I have an article about how to address an ethics crisis, which includes most business crises, at http://www.huffingtonpost.ca/mark-pastin/business-ethics-crisis-solutions_b_8096754.html.
Comments are always welcomed and answered as possible.
The Biggest Ethical Mistake
October 5, 2014 — MarkI was recently asked to write something on the biggest ethical mistakes made by CEOs. There are a lot to choose from so this took some thinking.
And the winner is: Judging information you receive by the person who delivers it. I know of no ethical fiascoes, including Enron, that did not have clear warning signs. Somehow these signs were ignored – and not without reason. The information that enables a CEO to prevent an ethical crisis often comes from individuals who are afraid of taking any risks, whine about everything, and have a chip on their shoulder. I have just described one type of whistle blower. Really sharp CEOs ignore the source and act on the information, often at the objection of the top tier of their management. An ethical CEO is always asking, what if this information, although from a questionable source, is true? Would I gamble the future of the company on it not being true?
Lessons of the Secret Service Mess
October 2, 2014 — MarkHere in the DC Metro area, everyone is asking is how things could have gotten so bad at the Secret Service. Many employees of the Service must have known the vulnerabilities, so how could the folks at the top ignore this? My answer is that the bad news may never have reached the top. Several Service employees commented to the local media here that you simply did not raise issues or complaints. This is typical of line-of-command organizations, which turns out to be nearly all sizable organizations. In business, companies establish hotlines and compliance programs so that down line employees can short circuit the line of command. In fact, government often orders businesses to establish these mechanisms! But these mechanisms do not prosper in Federal agencies. Yes, employees can go to the Inspector General for their agency but these individuals are often closely bonded to the agency’s senior leadership. It is time for government to take some of the advice it freely gives to business and create genuinely safe channels through which employees can report concerns.
Book at O’Reilly
September 23, 2014 — MarkMy book Make an Ethical Difference is on sale at half price today at http://oreilly.com/. One day only.
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.
ethicswhisperer.com- 4 Myths about Compliance Program Assessment February 16, 2015The first myth about compliance program assessment is that it is an optional part of an effective compliance program. The same sentence in the Sentencing Guidelines that mandates a hotline also mandates compliance program assessment. And, even if program assessment were not mandatory, it is would be incumbent on your organization to undertake assessment. Org […]Mark Pastin
- Compliance Headhunters September 21, 2014We 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 doe […]Mark Pastin
- Keeping up September 8, 2014While there will continue to be new posts on longer topics on ethicswhisperer.com, I also encourage you to follow markpastin.com, which is updated more frequently and focuses on issues of the day. Of course, your comments are always welcome on any of our sites.Mark Pastin
- The Next Hot Word in Compliance July 13, 2014Hear yea! Hear yea! Hear yea! The next hot word in compliance will be UPQUALING. This, of course, is on the model of UPCODING. Healthcare reform is a gamble on the idea that incentives can be given to lower the cost of care while maintaining or improving its quality. This has been tried before with limited success under the rubrics "managed care," […]Mark Pastin
- A Big Compliance Mistake February 9, 2014Secretary of the US Department of Health and Human Services Kathleen Sibelius recently announced that health plans offered through exchanges will not be considered Federal health plans – and many breathed a huge sigh of relief. Not so easy.What the Secretary's announcement means is that plans purchased through exchanges will not be administratively unde […]Mark Pastin
- 4 Myths about Compliance Program Assessment February 16, 2015
Mark Pastin 