Message Digest

Adam - I have used a corporate policy for this purpose.  It sets out many of the details of the compliance and ethics program.  Ideally a program starts with a board of directors' resolution that delegates authority to the chief ethics and compliance officer (CECO) and provides the basis for the program. Starting with a resolution is better than starting with a charter or policy because the resolution comes from the very top of the company and therefore binds everyone, including the senior execs.  The policy, which would be driven by the CECO acting on the authority received from the board, covers who does what and how the program will be implemented.  I have generally covered implementation of all the USSGs elements in such a policy.

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Joe Murphy CCEP
Of Counsel CSLG; Co-Founder Sr Advisor Integrity Interactive
Ethikos
HaddonfieldNJ
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Show Original Message -------------------------------------------
Original Message:
Sent: 07-27-2010 00:59
From: Adam Turteltaub
Subject: Compliance Program Charter

This message has been cross posted to the following eGroups: Chief C & E Officer Health Care Network and Chief Compliance Ethics Officer Network .
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I recently heard that some compliance programs have or are developing a charter.

If your program has one, could you share more about it?  What is its purpose?  What does it state?  And so forth.

Thanks,
Adam

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Adam Turteltaub CCEP, CHC
SCCE/HCCA
VP of Membership Development
Encino CA
United States
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This message has been cross posted to the following eGroups: Chief Compliance Ethics Officer Network and Global Compliance and Ethics Community .
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NEW YORK, July 29 (Reuters) - A former employee of Bayer AG (BAYGn.DE) has sued Germany's largest drugmaker, accusing it of wrongfully firing him in retaliation for his refusal to falsify data.

According to a complaint filed Wednesday in Manhattan federal court, the plaintiff Ralph Fabiano had been working on a project related to compliance with auditing and accounting rules under the U.S. Sarbanes-Oxley Act when a senior Bayer executive told him to change the results of certain tests.

When he refused several requests, he was removed from his position and was later fired, violating whistleblower provisions of the law, the complaint said.

Fabiano said in the suit he was working on a testing program for North America operations when the requests were made. Fabiano said that individuals in the group processing the tests were not following their own processes and internal controls, requiring the compliance testing to be corrected.

A spokesman for Bayer at its U.S. headquarters said the U.S. Department of Labor had found no reasonable cause to believe Fabiano's allegations after an investigation, according to a June 17 letter the company received from the department.

"Consistent with our company policy we do not comment on matters of active litigation; however, we will defend ourselves vigorously in this case," said Bryan Iams, a spokesman at Bayer's office in Pittsburgh.

Lawyers for Fabiano were not immediately available for comment.

More: http://www.reuters.com/article/idUSN2926865420100729

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Eric Newman, Esq.
HCCA/SCCE
Social Media Manager
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This message has been cross posted to the following eGroups: Ethics Forum and Chief Compliance Ethics Officer Network .
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NEW YORK (CNNMoney.com) -- Citigroup said Thursday it would pay $73 million to settle charges by the Securities and Exchange Commission that the bank, as well as two of its executives, misled investors about the company's exposure to the subprime mortgage market.

Wall Street's top regulator said Citigroup repeatedly made misleading statements in investor presentations and in public filings about the actual size of assets it controlled that were backed by subprime mortgages.

Between July and mid-October 2007, the company maintained its holdings of what have now been dubbed "toxic assets", stood at $13 billion, when in fact the number was closer to $50 billion, according to the SEC.

"The rules of financial disclosure are simple -- if you choose to speak, speak in full and not in half-truths," Robert Khuzami, director of the SEC's Division of Enforcement, said in a statement.

Also charged in the case were two Citigroup executives, including former chief financial officer Gary Crittenden and Arthur Tildesley, Jr., who currently serves as the head of cross marketing at the company.

Crittenden agreed to pay $100,000 to settle the charges while Tildesley, the former head of investor relations, agreed to pay $80,000.

In a statement issued Thursday, Citigroup stood behind the men, calling them both "highly valued" employees.

"We are pleased that we have reached agreement with the SEC to put this matter concerning certain 2007 disclosures behind us, and that the SEC is not charging Citi or any individual with intentional or reckless misconduct," the company said in a statement.

Citigroup neither admitted or denied the SEC's allegations. But Thursday's settlement is the federal agency's latest attempt to crack down on fraud and misbehavior on Wall Street during the crisis.

More:
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Eric Newman, Esq.
HCCA/SCCE
Social Media Manager
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The HHS has said frequently that on-site clinics are not covered entities under HIPAA (employer hat functions), so this is not a HIPAA question.

The question is what privacy practices do you employ when the HR or EHS function of a site/company wants to use employee information contained in an on-site clinic's files, when the purpose of the request is to manage employer functions like short-term disability or to comply with OSHA, e.g., exposure assessment?   Do you allow disclosure for such limited purpose or do you require a common law consent from the employee? Do you do so because of company policy or because you believe that is what the law allows (if so, which law)?

