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Compliance Headhunters
September 21, 2014 — MarkWe are contacted by headhunters because we know a lot of compliance officers and we know whether they are available. However, it is extremely difficult to help these folks as they often have no idea what a compliance officer does. They are generally working from a job description written by someone in HR who also has little idea what a compliance officer does. The essence of the job of a compliance officer is the ability to influence others to do the right thing. This does not translate into a certain college degree or work history. When describing a compliance position to a headhunter, don’t forget to include BEHAVIORAL requirements and expectations. This will save the headhunter and job candidates a lot of time
Compliance Celebration
September 16, 2014 — MarkAbout 19 years ago we created an annual celebration of what is bright and new in compliance called the Best Compliance Practices Forum @ bestcompliancepractices.com. This year, the Forum is being held on October 20 and 21 in the Washington DC metro area and it will be the best Forum in ten years based on the incredible faculty and best practices to be recognized. It is amazing to see the innovations in compliance that are presented each year. Please join us.
Whistleblowers or Pirates?
September 13, 2014 — MarkEveryday brings new reports of whistleblowers receiving millions of dollars – even tens of millions of dollars – as a reward for being a whistleblower. This occurs primarily in healthcare, defense and financial services. It changes the equation from one in which the whistleblower risks their job to do the right thing to one in which the whistleblower risks their job in the hope of winning the lottery. The public image of the whistleblower has not caught up with this new reality in which the whistleblower is more of a pirate than a hero. The media have been particularly reluctant to give attention to this new, profit-seeking whistleblower. It is time that our perceptions begin to fit the facts.
Getting Fired
September 7, 2014 — MarkEver 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.
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:
ethicswhisperer.com- An error has occurred; the feed is probably down. Try again later.
Mark Pastin 