It is easy to get lost in ESG. Focus is the key. Leadership has to define the ESG strategy. A designated officer has to lead implementation. The ESG bucket can carry a variety of causes, issues and priorities. Leadership has to sift through these individual items and commit to action. The ESG program now has to be implemented. A first step is to identify opportunities...
Perhaps I am little bit behind. That would be nothing new – but we are getting to the point where we no longer need to spell out ESG. Everyone knows what it means – directors, officers, employees, investors, shareholders and other stakeholders can spell it out. ESG is firmly implanted in the corporate governance landscape. Prosecutors and regulatory agencies are quickly adding ESG to their...
A good lawyer knows the law; a clever one takes the judge to lunch. — Mark Twain Lawyers get a bad rap – not just as the subject of lawyer jokes. (This is not an invitation to recite lawyer jokes). I recently wrote about the unique skills that compliance professionals possess in risk management. CCOs are “comfortable” assessing risk, prioritizing risks and then mitigating risks...
The Treasury Department’s Office of Foreign Asset Control (OFAC)continues to pile up sanctions enforcement actions. As the Biden Administration slowly takes over the reins of the Department of Treasury, OFAC enforcement is likely to increase. Companies should expect more and complex sanctions, including anticipated strict sanctions against Russia for election interference. OFAC’s mission and enforcement profile will increase. At the same time, individual liability is...
Boeing’s long and tragic scandal surrounding its 737 MAX safety concerns and FAA disclosure violations has come to an end. DOJ announced a settlement early this year, on January 7, 2021, which included a three-year deferred prosecution agreement (DPA) in exchange for total payments of $2.5 billion, consisting of: a $243.6 million criminal penalty, $1.77 billion in compensation to its airline customers, and $500 million to establish...
The FCPA Guidance issued by the Justice Department and the SEC says it best – “The truest measure of an effective compliance program is how it responds to misconduct.” These are prophetic words. Many organizations, however, cannot pass this basic test. Indeed, if we look at the Ethics and Compliance Initiative’s 2021 Global Business Ethics Survey (GBES), the conclusion is inescapable: organizations’ ethical cultures are...
The Ethics and Compliance Initiative is a terrific organization that provides important ethics and compliance insights and leadership. Starting in 1994, ECI has conducted a longitudinal, cross-section study of workplace conduct. ECI recently issued its sixteenth GBES results, which provide important benchmarks on the state of ethics and compliance programs in business. ECI focuses on the connection between an organization’s ethical culture and workplace behaviors. ...
The COVID-19 pandemic uncovered the fragility of business operations – within the space of weeks, companies were forced to adjust to distribution channel and supply chain disruptions, workplace closings, and a virtual standstill in global trade. The global economy came to a screeching halt. While the economy is slowly recovering and poised for increased activity, consumers and investors have discovered the importance of organizational sustainability. ...
The success of a compliance program depends on a number of factors. Perhaps one of the most important factors is the strength of the relationship between compliance professionals and business. Compliance depends on business employees to share information, coordinate in compliance procedures, and ensuring overall compliance. As one business manager candidly told me during a risk assessment interview, “if business does not take responsibility for...
The Ethics & Compliance Initiative recently released its 2021 Global Business Ethics Survey. The GBES is an insightful and important survey. The link to the report is HERE. In this Episode, Michael Volkov interviews Pat Harned about the results and the important findings.
