Company managers are the lynchpin of a corporate compliance program.  Without belaboring the Tinkers to Evers to Chance baseball analogy, a corporate culture of compliance requires an important information and accountability flow (or cascade) from leadership to senior managers to on-the-ground managers.  It is at this level that the compliance message requires effective communications and conduct by managers directly to employees.  This is where the...

It is always easy to second-guess or look back with 20-20 hindsight on a compliance breakdown and point out all the problems that were ignored or created by corporate actors.  There are common factual scenarios that recur in DOJ and regulatory enforcement actions, some of which fall into certain categories.  While defense counsel (being effective advocates) often argue that bad actors are often “rogue” employees,...

There is no question that corporate leaders, senior executives, legal and compliance staff, and internal auditors recognize the value of an ethical corporate culture.  It is the latest “fad” in corporate governance, and it is a welcome development.  I have written extensively on this important trend and the value of a company’s culture of ethics and compliance. CEOs and corporate executives, however, have embraced this...

Language communicates more than just words – indeed, the use of language reflects much more than simple communication.  Often, a person’s language reveals an attitude, a feeling, a perspective, and much more about a person.  To me, I am often struck how language is used by corporations to mask a clear and distinct idea.  Corporate speak is a language unto itself, and can reflect a...

Maybe I am missing something, but everyone is jumping on the culture bandwagon.  Regulators like to speak about it; prosecutors like to emphasize it – everyone likes to talk about it as a way to encourage corporate leaders to commit to promoting an ethical culture. Let’s face it – talking about culture is an easy way to demonstrate your commitment to ethics and to compliance...

There are a lot of talented CEOs.  Some remarkable leaders, innovators and eloquent spokespeople for their companies.  In several recent experiences, I have been befuddled by some CEOs. When a CEO addresses a global ethics and compliance staff or has the opportunity to address a large staff or division meeting, the CEO should take the opportunity to reinforce the company’s culture and compliance program message. ...

Research has consistently demonstrated that an ethical corporate culture results in increased profits and sustainable growth.  Companies with a positive culture have lower rates of employee misconduct, increased employee productivity, and lower employee turnover.  All of these factors lead to higher growth rates, improved employee morale, and a reduced risk of misconduct and government investigation. This basic premise holds true: when ethical values are embedded in a company’s...

Companies are getting on the bandwagon – corporate culture matters.  Business ethics is important.  My worry is whether this new acknowledgement is viewed as a short-cut for compliance investment. CEOs and the board are troubled by (and even resisting) the resources needed to implement an effective compliance program.  Unfortunately, this attitude reflects a fundamental misunderstanding of the importance of an ethical culture and robust compliance...

Companies do not operate in a vacuum.  As we know, companies are part of our social fabric and are subject to the same influences as our communities, politics and families. To say that the MeToo movement has had an impact on corporate cultures, is to offer yet another profound grasp of the obvious.  The MeToo movement’s impact is much more than raising awareness of sexual...

Given the turbulent times we live in, it is refreshing when we hear a corporate leader explain the importance of trust as a corporate value.  Marc Benioff is the CEO at Salesforce who is aggressively pushing his company to meet a target revenue of $20 billion by 2022. More importantly, at a recent panel discussion at the Davos World Economic Meeting, Benioff gave a powerful...