Categories
Innovation in Compliance

Breaking the Silence: How Speaking Up Enhances Corporate Cultures – Tom Fox on the ROI of a Speak Up Culture

Welcome to a special five-part podcast series on enhancing corporate culture through a great speak-up regime. This podcast series is sponsored by Case IQ. Over this series, Tom Fox will visit with Sharlyn Lauby, Jakub Ficner, Kenneth McCarthy, and Meric Bloch on the different facets of a great speak-up regime and how each of those facets will improve your corporate culture. They will tackle such topics as the indicia of a great corporate culture, the importance of triage and internal investigations in improving corporate culture, non-retaliation and protections for those who speak up, tying your entire system of speaking up to improving culture, and conclude with some thoughts on how an entire system of speaking up drives corporate culture to be better run and, at the end of the day, more profitably. In this concluding Part 5, Tom Fox discusses the ROI of a true culture of speaking up.

Strong reporting systems and a robust corporate culture must be balanced in business efficiency. One great academic paper demonstrates how companies with robust whistleblower and reporting systems enjoy greater profitability, increased workforce productivity, and fewer material lawsuits. Tom has seen firsthand the transformative power of a culture of speaking up. He emphasizes that it’s about having a hotline and an entire system with employee engagement. This culture of ‘SpeakUp’ can provide actionable information to prevent, detect, and remediate issues before they become legal violations and can contribute to a functioning and ethical corporate culture. A culture of trust and empowerment ultimately leads to motivated employees who can contribute to business efficiency and greater profitability. Join Tom Fox on this Breaking the Silence: How Speaking Up Enhances Corporate Culture podcast episode to delve deeper into this fascinating topic.

Key Highlights:

  • Academic research
  • Q2C and P2P
  • Material differences

Resources:

Case IQ

Categories
Blog

Improving Your Compliance Program Through a Culture of Speak Up

I recently concluded a podcast series with Case IQ. Over this series, I visited with Sharlyn Lauby, Jakub Ficner, Kenneth McCarthy, and Meric Bloch on the different facets of a great speak-up regime and how each of those facets will improve your corporate culture. We tackled such topics as the indicia of a great corporate culture, the importance of triage and internal investigations in improving corporate culture, non-retaliation and protections for those who speak up, tying your entire system of speaking up to improving culture, and will conclude with some thoughts on how an entire system of speaking up drives corporate culture to be better run and more profitably. This blog post series will expand on these topics. In Part 4, we will consider how to improve your overall compliance program through a robust culture of speaking up with Meric Bloch.

Meric Bloch is passionate about investigations. Meric created the Winter Method® for conducting workplace investigations, a methodology emphasizing root-cause analysis and business-related guidance. The Winter Method is a framework for investigators to consider the business risks created when misconduct arises. He designed, implemented, and managed workplace-investigations processes globally for three multinational companies and a healthcare system. He has trained thousands of HR, internal audit, legal, and compliance professionals to conduct investigations.

Meric has conducted over 800 internal fraud and serious workplace misconduct investigations globally. He has extensive professional experience counseling business executives on the legal and business issues arising from investigations. He is on the faculty of the Society of Corporate Investigations and Ethics’ Investigations and Ethics Academy, as well as a member of its Board of Directors. Finally, Meric is a Certified Fraud Examiner, a Certified Financial Crime Specialist, a Certified Information Privacy Professional – Europe, a Professional Certified Investigator, and a Certified Compliance and Ethics Professional-Fellow.

Workplace investigations are crucial in maintaining a culture of compliance within organizations. Meric, who specializes in training investigators and improving investigation processes, emphasized the need for organizations to create a culture where employees feel comfortable reporting issues and understand their role. He highlighted the challenge of integrating a culture of speaking up within organizations, stating that it goes beyond just setting up a hotline and establishing policies. Instead, organizations need to understand who is speaking up and why.

One of the key points raised by Meric is the importance of making speaking up meaningful and credible. He pointed out that companies often must communicate what should be reported, leading to employee clarity. To address this, organizations need to go beyond generic statements and provide specific guidance on what constitutes a reportable issue. By doing so, employees will better understand their role and the importance of their contribution to maintaining compliance.

