Compliance and Ethics: Ideas & Answers. Edition 50
Dear friends,
Welcome to the 50th edition of Compliance and Ethics: Ideas & Answers.
50 issues of our weekly compliance and ethics journal – our team is thrilled that we have moved so far so quickly. But the greatest source of joy for us is being able to give ideas and help to the thousands of people in our profession who do the everyday hard work this field requires.
If we have given you, our readers, even one useful idea or helped in any way to make your lives easier, then that is really what we celebrate today, with this 50th edition.
Thank you, Joe.
A Thank You for our 50th Edition
“Once Upon A Time” Policies
by Adam Balfour
It is a constant balancing act in deciding how many - and which - policies and guidelines your organization should have. You don’t want to have too many policies because you risk people not reading them and/or being overwhelmed and confused by the number of pages of policies that apply to them, and you don’t want to have too few policies because people might lack the needed guidance to stay compliant and meet the organization’s expectations.
A knee-jerk reaction to one-off events can be to create a new policy - these are the policies that I call “once upon a time” policies. These policies are so specific in trying to address a particular situation that has little chance of occurring again, and future explanations of why that policy is needed will likely begin with “once upon a time…”. The intent might be good, but the impact is that the policy will lack relevance going forward and there are other more effective ways to help people learn from past mistakes.
You need policies and guidance that help people in practice, but having more policies is not necessarily the answer (especially when policies are badly written, not helpful, lack relevance for the target audience, and not supported with a proper communication and marketing plan). Policies should be regularly reviewed to see if they are still needed and add value, and irrelevant and “once upon a time” policies should have short shelf lives and be removed.
Does anyone have any stories of overly specific “once upon a time” type policies they can share? Post below or let me know separately.
The eBay Case: What Lessons Does a Box of Fly Larvae Have For Your Compliance Program?
By Joe Murphy
The Notorious eBay Case: Outrageous Facts
Among the corporate crime stories that reach us, the eBay case has a special place. Here is the set-up. A married couple published a widely circulated newsletter out of their home that included things critical of eBay and its CEO. This angered the then-CEO, who wanted something done. He and the head of communications made it clear to eBay’s security team that they wanted to shut these people down.
Here are some of the things the eBay security team – 6 employees and a contractor’s representative – did to harass this couple:
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The result was a disgusting show of what can follow from abuse of corporate power, and how personal the impact of corporate crime can be. It also is a strong warning to all of us that we must not make assumptions about what our company employees or contractors will or won’t do. Do you think that people at your company would never do something like this? You cannot be sure.
“Who Will Rid Me Of This Meddlesome Priest?” How The Big Guys Get Off
The victimized couple might have been vulnerable, but they were not passive. They called in the local police and then the FBI got involved, with law enforcement pursuing the case. They were able to track down the responsible actors. The security people were criminally prosecuted and held to account. The company paid a $3,000,000 fine, which the government described as the highest possible for this type of offence, and entered into a DPA.
“Higher Ground:” Alison Taylor’s Prescription for Better Corporate Behavior
By Joe Murphy
Alison Taylor (whom I follow on LinkedIn), with her quick wit and sharp mind, ventures into an area where the timid dare not go, and where many have experienced horrible fates. In an age when online mobbing awaits anyone that draws attention, and values not only conflict but conflict with a vengeance, Alison offers a guide with some welcome innovation and insights, in her book “Higher Ground“.
In this review, I call out ideas and insights that I think are useful to corporate leaders. And while she confines the discussion to “powerful corporations,” upheaval in universities reminds us that the points are not limited to companies but apply to all organizations.
Values Conflict
Regarding values, which some see as the simple guide for corporate behavior, she makes a point on which other commentators seem willfully blind – that values conflict. She observes that “Values are contentious, political, and ideological.” And even when they are not, they still frequently conflict. Consider, for example, the value of “loyalty,” which as any compliance and ethics professional can attest, is a value that can lead to horrendous results when a “loyal” subordinate supports and protects a wrongdoing friend or boss. Consider also those who believe in the “value” of free markets. Simply telling people they need to focus on values will not guide them through the current political storms. In what could be considered a quick summary of her viewpoint, she observes that “Seeking to do no harm and manage your own impacts is a far better-grounded approach than seeking to impose values on people who may not share them.”
Make A Compliance Connection: Valentine’s Day Edition
by Adam Balfour
Compliance Career Connections is a wonderful way to help grow your compliance network, learn from some of the best compliance practitioners and make new friends too – and their events are also completely free to attend. I recently caught up with the one and only, Lisa Beth Lentini Walker , about Compliance Career Connections and to hear more about their February 14 event called Make A Compliance Career Connection: Valentine’s Day Edition.
Adam: Lisa Beth, thanks for taking the time to chat with us today at Ideas & Answers. We are excited for our readers to hear about Compliance Career Connections (or “CCC” for short), and especially the upcoming session in February. For those of our readers who are not familiar with Compliance Career Connections, can you tell us what it is?
Lisa Beth: CCC began as a passion project during the pandemic. We were all looking for ways to connect and after a podcast, Jay Rosen, Dan Ayala and I decided to foster a different way to bring people from all areas of compliance and all experience levels together to expand networks. At so many events we run into the same people which can be wonderful, but we wanted to foster a space where everyone could have access and meet other like-minded professionals without needing to tap into a budget.
Adam: Who is Compliance Career Connections for? Is it specific for a certain career level, geography or industry?
Lisa Beth: CCC is designed for everyone who loves compliance. It really has been a place for everyone to connect- whether it’s your first day in compliance or you have been a compliance pro for decades. From a geographic perspective, we have had six continents and over 50 countries represented on calls. The industries represented run the gamut.
Adam: What happens at a Compliance Career Connections event?
Anti-Money Laundering | Anti-Fraud | Financial Crime | BFSI General Risk and Regulatory Compliance Management | Advisory and Training
11moCongratulations Joe Murphy, CCEP and Adam Balfour for your 50th Edition of Compliance and Ethics: Ideas & Answers.
Legal, Compliance & Data Privacy Leader | Board Member | Speaker | Author of Ethics & Compliance For Humans
11moGreat stuff, Joe! 50 editions in and we are just getting started. Thanks to Lisa Beth Lentini Walker for telling us about the upcoming CCC event and congratulations to Alison Taylor on your book!!
Clinical Professor at NYU Stern School of Business, lots of other hats, even more opinions. Author of Higher Ground: How Business Can Do the Right Thing in a Turbulent World, Harvard Business Review Press, February 2024.
11moThank you for reviewing Higher Ground, and for your fantastic comments!!
Deputy General Counsel | Compliance, Ethics, Governance and Risk Strategist | Chief Compliance Officer | Attorney | Former SEC Attorney |
11moThanks for including such great content and highlighting the free opportunity to connect through Compliance Career Connections as part of your update!
Executive Director of Boards of the Future, Alien of Extraordinary Ability in the Field of Compliance and Ethics, Author of Corporate Compliance Program, Keynote Speaker, Certified Accountant & Auditor
11moThis is lovely; thank you all for your insights and contributions!