Tag: compliance

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Creativity and Compliance

Creativity and Compliance – Creativity in Training and Communications at Starbucks

Where does creativity fit into compliance? In more places than you think. Problem-solving, accountability, communication, and connection – all take creativity. Join Tom Fox and Ronnie Feldman on Creativity and Compliance, part of the award-winning Compliance Podcast Network.

Ronnie’s company, Learnings and Entertainment, utilizes the entertainment devices that people use to consume information in their everyday, non-work lives, and apply it to essential topics around compliance and ethics. It is not only about being funny. It is about changing the tone of your compliance communications and messaging to make your compliance program, policies, and resources more accessible. Today Ronnie and Tom are joined by Len Larsen, Manager, Ethics and Compliance, and Cory Macdonald, Learning Manager, Ethics and Compliance. Both are at Starbucks in Ethics and Compliance.

The Ackerman principle of innovate, elevate, and educate was the focus of the conversation between Len & Cory and Tom & Ronnie, on the importance of addressing microaggressions in the workplace. They discussed the need for managers to have the necessary soft skills to have difficult conversations and create a speak-up culture in the workplace. They also discussed the importance of intent versus impact, the need for trust between managers and their employees, and the need for companies to provide role-playing and other training to help managers learn how to have difficult conversations. Finally, they discussed the need for companies to be comfortable with the discomfort of trying something new and be willing to pivot if it doesn’t work out.

Key Highlights

·      Soft Skills Training

·      Managing Difficult Conversations

·      Manager Behavior

·      Innovate, Elevate, Educate

·      Microaggressions in Workplace

·      Coaching First-Time Employees

·      Speaking Up

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Ronnie

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Report from IMPACT 2023

Report from IMPACT 2023 – Andrew Weissmann – Compliance Rules from the DOJ Perspective

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 Andrew Weissmann, former head of the DOJ Fraud Section and current Podcaster and author.

The Department of Justice has been working to ensure that companies understand the rules of the road and what is expected of them to comply with the law. Tom Fox and Andrew Weissmann discussed the evolution of compliance programs from the Department of Justice’s perspective, the dialogue between the Department of Justice and the compliance community, the FCPA Pilot Program, the ABB FCPA Enforcement Action, and the need to use different forms of media to ensure that people are consuming the right information. They highlighted the importance of self-disclosure, extraordinary cooperation, and extraordinary remediation to receive a stunning result from the Department of Justice. Furthermore, they discussed the need to educate people in a variety of ways, such as Twitter, podcasts, articles, and op-eds, to ensure that policies are read and consumed. This podcast episode provides an insightful look into the Department of Justice’s approach to compliance and the need for different forms of media to ensure that people are informed.

Highlights include 

·      Compliance Evolution

·      Compliance Education

·      FCPA Recidivism

Resources 

Andrew Weissmann

Prosecuting Donald Trump podcast

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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Specific Benefits of a Hotline: A Case Study

Is your hotline working for you? In an article, entitled, Promoting Effective Use of the Company Compliance Hotline, José Tabuena provided an excellent example of the power of a hotline. He provided a case study of a company that had not integrated its IT function into its regular compliance and ethics training programs. As such there were zero calls into the hotline by IT employees. This dynamic was changed and IT was integrated into the company’s regular compliance and ethics training. Thereafter, the hotline received several calls from IT employees indicating that there were two major areas of complaints.

The favoritism problem. HR led an investigation that included questioning all IT managers about their direct reports and employees of their unit. The company determined that there was only one instance of a manager hiring a family member (a brother-in-law), but that person did not report to the manager and was in a different section of the IT organization. This finding made clear that there were misperceptions in the IT department, which affected the department’s morale.

Manipulation of data for bonuses. The company used the hotline to obtain more information from the callers on “isolating the metrics and the managers in question.” It was determined that the bonuses of a select few IT managers were indeed influenced by a questionable data source, which was controlled by a non-manager with minimal oversight and controls.

