Categories
GalloCast

Welcome to the Gallocast-Episode 1


Welcome to the inaugural episode of the Gallocast. You have heard of the Manningcast in football. Now we have the Gallocast in compliance. The two top brothers in compliance, Nick and Gio Gallo come together for a free form exploration of compliance topics. It is great insights on compliance brought to you by the co-CEOs of ComplianceLine. Fun, witty, insightful with a dash of the two brothers throughout. It’s like listening to the Brothers Gallo talk compliance at the dinner table. Hosted by Tom Fox, the Voice of Compliance. Topics in this episode include:
·      Return to office, WFH or hybrid?
·      Moderna CFO lasts for 1 day.
·      Keeping culture positive during acquisition?
·      ESG and climate reporting.
·      Howard Schultz goes on a listening tour.
·      When should a startup put in a compliance program?
·      Did we learn anything during the pandemic to end or at least reduce useless meetings?
·      What does Ukraine War mean for compliance?
·      What can top management do to ‘talk the talk’.
Resources
Nick Gallo on LinkedIn
Gio Gallo on LinkedIn
ComplianceLine

Categories
Daily Compliance News

June 15, 2022 the Nigeria Loses Edition


In today’s edition of Daily Compliance News:

  • US, UK to collaborate in ComTech award for AML. (WSJ)
  • ESG in credit agreements. (Reuters)
  • Nigeria loses $417bn suit against JPMorgan. (NYT)
  • Schwab settles with SEC. (NYT)
Categories
Blog

DEI and Compliance

Welcome to a special five-part blog post series on the New Traliant, sponsored by Traliant, LLC. Over this series, we will discuss key issues that Traliant is helping to lead and define the online training industry in going forward. I will visit with John Arendes, Chief Executive Officer (CEO), on what is new at Traliant and what the Department of Justice (DOJ) has communicated to the compliance community regarding its expectations around online training and communications; Maggie Smith, Vice President of Human Resources, on the role of diversity, equity and inclusion (DEI) in your corporate environmental, social and governance (ESG) program; and Scott Schneider, Head of Content Development, on your Code of Conduct and anti-corruption training. In Episode 3, I visit with Maggie Smith to discuss the intersection of DEI and compliance.
Smith began that DEI in the workplace is a step past non-discrimination and it is seen as taking things beyond simply “checking the box” to follow the law. She believes the business argument for DEI is that a diverse team allows for better problem solving, better decision-making, more innovation, creativity, and ultimately more success. It is also about ensuring that your organization is about “accepting diverse workers and making them feel included.”
She sees inclusion as one step beyond diversity. She described it as “we’re having this party, we will invite you to the party, but inclusion is, do you want to join us and dance at this party?” A company can have this type of approach to creating a diverse and inclusive culture by considering all the processes that DEI touch. At Traliant one of the ways the organization does so is making sure that we hire not for just a culture fit, and by bringing in different people and then making sure that we’re giving them a voice throughout the process throughout their entire employment. Smith went on to explain that DEI goes beyond a ‘culture fit’ by creating a ‘culture ad’. She noted that culture fit could really be a mirror of our biases, as we are comfortable around people who share our demographics, our same socioeconomic background identities. It could be termed as a “mini-me”. Culture ad moves you to considering “what can this person add to our culture instead of simply asking do they fit into our current culture?”
Smith went to say that by using such an approach you can also facilitate a true speak-up culture at your organization. The power is that you get so many great ideas that may be overlooked. But you have to build trust. Your organization must really work hard to consistently create a psychologically safe workspace where people will feel comfortable speaking up. You can begin with an anonymous inbox, where employees could message through a website that preserves their anonymity with any questions. From there you can move to town hall meetings where employees are trustful enough to raise questions.
If questions are raised, the HR Department or compliance function needs to promptly review and potentially investigate a matter. From there, you should take corrective actions when needed and you absolutely must close the feedback loop with employees. Even if the response to a suggestion is that it cannot be implemented now, employees will respect your speak-up process. Smith termed it “closing the feedback loop.”
It is this entire system of feedback, from employee to employer and back, creating a system of trust which can be such a powerful driver of culture in an organization, through embracing DEI. This system of trust allows someone to literally raise their hand and speak up. From there, employees trust that their comments will be fairly evaluated and trust the company to use that information. Whether it is an investigation or looking at doing something a different way, an employee has trusted that the people who were told will get back to them in some form. This creates a dialogue that can be ongoing to benefit the entire organization.
Join us for our next episode where we look at Code of Conduct training.
Check out the full podcast with Maggie Smith here.

