Tag: compliance

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31 Days to More Effective Compliance Programs

One Month to Better Reporting and Investigations – Selection of Investigative Counsel

Dan Dunne, in a Compliance and Ethics Professional article, entitled “Foxes and henhouses: The importance of independent counsel”, discussed what he termed a “critical element” in any investigation, which he denominated as “fair and objective evaluation.” Dunne wrote that a key component of this fair and objective evaluation is the Who question: who should supervise the investigation and who should handle the study? Dunne’s clear conclusion is that independent counsel should handle any serious investigation.

There are three reasons for a company to retain independent counsel for internal investigations of severe whistleblower complaints. First, André Agassi was right, perception is reality. Secondly, if regular outside counsel investigates their own prior legal work or legal advice, a very large and potentially messy number of loyalty and privilege issues can arise in the internal investigation. The third reason is the relationship of the regular outside counsel or law firm with regulatory authorities. If a company’s regular outside counsel performs the internal investigation and the results turn out favorably for the company, the regulators may ask if the investigation was a whitewash or at the very least, less than robust. If the SEC or DOJ cannot rely on a company’s own internal investigation, it may perform the investigation all over again with its own personnel. Further, these regulators may believe that the company, and its law firm, have engaged in a cover-up. This is certainly not the way to buy credibility.
Three key takeaways:

  1. Serious allegations demand a serious response, with seriously good lawyers leading the investigation.
  2. Credibility is the biggest thing that any person or company brings to the table when sitting across from the DOJ or SEC.
  3. The use of regular corporate counsel can negatively impact your investigation because of the issues of loyalty and privilege.

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

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Blog

Miranda Zolot on the Distributed Workforce

As companies across the globe look to expand their workforce, many are turning to a distributed remote work model. This model has become even more popular due to the pandemic, and many companies are now more comfortable with remote work. But with this shift to a distributed workforce comes new challenges, such as how to convey culture and expectations to a worker across the globe.

Tom Fox and Miranda Zolot of Oyster, an EOR company, recently discussed this issue. Tom, an employment lawyer, and Oyster’s first employee, believes that culture is key to worker engagement and worker engagement is key to efficiency and effectiveness. He suggests that companies should be purposeful about creating a culture in a distributed environment, and Oyster has a culture of radical transparency, encouraging employees to ask hard questions publicly of the leadership. Oyster is mission-driven, with people joining the company to be part of the change, and the company works with customers to help them share information internally and add social activities and affinity groups into their work environments.

Oyster is a platform that helps customers hire talent from around the world. Customers go through their normal process for hiring and then log onto the Oyster platform to put the information for the individual in the platform and press Go. Oyster provides a contract for the individual to sign, gets them signed up for benefits, and automates the process in the bulk of countries where they operate. The company also offers HR consulting to help customers understand what they’re looking for and suggest where they might look for that talent. Oyster’s website provides information on labor laws, salary ranges, and leaves required in different countries. In the US, employers have to deal with about 60 to 70 jurisdictions, while in the international arena, things are different with worker’s protections, works councils, guaranteed bonuses, and benefits.

Zolot, an employment lawyer who has worked in law firms and in-house for clients from the hospitality industry, steel manufacturers, potato chip manufacturers, and retail, as noted, is the General Counsel. She and Tom translate complex employment laws into a common language. Oyster’s mission is to bring meaningful work to people in different geographies, and the website offers resources for people looking for remote work and companies looking to hire remotely. Oyster Academy offers remote best practices and helps people present themselves to the market as ready for remote work, and the company also offers a misclassification analyzer, salary information, country guides, and open policies and handbooks. Oyster’s website and LinkedIn page have resources and information about remote work.

Cross-border hiring is becoming more popular due to market forces. Companies are looking for ways to hire workers at a lower cost than in the US or UK, and workers are excited to work for a higher salary than they would make in their local market. With Oyster, companies can navigate country labor laws by providing information on law changes and benefits. This helps companies save money while still finding quality talent.

