Carnival enhances its ethics and compliance function

The additions to Carnival’s E&C program include three new corporate compliance leaders reporting directly to Anderson, who is “building an extensive ethics and compliance program to drive a culture of compliance, learning, and integrity inside the corporation and across its nine global cruise line brands,” Carnival announced. Specifically, the goal is “to meet or exceed all legal and statutory requirements and promote the highest ethical principles.”

In a statement, Anderson said, “this new team underscores our commitment to ethics, compliance, the environment and health, safety, and security. We are in the process of developing a world-class, enduring culture of compliance among every one of our 150,000 employees.”

“Compliance and ethics are at the heart of everything we do,” Anderson added. “The leadership, experience, and passion of this very talented and determined team will play an instrumental role in our mission.”

To promote full integration and teamwork, E&C leaders will work closely with other newly selected leaders based within the various operating companies. The E&C team leaders include the following personnel and positions:

Kelly Clark, senior vice president, deputy chief ethics and compliance officer. The deputy chief ethics and compliance officer will support the overall implementation of the ethics and compliance program with primary responsibility for interacting with the company’s cruise line brands to maintain open communications, as well as monitor local program implementation.

In this capacity, Clark will also prioritize the ethics-focused elements of the ethics and compliance program, working across functional lines to understand and support existing program processes. She will also advocate for new systems and processes to improve program oversight and will be responsible for spearheading other important program initiatives.

Clark previously served in various roles for Holland America Group, including as vice president, counsel, and special advisor to the CEO; chief ethics officer and general counsel; and senior vice president, safety, environmental, and regulatory services. She also worked as general counsel and chief ethics officer for Holland America Line and Seabourn.

Chris Donald, SVP, environmental corporate compliance manager. The environmental corporate compliance manager oversees and implements all legal obligations in Carnival’s government-mandated Environmental Compliance Plan (ECP), which includes independent audits by an outside company and oversight by a court-appointed monitor.

In addition to leading the environmental efforts within the brands, Donald is responsible for:

• Driving improvements in waste management, technology, and design (including food waste).
• Establishing, monitoring, and assessing key performance indicators for environmental compliance.
• Overseeing the environmental officers who provide onboard environmental compliance oversight on all the company’s ships.
• Driving and evolving the companies Operation Oceans Alive program designed to foster a culture of compliance, learning, and ocean stewardship.

Since joining Carnival in 2007, Donald has held several key positions that will help him carry out his increased responsibilities. Specifically, he has previously supported the company’s policy development, internal audits, and investigations.

Prior to his role in environmental compliance, he was also corporate senior director, safety and occupational safety and led the company’s Engine Room Fire Risk Mitigation program, which included the design and rollout of extensive upgrades to fire detection and suppression systems across the company’s global fleet.

Gerry Ellis, VP, health, safety and security corporate compliance manager. The Health, Safety and Security (HSS) corporate compliance manager must ensure the regulatory compliance and effectiveness of the company’s global HSS programs, as well as monitor the Maritime Policy and Analysis department to maintain compliance with applicable HSS-related policies and procedures.

Ellis has more than 40 years of industry experience, including over 23 years with Carnival. He served at sea for 18 years in a range of positions—from deck cadet to captain—on a variety of ships, in addition to shoreside management positions, including maritime investigations director, marine operations manager, port operations manager, director of port development, director of compliance, director of shipbuilding and design, director of safety policy, and vice president, marine and technical operations.

Martha de Zayas, VP, general corporate compliance manager. Among the three corporate compliance managers, this position has the broadest range of compliance topics to oversee, including:

• Codes of conduct, anti-corruption, anti-trust, and anti-retaliation;
• Conflicts of interest, third-party due diligence screening, and economic sanctions/Office of Foreign Asset Control screening;
• North America data privacy and records retention;
• Americans with Disabilities Act shoreside and shipboard programs; and
• The corporate compliance reporting hotline program.

De Zayas joined Carnival in 1995 as associate general counsel, managing commercial and employee-related litigation. Since March 2018, she has served as vice president of ethics and compliance.

Sandra Rowlett, VP, incident analysis group investigations leader. As the Incident Analysis Group investigations leader, Rowlett is responsible for all efforts to investigate certain health, environment, safety, and security issues—including near misses—independently of the brands. She also manages the recently expanded team of nine investigators and assists in improving the investigative functions throughout the entire organization.

For 28 years, Rowlett held various positions within the National Transportation Safety Board (NTSB), including air traffic control investigator and senior executive with oversight of aviation, railroad, pipeline, and hazardous materials investigations. Before joining the NTSB, Rowlett was an air traffic controller for Los Angeles International Airport and the United States Air Force. She reports to Ellis.

H. Jordan Weitz, senior director, compliance risk management leader. In this role, Weitz is responsible for developing a more proactive and strategic focus to the company’s compliance programs grounded in data analytics, metrics, and compliance risk assessments. Weitz has more than 20 years of experience, including 17 years in the cruise industry, covering all aspects of risk management, including processes, risks, controls, audits, investigations, digital forensics, and proactive analytics. He is also a certified fraud examiner. Weitz reports to Clark.

Brigett Potts, director, compliance training leader. Potts is responsible for reviewing and summarizing all current compliance training relating to the areas within the ethics and compliance function and program to develop a corporate compliance training strategy and plan; measuring training effectiveness; introducing new and innovative compliance training tools; and implementing basic ethics and compliance training for all employees.

Potts joined Carnival Cruise Line in 2017 as the environmental regulatory and operating line training manager (OLTM). In October 2018, she became chairperson of the OLTM group. Prior to joining Carnival Cruise Line, she was an associate attorney handling cases in both federal and state courts. She reports to Donald.

Past issues

The enhancements to Carnival’s E&C program come at a time when the company is still under probation by the Department of Justice, follow a history of environmental violations. Princess Cruises, owned by Carnival, was sentenced in 2017 to pay a $40 million penalty related to illegal dumping overboard of oil-contaminated waste and falsification of official logs in order to conceal the discharges. The Justice Department said it was the largest fine ever imposed for crimes involving deliberate vessel pollution.

Along with receiving the five-year probation, Princess and all related Carnival cruise ship companies trading in the United States were required to implement an environmental compliance plan. The company has, however, already violated that probation: In June, Princess Cruises and Carnival were ordered to pay a $20 million criminal penalty and were subject to enhanced supervision after admitting to violations attributable to senior Carnival management.

In addition to the June settlement, Carnival’s C-suite was asked by the Justice Department “to personally pledge their commitment to correcting the company’s compliance issues and corporate culture.”