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2 Gurus Talk Compliance

2 Gurus Talk Compliance: Episode 34 – The Whistleblower Edition

What happens when two top compliance commentators get together? They talk compliance, of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode!

In this episode, Kristy and Tom delve into an array of timely topics. They discuss how and why HR is now seen as the ‘Department of Misery.

The duo takes a deep dive into the new DOJ Whistleblower Incentive Program. They also discuss the huge Meta settlement with the state of Texas, SFO prosecutions and corporate felony convictions. Of course, Florida man makes an appearance with another great tale. Tune in for a comprehensive mix of compliance nuts-and-bolts insights and current events.

Stories Include:

  • For Big Companies, Felony Convictions Are a Mere Footnote (WSJ)
  • HR: the Department of Misery?  (NYT)
  • Can a corporate vote overturn a court decision? (FT)
  • Income inequality and corruption. (The Economic Times)
  •  The DOJ announces a whistleblower incentive program. (WSJ)
  • Glencore trader criminally charged by SFO for bribery. (FT)
  • OFAC Releases Guidance on Extended Statute of Limitations & Forthcoming Recordkeeping Changes (Volkov) – VolkovLaw
  • Meta agrees to $1.4 billion settlement in Texas biometric data lawsuit over Facebook images (CNBC)
  • Will AI kill meaningless jobs? (NYT)
  • ‘Before He Cheats:’ Florida woman accused of keying ‘CHEATER’ on man’s car (Click Orlando)

 Resources:

Kristy Grant-Hart on LinkedIn

Spark Consulting

Prove Your Worth

Tom

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YouTube

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Compliance Tip of the Day

Compliance Tip of the Day: 10 Questions Compliance Should Pose to HR

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we consider the 10 key questions compliance should pose to HR.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

To check out The Compliance Handbook, 5th edition, click here.

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Daily Compliance News

Daily Compliance News: August 5, 2024 – The Dept. of Misery Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

  • HR: the Department of Misery? (NYT)
  • Income inequality and corruption .  (The Economic Times)
  • Can a corporate vote overturn a court decision? (FT)
  • DOJ announces whistleblower incentive program. (WSJ)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Compliance Tip of the Day

Compliance Tip of the Day: Compliance Gap Analysis for HR

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

Today we discuss how compliance can perform a gap analysis for HR.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

To check out The Compliance Handbook, 5th edition, click here.

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Compliance Tip of the Day

Compliance Tip of the Day: HR Touchpoints for Compliance

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In today’s episode, we begin an exploration of how HR can assist in the operationalization of compliance through its number of employee touchpoints.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Compliance Tip of the Day

Compliance Tip of the Day: Internal Reporting and Layoffs

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law. Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we look at the always tricky issue of internal reporting, whistleblowers during layoffs.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Sunday Book Review

Sunday Book Review: January 21, 2024 The Books on HR Edition

In the Sunday Book Review, I consider books that would interest the compliance professional, the business executive, or anyone who might be curious. It could be books about business, compliance, history, leadership, current events, or anything else that might interest me. Over the month of January, we will review some of the best books reported by People Managing People in various categories. In today’s edition of the Sunday Book Review, we look at four books on HR you should read in 2024.

  • The Essential HR Handbook by Sharon Armstrong and Barbara Mitchell
  • Irresistible: The 7 Secrets of the World’s Most Enduring, Employee-Focused Organizations by Josh Bersin
  • Built for People: Transform Your Employee Experience by Jessica Swaan
  • Remote Not Distant by Gastavo Ruzzetti

Resource:

28 Best HR Books You Should Read in 2024

For more information on Ethico and a free White Paper on top compliance issues in 2024, click here.

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Daily Compliance News

Daily Compliance News: October 16, 2023 – The HR into the Modern Era Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the Daily Compliance News. All from the Compliance Podcast Network. Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition:

  • Bringing HR into the modern era.  (WSJ)
  • Geopolitical volitivity. (FT)
  • Doctor charged with taking kickbacks from Insys settles. (Reuters)
  • Myanmar steps up anti-corruption crackdown. (NikkeiAsia)
Categories
Blog

Employment Separation: A Compliance Centric Approach

Welcome back to our blog series on building a more effective compliance program! In today’s episode, we dive into the challenges compliance professionals face when dealing with employment separation, layoffs, and managing whistleblower allegations. We’ll explore practical advice and data-driven insights to help you navigate these complex situations. So, let’s get started! While compliance practitioners may be thinking about these issues, HR professionals may need to be fully aware of their significance. By working together, compliance and HR can ensure that exit interviews are conducted with the necessary guidance and attention to compliance-related matters.

