SCCE | Society of Corporate Compliance and Ethics

A Case for Compliance Compliance Basics Issues & Answers C/E Value Proposition Library (members only) JE Murphy Library Professional Code Surveys Job Descriptions Compliance Resources White Papers Corporate Compliance and Ethics Week International 2012 Resource Guide

Compliance Issues & Answers

Using Incentives in Your Compliance and Ethics Program

While incentives are common in businesses, homes, schools and other contexts, the use of incentives in the context of compliance and ethics programs has been slow to catch on. This has been true because many believe that most employees will naturally "do the right thing." Unfortunately, the evidence suggests just the opposite. Without adequate controls and incentives, most of us will (at least occasionally) do the wrong thing.

Joe Murphy’s paper on aligning incentives provides a road map for organizations which understand the incentive imperative but have been struggling with execution. It is a must read for every compliance and ethics officer, as well as for board members and management who are concerned about the impact of non-compliance.

Download a free copy

Laypersons Guide to the Foreign Corrupt Practices Act

This document was prepared by the U.S. Departments of Justice and Commerce. In simple language it explains the history and provisions of the FCPA, including penalties. Click here for the document (PDF)

Good Practice Guidance on Internal Controls, Ethics, and Compliance

Adopted 18 February 2010
This Good Practice Guidance was adopted by the OECD Council as an integral part of the Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions of 26 November 2009. Click here for more

Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions

26 November 2009
(With amendments adopted by Council 18 February 2010 to reflect the inclusion of Annex II, Good Practice Guidance on Internal Controls, Ethics and Compliance) Click here for more

Anticipating and Planning for the Next Big Compliance Issue:
Results of the 2009 SCCE Interactive Workshop Series

Over the last few years the compliance community has had to adjust to success waves of changes in priorities as “new” compliance issues are identified. With each new issue that arises compliance teams are forced to scramble to put in place programs to manage this new, suddenly hot risk area. Training must be developed, broad communication plans are put in place, systems are examined, controls are implemented and tested. Yet, each of these responses are reactive, which means there is a gap between the controls in place and the risks that exist.

To help change the dynamic the Society of Corporate Compliance and Ethics conducted a series of interactive workshops in 2009 to:

Identify what the next big issue is likely to be
Determine how to appropriately respond to the issue when it arises

There was also a third, and perhaps more important purpose for these sessions: to find the common elements of the solutions developed to create a framework that compliance professionals could use to meet virtually any new challenge. Put another way, the goal was to answer the question: how can I be prepared no matter what new risk comes my way?

Download Survey Results to learn what issues were identified and ideas for how to manage them.

ACE Offers Guidance on Conflicts of Interest in Higher Education

Washington — The American Council on Education has released a working paper meant to provide guidance to college administrators on conflict-of-interest issues. The paper outlines the kinds of policies that higher-education institutions should have in place, along with situations that administrators should consider under conflict-of-interest policies, such as when a college official can accept a gift or own stock in a company.

The paper also covers conflicts of interest that institutions might face in research or commercial deals, such as when a vendor offers a gift to an institution.

The paper is available by clicking here

New Rules For Federal Contractors

If You Work with the Federal Government New Compliance And Ethics Rule Effective December 24, 2008.

Bill Summary

Bill History

Federal Acquisition Regulation; FAR Case 2007–006, Contractor Compliance Program and Integrity Reporting

Part 52 - Solicitation Provisions And Contract Clauses

Amendments to the Federal Acquisition Rule: Final changes

SCCE Recorded Audio Conference

The Importance of Board Oversight of a Company's Compliance Program:
Stone Vs Ritter case

The Implication of Stone v. Ritter . Article written by Rebecca Walker, partner law firm Kaplan & Walker LLP, published in Compliance & Ethics magazine April, 2007. The Implications of Stone v. Ritter

Ethics Rule Proposed For Federal Contractors

The Defense Department, General Services Administration and NASA are calling for public comment on proposed rule FAR Case 2006-007, Contractor Code of Ethics and Business Conduct. This proposed rule posted in the Federal Register February 16, 2007, is to establish a code of ethics for contractors similar to the Federal Acquisition Regulation (FAR) guidance on improper business practices and personal conflicts of interest by federal procurement officials. The proposed rule adds a Contractor Code of Ethics and Business Conduct to FAR. Code of Federal Regulations (CFR) 48 parts 2,3,52.

