For all the hype about ESG, board accountability, stakeholder demands for diversity and inclusion, a recent report on board diversity shows little change.  That is not surprising.  The forces of resistance to change are particularly strong, especially when directed at corporate boards.  What is surprising is how resistance clings to practices that directly undermine efficiency and financial profitability.  Board diversity improves governance performance and that...

The Justice Department continues to attack and dismantle global ransomware extortion organizations.  Business surveys often confirm that executives are hyper-focused on the risk of ransomware attacks against businesses. Interestingly, government regulators have focused on ransomware scenarios to ensure that regulatory restrictions on sanctions and other restrictions are not violated.  The message behind DOJ and regulatory interests is clear – if attacked, notify law enforcement right...

If I ever told you years ago that the 2021 headlines would be dominated by the “supply chain” crisis, you would have immediately questioned my judgment (and perhaps sanity).  The current crisis reflects the roller coaster economic impact of the pandemic. If there ever was a global disruption of severe magnitude, we have been through it.  We have all had experience in managing disruptions and...

A targeted employee survey program requires careful planning and communications prior to launching the survey program. Employee engagement in response to a specific survey requires transparent and robust explanations and assurances. In the absence of appropriate communications and assurances, employee response rates may decline. Employees have to understand why the survey is being conducted, whether anonymity will be protected, and how the results will be...

Chief compliance officers play a key role in managing a company’s ethical culture. Most companies fail to pay proper attention to its culture because it is difficult to define, measure and monitor. Such an approach is short-sighted. CCOs have to embrace this issue and develop appropriate techniques to measure a company’s culture. All too often I observe companies that rely on annual or semi-annual company-wide...

Matt Stankiewicz, Partner at The Volkov Law Group, rejoins us to discuss the DOJ’s cryptocurrency enforcement efforts.  He can be reached at [email protected]. In early October, U.S. Department of Justice (“DOJ”) Deputy Attorney General Lisa Monaco announced the creation of the National Cryptocurrency Enforcement Team (“NCET”).  The NCET will handle the Department’s investigations and enforcement actions relating to cryptocurrency and virtual assets, which has seen...

Bribery occurs in the United States — what a surprise! Transparency International’s Corruption Perception Index ranks the United States as 25 out of 179, a relatively low ranking for corruption.  Some have argued (including me) that the US ranking may be inaccurate given current regulations surrounding campaign finance and other means by which influence peddling and corruption can occur with low detection risks.  That is...

Little problems can become big ones.  A failure to respond to a risk – whether it is a conflict of interest violation or a weakness in internal controls – can become even more significant depending on the size and scope of the problem. A recent criminal prosecution of two Rockwell Automation executives underscored the nature of this phenomena.  Last month, federal prosecutors arrested and charged...

The Justice Department filed a complaint in the US District Court for the District of Columbia to block Penguin Random House’s acquisition of Simon & Schuster.  Penguin Random House is the largest book publisher in the world and Simon & Shuster is the fourth largest publisher.  Penguin Random House is a subsidiary of Bertelsmann SE and is based in New York City.  Penguin Random House’s...