One key aspect is the importance of collaboration between the compliance, legal, and HR departments. By working together, you can identify high-risk employees who may be subject to layoffs. This proactive approach allows you to plan and ensure that all compliance requirements are met during the separation process. To further strengthen your compliance program, consider involving a compliance professional in the exit interview process. This individual can ask detailed questions and emphasize the importance of compliance and ethical conduct. By doing so, you create an opportunity to address any potential concerns or ethical issues before they escalate.

Exit interviews serve as a goldmine of information for improving your compliance program. By asking detailed questions about what works, what doesn’t work, and what the employee would like to see, you gain valuable insights into the organization’s strengths and weaknesses. This unfiltered environment allows departing employees to freely share their thoughts, providing a unique perspective that may not have been voiced during their tenure.

During exit interviews, it is essential to ask probing and insightful questions specifically related to compliance. This helps uncover any compliance issues that may have contributed to the employee’s departure and identifies areas for improvement. By understanding the employee’s role, the structure of their business unit, and their supervisors, you can tailor questions to gather the most relevant and actionable information.

When planning layoffs, it’s crucial to consider the impact on hotlines, whistleblower reports, and retaliation claims. Data mining the hotline for employees who have reported violations and promptly investigating those allegations is essential. By demonstrating that layoffs are part of a consistent and fairly applied employee separation program, you can mitigate the risk of retaliation claims.

Treating departing employees with dignity and respect is not only the right thing to do but also essential for maintaining a positive compliance culture. Rushing employees out the door without consideration can increase the risk of retaliation claims or whistleblowing. Instead, take the time to listen to their concerns, answer their questions, and provide information on employment separation issues and state unemployment law. Offering assistance in finding future employment can also help ease the transition.

Treating departing employees with dignity can also turn them into powerful advocates for your organization. In today’s highly mobilized social media world, compliance ambassadors play a crucial role in defending your organization’s reputation and recommending it to potential employees. These ambassadors can also help communicate with stakeholders, third parties, customers, local communities, board of directors, and shareholders, reinforcing your commitment to compliance.

Compliance ambassadors can be a powerful tool when regulators come knocking. Their firsthand experiences and insights can provide additional resources and support in navigating regulatory challenges. By leveraging the knowledge gained from exit interviews, organizations can better prepare for compliance audits and demonstrate a proactive approach to regulatory compliance.

Separation documents must meet Securities and Exchange Commission (SEC) requirements regarding disclosures on whistleblowing and reporting to authorities. Failure to include language specifying that employees can go to authorities has resulted in major fines against US corporations. Ensure that your separation documents comply with these SEC requirements to protect both the company and the departing employee.

In conclusion, a comprehensive and respectful approach to employment separation and managing whistleblower allegations is crucial for maintaining an effective compliance program. By collaborating with HR, involving compliance professionals in exit interviews, addressing whistleblower reports and retaliation claims, valuing departing employees, and ensuring SEC-compliant separation documents, you can mitigate risks and foster a culture of compliance within your organization. Please plan for this eventuality to avoid the ex-employee being uncooperative with the company or government. By considering the potential value of a laid-off employee, you can better prepare for these situations.

Categories
Blog

Navigating Transformational Changes: The Intersection of E&C and ESG

Today I would like to explore the intersection thought of ethics and compliance (E&C) and environmental, social, and governance (ESG) efforts. In a recent podcast on Report from IMPACT 2023, we explored the crucial role of ethics in guiding organizations through transformational changes. With data-driven insights and practical advice, considered the challenges, opportunities, and strategies for success in this evolving landscape.

In the face of rapid technological advancements, the importance of ethics cannot be understated. The need to build safeguards to prevent potential crashes or negative consequences. Much akin to car racing, this world has the need to moving forward with technology in a safe and responsible manner. Further and just like a skilled racer, organizations must navigate the track of progress while ensuring the ethical implications of their actions are considered. Finally always remember that brakes are not on a car to slow it down but so that you can drive fast.

