Getting Stakeholder Buy-In for
Your Compliance Program
Thomas Fox, Attorney at Law
Thomas Fox
Tom Fox has practiced law in Houston for 25 years. He now
assists companies with FCPA compliance, risk manageme...
Practices Under the FCPA and Bribery Act/GSK in China:
A Game Changer in Compliance
1. Tone At the Top
Beyond Simple Tone at the Top Leadership
•

A successful compliance program must be built on a solid foundation
of ethics ...
2. Tone In the Organization
Tone in the Middle
• If I violate the Code of Conduct I may or may not
get caught;
• If I violate the Code of Conduct and ...
Tone at the Bottom
• Who is an employee’s leader?
• What message is middle management sending?
• Who is being rewarded?
• ...
Communicate with the Field
•

Country managers are often the employees in the trenches and are
responsible for overseeing ...
3. The Role of HR in
Compliance
Partner with HR
Key HR Roles
•Hiring
•Training
•Incentives
•Employee evaluations
•Evaluation for promotion
4. The Fair Process Doctrine
The Fair Process Doctrine
• What is the Fair Process Doctrine? It recognizes
that there are fair procedures, not arbitrary...
Investigations
• If your employees do not believe that the
investigation is fair and impartial, then it is not
fair and im...
Discipline
• Discipline must not only be administered fairly but it
must be administered uniformly across the company for
...
5. Training and
Communication
Conduct Live, In-Person Training
• Live, in-person training is the preferred method in highrisk markets and it should be r...
Tailor Your Training
•

Employing a generic script for compliance training is a mistake.

•

To be effective, training pro...
Compliance Reminders
• Morgan Stanley Declination
• Short, Video or Other Media
Tom Fox Mantra

DOCUMENT
DOCUMENT
DOCUMENT
Questions?
Thank-you for Participating in
Today’s Webinar
How you can reach Thomas Fox
Ph: 832-744-0264
www.tfoxlaw.com
tfox@tfoxlaw....
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Getting Stakeholder Buy-In for Your Compliance Program by Thomas Fox

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“Every compliance issue is, ultimately, a business issue,” says Fox. “I believe that compliance is another form of risk and, as such, you can measure, evaluate and then manage it. As a compliance professional, one of your key roles is to reduce the number and level of risks that your company cannot or will not tolerate. This is a major mechanism by which you can demonstrate the value of compliance within the organization and convince your company’s executive team of the importance of implementing a strong compliance program with an unquestionable commitment to ethics.”
In the webinar, Fox will cover:
• Benefits of having a strong compliance and ethics program
• What constitutes a strong compliance and ethics program (including the importance of conducting thorough investigations with strong documentation)
• Examples of companies that have paid the price for weak compliance programs (especially ones that bungled investigations, if you know of any)
• Examples of companies that have been treated more leniently because they had good compliance programs

Published in: Business, Economy & Finance
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Getting Stakeholder Buy-In for Your Compliance Program by Thomas Fox

  1. 1. Getting Stakeholder Buy-In for Your Compliance Program Thomas Fox, Attorney at Law
  2. 2. Thomas Fox Tom Fox has practiced law in Houston for 25 years. He now assists companies with FCPA compliance, risk management and international transactions. He was most recently the General Counsel at Drilling Controls, Inc., a worldwide oilfield manufacturing and service company. Before that he was Division Counsel with Halliburton Energy Services, Inc. where he supported Halliburton’s software division and its downhole division, which included the logging, directional drilling and drill bit business units. Today, Tom writes and speaks nationally and internationally on a wide variety of topics, ranging from FCPA compliance, indemnities and other forms of risk management for a worldwide energy practice, tax issues faced by multi-national US companies, insurance coverage issues and protection of trade secrets.
  3. 3. Practices Under the FCPA and Bribery Act/GSK in China: A Game Changer in Compliance
  4. 4. 1. Tone At the Top
  5. 5. Beyond Simple Tone at the Top Leadership • A successful compliance program must be built on a solid foundation of ethics that are fully and openly endorsed by senior management; otherwise, the program may amount to little more than a hollow set of internal rules and regulations. There should be an unambiguous, visible and active commitment to compliance. • But compliance standards require even more than support or “tone” from the top. Companies must have high-ranking compliance officers with the authority and resources to manage the program on a day-to-day basis. And compliance officers must have the ear of those ultimately responsible for corporate conduct, including the board of directors.
  6. 6. 2. Tone In the Organization
  7. 7. Tone in the Middle • If I violate the Code of Conduct I may or may not get caught; • If I violate the Code of Conduct and get caught, I may or may not get violated; • If I miss my numbers for 2 quarters, I will be fired.
  8. 8. Tone at the Bottom • Who is an employee’s leader? • What message is middle management sending? • Who is being rewarded? • Who is being promoted? • Who is being disciplined?
  9. 9. Communicate with the Field • Country managers are often the employees in the trenches and are responsible for overseeing sales people and third-party agents who are producing, selling and distributing the company’s products and services. • Local managers are often in the best position to set the tone for compliance and to detect and address illegal or unethical practices before they become issues that put the company at risk.
  10. 10. 3. The Role of HR in Compliance
  11. 11. Partner with HR Key HR Roles •Hiring •Training •Incentives •Employee evaluations •Evaluation for promotion
  12. 12. 4. The Fair Process Doctrine
  13. 13. The Fair Process Doctrine • What is the Fair Process Doctrine? It recognizes that there are fair procedures, not arbitrary ones, in a process involving rights. People are more willing to accept negative, unfavorable, and non-preferred outcomes when they are arrived at by processes and procedures that are perceived as fair.
  14. 14. Investigations • If your employees do not believe that the investigation is fair and impartial, then it is not fair and impartial. Further, those involved must have confidence that any internal investigation is treated seriously and objectively. One of the key reasons that employees will go outside of a company’s internal hotline process is because they do not believe that the process will be fair.
  15. 15. Discipline • Discipline must not only be administered fairly but it must be administered uniformly across the company for the violation of any compliance policy. Simply put if you are going to fire employees in South America for lying on their expense reports, you have to fire them in North America for the same offense. Failure to administer discipline uniformly will destroy any vestige of credibility that you may have developed.
  16. 16. 5. Training and Communication
  17. 17. Conduct Live, In-Person Training • Live, in-person training is the preferred method in highrisk markets and it should be regular and frequent. • Another benefit of live training is the immediate feedback from employees that would be much less likely to occur during a webinar or other remote training. • During live training, employees are more likely to make casual mention of a potentially risky practice, giving you the opportunity to address it before it becomes a larger problem.
  18. 18. Tailor Your Training • Employing a generic script for compliance training is a mistake. • To be effective, training programs should be customized by region, country, industry, areas of compliance and types of employee. • In addition to FCPA, UK Bribery Act, and OECD guidelines, focus on compliance risks in the country where the employees being trained are working. • Consider translations • Train-the-Trainer sessions
  19. 19. Compliance Reminders • Morgan Stanley Declination • Short, Video or Other Media
  20. 20. Tom Fox Mantra DOCUMENT DOCUMENT DOCUMENT
  21. 21. Questions?
  22. 22. Thank-you for Participating in Today’s Webinar How you can reach Thomas Fox Ph: 832-744-0264 www.tfoxlaw.com tfox@tfoxlaw.com  Follow me at www.twitter.com/tfoxlaw. Follow my blog at http://tfoxlaw.wordpress.com/  Contact us at i-Sight j.gerard@i-sight.com

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