Corporate Ethics Compliance * Required by Federal

Transcript:Corporate Ethics Compliance * Required by Federal:
Corporate Ethics Compliance * Required by Federal Sentencing Guidelines, Department of Justice, the Sarbanes-Oxley Act, the U.S. Securities and Exchange Commission, the NYSE, and the Office of Inspector General: Department of Health and Human Services, and many other agencies. *This presentation is from Katherina Wulf’s “Ethics and Compliance Programs in Multinational Organizations” Corporate Ethics Compliance Elements of Corporate Ethics Compliance Element 1: Risk Assessment Element 2: Corporate Culture Element 3: Oversight by the Board and Senior Management Element 4: The Ethics and Compliance Office Element 5: Code of Conduct Element 6: Receiving complaints Element 7: Training and Communication Element 8: Assessment of compliance activities Element 9: Incentives and discipline Element 10: Response to misconduct Element 11: Employee screening 4 Structural Elements of Ethics Compliance Element 1: Risk Assessment Element 2: Corporate Culture Element 3: Oversight by the Board and Senior Management Element 4: The Ethics and Compliance Office Element 1: Risk Assessment potential exposure to criminal conduct; a broad view of the risks that could impact the organization’s reputation for ethical and legal conduct. Element 1 Step 1: Decide whether to do it separately or as part of enterprise assessment Step 2: Appoint a risk management team “general counsel, the chief ethics and compliance officer, legal subject matter experts, and, if necessary, business unit or functional heads such as internal audit, human resources, finance, IT, regional heads, other subject matter experts, and outside attorneys or consultants.” (Wulf) Element 1 Step 3: Risk Identification “internal and external sources of risk information, including the organization’s past audit results and litigation or claims history, the size and root causes of incidents in the organization’s industry, and major trends” (Wulf) Element 1 Step 4: Data Gathering and Analysis Gather data Current risks Tools to identify risk Strategies to mitigate risk Emerging risks Analyze data Element 1 Step 5: Risk rating “the likelihood of occurrence, the severity of the risk, and the effectiveness of existing mitigation controls of the various risks. Adjustments to the rating scale may be required depending on each organization’s appetite for risk, as well as any characteristics particular to an industry or operating environment.” (Wulf) Element 1 Step 6: Risk Communication and Information “a detailed description of the risk assessment, the determined risks, and the action plan…to address, monitor, and manage” these risks. (Wulf) Convey this information to senior management, and to all relevant parts of the organization. Element 2: Corporate