Another challenge highlighted by Meric is the need for follow-up interviews and reporter education. He stressed the need for organizations to engage with reporters and gather additional information to understand better the context and potential gaps in the initial report. This not only helps in conducting thorough investigations but also ensures that reporters feel valued and supported throughout the process.

Meric also discussed the importance of addressing friction points within organizations. He mentioned that employees often hesitate to speak up due to concerns about the involvement of headquarters or fear of retaliation. Organizations must actively address these concerns and create an environment where employees feel safe and supported when reporting issues.

Organizations must move beyond passive measures such as hotlines and policies to create a culture of speaking up. They must actively engage with employees, educate them about their role in the process, and provide clear guidance on what should be reported. By doing so, organizations can foster a culture of compliance where employees feel empowered to speak up and contribute to maintaining ethical standards.

The podcast episode highlighted the importance of workplace investigations and employee compliance culture. It emphasized the need for organizations to go beyond superficial measures and actively engage with employees to create a meaningful and credible reporting system. Organizations can build a culture that values integrity and ethical behavior by addressing the challenges associated with speaking up and maintaining compliance.

Join us tomorrow to discuss how a robust culture of speaking up will make your organization run better and have greater profitability.

Listen to Meric Bloch on Innovation in Compliance here.

Categories
Innovation in Compliance

Breaking the Silence: How Speaking Up Enhances Corporate Cultures – Meric Bloch on How a Speak Up Culture Improves Compliance

Welcome to a special five-part podcast series on enhancing corporate culture through a great speak-up regime. This podcast series is sponsored by Case IQ. Over this series, Tom Fox will visit with Sharlyn Lauby, Jakub Ficner, Kenneth McCarthy, and Meric Bloch on the different facets of a great speak-up regime and how each of those facets will improve your corporate culture. They will tackle such topics as the indicia of a great corporate culture, the importance of triage and internal investigations in improving corporate culture, non-retaliation and protections for those who speak up, tying your entire system of speaking up to improving culture, and conclude with some thoughts on how an entire system of speaking up drives corporate culture to be better run and, at the end of the day, more profitably. In Part 4, Tom Fox visits Meric Bloch on how a robust speak-up culture will improve your compliance program.

Meric Bloch is an expert in workplace investigations with a rich background in helping corporate clients establish effective investigation programs. He is currently serving as an adjunct professor at Fordham University Law School. Meric strongly emphasizes the importance of workplace investigations and fostering a culture of employee compliance. He believes that merely setting up a hotline and establishing policies is insufficient; companies must actively engage with employees to understand their motivations for speaking up or remaining silent. Meric also underscores the need for accountability and a critical evaluation of the effectiveness of compliance programs. His experiences with multinational companies have shaped his understanding of their challenges, particularly the fear of being perceived as incompetent and the difficulties in reporting. Join Tom Fox and Meric Bloch on this episode as they dive deep into improving your compliance program through a speak-up culture.

Key Highlights:

  • Enhancing Corporate Investigations for Compliance and Accountability
  • The Impact of Cooperation on Reporters
  • The Impact of Meaningful Speak Up Culture

Resources:

Meric Bloch on LinkedIn

Winter Investigations

Case IQ

Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Written Standards: Day 18 – Policies on Extortion Payments

The next area for policies is extortion payments, which not are made illegal under the FCPA. Extortion payments are made for any action which threatens or demands payment for life, liberty, or health. These should be exempted out from your facilitation payments and your compliance program through specific language. You need to do this for a variety of reasons. First and foremost, your employees must understand that the company will support them if they are in any way threatened with harm, with arrest or physical detention, their health/safety is threatened. As a compliance professional, you need to make sure they understand they need to do whatever they have to do to get themselves out of such a situation.
 Some of the situations your employees might face are along the lines of the following:

  • Employees are stopped by police, military or paramilitary personnel, or militia (uniformed or not) at designated or other checkpoints or other places and a payment is demanded as a condition of passage of persons or property;
  • Employees are stopped at the airport by customs or passport control personnel or military personnel and a payment is demanded for entry or exit of persons or property; or
  • Employees are asked by persons claiming to be security personnel, immigration control, or health inspectors to pay for an allegedly required inoculation or other similar procedure.