In conclusion, the current distributed model of remote work is becoming more popular, and companies need to be aware of the challenges that come with it. Tom and Miranda believe that culture is key to worker engagement, and companies should be purposeful about creating a culture in a distributed environment. Oyster offers resources to people looking for remote work and companies looking to hire remotely, and the company helps customers navigate country labor laws by providing information on law changes and benefits. With the help of Oyster, companies can find the right workers for their particular job in a compliant and cost-effective way.

For the compliance professional, the critical element will be conveying your corporate culture to those who may live and work in countries outside your home base of operations. Moreover, you must both write policies and procedures for such employees and then train and monitor their compliance with those said policies and procedures. The distributed workforce is here to stay. Are you ready now for it? If not, how, when, and where will you get ready? The clock is ticking.

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Adventures in Compliance

Adventures in Compliance – Lessons from A Case of Identity

Welcome to a review of all the Sherlock Holmes stories which are collected in the work, “The Adventures of Sherlock Holmes.” They appeared in the Strand Magazine from July 1891 to June 1892. Over the 12 episodes, I will be reviewing each story and mine them for leadership, compliance, and ethical lessons. “A Case of Identity” was published in the Strand Magazine in August 1891 and is the third story in the collection of “The Adventures of Sherlock Holmes”.

Summary

In this case, Mary Sutherland, a typist, approaches Holmes for help after her fiancé, Mr. Hosmer Angel, mysteriously disappears on the day they were to be married. Holmes agrees to take the case. Sutherland gives Holmes a few letters written by Angel, and Holmes quickly observes that they were written on a typewriter, odd for a personal letter. Also, the writing style was similar to the letters of her stepfather, James Windibank.

As Holmes investigates, he deduces that Hosmer Angel does not exist and is, in fact, an alternate identity created by Mary’s stepfather, James Windibank. The motive for this strange charade was financial. Mary’s stepfather didn’t want to lose the income he gained from her, as her late mother left her a significant annual income which would be redirected upon her marriage.

The stepfather, who was young enough to pass as a man of Mary’s age, concocted the alternate identity to court Mary and then conveniently disappear to maintain control over Mary’s income. Holmes, however, decides not to reveal the truth to Mary to save her from further heartbreak. He suggests that Angel was a scoundrel who did not deserve her, leaving her to hope that Angel might return one day.

Compliance Lessons

1.         Empathy: Holmes was able to solve the case of identity by putting himself in the shoes of the victim and understanding her perspective. Leaders should also have empathy and be able to understand the perspectives of their colleagues, employees, or customers.

2.         Observation: Holmes used his powers of observation to gather information and uncover the truth behind the case of identity. Leaders should also be observant and pay attention to the details, as they can provide valuable insights.

3.         Problem-solving skills: Holmes used his problem-solving skills to solve the case and bring justice to the victim. Leaders should also be effective problem-solvers and should be able to find creative solutions to challenges.

4.         Communication skills: Holmes communicated effectively with the victim and the other characters in the story, and he was able to get the information he needed to solve the case. Leaders should also have strong communication skills, as they are crucial for building relationships and achieving success.

5.         Respect for the law: Throughout the story, Holmes showed respect for the law and acted within the bounds of the legal system. Leaders should also respect the law and act ethically, as they set an example for others and maintain the integrity of their organization.

Resources

The New Annotated Sherlock Holmes

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31 Days to More Effective Compliance Programs

One Month to Better Reporting and Investigations – Preparing for the Investigation

Under Part 1, Section D. Confidential Reporting Structure and Investigation Process stated in part, Properly Scoped Investigation by Qualified Personnel –What steps does the company take to ensure investigations are independent, objective, appropriately conducted, and properly documented? How does the company determine who should conduct research, and who makes that determination? These questions were presaged by the DOJ’s 2015 Yates Memo and the 2016 FCPA Pilot Program. The pressure on every CCO and company to get an investigation done quickly, efficiently and, most importantly, right is even greater now.
Jonathan Marks began by cautioning that when considering any well-run internal investigation, a CCO must be cognizant of the strictures laid out in the Evaluation. It all begins with who in-house is looking at the complaint and does the CCO, compliance practitioner, or legal team have the skills and capabilities to handle the matter which has arisen. Obviously, if there are esoteric accounting issues or significant internal control workarounds and overrides, a CCO may not have the skills to really understand all the issues. Similarly, if the matter is a global FCPA or equivalent bribery and corruption matter, Marks related, these “come in different flavors, and because they come in different flavors you may not have the skills or capabilities to do an investigation that would take place in say Brazil or Russia or China or India.”

