Session 3 - Focus on Civil Society, Private Sector, and the Media

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Session 3 - Focus on Civil Society, Private
Sector, and the Media

• Roy Snell CCEP, MA
• Chief Executive Officer
• Society of Corporate Compliance and Ethics
• Roy.snell_at_corporatecompliance.org
• www.corporatecompliance.org

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Private Sector Efforts

• The private sector can become involved in
  fighting corruption, supporting good governance,
  and promoting human rights through implementing
  internal Compliance and Ethics programs.
• Organizations such as the Society of Corporate
  Compliance and Ethics can help encourage
  governments to support and reward the private
  sectors compliance and ethics efforts.

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Broaden Our Efforts

• There is tremendous focus on what governments can
  do to fight corruption and human rights
  violations.
• Often corruption and human rights violations
  involve more than governments.
• Private, public, and nonprofit organizations are
  involved in corruption and human rights
  violations.
• Compliance and Ethics programs are designed to
  fight human rights violations and corruption from
  within private, public and nonprofit
  organizations.

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What is a Compliance Program?

• Managements commitment to do the right thing
• Management steps to make it happen

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Compliance/Ethics ProgramsHelping organizations
meet the expectations of others

• Compliance
• Compliance programs are designed to help any
  organization that wants to comply with the rule
  of law.
• Ethics
• Ethics programs are designed to help any
  organizations commitment to achieve a higher
  standard than the rule of law.

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Compliance/Ethics Programs

• Developed and maintained by a Compliance/Ethics
  Officer
• Designed and implemented internally
• Support of the companys leadership is essential
• Must have independence
• Must have accountability, responsibility, and
  authority

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Components of a Compliance Program

• Oversight by Compliance/Ethics Officer
• Policy and Procedures
• Education and Training
• Communication and Reporting
• Monitoring and Auditing
• Enforcement, Discipline, and Incentives
• Investigation, Response, and Prevention
• Program Effectiveness Evaluation

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Compliance/Ethics Officer Professional Code of
Ethics Discussion Framework

• Principle 1 OBLIGATIONS TO THE PUBLIC
• Compliance professionals should embrace the
  spirit and the letter of the law governing their
  employing organizations conduct, and exemplify
  the highest ethical standards in their conduct,
  in order to contribute to the public good.
• Principle 2 OBLIGATIONS TO THE EMPLOYING
  ORGANIZATION
• Compliance professionals should serve their
  employing organizations with the highest sense of
  integrity, exercise unprejudiced and unbiased
  judgment on their behalf, and promote effective
  compliance programs.
• Principle 3 OBLIGATIONS TO THE PROFESSION
• Compliance professionals should strive, through
  their actions, to uphold the integrity and
  dignity of the profession, to advance the
  effectiveness of compliance programs, and to
  promote professionalism in compliance.

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Corporate Compliance/Ethics VS. Corporate
Responsibility Programs

• Corporate Social Responsibility programs focus on
  issues such as the economic, social,
  environmental, and human rights imperatives.
  They attempt to influence change but rarely have
  the authority to facilitate change.
• Corporate Compliance and Ethics Programs focus on
  the enforcement of laws, rules, regulations and
  policy. This methodology has the authority to
  investigate, correct wrongdoing, facilitate
  discipline, and report to the governing board.
• They are often separate departments and often not
  linked however, they should collaborate on
  issues such as human rights.

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Related Human Rights Compliance Issues

• Harassment at Work
• Employee Rights
• Family Medical Leave Act
• Wrongful Termination
• Employment Discrimination

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Multinational Corporations

• Organizations with operations in multiple
  countries face significant challenges because of
  the differences among countries laws and
  cultures
• Compliance/Ethics Officers, through the
  implementation of Compliance/Ethics programs, can
  help their organization to identify and resolve
  these differences

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Focusing on the Supply Side

• Compliance and Ethics programs focus on the
  supply side of corruption issues.
• The Foreign Corrupt Practices Act and OCED focus
  on addressing the supply side of corruption
  issues.
• There are many other efforts to address the
  supply side of corruption issues.