The key though is that it be properly documented. But more than simply the documentation is that you must specifically list extortion payments in your books and records, so you will not be suspected with hiding them by describing them as something else. The key is to train your employees specifically on the actions to take. In your policy, state that if there is a threat to health, safety or liberty, it is not a facilitation payment but an extortion payment. Make sure that they understand what their rights are and what their obligations are to report it when they come back to the corporate office or their office. Always remember, an extortion payment is not a FCPA violation.

Three key takeaways:

  1. Extortion payments are not illegal under the FCPA.
  2. Was the action an extortion or some other type of situation?
  3. “Document, Document, and Document” your extortion payments, both the financial component and a description of the underlying events.

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

Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Written Standards: Day 17 – Policies for Third-Parties

As every compliance practitioner is well aware, third-parties still present the highest risk under the FCPA. The DOJ 2023 ECCP devotes an entire prong to third-party management. It begins with the following: A well-designed compliance program should apply risk-based due diligence to its third-party relationships.  Although the degree of appropriate due diligence may vary based on the size and nature of the company or transaction, prosecutors should assess the extent to which the company has an understanding of the qualifications and associations of third-party partners, including the agents, consultants, and distributors that are commonly used to conceal misconduct, such as the payment of bribes to foreign officials in international business transactions.
This set of queries clearly specifies the DOJ expects an integrated approach that is operationalized throughout the company. This means your compliance program must have a process for the full life cycle of third-party risk management. There are five steps in the life cycle of third-party management: 1) business justification; 2) questionnaire to third-party; 3) due diligence on third-party; 4) compliance terms and conditions, including payment terms; and 5) management and oversight of third parties after contract signing.
I continually give my mantra of compliance, which is “Document, Document, and Document”. Each of the steps you take in the management of your third parties must be documented. Not only must they be documented but they must be stored and managed in a manner that you can retrieve them with relative ease. The management of third parties is absolutely critical in any best practices compliance program.

Three key takeaways:

  1. Use the full five-step process for third-party management.
  2. Make sure you have Business Development involvement and buy-in.
  3. Operationalize all steps going forward by including business unit representatives.

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

Categories
Innovation in Compliance

Breaking the Silence: How Speaking Up Enhances Corporate Cultures – Jakub Ficner on How Triage and Investigations Can Drive a Culture of Speak Up

Welcome to a special five-part podcast series on enhancing corporate culture through a great speak-up regime. This podcast series is sponsored by Case IQ. Over this series, Tom Fox will visit with Sharlyn Lauby, Jakub Ficner, Kenneth McCarthy, and Meric Bloch on the different facets of a great speak-up regime and how each of those facets will improve your corporate culture. They will tackle such topics as the indicia of a great corporate culture, the importance of triage and internal investigations in improving corporate culture, non-retaliation and protections for those who speak up, tying your entire system of speaking up to improving culture, and conclude with some thoughts on how an entire system of speaking up drives corporate culture to be better run and, at the end of the day, more profitably. In Part 3, Tom Fox visits with Jakub Ficner on the importance of your triage protocol and investigative process to foster a culture of speaking up.

Jakub Ficner has over 15 years of experience in the internal investigative space and is currently the Director of Partnership Development at Case IQ. He strongly advocates for the importance of the triage process and technology in organizational compliance. Jakub emphasizes the need for a rigorous reporting, triage, and investigation process, even before receiving a complaint or allegation. He believes that effective means of documenting and tracking investigative processes are crucial for establishing accountability and defensibility in compliance processes. Drawing from his extensive experience, Jakub highlights the significance of having a documented process, especially for multinational companies with compliance officers in various regions. He recommends using technology, such as a case management solution, to ensure accountability, defensibility, and easy information retrieval. Join Tom Fox and Jakub Ficner on this episode as they delve deeper into these topics of triage and investigations.

 Key Highlights:

  • The importance of effective triage
  • Improving Response Time and Setting Expectations
  • Effective Compliance Documentation and Tracking
  • Using Technology to Establish Accountability and Defensibility

Resources:

Jakub Ficner on LinkedIn

Case IQ

Categories
Into the Chair - Tales from Chief Compliance Officers

Into the Chair, Tales from Chief Compliance Officers: Discovering a Passion for Compliance – Mario Chilin’s Journey into the CCO Chair

Welcome to the latest edition to the Compliance Podcast Network: Into the Chair: Tales from Chief Compliance Officers details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to successfully navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Into the Chair: Tales from Chief Compliance Officers is a Comply podcast hosted by Tom Fox and is a production of the Compliance Podcast Network. In this episode, I visit with Mario Chilin the Chief Compliance Officer at EP Wealth Advisors.

