I was recently in a business lounge at the airport in Atlanta, and was amazed to be bombarded by executives on their cell phones loudly conducting business. Sitting within earshot, I learned that a large manufacturer (I knew which one it was because the person speaking about it was wearing a company-branded polo shirt) just won a major contract, and a company in the healthcare industry is preparing for layoffs. When “Working in Public” Becomes an Insider Trading Policy Violation
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August 21, 2014 • Randy Stephens
August 19, 2014 • Daniel Kline
The United Kingdom’s Parliament has been considering offering whistleblower bounties similar to those offered under the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act. A commission formed by the Bank of England and the UK Financial Conduct Authority spent time with U.S. regulators to investigate the benefits and the drawbacks of this type of legislation. The commission’s recommendation back to Parliament? A resounding no! Employees to Bounty Hunters?
August 14, 2014 • Ingrid Fredeen,
More than half (56 percent) of the respondents to the NAVEX Global 2014 Ethics & Compliance Training Benchmark Survey revealed that their top ethics and compliance training concern today is the limited hours available for training their stakeholders. A close second (54 percent) is measuring the effectiveness of training programs, and the third among top challenges is not enough budget (42 percent).
August 12, 2014 • Randy Stephens
A little over a year ago the Rana Plaza factory collapsed and 1,100 garment workers died. This human disaster resulting from questionable construction practices and workplace safety issues focused the eyes of the world on the working conditions of those who supply major retailers. Products manufactured for multinational, brand giants, such as H&M and Kmart, JC Penney and Benetton were found amongst the rubble of the building, which local officials had warned was unsafe.
August 7, 2014 • Andrew Foose
I was challenged recently by a participant during an in-depth webinar on conducting investigations of employee misconduct that I was leading. As I discussed how to assess witness credibility—one of the most difficult challenges investigators face—the participant sent me a message that said, “Not to contradict you, but the Association of Certified Fraud Examiners (ACFE) states that investigators should not rely on their opinion in reaching a conclusion.”
A recent blog post by Ethics Resource Center President Pat Harned, reported on findings from the ERC 2013 National Business Ethics Survey (NBES) of significantly more observed misconduct in companies that are under stress during mergers, acquisitions and organizational restructurings. The survey found that companies undergoing change, on average, had a 21.5 percent increase in observed misconduct.
Ninety percent of survey respondents from NAVEX Global's 2014 Ethics & Compliance Training Benchmark Report, cited their top ethics and compliance training objective as “Create a culture of ethics and respect.” This was closely followed by “complying with laws and regulations” (89 percent) and “preventing future issues or misconduct” (82 percent). Once focused almost exclusively on establishing important legal defenses, the new top priority for compliance training is building an ethical culture. This trend is true even among ethics and compliance and legal job titles that have traditionally been more focused on program defensibility.
Over the past couple of years, the European Commission has been working on updating its nine-year-old Third EU Anti-Money Laundering (AML) Directive to accommodate new international standards and to address previous shortcomings. Earlier this year, the EU Parliament approved new draft legislation, bringing the Fourth AML Directive one step closer to implementation. Though implementation is unlikely to take effect before 2015, employers doing business across the EU should start buttoning down their compliance programmes now—particularly around third-parties. Shining the Light on Third Party Due Diligence
July 25, 2014 • Mary Bennett
The recently released 13th Global Fraud Survey from EY notes that, despite an aggressive enforcement environment focused on fraud, bribery and corruption, “the percentage of companies that have anti-bribery/anti-corruption policies has increased by only 1% over the past two years, and a persistent minority has yet to take even the basic steps toward an effective compliance program.”
July 21, 2014 • Ingrid Fredeen,
We recently hosted a webinar, “Priorities, Practices and Trends in Training” to discuss the findings from our NAVEX Global 2014 Ethics and Compliance Training Benchmark Report. Some of the key findings from the report, which we addressed in detail during the webinar, were: