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What Does Effective Mean?

people thinking

Kroll’s recent 2022 Anti-Bribery and Corruption Benchmarking Report caught my eye (and not just because it contains beautiful photography of slot canyons and Moab, Utah area attractions such as Delicate Arch – from different vantage points – and Corona Arch).

According to the report:

“In February 2022, Kroll analyzed data from 100 U.S. and Canadian compliance professionals, the vast majority of whom projected confidence in their firms’ ability to meet challenges posed by new or tightened regulations.

In the U.S. and Canada, 70% of survey respondents ranked their companies’ ABC programs as effective, including 45% that ranked them as very effective. Over 60% attributed their confidence in the programs to the results of internal audits and the absence of bribery or corruption incidents identified to date. Respondents also overwhelmingly maintained that their organizations are meaningfully committed to a culture of integrity (74%), that senior management within the organization supports the compliance function (75%) and signals that compliance and accountability are important (75%), that new business initiatives receive appropriate risk assessment (72%) and that performance goals and incentives do not conflict with compliance processes (74%).”

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“Compliance Officer” / Dad

Bucks3

Yesterday was Father’s Day and for the seventh straight year I publish this post (with updates) as the “compliance officer” / Dad journey continues and our twin boys turned 14 this year.

Father is just one of my titles when it comes to the boys. Coach and Compliance Officer being a few others. As to the later, Co-Compliance Officer along with my wife is the more accurate title (I wonder what the “Compliance 2.0” [or are we on to 3.0 now] folks would say about this structure)?

Father’s Day is a chance to reflect and to be sure being a Dad has informed my view of many things including compliance. When you really think about, compliance and parenting have a lot in common.

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Glencore Releases An Ethics And Compliance Report

glencore

Glencore (an Anglo–Swiss mining company with headquarters in Switzerland and ADRs traded on a U.S. exchange) has been under Foreign Corrupt Practices Act (and related scrutiny) since mid-2018. Earlier this year, Glencore disclosed that it expects to resolve U.S., U.K., and Brazilian investigations in 2022 and that it reserved $1.5 billion “representing the Company’s current best estimate of the costs to resolve these investigations.” (See here for the prior post).

No doubt among the factors relevant to the resolution of these matters will be Glencore’s remedial measures and compliance enhancements.

Relevant to this issue, earlier this week Glencore released its first ever Ethics and Compliance Report which provides “a detailed overview of Glencore’s Ethics and Compliance Programme, including a summary of our approach, compliance structure, and the various systems and processes that we implement to support our programme and promote an ethical culture.”

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Assistant AG Polite Talks Compliance And Related Topics

Polite

Recently DOJ Criminal Division Assistant Attorney General Kenneth Polite delivered this speech.

He focused on the following topics: how the DOJ evaluates “corporate compliance programs to ensure that companies are designing and implementing effective compliance systems and controls, creating a culture of compliance, and promoting ethical values,” corporate monitors, DOJ compliance related resources, and the consequences for a company violating a DOJ resolution agreement.

Polite also announced that he has asked his “team to consider requiring both the Chief Executive Officer and the Chief Compliance Officer to certify at the end of the term of the agreement that the company’s compliance program is reasonably designed and implemented to detect and prevent violations of the law (based on the nature of the legal violation that gave rise to the resolution, as relevant), and is functioning effectively.”

During his speech, Polite used the words or concepts “detect and prevent” several times. Keep in mind however, that there is no relevant legal standard that requires corporate compliance programs to “detect and prevent” violations of law. For this reason among others, Polite’s policy suggestion is off-target.

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The Rams Season Of Failures

LARams

Last night, the Los Angeles Ram won the Super Bowl to cap off a successful season.  By one measure, the Rams were the most successful team in NFL this year.

But what if the Rams were a business organization subject to the Foreign Corrupt Practices Act?

It is undisputed that the Rams failed many times this year.

For starters, the Rams were 12-5 in the regular season – meaning the Rams lost approximately 30% of its regular season games.

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