES podcast.

Key Highlights:

  • Increasing Rates of Workplace Misconduct and Managerial Response
  • Global Reporting Trends in Corrupt Countries
  • The Impact of Supportive Managers on Reporting

Join us in Part 3, where we consider some disturbing findings on retaliation.

Resources

ECI

2023 Global Business Ethics Survey

Blog Post on the 2023 GBES, Part 2

Categories
Adventures in Compliance

The Memoirs of Sherlock Holmes – Silver Blaze

The world of compliance investigations can be complex and challenging, requiring investigators to navigate through a maze of information and uncover hidden truths. In the podcast episode “The Adventure of Silver Blaze” on Adventures in Compliance, host Tom Fox explores the valuable investigative lessons that can be learned from Sherlock Holmes’ approach to solving mysteries. This episode focuses on the story of Silver Blaze, where Holmes uses his attention to detail, deductive reasoning, and pattern recognition skills to solve the case.

One of the key lessons highlighted in the episode is the importance of attention to detail. Holmes emphasizes the need to observe even the smallest details, as seemingly insignificant clues can provide crucial insights. Compliance investigators can apply this lesson by paying attention to every detail, no matter how trivial it may appear. By doing so, they can uncover hidden connections and gather valuable evidence.

Contextual analysis is another important factor in Sherlock Holmes’ investigative approach. Holmes examines the circumstances surrounding the crime and seeks to understand the broader context. He considers various factors, such as the behavior of people involved, the nature of the crime scene, and the motivation of the subjects. This lesson emphasizes the significance of understanding the context and building a comprehensive understanding of any case or investigation.

Deductive reasoning is a skill that Holmes is renowned for. He draws logical conclusions based on the available evidence and eliminates improbable scenarios. Compliance investigators can learn from this approach by using logical thinking to eliminate false leads and narrow down possibilities. By applying deductive reasoning, investigators can focus their efforts on the most relevant areas and make informed decisions.

Sherlock Holmes also emphasizes the value of disguised or unexpected evidence. In the story of Silver Blaze, Holmes notices the absence of expected evidence, such as the dog not barking, and deduces that a certain action was taken. This teaches investigators to look for the presence or absence of evidence that may be disguised or unexpected, as it can provide valuable insights.

Information gathering is a critical aspect of the investigative process, and Holmes emphasizes the importance of gathering information from various sources. He interacts with different characters, collects testimonies from multiple sources, and examines forensic evidence and documents. Compliance investigators can benefit from this lesson by gathering information from diverse sources to obtain a comprehensive understanding of the situation.

Pattern recognition is another skill that Holmes excels at. He is adept at recognizing patterns and connecting seemingly unrelated pieces of information. This ability allows him to identify the truth and solve the case. Investigators should develop pattern recognition skills to identify connections and associations that may lead to crucial breakthroughs. Data analytics can also play a role in pattern recognition, helping investigators find patterns in large amounts of data.

In addition to logical reasoning, Holmes also values intuition and creativity. He is open to unconventional ideas and thinks creatively to explore all possibilities. Compliance investigators can benefit from this lesson by being open-minded and thinking outside the box. Sometimes, unconventional or imaginative approaches uncover hidden insights and provide new perspectives.

Collaboration and consultation are also important aspects of Sherlock Holmes’ investigative approach. Holmes frequently collaborates with others, such as his trusted associate Dr. Watson, to exchange ideas and gain different perspectives. Investigators and compliance professionals can benefit from seeking advice or collaborating with colleagues to enhance their problem-solving skills and uncover new insights.

In conclusion, the episode “The Adventure of Silver Blaze” on Adventures in Compliance highlights the valuable investigative lessons that can be learned from Sherlock Holmes’ approach. Attention to detail, contextual analysis, deductive reasoning, information gathering, pattern recognition, intuition, creativity, collaboration, and consultation are all key factors that impact the effectiveness of applying Sherlock Holmes’ investigative lessons in compliance investigations. By incorporating these lessons into their investigative practices, compliance investigators can improve their ability to solve complex problems and uncover hidden truths.

Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Compliance Through Innovation: Day 6 – Future of Compliance Training

Where is compliance training headed? In the 2020 Update, the DOJ stated, “companies have invested in shorter, more targeted training sessions to enable employees to timely identify and raise issues to appropriate compliance, internal audit, or other risk management functions.” While this tactical solution has proven useful, I wanted to consider the broader compliance training themes that compliance professionals have learned over the past few years to gain insight into where compliance training may be headed. I sat down with Shawn Rogers, Senior Director, Global Ethics & Compliance at Stanley Black & Decker, Inc., to provide some thoughts on the veiled land of the future of compliance training.

Compliance training needs to get to the point where managers and leaders drive compliance training based on how they perceive the risks in their organizations. In other words, an awareness of risks can permeate the organization to such a degree that managers will be able to recognize when their employees need training and can call on the compliance function to provide custom training opportunities.

Three key takeaways:

  1. Business crises almost always begin with a culture failure.
  2. Focus your most detailed training on those employees who are truly high-risk.
  3. This is the “just-in-time” training model that provides training exactly when and where the employee needs the information.

For more information, check out The Compliance Handbook, 4th edition, here.

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Sunday Book Review

Sunday Book Review: October 8, 2023 – The Compliance Books Edition

In the Sunday Book Review, Tom Fox considers 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 Tom. In today’s edition of the Sunday Book Review, Tom reviews four top books on compliance.

1.     Governance, Risk Management & Compliance by Richard Steinberg

2.     Corruption: The New Corporate Challenge by N. Kochan and R. Goodyear

3.     Anti-Money Laundering in a Nutshell: Awareness and Compliance for Financial Personnel and Business Managers by Kevin Sullivan

4.     The Business Guide to Effective Compliance and Ethics: Why Compliance isn’t Working – and How to Fix it by Andrew Hayward & Tony Osborn

Resource

Top 10 Compliance Books by Vivek Dodd