Life can be very humbling. The SEC has definitely humbled me. For years now, I have been claiming that companies spend too much time worrying about gifts, meals and entertainment expenses under the FCPA, rather than focusing on larger risks like multi-million dollar contracts with foreign governments. I have repeated this advice on numerous occasions. Now, I have to eat some humble pie. The SEC...

Corporate boards and senior management like to focus on business. They love the numbers, the strategy and the success of a business operation. They have a passion for it and that is why they are sitting on board or managing a global company. They do not like to talk as much about risks, much less plan for them. When it comes to information governance and...

We always hear (and talk about) the rise in the compliance profession. Yes, there is increased demand for CCOs and compliance officers. More lawyers are transitioning into the compliance profession. Out in the real world, however, there are CCOs who are under the gun – they are being asked to do the impossible. CCOs are being hired and asked to take over a non-existent or...

We all have heard the problem: Employees want to report their concerns directly to their immediate supervisors (unless the problem relates to the immediate supervisor); Mid-level managers complain that they do not know how to handle employee concerns. Thus, we have reached the fundamental disconnect in the corporate gestalt. Chief Compliance Officers need to focus on this disconnect. How do they do so? First, they...

Companies can become hyper-focused on anti-bribery compliance. It is easy to do – just look on the Internet, Twitter and Linked In. There are plenty of groups, hash tags, postings and discussions on anti-corruption issues. This focus on corruption reflects the reality of enforcement. But when it comes to misuse of funds, there is a significant, and oftentimes ignored risk – procurement kickbacks. Believe it...

A Chief Compliance Officer has a direct responsibility to promote the company’s business. That sounds like a controversial statement but it is not. Every officer and employee of a company has that responsibility. A CCO has a job – to design and implement an effective ethics and compliance program to detect and prevent Code of Conduct and legal violations. As the business grows, the CCO’s...

I never thought the day would come but it has – I have figured out a way to make Abbott and Costello relevant to the compliance profession. We all know their famous routine – “Who’s on First?” If you need a good laugh, check it out HERE. When it comes to lawyers and compliance professionals, the Abbott and Costello hilarious question is extremely relevant. Some...

A comprehensive approach to third party and vendor due diligence management is essential for any company conducting business globally.  A strong due diligence program’s purpose is two-fold: To guide your company, helping you make smart choices when it comes to international business partners, and To protect your company, building procedures and a legally-defensible documentary record that can protect you from an enforcement action (udner either...

“Action speaks louder than words but not nearly as often” – Mark Twain If you are too busy to read my posting, all I ask is that you read the Mark Twain quote and apply the message to creating an ethical culture. As I always say, Mark Twain would have been a star Chief Compliance Officer. He was an artist with words, and he used...

There is nothing more infuriating in the ethics and compliance world than a Chief Compliance Officer who relies on Happy Talk reports to senior managers and the Board. The CCO who engages in Happy Talk does a disservice to the profession and to themselves. So why are companies still not embedding real ethics and compliance programs? Too many are relying on paper programs that look...