Ever more frequently, I learn about compliance officers losing their jobs, mainly because they were doing them. A lot of organizations have a compliance officer because they know they are supposed to. But they would really be happier if the compliance officer cashed their paycheck and stayed out of the way. This is confirmed by the fact that the compliance officers being fired are not the dregs but often among the best in the business. Compliance officers are not always adept at organizational politics and tend not to be assertive on their own behalf. But this is a job where you have to get a contract for at least three years. You owe this to yourself and those who depend on you. I know that asking for a contract may seem extreme, but you don’t answer the phone where I work.
On Line Ethics Course
August 23, 2014 — MarkOne of the most popular topics in my writing and speaking is how to influence ethically. I am pleased that SoundviewPro, which is the same company that does Executive Book Summaries, has made available a full video-based course titled “Influence with Ethics.” The course consists of four separate classes each built around practical tools for being effective at influencing with ethics. You can preview the course at https://www.soundviewpro.com/online-courses/_/influence-with-ethics/. Be sure to let me know if the course helps you and how it can be improved.
How Much Agreement Is Enough
August 16, 2014 — MarkOne of the excuses people give for not taking ethical action is that people never seem to agree about important ethical issues. In truth, people agree about ethics as much as they agree about science, art or anything else. It is time to put this excuse aside and Training Magazine has an article about this at http://www.trainingmag.com/how-much-agreement-enough.
Compliance Interview
August 9, 2014 — MarkIn 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.
The Walmart Decision
July 26, 2014 — MarkA recent (July 23, 2014) unanimous decision by the Delaware Supreme Court has potentially momentous importance for ethics and compliance programs. Because Delaware is the “corporation state,” other courts tend to follow the Delaware courts on corporate governance issues – remember the “Caremark case.”
At issue was a discovery order on behalf of civil litigants in a Foreign Corrupt Practices Act (FCPA) case against Walmart alleging that Walmart’s board may have breached a fiduciary duty to investigate bribery allegations. (Wal-Mart Stores, Inc. v Indiana Electrical Workers Pension Trust Fund). Among the documents sought by the plaintiffs were files from Walmart’s former compliance officer and files allegedly pertaining to an on-going investigation being conducted under legal privilege.
I know little about the underlying litigation which concerns allegations of bribery in Mexico. And that is not what matters. What matters is that files and documents thought to be related to Walmart’s compliance program were deemed open to discovery in a civil litigation. The Court’s decision was focused in scope, pertaining to files and documents related to potential breaches of fiduciary duty. But it is likely that this decision is a first step toward breaking down the both the legal privilege and the so-called self-evaluative privilege concerning compliance matters. The impact of the decision is great as the plaintiff’s attorneys asserted breach of fiduciary partly on the grounds that the board was or should have been informed of an on-going compliance investigation. In other words, reports of compliance concerns should go to the board but may not be protected when they do.
I believe that this decision will have significant impact on ethics and compliance programs. The relatively free exchange of information between some compliance officers and their boards may well be impaired. More importantly, asserting legal privilege with respect to investigations that are or should be reported to the board is threatened. Like most of these matters, there is a good and bad. Arguments that compliance should report to legal to protect the privilege may be weakened. But compliance reporting to a board may be subject to far greater caution. You can read the decision at:
Influence with Ethics
June 29, 2014 — MarkI recently had a chance to do a webinar for a company called Soundview. Soundview is famous for its its Executive Book Summaries.
The topic is how to influence people with ethics. The key theme is that most books and talks on influence teach you how to manipulate people. Manipulating people has a “rebound effect” when people realize that they have been manipulated. When you influence with ethics, there is no rebound effect. In fact, when you influence someone with ethics, you are building a foundation for your future efforts to influence them. So the webinar definitely talks about how to become an effective source of influence, but it emphasizes the advantages of taking an ethical approach to influence.
You can attend the webinar online at http://tinyurl.com/o7yy9fp.
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Mark Pastin 