Compliance and Ethics: Ideas & Answers. Edition 75

Dear friends,

Welcome back to another edition of Compliance and Ethics: Ideas & Answers.

Following a recent experience I had in Shanghai, while scheduled to do a presentation in a training course for compliance and ethics professionals, I consider are smartphone the mortal enemy of effective training?

In my second piece this week, I review the excellent new book by Paul Fiorelli , Establishing Workplace Integrity . Paul’s book provides you with an excellent supply of stories and examples to make important compliance points.

As always, we finish with a bit of fun in our regular feature Compliance Lite.

And don't forget there's more content on our website so please do visit us there to read our other articles.

You can now also sign up for this newsletter via email here .

Thank you, Joe.

Smart phones: are they the mortal enemy of effective training?

by Joe Murphy, CCEP

I have traveled to Shanghai, and am scheduled to do a presentation in a training course for compliance and ethics professionals.? There is a speaker before me, so I decide to join the class ahead of mine and sit in for a few minutes.? I sit next to a student who is intensely busy:? she is operating two iPad and one iPhone at the same time, all while the speaker is presenting important information and insights relating to compliance.? It occurs to me that in her case there is no learning going on. And this is a course she is paying for and has volunteered to take!

If this happens where the student is paying and took steps to participate, what happens in company compliance training?? In the typical company compliance course attendance is not voluntary.? It may be a topic that employees do not necessarily find exciting or important to them personally. So what do they do?? I remember my first mandatory continuing legal education class on ethics as a licensed lawyer in Pennsylvania.? They had just added a requirement for an hour of ethics training. So what did I see? The largest collection of lawyers I had ever seen who were all reading the newspaper at the same time.? The likely result was also no learning. And this was when there was nothing as subtle and concealable as a smartphone. ?

What happens in your training? You have spent quite a bit of time developing it; it covers an important area of the law, and you have been sure to include all the key points.? It is scheduled for an hour. Bosses’ annual assessments are affected by how well they do in supporting the compliance program, so they make sure all their people show up. You have an expert in this area of the law leading the presentation.??

But here is what happens.? The scene I experienced in Shanghai happens here.? Your people are all very busy – on their phones.? They are texting, reading, emailing, cruising Tik Tok and catching up on Instagram.? And how much learning is happening?? Zero. As a compliance and ethics professional whose duty is to promote compliance with the law, can you feel satisfied that you are really doing your job?

Continue reading on our website...

Establishing Workplace Integrity – A resource treasure from Paul Fiorelli

by Joe Murphy, CCEP

I have known Professor Paul Fiorelli for many years.? His new book, Establishing Workplace Integrity ,? offers a valuable resource filled with many useful points and references, including elements of the history of compliance and ethics (C&E).

In this review I highlight some of the types of points included in the book.? For example, on page 4 he provides a wonderful quote from Peter Drucker: “Tell me what you value and I might believe you but show me your calendar and your bank statement, and I’ll show you what you really value.”? I love these real-world reminders.?

How did you treat the driver? On page 6 he gives the practical example of a company recruiter who checks to see how job candidates treated the company shuttle driver.? If they did not treat the shuttle driver well they would not be considered.?

Treat them fairly. I like his focus on the workers as the ones who know what is going on. When you talk with workers you see that fairness is key to how they view the company. On page 10 he notes the well-considered point that employees may not agree with a decision, but will accept it if they feel they were treated fairly.? My view on this is if you want a good culture you will not get there by slogans and you will not get there by teaching ethics or values.? You will get there by treating employees fairly and especially, by listening to them.?

The potential of surveys. On page 18 he talks about surveys.? There is a recommendation that surveys be stand-alone.? In this is a point that is often missed.? A C&E survey does not just gather information.? It is also, itself, a communications device.? That fact that the company asks employees these questions can be a useful communications element – but only as long as employees have reason to believe the company takes the input seriously.? Just going through the motions and ignoring the results can lead to loss of faith by the employees.

The power of stories. As you can see from the points I mention, one reason I like the book is that the author and I see eye to eye on important points.? On page 19 he touches on a key point about communication:? the power of stories. I personally believe that if you know what stories circulate within an organization you will then know what the culture really is. If you want to mold a culture consider the power that stories have.? ?

Recognizing people. Page 38 tells the story of a retail employee who was excellent in detecting those who were likely to shoplift.? In effect he saved the company quite a bit of money.? But he was never recognized for this in any way.? He stopped doing it and ultimately left the store.? This goes to the power of thanks and any form of recognition.? Any C&E person who overlooks the value of recognition and is ignoring the US Sentencing Guidelines’ reference to incentives is missing a key tool in energizing the compliance program.? As clarified on page 47, a key is caring for people.? Sometimes a simple “thank you” from a leader can motivate employees to do better.? This can be even more effective when coupled with something tangible, e.g., money, perks or other forms of tangible recognition.?

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“Never put off till tomorrow what may be done the day after tomorrow just as well.”

- Mark Twain

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