Categories
The ESG Report

How FedEx Approached ESG with Aaron Nicodemus


 
Tom Fox welcomes back Aaron Nicodemus to the ESG Report. Aaron is a writer at Compliance Week, a magazine that provides the latest information in the ethics, governance, risk, and compliance space. He primarily writes about regulatory policy and compliance trends. In this week’s show, he and Tom discuss Aaron’s new article series about FedEx’s journey on ESG. 
 

 
The Inspiration Behind The Articles on FedEx and Their ESG Journey
Justin Ross, CCO at FedEx, was dubbed the CCO of The Year at Compliance Week 2021. After he won the award, he and Aaron discussed the new efforts FedEx was venturing into. One of the initiatives that came up was FedEx’s environmental plan for the future. After extensive research, Aaron realized that “the extent of [FedEx’s] ESG initiatives went much further than I had realized”. This intrigued him and he decided to write the series based on his findings. 
 
How FedEx Plans to Manage ESG
Tom asks Aaron how a delivery company, that spends exorbitant amounts on fuel and vehicle maintenance, could reframe that into an ESG issue. Aaron replies that those were the first questions FedEx asked themselves when it conceptualized its environmental initiative. They decided to focus on reducing their emissions; that worked well alongside their fuel reduction initiative for a time. They determined that they could be more efficient with their jets, by ensuring that the engine does not idle more than necessary. However, as Aaron points out, emissions and fuel reduction are not a linear process, “Their biggest problem with their emissions is that because they’re growing so fast, they’re making more deliveries, they’re making more flights through the air, and they just have trouble keeping their emissions down because they’re expanding so fast.”  
 
Ebb and Flow of FedEx’s Environmental Initiative 
Aaron says, “One of the biggest touch points for FedEx with its ESG initiative is transparency.” He explains that they want stakeholders to understand their goals and the journey to get there so that when they have setbacks, they’re all accounted for. For example, FedEx has ordered over 20,000 electric cars, to reduce exhaust emissions into the environment but only received five of them. He adds that they had another goal to increase an alternative source of jet fuel but they were having an issue with supply, and they ended up having to postpone the idea several times. However, since they are in constant communication with their investors, employees, and customers, they can comfortably discuss their failures, how close they got to achieving them, and why they did or did not achieve them.
 
Resources
Aaron Nicodemus | LinkedIn | Twitter 
Compliance Week | Compliance Week Profile
 

Categories
Daily Compliance News

June 13, 2022 the Wells Fargo Under Investigation (Again) Edition


In today’s edition of Daily Compliance News:

  • Senate bill to have CFTC regulate crypto. (WaPo)
  • Wells Fargo is under criminal investigation for fraudulent interviews. (NYT)
  • SEC begins an investigation into Goldman Sachs over ESG reporting. (WSJ)
  • Finance teams prepare for new ESG regs. (WSJ)
Categories
Great Women in Compliance

Alison Taylor-Everything She Says is Gold

Welcome to the Great Women in Compliance Podcast, co-hosted by Lisa Fine and Mary Shirley.

Alison Taylor is one of Mary’s favorite thought leaders. After last appearing on the show in 2020 with Lisa, we invited Alison back to hear about her latest project, a book you’ll hear about and her latest musings on ESG including challenges for companies and what Alison is predicting about the future of ESG – you won’t want to miss it!

We ask Alison who she would give an ethical award to up until this point in 2022 and we think you’ll be in agreement with her thoughts on this leader who has exemplified tone from the top.

 The GWIC team sends their thanks for all of the well wishes received for their milestone 150th episode last week.

The Great Women in Compliance Podcast is on the Compliance Podcast Network with a selection of other Compliance related offerings to listen in to. If you are enjoying this episode, please rate it on your preferred podcast player to help other likeminded Ethics and Compliance professionals find it. You can also find the GWIC podcast on Corporate Compliance Insights where Lisa and Mary have a landing page with additional information about them and the story of the podcast. Corporate Compliance Insights is a much appreciated sponsor and supporter of GWIC, including affiliate organization CCI Press publishing the related book; “Sending the Elevator Back Down, What We’ve Learned from Great Women in Compliance” (CCI Press, 2020).

You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.

Join the Great Women in Compliance community on LinkedIn here.

Categories
The ESG Report

Issues in Energy Supply Chain with Daniel Banes and Mark Henderson


 
In this very unique ESG Report, Tom Fox welcomes special guests, Daniel Banes and Mark Henderson. Daniel Banes is the President of Commercial Tech and Mark Henderson is the Director of Solution Design Lead at Exiger, a company dedicated to altering the playing field related to fraud and financial crime. In this powerful episode, they discuss the effects of ESG in the energy industry and the role of the supply chain in ESG.
 