Three key takeaways:

  1. Always remember your ultimate audience may be the government.
  2. You must understand both the business environment and extended business enterprise.
  3. Communication and collaboration in any investigation are critical so you should begin early and continue to do so throughout the investigation.
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10 For 10

10 For 10: Top Compliance Stories For the Week Ending July 15, 2023

Welcome to 10 For 10, the podcast which brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes hear about the stories every compliance professional should be aware of from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

·       EU-US agree on data sharing pact. (NYT)

·       Max Schrems slams back, vows legal challenge.  (Reuters)

·       Labor Party to back global ABC court. (The Guardian)

·       Chinese ABC probe moves to advanced stage.  (FT)

·       Did a sheriff’s corruption lead to a mass shooting? (Houston Chronicle)

·       Is your company investing in China?  (NYT)

·       Alleged fraudster said customers devised the fraud. (FT)

·       UK AML regime ‘not fit for purpose’.  (FT)

·       BOA has its own fake accounts scandal. (Radical Compliance)

·       Merrill Lynch to pay $12MM fine for failure to report.  (WSJ)

You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.

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Blog

Mastering ChatGPT: Business Uses

Join us as we dive into the world of ChatGPT and discover how this powerful tool can revolutionize your business. Today we conclude our five-part blog post series on Mastering ChatGPT. In today’s final blog post, we look at how you can incorporate ChatGPT into various business uses for any organization. As always, I was joined in this exploration by Larry Roberts, CEO of Red Hat Media.

The transformative power of artificial intelligence tools in business processes is an unfolding narrative that every professional should be aware of. These tools, taking center stage in customer service and decision-making processes, are poised to shape the future of business operations. Businesses can offer superior customer service while making data-driven decisions by using AI for things as varied as content generation to data analytics. The result is a significant leap in customer satisfaction and a more nimble operational procedure.

Chat GPT and SEO Content Creation

In the digital era, Search Engine Optimization (SEO) is crucial in enhancing businesses’ online visibility. AI, like Chat GPT, data analysis, and content creation, could improve a company’s SEO strategy, increasing discoverability and driving more organic traffic to their platforms.  Larry’s insight into data analytics and decision-making and Chat GPT provided a new perspective on SEO content creation. He recognized the tool’s potential to analyze content and aid in data analytics through its API, although he cautioned that it may not be the most effective out-of-the-box solution for analytics.

Chat GPT and SEO Content Creation

In the digital era, Search Engine Optimization (SEO) is crucial in enhancing businesses’ online visibility. AI, like Chat GPT, data analysis, and content creation, could improve a company’s SEO strategy, increasing discoverability and driving more organic traffic to their platforms.  Larry’s insight into data analytics and decision-making and Chat GPT provided a new perspective on SEO content creation. He recognized the tool’s potential to analyze content and aid in data analytics through its API, although he cautioned that it may not be the most effective out-of-the-box solution for analytics.

Understand and Define Customer Needs

Who in a corporation is your customer? If you are in the compliance function, it is the employees and other stakeholders. This means identifying and defining customer needs is a fundamental step in tailoring your operations to meet your audience’s expectations. A deep understanding of what your customers need and prefer enables you to build products or services that resonate with them. Not only will this step increase customer satisfaction, but it also paves the way for more efficient and effective business operations. The action involves conducting meticulous research and surveys to collect invaluable data, allowing businesses to step into their customers’ shoes and view their operations from a customer’s perspective.  Just change the word customer to employee.

Customer Service

Sticking with the insight that your compliance customers are your employees, in the world we live in today, consistent advancement in technology brings about powerful tools businesses can use to enhance their operations. One such tool is the application of artificial intelligence (AI) in customer service. AI has presented a massive potential for improving how businesses interact with their clients, making processes faster, better, and more efficient. One critical aspect is deploying AI tools like ChatGPT to deliver efficient customer service interactions. These tools can be incorporated into platforms to provide automatic responses to customer inquiries promptly and accurately.

