The Department of Justice Fraud Section released the Evaluation of Corporate Compliance Programs in middle of February without any announcement or fanfare. Is it a checklist? It looks like a checklist, but DOJ says it’s not a checklist or formula. Some of the information in the Evaluation you’ve heard before, but the “checklist” expands on it. If it’s not a checklist, what does it all mean? How can it help you?
The Upshot this week is when you are thinking about when the organizational guidelines may be amended, take a close look at the Sentencing Commission’s priorities that come out in May or June of each year and keep an eye on who President Trump appoints to the Commission. As far as what might be amended, more talk and guidance around the concept of incentives is in order. There might be some consideration of making the fine provisions of Chapter 8 more applicable to offenses that are currently carved out.
Eric often encounters three myths that organizations believe when considering the liability they may face because of third-party partners’ or agents’ conduct. In this episode, Eric explains why believing these myths creates liability risks for your company.
Myth No. 1: Many people believe that third-party compliance is only anti-corruption, anti-bribery, and/or potential Federal Corrupt Practices Act (FCPA) violations. Your risks, however, are much broader than just those three risk areas. Eric explains why you should be concerned about your third-party agents’ or partners’ compliance in many other risk areas.
Myth No. 2: Many organizations believe that if they are operating purely domestically and don’t conduct any business overseas, they don’t have third-party compliance concerns. It is important to realize that if your third-party agent is working overseas, you may have liability related to the third-party’s conduct overseas. Eric looks at some risk areas that you may not realize you face from third-party’s conduct overseas and how you can protect yourself from those risks.
Myth No. 3: You can rely on a third-party’s compliance program to protect your organization from liability resulting from the third-party’s conduct. Many people recognize that smaller organizations that don’t have as robust a compliance program can present a greater liability risk that larger organizations that have robust compliance program. No matter how extensive a third-party’s compliance program may be, you still face risk. Eric discusses the settlements of FCPA violations related to Panelpina World Transport Ltd., a large publicly trade, multinational corporation. In these cases, many organizations faced liability due to Panelpina’s conduct overseas. Eric explores what this means for your reliance on a third-party’s compliance program.
Three Questions with Eric Feldman, Affiliated Monitors, Inc.
Eric Feldman is the Senior Vice President, Managing Director, Corporate Ethics and Compliance at Affiliated Monitors. Eric retired from the CIA in 2011 with over 32 years of experience in Inspector General oversight and federal auditing in the executive and legislative branches of government. He has served in executive positions with Offices of Inspector General at the Department of Defense, Defense Intelligence Agency, and CIA, and was the longest serving Inspector General of the National Reconnaissance Office (NRO) from 2003-2009. At the NRO, he presided over a highly successful procurement fraud prevention and detection program, widely recognized by the Department of Justice as a model throughout the federal government. Eric is a sought-after speaker in the field of compliance and ethics. Eric’s background and experience give him unique insight into the importance of corporate culture and the future of compliance and ethics. In this interview, Eric’s discussion goes far beyond the three questions, discussing issues that range from recent newsworthy compliance failures to the future of compliance and ethics.
According to benchmarking data, less than half of organizations currently have third-party codes. There’s a current trend of partners asking each other to “sign off” or certify to codes of conduct. You must first assess your risk before answering whether you need a third-party code. Other controls you already have in place, such as contracting…
What does the flurry of indictments against individuals at Volkswagen and Takata tell us about compliance officer liability after the Yates Memo? Eric revisits the impact of the Yates Memo on compliance officer liability with the news of these prosecutions. The Yates Memo, written by Deputy Attorney General Sally Yates and released on September 9,…
If you are looking for ways to involve your managers in your compliance and ethics program, three places to start are engaging managers in training, giving them tools to engage in regular communication about compliance and ethics issues, and helping build strong teams and good rapport with their direct reports.
In order to answer this question, it’s important to first look at the data on retaliation. In three different reports, two in 2012 and one in 2015, the Ethics and Compliance Initiative examined the percentage of employees that report witnessing misconduct. These reports found that 40% to 50%, or approximately four out of ten employees,…
What are going to be the overarching trends in compliance and ethics in 2017? In this episode, Eric talks about compliance and ethics program trends that will affect every company, no matter your size and no matter whether you are in a highly regulated space.
When determining whether to use an interactive design, be sure to spend some time thinking about these three questions: How do your stakeholders interact with your current code of conduct? What is your organization’s communication style? How do you maintain your code of conduct?
When training your Board of Directors, you should address the three pillars in board training: risk specific topic, regular review of the Board’s responsibility to oversee the compliance and ethics program and a comprehensive review of employees’ and other stakeholders’ code of conduct training.