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

the Mediathe Media

Roy Snell CCEP, MARoy Snell CCEP, MAChief Executive OfficerChief Executive Officer

Society of Corporate Compliance and EthicsSociety of Corporate Compliance and EthicsRoy.snell@corporatecompliance.orgRoy.snell@corporatecompliance.org

www.corporatecompliance.orgwww.corporatecompliance.org

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Private Sector EffortsPrivate Sector Efforts

The private sector can become involved in The private sector can become involved in fighting corruption, supporting good fighting corruption, supporting good governance, and promoting human rights governance, and promoting human rights through implementing internal Compliance through implementing internal Compliance and Ethics programs.and Ethics programs.

Organizations such as the Society of Organizations such as the Society of Corporate Compliance and Ethics can help Corporate Compliance and Ethics can help encourage governments to support and encourage governments to support and reward the private sector’s compliance reward the private sector’s compliance and ethics efforts.and ethics efforts.

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Broaden Our EffortsBroaden Our Efforts There is tremendous focus on what There is tremendous focus on what

governments can do to fight corruption governments can do to fight corruption and human rights violations.and human rights violations.

Often corruption and human rights Often corruption and human rights violations involve more than governments.violations involve more than governments.

Private, public, and nonprofit organizations Private, public, and nonprofit organizations are involved in corruption and human are involved in corruption and human rights violations.rights violations.

Compliance and Ethics programs are Compliance and Ethics programs are designed to fight human rights violations designed to fight human rights violations and corruption from within private, public and corruption from within private, public and nonprofit organizations.and nonprofit organizations.

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What is a Compliance Program?What is a Compliance Program?

Managements commitment to do the Managements commitment to do the right thingright thing

Management steps to make it Management steps to make it happenhappen

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Compliance/Ethics ProgramsCompliance/Ethics ProgramsHelping organizations meet the expectations of othersHelping organizations meet the expectations of others

ComplianceCompliance

Compliance programs are designed to help Compliance programs are designed to help any organization that wants to comply any organization that wants to comply with with the rule of law.the rule of law.

EthicsEthicsEthics programs are designed to help any Ethics programs are designed to help any

organization’s commitment to achieve organization’s commitment to achieve a a higher standard than the rule of law.higher standard than the rule of law.

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Compliance/Ethics ProgramsCompliance/Ethics Programs

Developed and maintained by a Developed and maintained by a Compliance/Ethics OfficerCompliance/Ethics Officer

Designed and implemented internallyDesigned and implemented internally Support of the company’s leadership Support of the company’s leadership

is essentialis essential Must have independenceMust have independence Must have accountability, Must have accountability,

responsibility, and authorityresponsibility, and authority

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Components of a Compliance Components of a Compliance ProgramProgram

1.1. Oversight by Compliance/Ethics OfficerOversight by Compliance/Ethics Officer2.2. Policy and ProceduresPolicy and Procedures3.3. Education and TrainingEducation and Training4.4. Communication and ReportingCommunication and Reporting5.5. Monitoring and AuditingMonitoring and Auditing6.6. Enforcement, Discipline, and IncentivesEnforcement, Discipline, and Incentives7.7. Investigation, Response, and Investigation, Response, and

PreventionPrevention8.8. Program Effectiveness EvaluationProgram Effectiveness Evaluation

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Compliance/Ethics OfficerCompliance/Ethics Officer Professional Code of Ethics Professional Code of Ethics

Discussion Framework Discussion Framework

Principle 1 OBLIGATIONS TO THE PUBLICPrinciple 1 OBLIGATIONS TO THE PUBLICCompliance professionals should embrace the spirit and the letter of Compliance professionals should embrace the spirit and the letter of

the law governing their employing organization’s conduct, and the law governing their employing organization’s conduct, and exemplify the highest ethical standards in their conduct, in order exemplify the highest ethical standards in their conduct, in order to contribute to the public good.to contribute to the public good.

Principle 2 OBLIGATIONS TO THE EMPLOYING ORGANIZATIONPrinciple 2 OBLIGATIONS TO THE EMPLOYING ORGANIZATIONCompliance professionals should serve their employing organizations Compliance professionals should serve their employing organizations

with the highest sense of integrity, exercise unprejudiced and with the highest sense of integrity, exercise unprejudiced and unbiased judgment on their behalf, and promote effective unbiased judgment on their behalf, and promote effective compliance programs. compliance programs.

Principle 3 OBLIGATIONS TO THE PROFESSIONPrinciple 3 OBLIGATIONS TO THE PROFESSION Compliance professionals should strive, through their actions, to Compliance professionals should strive, through their actions, to

uphold the integrity and dignity of the profession, to advance the uphold the integrity and dignity of the profession, to advance the effectiveness of compliance programs, and to promote effectiveness of compliance programs, and to promote professionalism in compliance.professionalism in compliance.

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Corporate Compliance/Ethics VS. Corporate Compliance/Ethics VS. Corporate Responsibility ProgramsCorporate Responsibility Programs

Corporate Social Responsibility programs focus on Corporate Social Responsibility programs focus on issues such as the economic, social, issues such as the economic, social, environmental, and human rights imperatives. environmental, and human rights imperatives. They attempt to influence change but rarely have They attempt to influence change but rarely have the authority to facilitate change.the authority to facilitate change.

Corporate Compliance and Ethics Programs focus Corporate Compliance and Ethics Programs focus on the enforcement of laws, rules, regulations on the enforcement of laws, rules, regulations and policy. This methodology has the authority and policy. This methodology has the authority to investigate, correct wrongdoing, facilitate to investigate, correct wrongdoing, facilitate discipline, and report to the governing board.discipline, and report to the governing board.

