Corporate board members face a very tough environment.  Prosecutors are gunning for a criminal case against a board and/or some of its members.  Shareholders regularly sue board members whenever a company suffers a business or legal setback. The life of a board member has dramatically changed.  No longer is the job a “cushy” way to dabble in business management from high up in the ivory...

Life as a Chief Compliance Officer is not so easy.  The job, as defined, means living with day-to-day risks, any one of which is significant enough to damage or even destroy the company for whom you work.  CCOs learn to live with risk. When a CCO has the backing of the board and the CEO, their job is relatively easier.  That does not mean it...

The headlines get worse and worse.  More companies under investigation.  More individuals detained and under investigation.  The shockwave in the pharmaceutical and medical device industries is palpable.  It is all understandable.  The message from the Chinese is two-fold – they are going to enforce China’s bribery laws, especially in those markets that have a direct and immediate nexus to China’s consumers. We all have heard...

I continue to be astounded by one simple fact (candidly there are others) – companies do not understand that creating and maintaining an ethical culture improves bottom-line financial performance.  A commitment to ethics as an enhancement to an existing compliance program not only improves performance of the compliance program, but improves corporate profitability and long-term shareholder value. From my days as a history major, I...

Lawyers like to be dramatic.  Litigators love to be dramatic.  When it comes to a “bet the company” scandal, the company’s survival will depend not only on the quality of an internal investigation, but the company’s broader “crisis management” skills. There is no question when the stakes are high; an internal investigation must be conducted in a professional and careful manner so that it can...

The increase in AML enforcement has focused on sanctions violations.  The problem continues to plague financial businesses which have yet to adapt to the United States’ ability to enforce US sanctions laws and regulations against conduct which occurs outside the United States.  Short-sighted compliance programs fail to integrate a global perspective on compliance. Standard Chartered was forced to pay fines and penalties for stripping Iranian...

This column may be another example of what I call — “ A profound grasp of the obvious.”  The answer to the question of this column is easy according to everyone – financial performance, quarterly results and shareholder value.    So is that all on the mind of corporate leaders? We all know the problems created by executive compensation schemes and the short-sighted management perspective that...

I am sure Justice Department and Securities and Exchange Commission lawyers sometimes sit back and marvel at the world they have helped create – Companies are devoting more resources to the due diligence process for screening third parties.  Companies are building due diligence screening procedures and more sophisticated protocols to minimize risk.  The message has come through loud and clear – conduct due diligence and...

I am always surprised at creative links between compliance principles and major historical events and concepts.  Tom Fox, my colleague, is particularly adept at drawing these connections, especially in his recent series describing the link between the Gettysburg battles and specific compliance topics. In his shadow, I would offer another such analogy.  Einstein’s theory of relativity has a direct application to compliance, or at least a...