No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
No Result
View All Result
Corporate Compliance Insights
Home Uncategorized

Code Violations, Enforcement and “Broken Windows”

by Michael Volkov
February 19, 2014
in Uncategorized
broken windows in industrial building

This article was republished with permission from Michael Volkov’s Corruption, Crime & Compliance.

Sometimes our experiences provide important lessons that we can apply in our current jobs.

While I served as a federal prosecutor in the District of Columbia, criminologists were pushing the “broken windows” theory of law enforcement: that serious crimes were more likely to occur in areas where minor crimes (petty misdemeanors) were ignored or not enforced.  It is a theory that then-Mayor Rudy Giuliani put into practice in New York City, where he was successful in reducing overall crime.

The logic behind the theory makes sense: lawless behavior is more likely to occur in areas where law enforcement has a lower profile.  Many cities put this theory into practice, some with success and some not so successful.

Fast forward to the corporate setting and FCPA compliance, and there is a lesson to be learned here as well.  Chief Compliance Officers are often responsible for enforcing the company’s code of conduct.  A potential violation of the code is not always a violation of federal, state or local law.

Hopefully, you can see where I am going with this analogy.  Code violations may not be viewed as “serious” in a company, but the impact of a culture where code violations are not investigated or where weak enforcement measures are imposed may create a breeding ground for more serious violations.

That is not to say that all code violations should be treated equally.  For the sake of argument, consider an employee who has violated the code on entertainment issues on four separate occasions.  His supervisor defends him each time by pointing to his excellent sales record, his importance to the company’s bottom line, minimizing his conduct.   His violations are relatively minor, but repetitive, and colleagues know that he fails to follow the code.

When I pose this hypothetical, I usually get a question back – how was the employee treated on the first three violations? – and the answer is that he was eventually given a written reprimand.

The question now is should the company fire the employee (assuming the facts are accurate and the expenditures modest)?

You would be surprised at the different answers that people provide.  One thing is clear – there is no legal violation but the employee repeatedly violates the code and specific controls.

Is this a case where the employee should be fired?  What about the bottom line?  If he is retained and punished, how should he be punished?  Will this lead to an environment that will breed more serious violations, especially by those who are perceived as significant producers and important to the company’s bottom line?

The answers to these questions are important.  The principle of consistency is important here.  But just being consistent does not mean that a company can be consistently wrong if the punishment meted out does not fit the crime and does not promote an ethical culture.  Balancing these considerations is difficult for some, but not so difficult for others.


Tags: Code of ConductProxy AccessTone at the Top
Previous Post

Achieving Compliance When Expanding Into Foreign Countries: To Avoid Surprises, Build a Strong Process Framework with Local Expertise

Next Post

Your Second Worst Nightmare: The Idiot with Initiative

Michael Volkov

Michael Volkov

Michael-Volkov-leclairryan Michael Volkov is the CEO of The Volkov Law Group LLC, where he provides compliance, internal investigation and white collar defense services.  He can be reached at mvolkov@volkovlaw.com. Michael has extensive experience representing clients on matters involving the Foreign Corrupt Practices Act, the UK Bribery Act, money laundering, Office of Foreign Asset Control (OFAC), export controls, sanctions and International Traffic in Arms, False Claims Act, Congressional investigations, online gambling and regulatory enforcement issues. Michael served for more than 17 years as a federal prosecutor in the U.S. Attorney’s Office in the District of Columbia; for five years as the Chief Crime and Terrorism Counsel for the Senate Judiciary Committee, and Chief Crime, Terrorism and Homeland Security Counsel for the Senate and House Judiciary Committees; and as a Trial Attorney in the Antitrust Division of the U.S. Department of Justice. Michael also maintains a well-known blog: Corruption Crime & Compliance, which is frequently cited by anti-corruption professionals and professionals in the compliance industry.

Related Posts

mcds

What Charges Against Former McDonald’s CEO Can Teach Us About Investigations of Senior Officers

by Lloydette Bai-Marrow
January 18, 2023

The case of Steve Easterbrook, the former CEO of McDonald’s, is a salutary lesson in the dire consequences of failing...

nfl main art_j

Touchdown or Fumble? What Compliance Can Learn From the NFL’s Disciplinary System

by David Bligh
September 7, 2022

Cheering for your favorite team (or against the one you hate), makes it easy to forget that NFL players are...

boris johnson resigns as UK prime minister

Them’s the Breaks: What Companies Can Learn From Boris Johnson’s Downfall

by Miller & Chevalier
July 27, 2022

Embattled Prime Minister Boris Johnson resigned after a revolt in his own party. While the political repercussions of Johnson’s tenure,...

Study: 1 in 3 Major Corporations Have Ineffective Codes of Conduct

Study: 1 in 3 Major Corporations Have Ineffective Codes of Conduct

by Staff and Wire Reports
June 15, 2022

A review by LRN, an ethics and compliance training provider, indicates that many of the top public companies around the...

Next Post
worker with six arms doing multiple tasks at once

Your Second Worst Nightmare: The Idiot with Initiative

Compliance Job Interview Q&A

Jump to a Topic

AML Anti-Bribery Anti-Corruption Artificial Intelligence (AI) Automation Banking Board of Directors Board Risk Oversight Business Continuity Planning California Consumer Privacy Act (CCPA) Code of Conduct Communications Management Corporate Culture COVID-19 Cryptocurrency Culture of Ethics Cybercrime Cyber Risk Data Analytics Data Breach Data Governance DOJ Download Due Diligence Enterprise Risk Management (ERM) ESG FCPA Enforcement Actions Financial Crime Financial Crimes Enforcement Network (FinCEN) GDPR HIPAA Know Your Customer (KYC) Machine Learning Monitoring RegTech Reputation Risk Risk Assessment SEC Social Media Risk Supply Chain Technology Third Party Risk Management Tone at the Top Training Whistleblowing
No Result
View All Result

Privacy Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2022 Corporate Compliance Insights

No Result
View All Result
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe

© 2022 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT