As noted in the first of this series on C&E program assessments, in addition to reviewing program elements (such as training and auditing) an assessment should address key program “attributes” -  important characteristics of programs that cut across multiple program elements.   They are: program authority, reach, resources and independence; management’s knowledge and support of the program; ethics, as well as compliance; and organizational culture.

The list is based not only on government C&E program expectations and good practices but also on what might considered the known history of program failures. In this and subsequent postings I will provide an overview of these attributes.

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Should we worry that the financial incentive provision embedded in the Dodd-Frank Wall Street Reform and Consumer Protection Act will be problematic for compliance and ethics programs?  I think so.

Hailed as a sweeping overhaul of U.S. financial market regulations, the Dodd-Frank Act was a response to the global financial crisis which came to a head in 2008.  Although this new law is an important step forward in improving U.S. financial regulation, it represents a challenge to C & E programs in one important regard.

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Under one of pending revisions to the Corporate Sentencing Guidelines,  i) the employee  with operational responsibility for a company’s C&E program should directly report to the board of directors (or committee thereof) ; and ii) such “direct reporting obligations” should entail the individual having “express authority to communicate personally to the [board] (A) promptly on any matter involving criminal conduct or potential criminal conduct, and (B) no less than annually on the implementation and effectiveness of the C&E program.”   The mention of “express authority” presumably means that the authority in question should be documented.  But what kind of documentation works best for these and other C&E program purposes?

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