Chat GPT in Email Communication

Email communication remains a vital element of business operations. AI tools like ChatGPT can enhance this aspect of the business by automating tasks such as summarizing lengthy emails or drafting responses. AI can significantly save time and increase overall productivity for businesses.  From his professional experiences, Larry commended how ChatGPT could be utilized in email communication. The tool’s ability to summarize extensive emails and draft others based on inputs underscores its potential to streamline professional communication processes.

But remember, simply implementing ChatGPT does not guarantee success—it requires perseverance, adaptability, and continuous improvement. By staying committed to refining and optimizing the use of ChatGPT, businesses can unlock their full potential and achieve remarkable results. So, dive in, explore the possibilities, and witness the transformative impact ChatGPT can have on your business.

In an increasingly digital age, leveraging AI technology to enhance customer service and improve decision-making is a crucial advantage for business professionals. Central to this is understanding and defining customer needs, allowing personalized products and services. Further, using AI tools like ChatGPT for customer service can provide prompt and efficient responses to customer inquiries. Coupled with machine learning for content generation, this can significantly boost a business’s marketing efforts. Additionally, ChatGPT can aid in data analytics, underscoring the importance of data in driving business decisions. With this knowledge, you can embark on a journey toward business transformation, leading to higher customer satisfaction and operational efficiency.

For more information on Larry Roberts, check out Red Hat Media.

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Compliance and AI

Mastering ChatGPT: Part 5 – Business Uses for ChatGPT

Welcome to a special five-part podcast series on mastering ChatGPT. My special guest throughout this journey is Larry Roberts, an accomplished professional with over 25 years of multifaceted experience. Having initiated his career in the corporate training sphere, he exhibited a remarkable shift to IT, contributing greatly as a Business Intelligence Analyst. His proficiency in harnessing predictive analytics for inventory and sales projections led him to tap into the realm of AI. In 2021, Larry chose to cozy up with podcasting and content creation. His journey with ChatGPT began in November of the same year, and he has been fully engrossed with it since then. His insights into data models, large language models, and his overall passion for AI are certain to illuminate any forum. In this concluding Episode 5, we set out some strategies for streamlining business operations using ChatGPT.

The transformative power of artificial intelligence tools in business processes is an unfolding narrative that every professional should be aware of. These tools, taking center stage in customer service and decision-making processes, are poised to shape the future of business operations. Businesses can offer superior customer service while making data-driven decisions by using AI for things as varied as content generation to data analytics. The result is a significant leap in customer satisfaction and a more nimble operational procedure.

In this episode, you will be able to:

  • Understand the scale of AI’s impact on boosting operational efficiency and refining decision-making across sectors.
  • Navigate the ethical quandaries surrounding AI, elucidating the need for transparency, accountability, and human vigilance.
  • Explore the exciting trajectory of AI, delving into the game-changing phenomena of deep learning and neural networks.
  • Dispel fears and myths about AI’s impact on employment, focusing on the promise of reskilling and upskilling.
  • Grasp the capabilities of AI to supercharge human capacities, ushering in a new era of augmented intelligence and unprecedented creativity.

Key Highlights:

  • Machine Learning and ChatGPT
  • ChatGPT in Marketing and Advertising
  • ChatGPT in Email Communication
  • ChatGPT and SEO Content Creation

Resources:

  •  Larry Roberts

Larry Roberts on LinkedIn

Red Hat Media

  •  Tom Fox

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Report from IMPACT 2023

Report from IMPACT 2023 – Ronnie Feldman – Engaging a Global Workforce: Creative Solutions

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, 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 with Ronnie Feldman, founder of Learning and Entertainments.

Tom and Ronnie discuss using creative solutions to engage remote employees, such as short commercials and social media style content. They chatted about corporate social responsibility and how to engage a global, multicultural workforce. Ronnie believes that e-Learning is mostly ineffective, long, and boring, and suggests using animation, music, and custom videos with real people in their language as creative solutions. Tom recommends pushing out a video of a certain style for a couple of weeks, then trying a different video of the same style for a couple of weeks, knowing that over time, more people will be engaged. They also discussed the importance of content being interesting, positive, and culture-based, but not preachy.

