Continuing with my list theme for the week, it is important to remind everyone that a culture of compliance begins with the board of directors, filters to the CEO who commits to promoting ethics and compliance in the company, and finishes with a fabric of ethics and compliance that is built on trust and integrity. I recognize I have said more than a mouthful but...
In the era of global antitrust cartel enforcement, antitrust practitioners often scratch their collective heads and ask why is antitrust compliance so ignored by government enforcement agencies. Instead of promoting antitrust compliance programs by offering real and meaningful incentives, antitrust enforcement agencies offer no carrots to companies to enhance their antitrust compliance program. Antitrust enforcement leaders often promote a simplistic argument – if a company...
Chief Compliance Officers are the rising professional stars in the corporate employment landscape (along with IT professionals who have practical perspectives). The profession is at an important test – where will the profession go from here and what steps do CCOs need to take to prepare for these challenges? I always say that CCOs are a confident group of people. They are committed to not...
In this Internet-age of ADHD and simplistic thinking, I thought I would contribute this week by putting together some lists of common themes in the ethics and compliance world. Unfortunately, we are all addicted to quick analysis, rapid descriptions, and targeted thinking. It is one of the downsides of our new information age. In fairness, I have to admit there are significant upsides to our...
Like Tinkers to Evers to Chance completing a double play, compliance programs need to maintain important links among three key elements – its complaint system, the handling of such complaints, and the publicized resolution of such complaints to encourage its Speak Up culture. Complaint Reporting Channels: Many companies have more than one avenue for officers, managers and employees to complain. That is a good thing....
The FCPA has broad extraterritorial reach. Everyone knows that and understands how foreign conduct can be prosecuted in the United States courts. FCPA violators, however, are learning about the long-arm of the law and the United States government’s ability to apprehend suspected criminals around the globe. The recent guilty plea of Bernd Kowalewski, the former CEO of BizJet, should be an important reminder. Kowalewski was...
You have to admire some people for their chutzpah. In a recent Global Fraud Survey conducted by Ernst & Young (available Here), survey results suggested that anti-corruption compliance may be “running out of steam.” If accurate, the results are surprising. Anti-corruption enforcement is a growing risk, not just in the United States but across the globe. We are witnessing a global movement that will increase...
Niagara Falls, slowly I turn, step-by-step, inch-by-inch. In a creative epiphany, I have found a way to link together one of my favorite Three Stooges (Curly was my hero) scenes and Wal-Mart’s current situation in Delaware relating to discovery of materials in an ongoing shareholder lawsuit. Watch the video here. Michael Scher, a leading commentator on FCPA issues on the FCPA Blog, has pointed out...
Companies spend a lot of time and effort promoting a “Speak Up” culture. Even before the SEC’s whistleblower program, senior managers recognized that they needed to know what is occurring in the company. The only way to learn is to encourage officers, managers and employees to speak up. It is easy to say you are committed to such a culture. It is much harder to...
The SEC has a real perception problem. They cannot win in court. Whether this is fair or not, the SEC needs to move beyond this fear of losing since it only undermines the integrity of its enforcement program. As a former prosecutor, I can assure you that prosecutors, just like trial lawyers, will lose a case. There is no shame in that since you cannot...
