Ethics & Culture

Image: A thoughtful and well-drafted Code of Conduct is the cornerstone of any strong corporate compliance program. Making that cornerstone strong enough to support a compliance program worldwide, spanning all manner of cultures—that’s the tricky part. “We’re constantly trying to figure out better ways to deliver our message while keeping the message consistent,” says Robyn Farmer, chief ethics and compliance officer at Newell Rubbermaid. More inside.

The OECD has received an earful about proposed revisions to its principles of corporate governance, guidelines it encourages countries to adopt much the way they already follow its principles for anti-corruption. Some say the revisions dwell too much on company-level reforms, and not enough at the country-level to allow flexible application of them. More inside.

Establishing the right oversight structure is “one of the biggest issues currently facing the compliance profession,” says Kathleen Edmond, a partner at the law firm Robins Kaplan and former chief ethics officer at Best Buy. In our latest podcast we talk to Edmond about the debate over the best approach and how regulators and internal control frameworks are prompting company leadership companies to reevaluate structure and process.

Image: As we move into 2015 and the good economic times that seem to be carrying the United States along, it’s time for a refresher course in Why Ethics & Compliance Matter. We have two new examples of misconduct—one from Brazil, the other from New York—that can go straight into your training materials. Compliance Week Editor Matt Kelly has more inside.

It may not mention ousted CEO Dov Charney by name, but American Apparel’s new Code of Conduct may give companies ideas for how to toughen up their sexual harassment policies. The new document, four times longer than the one it replaces, expands upon expectations for employee conduct, requires supervisors to report any romantic relationship with an employee, and clarifies that “no management-level employee may make sexual advances, welcome or unwelcome, toward any subordinate.”

JP Morgan, the Wall Street bank that has racked up more than $23 billion in regulatory fines since the financial crisis, has released a 100-page report detailing its efforts to improve compliance, culture, and internal controls. The report, “How We Do Business,” was in response to pressure from shareholder activists who wanted the bank to be more forthcoming about how it wrestles with good governance.

Image: Title: BanksMany companies are looking to breathe more life into their staid and dusty codes of conduct. They’re cutting out the legal language and paying more attention to design and usability. Some leading companies are putting them online with multi-media aspects, including videos. “You want to present information so it’s interesting to the average employee, not a lawyer or compliance geek,” says Ted Banks, partner at law firm Scharf Banks Marmor.

Image: Chief compliance officers are still in high demand, but the skills that companies are looking for in top candidates are changing. Companies are seeking compliance leaders who have the ability to influence others, communicate effectively, and build relationships with a wide range of internal and external stakeholders, including regulators. “Employers are looking for a person who is a great leader, someone with great persuasion skills,” says Maurice Gilbert, founder of corporate compliance search firm Conselium.