Discipline is a complicated thing. Ask any parent. The fifth installment of OIG Shorts focuses on discipline as a core component of an effective Ethics & Compliance Program.
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In our decades working with complex organizations on their Ethics & Compliance (E&C) programs, my colleagues and I have seen a wide variety of structures. While we readily concede there is no one way to structure an E&C program, we have come to believe there are a few traits common to the best programs. Our fourth installment of OIG Shorts reviews traits common to the best programs.
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Continue Reading Organizational Integrity Shorts: Structure Matters
Welcome to our third installment of OIG Shorts. Ethics & Compliance programs that buck up against an employee’s reality—whether that reality is real or perceived—have less chance of succeeding. In this third edition of our OIG Shorts series, we explore the importance of developing what we call Reality-Based E&C Programs.
Welcome back to our second installment of OIG Shorts. In this post, the Sheppard Mullin Richter & Hampton LLP Organizational Integrity Group focuses on the difference between Checking Boxes and Solving Problems from an Ethics & Compliance (E&C) perspective.
Over the course of the next few months, the Sheppard Mullin Organizational Integrity Group will be exploring a number of complex compliance matters in a series we call “OIG Shorts.”…
Continue Reading Organizational Integrity Shorts: Everyone Benefits When An Ethics & Compliance Program Is Integrated Throughout An Organization
The U.S. Governmental Accountability Office (GAO) thinks the FBI and other agencies are not doing enough to address the espionage threat on U.S. university campuses. It issued a report, “Enforcement Agencies Should Better Leverage Information to Target Efforts Involving U.S. Universities” on June 14, 2022, urging the FBI, the Department of Homeland Security, and the Department of Commerce to step up their outreach efforts to address the threat. Commerce, DHS, and FBI have all concurred with GAO’s recommendations. As a result, U.S. colleges and universities to face yet another organizational risk: an increase in campuses visits by export…
Continue Reading U.S. Government Pursues More Aggressive Action to Curb Espionage at Universities
So, nearly 2 years ago your organization applied for and received COVID-relief funds. The decision was not an easy one. On the one hand, government largesse invariably comes with strings and uncertainties, i.e., risk. On the other hand, your organization faced an unprecedented triple threat crisis: financial, operational, and health. Consumer spending plummeted and its consequences rippled through the economy threatening to trigger a global financial meltdown. You could not possibly have forecast how the global pandemic would affect your organization.
Continue Reading A Short Guide To Responding To Employee Concerns About Your Organization’s Actions And Its Mission, Vision, And Values
The inattention some companies pay to their ethics and compliance program never ceases to surprise us. You’d think the frequency of DOJ press releases and prosecutions holding companies accountable for employee wrongdoing would be enough to scare any business into directing more resources at prevention. But alas, many businesses, often over the protestations of their under-resourced Chief Ethics and Compliance Officers (CECOs), continue to think they can get by with a minimalist approach to ethics and compliance. Our experience suggests otherwise.
Continue Reading DOJ’s Renewed Focus On Corporate Ethics & Compliance Programs Highlights Importance Of Organizational Integrity
Government enforcement efforts are on the rise. In December 2021, the Secret Service announced an initiative to more aggressively counter pandemic-related fraud. Empowered by new personnel, new funding, and new legislation, the DOJ has bolstered its antitrust enforcement efforts. Gurbir Grewal, the SEC’s new director of enforcement, shared his aggressive SOX enforcement plans in a recent PLI speech. Speaking at the ABA 36th White Collar Crime Institute, Deputy AG Lisa Monaco announced the DOJ would be re-energizing its enforcement of “white collar” wrongdoing. “Although we understand the costs that enforcement actions can place on shareholders and others,” she told the …
Continue Reading Driving Cultural Change To Reduce Corporate Risk: Lessons Learned From The Field
If your company is like many, your board of directors may be demanding that you put more effort into environmental, social, and governance issues, which have become known by the now-ubiquitous acronym “ESG.” Those demands don’t come from nowhere: consumers are demanding transparency and social responsibility. In addition, if your company does business internationally, regulators are now focused on international social justice issues (such as the use of forced labor) more than ever.
Continue Reading Does Your Trade Policy Support Your Company’s Values?
This past month, the U.S. Senate debated a provision in the Innovation and Competition Act that would require the Committee on Foreign Investment in the United States (CFIUS) to review any proposed gifts and contracts of $1 million or more to U.S. research institutions from a foreign source. That would mean that the U.S. government would have a new level of oversight of such gifts, be required to investigate the ultimate source of the funds, and be able to impose mitigation measures on or prohibit such gifts.
Continue Reading Open Research, Foreign Finance, and a University’s Mission
Corporate compliance programs are expected to be tailored to an organization’s unique risks. Most regulators (and most modern organizational compliance programs) prescribe risk-based compliance. But one thing is to prescribe; another is to execute properly.
Continue Reading Five Keys to a Successful Compliance Risk Assessment
Contrary to some expectations, the Trump Administration Department of Justice imposed record penalties under the U.S. Foreign Corrupt Practices Act from 2017 through 2020. But in each of those years, fewer and fewer new FCPA investigations were initiated. We expect the Biden Administration to continue the trend of increasing FCPA enforcement settlement values, while also increasing the pace of initiating new FCPA investigations. Anticorruption matters present some of the most severe threats to a company’s organizational integrity. Understanding the changing enforcement culture is an important component to addressing those threats.
Continue Reading The Next Four Years of FCPA Enforcement: What to Expect From the Biden Administration
This article was originally published on IP Watchdog.
An employee comes to you with a recipe for your competitor’s “secret sauce.” You know she worked for your competitor before coming to work for you. How do you respond? It’s an important question, because it may go to the core integrity of your organization and because exploring this trade secret conundrum may offer some decision-making principles that businesses can apply when addressing other difficult decisions that they are being called to make in these stressful COVID-19 times. …
Continue Reading To Disclose Or Not To Disclose: Responding to Trade Secrets Misappropriation by an Employee?
The University of Kentucky (“UK”) announced that it had fired all the coaches of its powerhouse cheerleading team on May 18, 2020 after a three-month internal investigations into allegations of hazing, public nudity, lewd chants, and alcohol use among team members over a number of years. UK released an eight-page internal report by its Institutional Equity and Equal Opportunity office that probed, among other things, whether “the coaches . . . knew of or should have known” about misconduct by team members and concluded that the “weight of the information provided is sufficient to establish that the coaching staff were …
Continue Reading (Cheer)Leading By Example: UK’s Cheerleading Scandal and Lessons for Leaders
In 1657, mathematician Blaise Pascal commented in a letter to his church leaders “I have made this longer than usual because I did not have time to make it shorter.” More than 100 years later, another Frenchman, Napoleon Bonaparte, offered a similar remark to his valet as he prepared to head out for battle. “Dress me slowly,” he said, “I’m in a hurry.” The irony of the quotations makes people smile, but few quibble with their underlying truthfulness. Often, the more in a hurry you are, the more you need to slow down.
Continue Reading Using “Prospective Hindsight” To Identify And Mitigate Risks During A Crisis