The United Technologies FCPA settlement underscored, once again, the harm to a company when lawyers fail to do their job. As outlined in the SEC settlement, an in-house attorney at Otis Elevator was required to review and approve a contract with a third-party, where a cursory due diligence review would have uncovered major red flags. The in-house attorney reviewed the contract without inquiring about the...
As we continue our efforts to improve and grow our podcast, we have recently connected the Corruption, Crime & Compliance podcast feed to Spotify! You’ll now be able to listen to all of the latest episodes right from the Spotify app. Please click here to access our Spotify page. Be sure to listen to our latest episode on how to implement an effective and reliable...
Assume you are under the influence of a truth serum; does you company have a contract management system? Some will say yes; I suspect most will say no. My question is why not? Lawyers love contracts. Most business people see the value of a contract and will comply with a requirement that a deal will require a contract in order to move forward. But there...
Companies have definitely matured in the development and implementation of their ethics and compliance programs. Whether the pace has been rapid enough or is too slow, that is a debatable issue. A good litmus test for a mature ethics and compliance program is whether the company assesses and mitigates its C-Suite risks. Over and over again, companies fall under government scrutiny because of misconduct in...
To promote a culture of integrity and a commitment to organizational justice, companies have to implement an effective, efficient and reliable internal investigation program. Such a system has to respond to employee concerns promptly and investigate these concerns fairly and consistently. Companies have to devote adequate resources and attention to its internal investigation program. In this episode, Michael Volkov discusses how to design and implement...
Karin Sweigart, a Senior Associate at The Volkov Law Group, rejoins us for another posting on employment compliance and litigation risks. Karin can be contacted at [email protected]. There are many reasons to have an employee manual or handbook can be good for your business. Employee manuals help set expectations, provide guidance on how to handle conflicts, and, when drafted and implemented correctly, can protect your...
I am pleased to announce the release of my new e-book, It’s the Culture Stupid: Ethics and the Definition of Successful Companies. (Available Here). Many thanks to Corporate Compliance Insights, Maurice Gilbert, Sarah Hadden and Emily Ellis for their continuing support. I am proud to partner with such a fine organization and professional group.
Chief financial officers are powerful players in the corporate governance landscape. CFOs play a critical role in the management and oversight of the company’s internal accounting controls. Sarbanes-Oxley lifted the importance of CFOs and internal auditors as important gatekeepers. With that important role, CFOs and corporate leaders have to certify as to the accuracy of the company’s financial reports, subject to potential criminal consequences. CFOs...
When it comes to a poster-child for corrupt organizations, there is very little competition that can eclipse Petrobas, the Brazilian state-owned oil and gas company. Petrobas has long suffered under a stigma of corruption, and as outlined in its recent settlement actions, the title was well deserved. Petrobas’ corruption was firmly coordinated and entrenched with Brazil’s political corruption. The pervasive nature of Brazil’s political and...
Stryker Corporation has suffered a second FCPA enforcement action, and will now bear the stigma of FCPA “recidivist.” In reaching a settlement with the SEC and agreeing to pay a $7.8 million civil penalty, Stryker will now be subject to an SEC-imposed compliance monitor. (Here). Stryker’s recent set of violations surrounded books and records violations and deficient accounting and compliance controls in India, China and...