As power dynamics shift and new technologies emerge, the establishment of checks and balances in this arena becomes paramount. This means that organizations need to distribute power internally both wisely and ensure ethical decision-making processes are in place. By doing so, they can safeguard against potential abuses and ensure that transformative changes are guided by integrity. I often use the visual of the billboard announcing the Eyes of Dr. T J Eckleburg from The Great Gatsby as the best way to think about having a second set of eyes on your process for process validation.

In a world undergoing rapid transformation, continuous education and expanding horizons are crucial for organizations and individuals alike. For Chief Compliance Officers (CCOs) and other compliance professionals, the importance of being adaptable and open to learning cannot be overstated. Our profession is changing as fast as any other corporate function and it is coupled with the needs of our customers changing. Who are the customers of a corporate compliance program? You can start with the multiple stakeholders identified by the Business Roundtable in their seminal Statement on the Purpose of a Corporation. It can be employees, shareholders, third-parties, vendors and business partners and those who may live in localities where your organization does business.  By embracing new perspectives and staying informed, CCOs, compliance professionals and corporate compliance functions can effectively navigate the challenges of a changing world.

A significant development highlighted in the podcast is the convergence of ESG and E&C. This integration presents a strategic risk and opportunity standpoint for organizations. By aligning environmental, social, and governance considerations with ethical and compliance practices, companies can create a holistic approach that benefits both their bottom line and society at large. Equally importantly is the mandate that the CCO and corporate compliance function should lead this effort. There is no other corporate function which has such a wide mandate, as set out by the regulators as the corporate compliance programs. One need only consider the 2019 Evaluation of Corporate Compliance Programs which led to the 2023 Evaluation of Corporate Compliance Programs to see that a corporate compliance function (and CCO) must have visibility literally across your entire corporate organization.

The demand for businesses to take positions on social issues is growing louder, both from employees and stakeholders. It well known within the compliance community and wider corporate world of the importance of both the CCO and compliance function not remaining silent on these matters. You may call this speaking truth to power but in the wider ESG world, businesses must recognize the power they hold to effect change and leverage it responsibly. By aligning their values with those of their workforce and society, they can build purpose-filled organizations that resonate with the younger generations.

I speak with many Human Resource (HR) and talent specialists and they all say that the acquisition and retention of talent will be the key market differentiator for business by mid-century. From Baby Boomers to through GenXers to Millennials and now Genders; the values and mindset of the current and upcoming workforce differ significantly from those of previous generations. To motivate and attract these individuals, organizations must listen to their ideas and incorporate them into the company’s values and purpose. By engaging with the younger generations and understanding their perspectives, board members can foster an environment that aligns with their aspirations. Businesses which try to enforce well-known and well-debunked tropes such as there is no such thing as climate change will be consigned to the dustbin of corporate failures.

Building transformative leadership and engaging forward-thinking board members pose challenges but are necessary for success. Just as talent acquisition and retention will be one of the most critical aspects of corporate survival, the importance of recruiting board members who understand current and future challenges and the need for an integrated approach will be equally critical. Critically this also means diversity on the Board. While seasoned experience is valuable, finding individuals who can bridge the gap between traditional values and the demands of a changing world is crucial. It also means new and different subject matter expertise will be critical. The Department of Justice (DOJ) has noted that a Board needs to have a compliance resource on it. The logical step is for a Board to have a Compliance Committee, chaired by a seasoned compliance professional.

It might even lead to a broader concept of a true risk management professional on the Board. Given the paradigm shift coming out of the Pandemic from disaster recovery to business resiliency to business as usually; a Board having the ability to have that strategic discussion  and lead through oversight will be a critical element as well.

Recognizing the pivotal role that ethics and compliance play in guiding organizations through transformational changes is something that is gaining traction in the corporate world. In a world that is evolving at an unprecedented pace, it is imperative to build ethical safeguards, establish checks and balances, provide appropriate oversight and adapt to the values and mindset of the younger generations. By embracing continuous education, converging ESG and E&C efforts, and taking a stand on social issues, organizations can navigate the inflection point we find ourselves in and thrive in the future.