Basic tenets of an effective hotline. This case study provided three key tenets of an effective internal reporting system:

• First, a helpline is of no value if the workforce is not aware of it.

• Second, the ethics and compliance office obtained support from the Chief Information Officer (CIO) which likely influenced the success of the training and communications delivered by the ethics and compliance staff.

• Third, the awareness of the helpline is not sufficient to ensure success as you must make sure that issues and allegations are addressed and investigated.

This case study demonstrates the power of a hotline. The company’s Compliance Department “established the credibility of the helpline as a resource to raise issues and report misconduct.

 Three key takeaways:

1. Hotlines can be powerful tools for the compliance professional.

2. Simply because you have no hotline complaints does not mean you do not have any compliance or ethics issues that need review and resolution.

3. Adequate follow-up is a key part of overall hotline effectiveness.

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Compliance Man Chooses the Target

Compliance Man Takes a Eurotrip – Piotr Żyłka on Poland’s Compliance Revolution

Compliance Man is back for a new season! Get ready for a EuroTrip with Tom Fox and Tim Khasanov-Batirov on their hit podcast, Compliance Man! Join Tom Fox and co-host Timur Khasanov-Batirov on a Euro trip as they delve into the world of Poland’s Compliance Revolution with guest Piotr Żyłka.

The implementation of the Whistleblowing Directive and the Corporate Sustainability Due Diligence Directive into the Polish Legal System could be a major step forward in the fight against corruption. Tom Fox and Tim Khasinov-Batirov had a conversation with Piotr Żyłka, an author of the It’s All About Compliance blog, publisher, and compliance platform in Europe, to discuss the Polish compliance scene and the need for a Polish FCPA. Piotr discussed the banking law requirements, the DOJ guidelines, the New York City Bar Association paper, and the influence of foreign companies on compliance controls in Poland. He also highlighted the need for trainings, engagement of top management, and internal controls like KYC. Tom and Tim thanked Piotr for his time and knowledge and invited him to come back on the podcast to share his views.

Key Highlights

·      Internal Controls in Poland

·      Compliance in Poland

·      Sanctions Compliance

·      A Polish FCPA Needed?

 Resources

Piotr Żyłka on LinkedIn

It’s All About Compliance

Tim Khasanov-Batirov on LinkedIn

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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Advantages of an Internal Reporting System

While it is clear that the government expects companies to have an internal reporting system, there are benefits far beyond putting you in the government’s good graces. Companies with a more robust internal reporting system generated more reports. Dr. Welch found a group of companies he termed “power users”, which were high-level users of whistleblower reporting systems who had more activity than the average entity. These “power user” companies have several interesting characteristics. First, they are typically firms with higher quality earnings reporting. They are more profitable entities. Finally, these “power user” companies were firms with higher quality governance, as rated by the Entrenchment Index, which is used to measure how entrenched management is in a company.

Conversely, companies which were observed to be a more limited user of whistleblower reporting systems are companies that were seen to have poor governance. They are more prone to financial accounting issues, such as discretionary accruals, which could prove problematic. These tend to be smaller and less mature firms. Their overall compliance programs were generally not seen as robust or as effective as those in larger, more mature organizations. Finally, these firms, probably because they were smaller and less mature, are more prone to extreme growth and the problems associated with trying to scale up quickly.
All of this points to one unmistakable conclusion, a robust whistleblower reporting system facilitates a company’s resolution of problems before they become major problems or legal violations bringing the Securities and Exchange Commission (SEC) or DOJ calling.

Three Key Takeaways

  1. Companies with a robust whistleblower and reporting system had greater profitability and workforce productivity as measured by Return on Assets.
  2. There were fewer material lawsuits brought against the company overall and there were lower settlement costs if a lawsuit did occur.
  3. There were fewer external whistleblower reports to regulatory agencies and other authorities.
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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Introduction

The call, email, or tip comes into your office; an employee reports suspicious activity somewhere across the globe. That activity might well turn into an FCPA issue for your company. As the CCO, it will be up to you to begin the process which will determine, in many instances, how the company will respond. This chapter will provide you with the steps you will need to consider going forward.
This chapter will detail the two parts; internal reporting and investigations. It would seem axiomatic that organizations understand the benefits of having an internal reporting system, whether it is called a hotline, helpline, or something else. Just as plainly, a company should understand the need for effective investigations after a report comes in which might lead to a potential violation.