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International Compliance and Ethics Program
Efforts

• Security and Exchange Board of India
• UN Global Compact
• Transparency International
• Social Accountability 8000
• Group of States Against Corruption (GRECO)
• United Kingdom Office of Fair Trade
• South African King II Report
• United States Sentencing Commission
• International Organization for Standardization

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International Compliance and Ethics Program
Efforts - Continued

• Hong Kong Stock Exchange
• European Union Data Protection Working Party
• Australasian Compliance Institute
• Society of Corporate Compliance and Ethics
• Canadian Ethics Practitioners
• If you have others please email them to
  Roy.snell_at_corporatecompliance.org We are tying
  to collect them on www.corporatecompliance.org

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International Enforcement Efforts

• Convention on Combating Bribery - Organization of
  Economic Cooperation and Development
• UN Convention Against Corruption
• Autorité des Marchés Financiers Québec 
• Financial Services Authority UK
• Financial Market Authority - Austria
• Foreign Corrupt Practices Act US
• Federation of European Security Exchanges

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International Banking Anti-Corruption Regulatory
Role

• Inter-American Development Bank
• World Bank
• European Bank for Reconstruction and Development
• Banks are investigating and sanctioning companies
  involved in corruption, when their own financing
  is involved

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Why Support Compliance and Ethics Programs

• Efforts to deal with human rights, corruption,
  and the rule of law are often directed from the
  outside-in
• Outside groups (such as the UN) often identify
  problems and request change
• Change often comes easier if the request for
  change comes from those who need to change
• To comply with laws requiring compliance programs
  such as Sarbanes Oxley and many requirements of
  stock exchanges

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Why Support Compliance and Ethics Programs -
Continued

• Organizations and governments could implement and
  support the implementation of Compliance/Ethics
  programs to find and fix problems
• At a minimum, the more people we have finding and
  fixing problems, the more successful we will be
  at addressing our concerns

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Society of Corporate Compliance and Ethics
Efforts to Help

• Sharing of compliance policies, procedures,
  forms, and presentations
• Professional Certification
• Education
• Conferences
• Manuals, books, newsletters
• Audio conferences
• Compliance effectiveness guidance
• Web site www.corporatecompliance.org
• Compliance/Ethics Officer standard of conduct
• International Compliance and Ethics Award Banquet

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SCCE International Compliance Effectiveness (ICE)
Index

• Designed to recognize countries that are
  supportive of Compliance and Ethics programs
• Based on the countries implementation of rules,
  laws, and policies that reward or encourage the
  development of Compliance and Ethics programs

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SCCE Advisory Board Members Include
Odell Guyton, JD Redmond, WA Co-Chair, Society
of Corporate Compliance and Ethics Senior Counsel
and Director of Compliance, Microsoft
Corporation Former Corporate Compliance Officer,
University of Pennsylvania Many years experience
in complex litigation, corporate internal
investigation, legal auditing, federal and state
grand jury representation, and federal sentencing
guidelines Served in United States Attorneys
Office and Philadelphia District Attorneys
Office Whos Who in American Law Past President
of the Health Care Compliance Association
Joseph E. Murphy, JD Haddonfield,
NJ Co-Founder, Integrity Interactive Co-editor,
ethikos, a leading corporate compliance and
ethics journal More than 25 years experience in
organizational compliance Author of Working for
Integrity Finding the Perfect Job in the Rapidly
Growing Compliance and Ethics Field
Shin Jae Kim Sao Paulo, Brazil Partner,
Tozzini, Freire, Teixerira, E. Silva in Sao
Paulo, Brazil, focusing on mergers and
acquisitions, corporate law, import/export law,
corporate image management, and
compliance Postgraduate specialization degree in
tax law Member, London Court of International
Arbitration LCAI Member, International
Association of Korean Lawyers Member,
BrazilKorea Forum (Brazilian representative)
Mollie Painter-Morland, PhD South
Africa Director, University of South Africa
Centre for Business Professional Ethics,
Pretoria DePaul University Associate Director,
the Institute for Business and Professional
Ethics SCCE International Compliance Ethics
Award Fulbright scholar