Excellence in Anti-Corruption Compliance Day

On June 23rd, 2014, I had an opportunity to participate in "Excellence in Anti-Corruption Compliance Day" as hosted by Ethic Intelligence. While my participation was via video-feed, where I  lead a presentation and follow up Q and A session on "Rationalizing bribery: Confronting corruption in the front line of sales,"  I have recently read a number of articles pertaining to the remainder of the day,  and which I found quite relevant. 

The one day session which coincided with the start of the C5 Anti-Corrpution Symposium in London, was designed to facilitate an "exchange on various compliance issues, including experience in overcoming difficulties, latest trends, future best practices, and evolutions in legislation and enforcement." My own participation was geared towards, in the words of Philippe Montigny (Founder and President of Ethic Intelligence) helping to assist attendees in understanding "new compliance challenges that arise from operations in the field." 

In addition, as shared by Mr. Montigny in a recent newsletter, my presentation addressed how "it is also important to work with sales teams on the ground to find solutions that can be implemented at a strategic level," and how  "developing a longer term marketing strategy, etc. in a high-risk market can provide sales teams with the added value necessary to win bids and business over the long-term without resorting to bribery.”  

A summary of "Key Takeaways and Best Practices Sharing" is available via link.  I personally found the section on "Reinforcing the role of human resources in preventing corruption" as extremely relevant.  My thanks to Alexandra Almy, Certification Manager, Ethic Intelligence, for  all the hard work in publishing the summary,  and to Dorothy Gaulin, Ethic Intelligence, for making it digitally available. 

Clearly, bringing together so many professionals with different compliance perspectives into such a "working group" session was of considerable value.  So many of  the  anti-corruption "best practices"  that were shared by attendees can now be discussed across organizations. Indeed, as stated by Marjoleine Demmers, Director Corporate Responsibility and Group Compliance Officer, Royal HaskoningDHV in a recent post on Experts Corner, Ethic Intelligence, where she referenced the merit provided by the session in "how do others deal with similar issues? What can I learn, and what might be helpful to others?" I find it really refreshing and engaging to find someone with such background and expertise who is still is willing to look to others and ask "what can I learn..."

Thank you again to Ethic Intelligence for asking me to participate in their "Excellence in Anti-Corruption Compliance Day," and I look forward to continuing our exchange of perspectives and experiences.

Is Anti-Corruption a Business or Legal Issue?

Used with permission from Mak Yuen Teen

On June 5, 2014,  Philippe Montigny, President of Ethic Intelligence (www.ethic-intelligence.com) asks exactly that question in an editorial (here).  My own perspective of compliance remains much along the lines of those such as Mr. Montigny and that of Professor Mak Yuen Teen (National University of Singapore), whose article I discussed in a recent post (here).

On June 4th 2014, I addressed an internal audit and investigatory group at a global hedge fund, where I discussed my experience through international sales, cooperation, and sentencing. I concluded my presentation by sharing my thoughts on current compliance challenges and asked the attendees for feedback relative to my own journey and their  professional challenges. What I found interesting is that many of the questions from the audience during the presentation addressed a number of the issues which are now starting to rise in the compliance debate, including "what is the role of corporate strategy and compensation when trying to drive compliance policies and procedures to the front line of the business?"

These questions were encouraging, as I am starting to see a gradual shift in the debate from the specifics of compliance, including "tone at the top," "third party management,"  and "how to organize a compliance department," (among others) all of which have a fundamental and valid place in the compliance discussion, to one of looking at business strategy as the primary foundation of compliance. Lately, we see in the news companies such as GSK and Citibank which are edging the discourse away from the "rogue employee," model or as Professor Mak calls it, "plausible deniability" towards one where business strategy itself is coming under scrutiny, sometimes from regulators, sometimes from shareholders, and often,  both.

In any case, while the details of a compliance program are not to be ignored, if the business strategy itself supports contradictory messages to the field between the "means" of compliance and the "ends" of winning above all else, then as Mr. Montigny concludes, compliance programs will "continue to be perceived by employees and other stakeholders as providing window dressing only."

Or, as I recently asked Donna Boheme @donnacboheme on a tweet, "when does the paradigm shift with respect to the "rouge employee" concept." Her response "when #boards stop accepting #lame excuses +demand accountability from management." Sometimes the limitations of a tweet  make the points of a message so much more relevant!