Three key takeaways:

  1. A robust internal reporting system will be one of the key indicia the DOJ considers.
  2. Hotline reporting can bring a visibility to problems.
  3. Hotline reports must be treated fairly and justly.
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Adventures in Compliance

Adventures in Compliance – Leadership Lessons from A Scandal in Bohemia

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 next 12 episodes, I will be reviewing each story and mine them for leadership, compliance, and ethical lessons. We begin with “A Scandal in Bohemia” in which the author Arthur Conan Doyle, introduced his famous detective character, Sherlock Holmes. The story” was published in July 1891 and introduced the character of Irene Adler, a woman who is remembered as “The Woman” in Holmes’s life.

Summary

The story starts with Dr. Watson visiting Sherlock Holmes only to find him engaged in a case. A masked man, later revealed to be the King of Bohemia, approaches Holmes. The king is about to be married to a Scandinavian princess but fears that a past liaison with an American opera singer named Irene Adler could jeopardize his upcoming marriage.

The scandal revolves around a photograph showing the King and Adler together, which the King believes Adler might use to cause a scandal. Despite the King’s attempts to retrieve the photograph, Adler refuses to hand it over. He hires Holmes to obtain the photograph without causing any scandal or alerting Adler.

Holmes, with his astute observational and deductive abilities, impersonates a groom to gain information and then a clergyman to gain access to Adler’s home. However, his plan to trick Adler into revealing the photo’s location is foiled when a warning is raised about a fire, and Adler, in her concern, unwittingly reveals where the photograph is hidden.

Holmes returns the next day to retrieve the photograph but finds that Adler, suspecting foul play, has fled with her new husband, Godfrey Norton, leaving behind a letter for Holmes and a photograph of herself. The letter reveals that she saw through Holmes’s disguise and tricked him but assures the King she won’t use the photograph for blackmail since she is happy in her new life.

Impressed by Adler’s intelligence and wit, Holmes keeps the photograph of her as a memento, and from then on, refers to Irene Adler as “the woman,” a figure who, in his eyes, epitomizes the strengths and intellect of her gender. The King relieved about the resolution, offers a reward, but Holmes rejects it, asking only for the photograph of Adler.

Leadership Lessons

  1. Adapt to changing circumstances: In the story, Sherlock Holmes was faced with a new and challenging case, and he adapted his strategies and methods to solve it effectively. Leaders should also be flexible and able to adapt to changing circumstances, whether in the workplace or their personal lives.
  2. Be strategic: Holmes used his strategic thinking to outmaneuver his opponent, the King of Bohemia, and solve the case. Leaders should also have a strategic mindset and think ahead to anticipate challenges and opportunities.
  3. Keep your word: In the story, Holmes kept his promise to the King of Bohemia, even when it was difficult, and he did not reveal the King’s secrets. Leaders should also be honest and trustworthy and keep their promises, as their reputation is one of their most valuable assets.
  4.  Use your strengths: Holmes used his exceptional deductive skills and attention to detail to solve the case, and he relied on his strengths to succeed. Leaders should also identify their strengths and use them to achieve their goals.
  5. Maintain professionalism: Throughout the story, Holmes maintained his professionalism, even in the face of personal challenges, and he did not let his emotions interfere with his work. Leaders should also maintain their professionalism, even in difficult situations, and they should strive to remain calm and level-headed.

