ETHICS / How to build and maintain effective ethics and compliance program

Excerpt from session:

We all know that a formal emphasis of a corporate ethics and compliance program is to encourages ethical conduct and to prevent, detect and appropriately respond to misconduct. On the other hand, looking from the legal perspective, corporate ethics and compliance program imply set of protocols a company puts in place to inhibit and deter unlawful conduct and to promote a culture of compliance. An effective compliance and ethics program is essential for virtually all businesses in today’s regulatory environment.

There are at least two reasons to invest the time and resources necessary to create such a program and make it effective. First, an effective compliance program provides management timely and accurate information about potential legal problems and a means of promptly redressing them. Second, if a company is ever investigated for a potential violation of national or interbational law, having an effective compliance program in place may significantly reduce any penalty imposed and may even convince prosecutors not to pursue penalties at all.

It is virtually impossible to prescribe a “one-size-fits-all” compliance program for companies in any industry. Most companies have broad and diverse business lines, and face a multitude of national regulatory requirements at each phase of their operations. Yet, regardless of a particular company’s business lines, the core structure of an effective ethics and compliance program is largely constant.

Main Takeaways:

  • Elements that should be in place when creating and implementing effective compliance and ethics program
  • The Do’s and Don’ts of an effective ethics and compliance program
  • Pitfalls of effective ethics and compliance program to be aware of