If needed, like most on-site company clinics, the on-site clinic is staffed by licensed healthcare professionals, e.g., RN's overseen by a MD who acts as Medical Director. 

Thanks in advance for any input.

Lee Braem

lee.braem@...

973-541-8843

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LeeBraem
Sr Corp Counsel & Chief Comp Ofcr
Evonik Degussa Corporation
ParsippanyNJ
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I absolutely see a charter as necessary.  Without a charter there are not organization principles and objectives.  Compliance lacks strategic direction and purpose.  A charter establishes the vision/mission for compliance and gives its governing principles/authority to operate in the organization.  I have worked with several organizations on establishing charters - typically spend an entire day word smithing and coming up with what is the right cultural fit for that particular organization.

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MichaelRasmussenCCEP
Risk & Comp Lecturer, Writer, Advisor
Corporate Integrity, LLC
WaterfordWI
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Original Message:
Sent: 07-27-2010 13:40
From: Donna Boehme
Subject: Compliance Program Charter

I think every CECO and company should figure out the best way to establish a clear mandate within the context of its culture,  whether it is a "mission statement"   or some other mechanism.  In some companies, nothing will do except a Board resolution and a mission statement would get very little play or attention.  I've seen other solid approaches:   an Integrity Committee "heads of agreement",   a formal functional mandate (in a company where the operative book set out every function's express mandate/accountabilities,  and if it wasn't in the book it didn't count), or a C&E Framework that was 'socialized'  at a senior management conference.  Things get done differently in companies so the mechanism should be fit-for-purpose.   That said,  the Board resolution is powerful in any organization and could sit on top of any additional mechanism that is appropriate.  
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Donna Boehme
Principal
Compliance Strategists LLC
New Providence NJ
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Original Message:
Sent: 07-27-2010 13:19
From: Theodore Banks
Subject: Compliance Program Charter

Every compliance program should have a set of organizing principles, whether you call it a charter or mission statement or whatever.  It is useful to keep the staff on track, and to make sure you have management buy-in on what the compliance staff thinks it should do.  Attached is a mission-vision statement we prepared a few years ago at Kraft to try to articulate what the Compliance & Integrity Group there was doing.

Ted

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Theodore Banks
Compliance & Competition Consultants, LLC
President
Highland Park IL

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I would think that ethics in business is similar to ethics in general:  The philosophy that living things should be treated with respect and dignity and business practices should be transparent.  Part of that belief is planning for the 'what if' as opposed to 'crossing that bridge when we get to it'.  As I recall from the senate hearings, all the other oil companies presented plans for such a disaster and they all included walruses as a possible tool in the clean up effort.  One senator pointed out that walruses have not been in the Gulf of Mexico for three million years.  It was pretty clear that none of them, in their extreme arrogance, ever conducted a FMEA (failure mode, effects analysis) to plan for the 'what ifs'.   In the end though, companies like BP, AIG, Enron, etc., will try to get away with everything they can for the almighty dollar and power.  With that in mind, it's clear that responsibility will fall to the agencies that monitor these companies to ensure that they do the right thing.  Ethics is about doing the right thing, so I would say that BP is unethical because they did not do the right thing: They did not plan for proper safety/disaster mgmt situations and it was probably because they cared more for money than for living things. 

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Diane Pringle MSN, CHC
Compliance/Privacy Officer
Conemaugh Health System
Johnstown, PA
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Show Original Message -------------------------------------------
Original Message:
Sent: 07-28-2010 09:27
From: Dianne Geissal
Subject: A Question of Ethics?



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I'm by no means an ethics expert - this is just my gut opinion.  In healthcare, we are held by strict standards and guidelines and surveyed on a regular basis by either Public Health or Joint Commission (if we opt for the latter).  We are constantly forced to perform risk analyses and ponder "what if" situations to protect our patients, employees and visitors from potential or real harm should an emergency arise. 

I do not understand why BP did not have a clue (e.g. a proactive, rehearsed plan) for what to do if one of their wells should malfunction to any extent, but certainly to the extent this one did.  Moreover, why wasn't ANY OTHER oil company able to come to BP's rescue and advise how to effectively cap the well?  Does this mean no other oil company in the world has a plan either?  That's truly scary and unacceptable for the well being of every living thing on the planet. 

Should BP be faulted for risk management lapses, safety issues, horrendous public relations issues AND..... ethical issues? - I fully agree - to the max.  Right or wrong, in protest I cancelled my BP card - which was the first credit card I ever owned and one I've used for over 30 years. 

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I'm by no means an ethics expert - this is just my gut opinion.  In healthcare, we are held by strict standards and guidelines and surveyed on a regular basis by either Public Health or Joint Commission (if we opt for the latter).  We are constantly forced to perform risk analyses and ponder "what if" situations to protect our patients, employees and visitors from potential or real harm should an emergency arise. 

I do not understand why BP did not have a clue (e.g. a proactive, rehearsed plan) for what to do if one of their wells should malfunction to any extent, but certainly to the extent this one did.  Moreover, why wasn't ANY OTHER oil company able to come to BP's rescue and advise how to effectively cap the well?  Does this mean no other oil company in the world has a plan either?  That's truly scary and unacceptable for the well being of every living thing on the planet. 

Should BP be faulted for risk management lapses, safety issues, horrendous public relations issues AND..... ethical issues? - I fully agree - to the max.  Right or wrong, in protest I cancelled my BP card - which was the first credit card I ever owned and one I've used for over 30 years. 

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Show Original Message -------------------------------------------
Original Message:
Sent: 07-27-2010 12:18
From: Rick Kulevich
Subject: A Question of Ethics?

This message has been cross posted to the following eGroups: Ethics Forum and Chief Compliance Ethics Officer Network .
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Last night on the ride home from work, I listened to an NPR interview of a professor of business ethics who asserted that the BP oil spill was an example of a problem caused by bad business ethics and, that the highly publicized nature of the disaster would lead to a new commitment and focus on business ethics.  Setting aside the prediction, which I think is a stretch, I am intrigued by the idea that the oil spill is attributable to questionable business ethics.

I would have just dismissed it as one person's opinion but it is consistent with the opinions of others I have spoken to over the last several weeks.  Many people have apparently concluded this but I have yet to hear or see any evidence in support of this contention. 

Although I would not be surprised to later find out that there were Ford Pinto-like discussions at BP comparing the cost of additional safety precautions to the cost to human life and the environment, I don't think we've seen any evidence of that yet.  Right now, I think BP can possibly be faulted for risk management lapses, safety issues and horrendous public relations ("I would like my life back"  really?).   However, I have not yet seen the evidence of an ethical lapse.

For any of you who see this as a question of ethics, can you help connect the dots for me? 

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RickKulevich
Sr Dir Ethics & Compliance
CDW Corporation
Vernon HillsIL
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I think every CECO and company should figure out the best way to establish a clear mandate within the context of its culture,  whether it is a "mission statement"   or some other mechanism.  In some companies, nothing will do except a Board resolution and a mission statement would get very little play or attention.  I've seen other solid approaches:   an Integrity Committee "heads of agreement",   a formal functional mandate (in a company where the operative book set out every function's express mandate/accountabilities,  and if it wasn't in the book it didn't count), or a C&E Framework that was 'socialized'  at a senior management conference.  Things get done differently in companies so the mechanism should be fit-for-purpose.   That said,  the Board resolution is powerful in any organization and could sit on top of any additional mechanism that is appropriate.  
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Donna Boehme
Principal
Compliance Strategists LLC
New Providence NJ
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-------------------------------------------
Original Message:
Sent: 07-27-2010 13:19
From: Theodore Banks
Subject: Compliance Program Charter

Every compliance program should have a set of organizing principles, whether you call it a charter or mission statement or whatever.  It is useful to keep the staff on track, and to make sure you have management buy-in on what the compliance staff thinks it should do.  Attached is a mission-vision statement we prepared a few years ago at Kraft to try to articulate what the Compliance & Integrity Group there was doing.

Ted

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Theodore Banks
Compliance & Competition Consultants, LLC
President
Highland Park IL

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Every compliance program should have a set of organizing principles, whether you call it a charter or mission statement or whatever.  It is useful to keep the staff on track, and to make sure you have management buy-in on what the compliance staff thinks it should do.  Attached is a mission-vision statement we prepared a few years ago at Kraft to try to articulate what the Compliance & Integrity Group there was doing.

Ted

-------------------------------------------
Theodore Banks
Compliance & Competition Consultants, LLC
President
Highland Park IL

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Show Original Message -------------------------------------------
Original Message:
Sent: 07-27-2010 00:59
From: Adam Turteltaub
Subject: Compliance Program Charter

This message has been cross posted to the following eGroups: Chief C & E Officer Health Care Network and Chief Compliance Ethics Officer Network .
-------------------------------------------
I recently heard that some compliance programs have or are developing a charter.

If your program has one, could you share more about it?  What is its purpose?  What does it state?  And so forth.

Thanks,
Adam

-------------------------------------------
Adam Turteltaub CCEP, CHC
SCCE/HCCA
VP of Membership Development
Encino CA
United States
-------------------------------------------

This message has been cross posted to the following eGroups: Ethics Forum and Chief Compliance Ethics Officer Network .
-------------------------------------------

Last night on the ride home from work, I listened to an NPR interview of a professor of business ethics who asserted that the BP oil spill was an example of a problem caused by bad business ethics and, that the highly publicized nature of the disaster would lead to a new commitment and focus on business ethics.  Setting aside the prediction, which I think is a stretch, I am intrigued by the idea that the oil spill is attributable to questionable business ethics.