They are often separate departments and often They are often separate departments and often not linked; however, they should collaborate on not linked; however, they should collaborate on issues such as human rights.issues such as human rights.

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Related Human Rights Related Human Rights Compliance IssuesCompliance Issues

Harassment at Work Harassment at Work Employee RightEmployee Rightss Family Medical Leave Act Family Medical Leave Act Wrongful Termination Wrongful Termination Employment DiscriminationEmployment Discrimination

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Multinational CorporationsMultinational Corporations

Organizations with operations in multiple Organizations with operations in multiple countries face significant challenges countries face significant challenges because of the differences among because of the differences among countries’ laws and culturescountries’ laws and cultures

Compliance/Ethics Officers, through the Compliance/Ethics Officers, through the implementation of Compliance/Ethics implementation of Compliance/Ethics programs, can help their organization to programs, can help their organization to identify and resolve these differencesidentify and resolve these differences

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Focusing on the Supply SideFocusing on the Supply Side

Compliance and Ethics programs Compliance and Ethics programs focus on the supply side of corruption focus on the supply side of corruption issues.issues.

The Foreign Corrupt Practices Act The Foreign Corrupt Practices Act and OCED focus on addressing the and OCED focus on addressing the supply side of corruption issues.supply side of corruption issues.

There are many other efforts to There are many other efforts to address the supply side of corruption address the supply side of corruption issues.issues.

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International Compliance and International Compliance and Ethics Program EffortsEthics Program Efforts

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

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International Compliance and International Compliance and Ethics Program Efforts - ContinuedEthics Program Efforts - Continued

Hong Kong Stock ExchangeHong Kong Stock Exchange European Union Data Protection Working European Union Data Protection Working

PartyParty Australasian Compliance InstituteAustralasian Compliance Institute Society of Corporate Compliance and EthicsSociety of Corporate Compliance and Ethics Canadian Ethics Practitioners Canadian Ethics Practitioners If you have others please email them to If you have others please email them to

Roy.snell@corporatecompliance.org We are Roy.snell@corporatecompliance.org We are tying to collect them on tying to collect them on www.corporatecompliance.orgwww.corporatecompliance.org

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International Enforcement Efforts International Enforcement Efforts

Convention on Combating Bribery - Convention on Combating Bribery - Organization of Economic Cooperation and Organization of Economic Cooperation and Development Development

UN Convention Against CorruptionUN Convention Against Corruption Autorité des Marchés Financiers – Québec Autorité des Marchés Financiers – Québec  Financial Services Authority – UKFinancial Services Authority – UK Financial Market Authority - AustriaFinancial Market Authority - Austria Foreign Corrupt Practices Act – USForeign Corrupt Practices Act – US Federation of European Security Federation of European Security

ExchangesExchanges

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International Banking Anti-International Banking Anti-Corruption Regulatory RoleCorruption Regulatory Role

Inter-American Development BankInter-American Development Bank World BankWorld Bank European Bank for Reconstruction European Bank for Reconstruction

and Developmentand Development

Banks are investigating and Banks are investigating and sanctioning companies involved in sanctioning companies involved in corruption, when their own financing corruption, when their own financing is involvedis involved

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Why Support Compliance and Why Support Compliance and Ethics ProgramsEthics Programs

Efforts to deal with human rights, Efforts to deal with human rights, corruption, and the rule of law are often corruption, and the rule of law are often directed from the outside-indirected from the outside-in

Outside groups (such as the UN) often Outside groups (such as the UN) often identify problems and request changeidentify problems and request change

Change often comes easier if the request Change often comes easier if the request for change comes from those who need to for change comes from those who need to changechange

To comply with laws requiring compliance To comply with laws requiring compliance programs such as Sarbanes Oxley and programs such as Sarbanes Oxley and many requirements of stock exchangesmany requirements of stock exchanges

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Why Support Compliance and Why Support Compliance and Ethics Programs - ContinuedEthics Programs - Continued

Organizations and governments Organizations and governments could implement and support the could implement and support the implementation of Compliance/Ethics implementation of Compliance/Ethics programs to find and fix problems programs to find and fix problems

At a minimum, the more people we At a minimum, the more people we have finding and fixing problems, the have finding and fixing problems, the more successful we will be at more successful we will be at addressing our concernsaddressing our concerns

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Society of Corporate Compliance Society of Corporate Compliance and Ethics’ Efforts to Helpand Ethics’ Efforts to Help

Sharing of compliance policies, procedures, Sharing of compliance policies, procedures, forms, and presentationsforms, and presentations

Professional CertificationProfessional Certification EducationEducation

• ConferencesConferences• Manuals, books, newslettersManuals, books, newsletters• Audio conferences Audio conferences

Compliance effectiveness guidanceCompliance effectiveness guidance Web site: www.corporatecompliance.orgWeb site: www.corporatecompliance.org Compliance/Ethics Officer standard of conductCompliance/Ethics Officer standard of conduct International Compliance and Ethics Award International Compliance and Ethics Award

BanquetBanquet

2020

SCCE International Compliance SCCE International Compliance Effectiveness (ICE) IndexEffectiveness (ICE) Index

Designed to recognize countries that Designed to recognize countries that are supportive of Compliance and are supportive of Compliance and Ethics programsEthics programs

Based on the countries’ Based on the countries’ implementation of rules, laws, and implementation of rules, laws, and policies that reward or encourage the policies that reward or encourage the development of Compliance and development of Compliance and Ethics programsEthics programs

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SCCE Advisory Board Members IncludeSCCE Advisory Board Members Include

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, Brazil–Korea Forum (Brazilian representative)

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 Attorney’s Office and Philadelphia District Attorney’s Office

Who’s Who in American Law

Past President of the Health Care Compliance Association

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

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