Mario Chilin is a seasoned professional in the compliance field, boasting a robust background in the financial industry, with degrees from California State University and Pennsylvania State University, and a paralegal certificate from Cerritos College. His perspective on his career in compliance is overwhelmingly positive, having discovered a passion for the field while working at the Bank of Tokyo Mitsubishi. Despite the challenges he faces as a Chief Compliance Officer, such as limited resources and the growing threat of cybersecurity, Chilin remains dedicated to his profession. His experiences, from working in operations during the 2008 financial crisis to his current role at EP Wealth Advisors, have only fueled his belief that others who delve into compliance will find the same passion and excitement. Join Tom Fox and Mario Chilin as they delve deeper into this topic on the next episode of the Into the Chair podcast.

Key Highlights

·      Unexpected Paths to a Successful Compliance Career

·      Navigating the Regulatory Side of Finance

·      Maximizing Resources and Cybersecurity: Compliance Officer Challenges

Resources

Mario Chilin on LinkedIn

EP Wealth Advisors

Comply

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31 Days to More Effective Compliance Programs

One Month to More Effective Written Standards: Day 16: Policies on Facilitation Payments

From the information provided by the DOJ in Opinion Releases and in enforcement actions, there are several different insights which may be drawn on regarding what should go into your policy on facilitation payments. Do not forget that facilitation payments must be accurately shown on the books and records of your company. In all cases the employee who requested permission to make the facilitation payment must be responsible for obtaining all required approvals and forwarding a copy of the approvals and any other relevant supporting documentation as required, so that the it is recorded as a facilitation expense in the books and records and maintained in a central file. Facilitation payments should not be recorded as consulting fees, entertainment expenses, or other types of expenses that may misrepresent the true nature of the payments.
There may be emergency situations when it will be difficult or impossible for employees to obtain approvals before having to decide whether or not to pay a facilitation payment. If the facilitation payment is made in an emergency, the employee reports the facilitating payment to the compliance department and explains the emergency as soon as practical after making the facilitation payment.

Three key takeaways:

  1. What was the amount of the facilitation payment?
  2. Was the action truly routine?
  3. How high up was the government official who received the facilitation payment? Was his or her decision discretionary?

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

Categories
Innovation in Compliance

Breaking the Silence: How Speaking Up Enhances Corporate Cultures – Kenneth McCarthy on Non-Retaliation and Protections for Those Speak Up

Welcome to a special five-part podcast series on enhancing corporate culture through a great speak-up regime. This podcast series is sponsored by Case IQ. Over this series, Tom Fox will visit with Sharlyn Lauby, Jakub Ficner, Kenneth McCarthy, and Meric Bloch on the different facets of a great speak-up regime and how each of those facets will improve your corporate culture. They will tackle such topics as the indicia of a great corporate culture, the importance of triage and internal investigations in improving corporate culture, non-retaliation and protections for those who speak up, tying your entire system of speaking up to improving culture, and conclude with some thoughts on how an entire system of speaking up drives corporate culture to be better run and, at the end of the day, more profitably. In Part 2, Tom Fox visits with Kenneth McCarthy on the importance of non-retaliation and protections for those who speak up.

Kenneth McCarthy is a seasoned professional with a diverse background in government and entrepreneurship and a wealth of experience in handling whistleblowers, including sexual harassment cases. Kenneth’s perspective on addressing sexual harassment retaliation and encouraging reporting in workplaces is rooted in his belief in the importance of non-retaliation protocols and processes. He emphasizes the need to create a safe and supportive environment for individuals to report concerns, particularly in cases of sexual harassment. Drawing from personal experiences, he has seen the damaging effects of retaliation on individuals’ willingness to speak up and the potential legal and reputational implications for employers who fail to protect whistleblowers. Join Tom Fox and Kenneth McCarthy as they delve deeper into this topic in this episode.

 Key Highlights:

  • Systemic Retaliation in Sexual Harassment Cases
  • Creating a Safe Reporting Environment
  • The Crucial Role of Empowered Bystanders
  • Encouraging Bystanders: Protecting and Supporting Witnesses

Resources:

Kenneth McCarthy on LinkedIn

Integrity by McCarthy

Case IQ

Categories
Blog

What is a Speak Up Culture?