Resources

The New Annotated Sherlock Holmes

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10 For 10

10 For 10: Top Compliance Stories For the Week Ending July 1, 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.

  • New interview question-do you watch porn, if so what type? (WSJ)
  • Larry Householder gets 20 years. (Columbus Dispatch)
  • 3 Trump SPAC investors charged with fraud. (Bloomberg)
  • Big guns testify at FTC v. Microsoft hearing. (NYT)
  • Who is spying on whom? (WSJ)
  • SBF loses bid to have criminal charges tossed. (Reuters)
  • Hertz Ex CEO wins clawback attack. (Law360)
  • Zambia police arrest former President’s son on corruption charges. (VOA)
  • Will ICRS become the global climate reporting standard?(WSJ)
  • Is the Supreme Court corrupt? (WaPo)

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

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Innovation in Compliance

Messaging Compliance in a Shifting Regulatory Landscape: Part 5 – Stay Ahead of Regulations

Is messaging compliance giving your compliance function headaches? Welcome to a special 5 part podcast post series, messaging compliance in a shifting regulatory landscape, sponsored by Global Relay. Over this series, I will visit with Chip Jones, Executive Vice President – Compliance at Global Relay; Alex Viall, Chief Strategy Officer at Global Relay; Rob Mason, Director, Regulatory Intelligence at Global Relay; Jennifer Clarke, Head of Content at Global Relay; and Raewyn Danvers, Sales Manager, Unified Communications. Over this series, we will consider the US and UK regulatory framework for messaging apps, consider if business innovation is being stifled by regulatory action, preview the Global Relay Report: Compliant Communications in 2023, and look down the road on how to stay Ahead of regulation with the compliant communications in one app.

In our concluding Part 5, I visit with Raewyn Danvers, Sales Manager, Unified Communications at Global Relay, and discuss how compliance professionals can stay ahead of regulatory compliance technology trends. In our conversation, Raewyn highlights the growing significance of mobile messaging in compliance, especially with millennials and Gen Z entering the workforce. We also discuss the pros and cons of using corporate devices versus bring your device (BYOD) policies in the workplace before introducing Global Relay as a solution for managing and archiving communication data compliantly. As a long-term partner in compliance, Global Relay offers dedicated onboarding specialists and account representatives to ensure customers stay on top of the latest technology trends. Are you interested in learning more? Check out Global Relay’s website for a demo today!

Key Highlights:

  • Trends in Mobile Messaging Compliance Technology
  • Adapting to Technology for Workforce Retention
  • Corporate Devices v. BYOD
  • Global Relay’s Technology Integration and Data Management

For more information go to Global Relay.

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Blog

Messaging Compliance in a Shifting Regulatory Landscape: Stay Ahead of Regulations with a Unified App

Are you ready to learn how to implement electronic communications capture and supervision in your firm for better compliance and prevention of regulatory violations? Is messaging compliance giving your compliance function headaches? Welcome to a special 5 part blog post series on messaging compliance in a shifting regulatory landscape, sponsored by Global Relay. For this Part 5, I visited with Raewyn Danvers.

Navigating the complex world of messaging compliance can feel overwhelming, especially when operating within regulated industries. However, it’s crucial to ensure that your organization’s communication methods are aligned with industry guidelines to avoid potential fines and reputational damage. By partnering with unified tools for compliant messaging, compliance professionals like yourself can streamline this process and create a more efficient workflow. In this article, we’ll explore why this topic is essential and how it may impact your personal and professional life, as well as provide actionable steps to help you enhance your organization’s messaging compliance strategy.

Here are some key steps:

  • Understand the messaging compliance landscape
  • Assess your organization’s communication methods
  • Evaluate unified tools for compliant messaging
  • Implement policies and procedures for messaging
  • Foster cross-departmental collaboration for compliance

1. Understand the messaging compliance landscape.

Compliance professionals face numerous challenges as privacy and security regulations continue to evolve, and the adoption of mobile messaging and other communication technologies grows. As such, staying current with industry best practices and understanding the risks associated with messaging compliance becomes increasingly critical. Properly addressing these concerns ensures companies maintain their reputations and avoid costly fines and penalties.

