Compliance Interview

In a recent interview, Mark Pastin discusses a wide range of issues on corporate compliance. Please feel free to offer comments on any of the topics discussed in the video.

 

Welcome

headshot of Mark PastinWelcome to Mark Pastin’s web site. You will find information about Mark and his publications, services and speaking engagements here. Mark started working on ethics and compliance problems in business, government and the professions in the early 1970s. His 1986 book, The Hard Problems of Management: Gaining the Ethics Edge, was the first to take a managerial approach to ethics in business. (See Publications for details.) In his new book, Mark shows readers how to use their own innate ethical sense to create organizational and social change. Make an Ethical Difference: Tools for Better Action was released late in 2013 and is available now at Amazon.com and Berrett-Koehler Publishers.

Author Interview

The attached video explains the main themes of Mark Pastin’s new book Make an Ethical Difference. One novel theme of the book is that individuals have an innate ability to make ethical judgments. Pastin calls this ability the “ethics eye.” More on this topic in coming posts as the main themes of Make an Ethical Difference are previewed.

The Ethics Strategy: AMA

Those who have enjoyed the exchanges on ethics and strategy may want to look at the unified piece in the American Management Association’s “Playbook.” It is available at http://playbook.amanet.org/5-competitive-strategies-of-successful-and-ethical-companies/

In an Ethics Crisis Find the Root Cause

In an ethics crisis, it is not enough to know what happened; you need to know why it happened. Most organizations can survive a single ethics crisis. But if the same conduct is repeated, even if by different individuals, this will fix the negative impression of the organization in cement. Organizations tend to want to keep changes to a minimum, as big changes seem to be a further admission of culpability. But you need to be sure that you have changed personnel and systems sufficiently that the same conduct does not recur.

Publications of Interest

I have found two recent publications that may be of interest. The first is on ethics and business success and pretty much follows the discussion here. It can be read at http://tinyurl.com/q55rash. The second is on a new topic which is how to build ethics into a start-up. This one is by Martin Zwilling and can be read at http://tinyurl.com/nb6jdug. Enjoy and comments are always welcome.

In an Ethics Crisis Assume the Government Will Be Involved

When an organization does something viewed as unethical, the public wants someone to do something about it. And that someone is likely to be “the government.” Most organizations are open to some level of government oversight. When the government comes knocking, you can expect to hand over most everything you know about the crisis. Why? Even though some of the material may be covered by legal privilege, the government will find you uncooperative if you “hide” information. Your reasoning about the crisis needs be premised on when the government finds out rather than whether the government finds out.

In an Ethics Crisis Consider the Impact on Your Employees

A big risk in an ethics crisis is that your own employees will conclude that unethical conduct is the norm in the organization or at its highest levels, and adjust their behavior accordingly. In an ethics crisis, employees often learn about the crisis from the media. Organizations tend not to communicate openly with their employees about such matters, leaving employees to believe what others are saying. You risk an unplanned change in corporate culture unless you credibly communicate the organization’s position to its employees.

Hurdles for Compliance Officers

You may enjoy the attached article from the Report on Medicare Compliance on some of the practical issues that compliance officers face.

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In a Crisis Investigate Quickly, Objectively and Thoroughly

In an ethics crisis, you need to know what happened, who did what and who knew about it. An investigation into an ethics crisis cannot follow the usual internal investigation protocol since those running the investigation may be implicated in the crisis or in covering it up. You need an independent investigation. Even if you conduct the investigation under legal privilege, anticipate that the investigation may become public and that you may eventually be required to share the investigation with regulatory or enforcement authorities.

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