For more info click here

How can the CEO make the difference?

Too many companies have made the headlines because of illegal and unethical conduct. The cost to a company in terms of fines, penalties, reputation and lost business can be staggering. The individual costs to those involved can be shattering. We hear much about the need for the right tone at the top, but what does this mean in practical terms?

The following is just one list of ideas for executives to consider. A creative executive, working with his or her compliance and ethics professional, can probably come up with many more, but this is offered as a pump primer to get the ideas flowing: click here for more.

New Survey Shows that Employees Don't Understand Perils of Computer Use at Work

WeComply, a leading provider of business ethics and compliance training, has released the results of a survey entitled Nothing Personal: 2006 Survey of Computer Use at Work. Fielded by Kelton Research, the survey asked 1,000 U.S. workers if they realized that their "personal" computer activities at work could wind up as business records of their employer. Among the surprising results: more than half of those surveyed did not realize that personal e-mail, instant-messaging and similar activities on work computers could become business records that expose them and their employers to liability.
For a copy of the survey report: go to http://www.wecomply.com/land/esi1.htm.

Austin, Texas City wide Ethics Audit, November 2002

On November 19, 2002, the Office of the City Auditor presented this report to the City Council Audit and Finance Committee. click here

Measuring Ethical Climate Risk:

The Austin City Auditor's Office found a correlation between a department's ethics and its performance. click here

United States vs. Caputo

Robert M. Riley, Vice-President of Regulatory Affairs and Chief Compliance Officer, AbTox, Inc., is one of only a few Chief Compliance Officers ever tried and convicted in federal court.
Click here to view the opinion

Settlement Agreement in Mellon Bank Case

Click here to view the agreement

California Law Mandates Sexual Harassment Training

Click here to download the law

U.S. Court of Appeals Rules on SOX Protection for Foreign Citizens

"Whistleblowers" SOX protection not extended to foreign citizens working outside the United States for foreign subsidiaries of companies covered by SOX. For more information, click here to download a PDF of the January 5, 2006, ruling.

Notes from Compliance & Ethics 202

Click here to download participant ideas and challenges from the Compliance & Ethics 202 session at SCCE's Compliance and Ethics Institute, September 11-13, 2006.

California Pharmaceutical Legislation

Click here to download information about California legislation that requires pharmaceutical companies to have corporate compliance programs.

OIG HHS Compliance Program Guidance

for Pharmaceutical Manufacturers
Click here to download

Summary of Sarbanes-Oxley Act of 2002

The move by many to develop corporate compliance programs came after passage of the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act was designed to help ensure the accountability of corporate executive management and directors, primarily in the interest of protecting public companies' external investors. Sarbanes-Oxley requires management certification of financial reports, and specifies substantial penalties for non-compliance.

Click here to download a summary on the Sarbanes-Oxley Act of 2002.

Download Optimising the Role of Internal Audit in the Sarbanes-Oxley Era.

Vickie L. McCormick
Special Counsel and Consultant
612-204-4156
vmccormick@halleland.com

Increasing Firm Value Through Detection and Prevention of White Collar Crime
(PPT Presentation 151K)

Karen Schnatterly
Assistant Professor
University of Minnesota
kschnatterly@csom.umn.edu

Increasing Firm Value Through Detection and Prevention of White Collar Crime
(PDF Document 140K)

Karen Schnatterly
Assistant Professor
University of Minnesota
Strategic Management and Organizations Dept. 3-365
Carlson School of Management
kschnatterly@csom.umn.edu