Danvers emphasized the importance of staying up to date with regulatory changes and adapting compliance strategies accordingly. She also discussed the challenges and opportunities presented by emerging technologies, such as AI and chatbots, and the need for a proactive approach to messaging compliance. By partnering with unified tools and leveraging services like Global Relay, companies can benefit from a single application that covers various communication types while reducing confusion and the required number of vendors.  Understanding the messaging compliance landscape is essential for ensuring that compliance professionals can effectively manage risks related to mobile messaging and other communication technologies.

This proactive approach is especially relevant in industries subject to stringent regulations, such as financial services, healthcare, and others. By staying informed and leveraging the expertise of unified tools like Global Relay, compliance teams can better navigate the complexities of messaging compliance, thus safeguarding their organization from potential pitfalls and maintaining a positive reputation. Ultimately, the message is clear: compliance may not be easy, but it’s always essential, requiring diligence, collaboration, and adaptability in the face of an ever-shifting regulatory environment.

2. Assess your organization’s communication methods.

While traditional channels like email might have been easier to track and maintain, with the rise of mobile messaging and various messaging applications used in professional settings, the need to effectively manage these platforms becomes imperative. When assessing communication methods used by your organization, it is crucial to understand not just the platforms but also the ways in which employees interact with them to create a tailored solution for your business.  Danvers emphasized how the younger generation’s shift towards flexible communication, including mobile messaging and messaging applications, has necessitated the need to address compliance in this realm. With the recent fines and regulatory actions targeted at messaging platforms, it has become evident that assessing your organization’s communication methods is important to ensure compliance.

Understanding and assessing your organization’s communication methods are important and essential for regulated industry compliance professionals. This step ensures that you are aware of the platforms being used for communication and can create tailored solutions to maintain compliance. As messaging platforms continue to evolve and incorporate new technologies like AI and chatbots, it is becoming increasingly important for compliance professionals to stay informed, collaborate with other departments, and strike a balance between innovation and compliance. By implementing effective compliance measures for your organization’s communication methods, you not only protect your business’s reputation but may also avoid serious legal repercussions. So, take the time to analyze and assess how your organization communicates, and stay proactive in navigating the changing tides of regulatory compliance.

3. Evaluate unified tools for compliant messaging.

The process of evaluating unified tools for compliant messaging is crucial for compliance professionals operating in regulated industries. Furthermore, the implementation of policies and procedures is critical to ensure the separation of business and personal communication while maintaining data security. In this context, the adoption of a single unified tool that manages multiple communication channels can simplify the compliance process, streamlines communication, and ensures adherence to regulatory requirements, making it an appealing option for businesses looking to elevate their messaging compliance strategies.

The younger generations’ preference for mobile messaging, the rise of BYOD (Bring Your Own Device) policies, and the proliferation of consumer messaging apps have all contributed to the growing complexity of messaging compliance. This issue has been further exacerbated by the increase in regulatory fines related to communication. Danvers highlighted that a unified tool is especially beneficial in a regulated space because it eases the implementation, ensuring a single point of access while reducing the number of vendors needed when adopting new communication technologies.

Evaluating and choosing a suitable unified tool for compliant messaging is vital for the audience, as it not only simplifies the messaging compliance landscape but also facilitates a more proactive approach to data protection and adherence to regulations like GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act). By integrating a unified tool, compliance professionals can effectively manage the delicate balance between innovation and regulatory compliance, especially when it comes to dealing with emerging technologies like AI (Artificial Intelligence) and chatbots. Ultimately, this key step paves the way for cross-functional collaboration between various organizational departments, including IT, legal, and compliance, resulting in a cohesive and well-integrated communication compliance strategy that can withstand the constantly evolving regulatory landscape.

In the world of compliance, staying ahead of the curve when it comes to mobile messaging compliance is critical for professionals in regulated industries. To ensure your organization is well-prepared to handle the challenges of messaging compliance, it is essential to understand the landscape, assess your communication methods, and choose the right unified tool for compliant messaging. Furthermore, implementing clear policies and procedures and fostering cross-departmental collaboration will solidify your compliance strategy and help your organization thrive. Follow these steps and confidently move forward in creating a robust and reliable messaging compliance framework.

For more information, go to www.GlobalRelay.com