Even if a corporation sets out to establish a state-of-the-art compliance program with all the bells and whistles, it may still find itself without effective compliance if it fails to regularly assess the efficacy of that program. Hogan Lovells’ Stuart Altman sets forth some basic steps to comply with the dictates of the Sentencing Guidelines and other laws that your compliance program will be evaluated and tested on regularly.
Effective corporate compliance programs require significant board involvement and a corporate culture where compliance is actively promoted and publicly rewarded by the board and senior management.
How does your company deal with the question of fairness in its corporate compliance program? I thought about that question while reading an article in The New York Times (NYT) entitled “That Eternal Question of Fairness” by Nancy Koehn. In her article, Koehn discusses Paul Woodruff’s book, The Ajax Dilemma: Justice, Fairness and Rewards, which considers how a company might distribute rewards to its employees “without damaging the larger community.”
As an independent corporate monitor, I am, among other things, obligated to assess the effectiveness of the corporate compliance programs of the organizations I monitor. Interviews of company personnel have proven to be one of the most reliable and effective tools in making this assessment. While many of the people interviewed are chosen randomly from [...]