 Highlights include 

·      Global Engagement Strategies

·      Engaging Remote Employees

·      Creating Video Content 

Resources 

Connect with Ronnie Feldman on LinkedIn

Learnings and Entertainments

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31 Days to More Effective Compliance Programs

One Month to Better Reporting and Investigations – The Investigation Protocol

After the internal report comes in and you have properly triaged the matter, you need to scope out and investigate it, promptly, thoroughly, and with competent personnel. In the 2020 Update, provided these series of questions about your internal investigations:
 Properly Scoped Investigations by Qualified Personnel – How does the company determine which complaints or red flags merit further investigation? How does the company ensure that investigations are properly scoped? What steps does the company take to ensure investigations are independent, objective, appropriately conducted, and properly documented? How does the company determine who should conduct an investigation, and who makes that determination?
 Investigation Response – Does the company apply timing metrics to ensure responsiveness? Does the company have a process for monitoring the outcome of investigations and ensuring accountability for the response to any findings or recommendations?
 Resources and Tracking of Results – Are the reporting and investigating mechanisms sufficiently funded? How has the company collected, tracked, analyzed, and used information from its reporting mechanisms? Does the company periodically analyze the reports or investigation findings for patterns of misconduct or other red flags for compliance weaknesses? Does the company periodically test the effectiveness of the hotline, for example by tracking a report from start to finish?

In a presentation, Jay Martin, and Jacki Trevino discussed the specifics of an investigation protocol. It consisted of 1) opening and categorizing the case; 2) planning the investigation; 3) executing the investigation plan; 4) determining appropriate follow-up, and 5) closing the case. If you follow this basic protocol, you should be able to work through most investigations, in a clear, concise, and cost-effective manner. Furthermore, you should have a report at the end of the day which should stand up to later scrutiny if a regulator comes looking. Finally, you will be able to “Document, Document, and Document”, not only the steps you took but why and the outcome obtained.
Three key takeaways:

  1. A written protocol, created before an investigation, is a key starting point.
  2. Create specific steps to follow so there will be full transparency and documentation going forward.
  3. Consistency in approach is critical.
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Compliance and AI

Mastering ChatGPT: Part 4 – Unraveling the Differences Between AI and Human Creativity in Writing

Welcome to a special five-part podcast series on mastering ChatGPT. My special guest throughout this journey is Larry Roberts, an accomplished professional with over 25 years of multifaceted experience. Having initiated his career in the corporate training sphere, he exhibited a remarkable shift to IT, contributing greatly as a Business Intelligence Analyst. His proficiency in harnessing predictive analytics for inventory and sales projections led him to tap into the realm of AI. In 2021, Larry chose to cozy up with podcasting and content creation. His tryst with ChatGPT began in November of the same year, and he has been fully engrossed with it since then. His insights into data models, large language models, and his overall passion for AI are certain to illuminate any forum. Episode 4 considers the differences between AI and human creativity in writing.

 

Educators, teachers, and communicators must be included as we confront the digital age. The rise of AI in education, epitomized by tools like ChatGPT, opens new frontiers in delivering accessible, affordable, and advanced learning experiences. However, this has complexities. There are pertinent steps to be taken – setting clear expectations, aligning AI with institutional policies, maximizing the collaborative capabilities of AI, and ensuring human oversight in AI implementation. By so doing, we can create an enriching learning environment that contributes positively to personal and professional development. This episode explores these issues and how they will impact compliance training and communications.

In this episode, you will be able to:

  • Unlock key strategies to optimize your use of ChatGPT.
  • Acknowledge the importance of crafting a suitable persona and forming the right stage for elevated outcomes.
  • Unravel the issues corporate compliance functions may encounter while using ChatGPT, shedding ample light on effective solutions.
  • Learn how one can effectively utilize ChatGPT in making speeches and presentations.
  • Prognosticate the prospective impacts of ChatGPT and AI on the future compliance training landscape.

Key Highlights:          

  • Setting Expectations
  • Limitations for Corporations
  • Leveraging Chat GPT for training
  • The Human Element and AI

Resources:

Larry Roberts

Larry Roberts on LinkedIn

Red Hat Media

Tom Fox

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