LRN conducts an annual Ethics and Compliance Program Effectiveness Report (“LRN Report”) that is a must-read for business leaders, managers, investors, compliance professionals and other stakeholders. LRN’s annual report has...more
Chief compliance officers have a difficult job (to say the least). If everything goes well, they are hailed as heroes. If a major problem occurs, everyone looks to the CCO to find out why the problem occurred. In the...more
Ethics and compliance professionals believe in their mission – if they did not, they would not be in the field. E&C professionals believe in the power of positive thinking, ethical conduct, and in the overall ability of an...more
The crushing aftermath of the tragic 737 MAX scandal is disturbing at the least. Innocent lives were lost because of Boeing’s culture misfires, poor leadership at the management and board level, and an arrogant disregard for...more
11/30/2021
/ Aircraft ,
Airplane Accidents ,
Aviation Industry ,
Boeing ,
Caremark claim ,
Corporate Culture ,
Corporate Governance ,
Corruption ,
Internal Controls ,
Safety Standards ,
Settlement Agreements ,
Shareholder Litigation ,
White Collar Crimes
In its decision, the Chancery Court methodically analyzed the weaknesses in Boeing’s board processes and its fundamental failure to meet basic Caremark standards in tackling airplane safety issues, particularly after the Lion...more
When considered in light of the Chancery Court’s decision, DOJ’s essential findings in its Boeing investigation are problematic at best. The Chancery Court’s decision outlines how Boeing’s culture of safety deteriorated into...more
11/24/2021
/ Airplane Accidents ,
Aviation Industry ,
Boeing ,
Breach of Duty ,
Compliance ,
Corporate Culture ,
Corporate Governance ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Derivative Suit ,
Enforcement Actions ,
Fiduciary Duty ,
Safety Standards ,
White Collar Crimes
When I reviewed again the US Department of Justice’s conclusions reached as part of the Boeing criminal investigation, and the Delaware Chancery Court’s decision denying Boeing’s motion to dismiss the shareholder derivative...more
A targeted employee survey program requires careful planning and communications prior to launching the survey program. Employee engagement in response to a specific survey requires transparent and robust explanations and...more
Chief compliance officers play a key role in managing a company’s ethical culture. Most companies fail to pay proper attention to its culture because it is difficult to define, measure and monitor. Such an approach is...more
On October 28, 2021, U.S. Deputy Attorney General Lisa O. Monaco—a veteran of government service in previous Administrations and a champion of corporate accountability—announced several significant changes to current...more
11/10/2021
/ Biden Administration ,
Chief Compliance Officers ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corporate Monitoring ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Priorities ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
Policy Statement ,
Prosecutorial Discretion ,
White Collar Crimes
Lisa Monaco, the Deputy Attorney General (No. 2 in DOJ), delivered an important speech at the National Institute of White Collar Summit. Lisa was part of the Enron Task Force years ago and has a strong professional...more
11/2/2021
/ Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Enforcement Priorities ,
National Security ,
Non-Prosecution Agreements ,
White Collar Crimes
ESG – the initials that are transforming corporate missions, purposes and structures, fueled by stakeholder and investor demand. It is a significant moment in corporate and stakeholder interactions. ...more
10/28/2021
/ Business Plans ,
Business Strategies ,
Capital Investments ,
Compliance ,
Corporate Culture ,
Corporate Governance ,
Corporate Social Responsibility ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
Investment Management ,
Publicly-Traded Companies
As many workers flee their current jobs, burnout and lack of growth opportunities are being cited as two of the biggest reasons. ...more
When I was a federal prosecutor and investigating corporations for misconduct, I imagined a well-oiled machine with vast resources, capable of overwhelming government prosecutors and law enforcement agents with lawyers,...more
Corporate leaders and executives like to mouth the words surrounding corporate culture. It is part of the code they all use with each other. Few of them, however, really know what the word means or even dare to understand...more
Corporate families can carry the traits of a smaller family – what do I mean by this quip? An absent parent inevitably causes harm to a family. Families depend on connection, support and ultimately intimacy. ...more
Chief compliance officers are always hungry for benchmarking data, for comparisons and insights around how their respective compliance programs stack up against other companies, especially in the same industry. Compliance...more
We all know the importance of teamwork and collaboration. Whatever the context, sports, business, military, and many other situations, teamwork and cooperation is essential to success. ...more
“The truest measure of an effective compliance program is how it responds to misconduct.”— FCPA Guidance (2d. ed 2020) -
This straight-forward statement (above) of a company’s commitment to its “effective” compliance...more
While the value of a positive corporate culture is clear, a strong culture does not always develop organically. Companies must devote attention to measuring, managing, and promoting ethical cultures....more
An organization’s culture does not exist in a vacuum. It is communicated and executed every day. It is the guidepost by which internal and external interactions occur and is carried out by individuals in a multitude of...more
The culture bandwagon is picking up steam. Everyone is citing its organization’s “culture” as the foundation for its activities in the hope of meeting a rapidly evolving standard for organizations....more
We always read about the superstar CEO. The company’s leader who is paid millions and is the rock star of business success. Board members, shareholders and stakeholders support the leader because he/she has brought...more
Sometimes compliance issues are simple. Most times they are nuanced. This is a simple issue but it carries with it a significant message. So here goes – where is the CCO’s office?...more
We often discuss the importance of a “Speak Up” culture. We encourage employees to report their concerns, we emphasize the important of such reporting to the life of an organization....more