I recently concluded a podcast series with Case IQ. Over this series, I visited with Sharlyn Lauby, Jakub Ficner, Kenneth McCarthy, and Meric Bloch on the different facets of a great speak-up regime and how each of those facets will improve your corporate culture. We tackled such topics as the indicia of a great corporate culture, the importance of triage and internal investigations in improving corporate culture, non-retaliation and protections for those who speak up, tying your entire system of speaking up to improving culture, and will conclude with some thoughts on how an entire system of speaking up drives corporate culture to be better run and, at the end of the day, more profitably. This blog post series will expand on these topics. In Part 1, I visited with Sharlyn Lauby to learn about the speak-up culture.

Sharlyn is the author of HR Bartender and president of ITM Group Inc., a Florida-based training and human resources consulting firm focused on working with companies to retain and engage talent. She sees human resources as a strategic partner—the marketing department for a company’s internal clients—rather than an administrative one. During her 20+ years in the profession, she earned a reputation for bringing business solutions to reality. Her areas of expertise include organizational development, training, employee relations, and job design. She has a broad knowledge of workplace social media, strategic planning, and recruitment. And I’m skilled in new program design, project management, and human resources compliance.

In this concept of fostering a speak-up culture, we explored the workplace. A speak-up culture is a work environment where open communication is encouraged, fostering trust and innovation. This culture is built on leadership that values listening and employee involvement in problem-solving. One of the key factors in fostering a speaking-up culture is protecting employees from retaliation. Anti-retaliation policies and procedures, training for middle managers, and a consistent, transparent process for investigating concerns are crucial to maintaining this culture. The fair process doctrine, which emphasizes transparency, consistency, and protection from retaliation, plays a significant role in building trust, encouraging engagement, and enhancing the overall organizational culture.

Sharlyn highlighted the importance of addressing negative concerns and encouraging employees to share their ideas with management. When employees feel empowered to contribute their ideas, it can lead to significant positive outcomes for the organization. Sharlyn shared a powerful example of an organization that faced a budget challenge and involved employees in finding solutions. By offering incentives for revenue-raising or cost-saving ideas, the company not only met its budget goals but exceeded them, generating $5 million in savings. This story illustrates the potential for great things when organizations listen to their employees and value their input.

However, fostering a speak-up culture goes beyond just listening. It requires implementing policies and procedures to protect employees who have the courage to speak up. Employees need to feel confident that their concerns will be taken seriously and properly investigated. This is crucial for building trust and ensuring that employees feel comfortable bringing forward their concerns. Retaliation should never be tolerated, and organizations must make it clear that it will not be accepted under any circumstances.

Middle managers play a vital role in fostering a speak-up culture. They need to be trained to listen, accept information, and report it to the appropriate channels. Middle managers should also support employees throughout the process, helping them navigate any challenges they may face. Building relationships with managers is essential, as it encourages open communication and creates an environment where managers feel comfortable seeking guidance when needed.

Consistency and transparency in the investigation process are also key components of a speak-up culture. Organizations must have a clear process in place for investigating concerns, and employees should be aware of this process. When employees know that their concerns will be taken seriously and investigated, it builds confidence in the organization and encourages them to speak up when necessary.

The Department of Justice has emphasized the importance of consistency and transparency in investigations, as they contribute to institutional justice and fairness within a corporation. Organizations must communicate to employees that concerns will be thoroughly investigated, regardless of the number of ongoing investigations at any given time. This ensures that employees feel heard and that their concerns will be addressed appropriately.

In conclusion, fostering a speak-up culture in the workplace is crucial for building trust, encouraging engagement, and enhancing the overall organizational culture. It requires leadership that values listening and employee involvement, as well as policies and procedures to protect employees from retaliation. Middle managers play a vital role in supporting employees and facilitating open communication. Consistency and transparency in the investigation process are essential for building trust and ensuring that employees feel comfortable bringing forward their concerns. By fostering a speak-up culture, organizations can create an environment where employees feel empowered to contribute their ideas and make a positive impact on the workplace.

Join us tomorrow when we take up non-retaliation and protections for those who speak up.

Listen to Sharlyn Lauby on Innovation in Compliance here.