 
The Evolution of ESG in the Energy Industry 
Tom asks how ESG regulatory risk management has evolved within the energy industry. Mark explains that historically consumers, governments, and companies focused on the environmental issues in ESG, but recent global trends and regulations brought social issues to the forefront. Mark says that the Supply Chain Due Diligence Act that would come into effect in Germany on January 1st, 2023 is an example of social issues taking the front seat globally. This act would “require companies to identify, assess, prevent and remedy human rights risks, and impacts across their supply chains”. If companies do not comply with these laws, they are at risk of being fined and possibly excluded from earning contracts in Germany’s public sector for up to three years.
 
Climate Risk Management versus the Energy Industry 
Recently the SEC proposed new rules about climate risk management disclosure and Tom asked Daniel how he thinks it would affect energy companies. Dan responds that it means that energy companies would now be held accountable; over the years most companies proposed that they would be carbon neutral by a certain date, and it never materialized. “Having this disclosure rule gives the public insight – across the board for all public companies – into those targets that companies are committing to climate-related risks,” Mark says. He adds that financial statements would be audited allowing for more accountability for these companies. 
 
Managing Scope Three
Tom asks Daniel how he believes energy companies would manage Scope Three and how they could be connected to the proposed SEC rules about accountability and transparency. Mark explains, “Scope Three [is] about having data to look into your supply chain and understand emissions that are within your supply chain and have those conversations with your suppliers.” Additionally, it allows a more wholesome relationship to flourish across your supply chains and for efficiencies to be detected before discussing environmental control and risk and emissions. 
 
Resources 
Daniel Banes | Exiger Profile  | LinkedIn 
Mark Henderson | Exiger Profile  | LinkedIn 
Exiger | Exiger’s Supply Chain Explorer 
 

Categories
From the Editor's Desk

May & June in Compliance Week

Welcome to From the Editor’s Desk, a podcast where co-hosts Tom Fox and Kyle Brasseur, EIC at Compliance Week, unpack some of the top stories which have appeared in Compliance Week over the past month, look at top compliance stories upcoming for the next month, talk some sports and generally try to solve the world’s problems.

In this month’s episode, we look back at top stories in CW from May around ESG at FedEx and key enforcement actions. May was also a record month for traffic on the Compliance Week website. Kyle and Tom talk about the recently held Compliance Week 2022 Conference, which took place in DC. We talked about some of the highlights from presentations, from new vendors in the compliance space, and how great it was to be together in person again. Kyle previewed some topics that Compliance Week will report in June, including Return to Work issues from the compliance perspective, coverage of CW 2022, Russia sanctions, and new ideas from the compliance officer think tank held at CS 2022.

We conclude with a look at some of the top sports stories, including the NBA playoffs and the Celtics making it to the 2022 NBA finals. Tom talks about the Nick Saban/Jimbo Fisher feud over college football recruiting, and Kyle reminds us of the Celtics taking the long view on developing talent.

Categories
Daily Compliance News

June 1, 2022 the Deutsche Bank Raided Edition


In today’s edition of Daily Compliance News:

  • SCt blocks the state of Texas’s attempt to dismember social media. (NYT)
  • Klarna’s CEO posts a list of fired employees on LinkedIn? (Bloomberg)
  • Deutsche Bank DWS unit raided by German Police. (CNBC)
  • Head of Deutsche Bank DWS unit resigns in the wake of the raid. (WSJ)
Categories
The ESG Compliance Podcast

The Role of Digital Solutions in ESG with Page Motes


Page Motes joins us today with her expertise in sales and compliance. She shares how tech giant Dell is working on ESG compliance, the transferable skills compliance professionals must have to advance, the significance of multi-disciplinary learning, and how customers can contribute to this by making a more significant social impact.
▶️ The Role of Digital Solutions in ESG with Page Motes:
Key points discussed in the episode:
(00:00:36) Page Motes lays out her professional background. She describes the fast-paced culture and vendors’ often-overlooked concerns in large companies. Since then, she has sworn to only be in a position to “use my talents to help advance goodness in the world.”
(00:11:13) Page Motes defines ESG in Dell as “all things environmental and then an aspect of the human rights piece.” She underlines the three most important skills for compliance professionals: knowing how to deal with ambiguity, being an ultimate connector, and exerting authority.
(00:14:37) Her message to compliance professionals hesitant to move into ESG: have the desire to learn different disciplines.
(00:17:30) Dell aims to deepen and broaden gathered data across its supply chain to disclose information based on government requirements properly. Some Scope Three categories remain difficult to report.
(00:19:49) ESG results brought Dell to create Eureka, a crowdsourcing tool for employees to share their ideas with higher-ups and have them kickstarted.
(00:23:58) The different corporate functions in Dell’s sustainability efforts.
(00:25:58) Page Motes predictions for Dell’s ESG endeavors – more customer involvement and collaboration.
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Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at tfox@tfoxlaw.com.