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Building a World-Class Compliance Program: Best Practices and Strategies for Success

Book Description

Written by a long-standing practitioner in the field, this timely and critical work is your best source for understanding all the complex issues and requirements associated with corporate compliance. It provides clear guidance for those charged with protecting their companies from financial and reputational risk, litigation, and government intervention, who want a robust guide to establish an effective compliance program.

Table of Contents

  1. More Praise for Building a World-Class Compliance Program:
  2. Copyright
  3. Foreword
    1. AN EVOLVING FUNCTION
    2. A FALSE SENSE OF SECURITY
    3. HIGH STAKES
    4. SUPPORT FOR THIS ENDEAVOR
  4. Preface
  5. Acknowledgments
  6. About the Author
  7. 1. Why Ethics and Compliance Will Always Matter
    1. 1.1. ETHICS IS JOB ONE
    2. 1.2. THE NYPD AND AN ETHICAL CULTURE
    3. 1.3. WHAT IS COMPLIANCE?
      1. 1.3.1. The "Icarus Effect"
      2. 1.3.2. Compliance Program Individuality
    4. 1.4. BUILDING THE BUSINESS CASE FOR ETHICS
    5. 1.5. COMPLIANCE OBSTACLES
    6. 1.6. KEN LAY ON ETHICAL CONDUCT
    7. 1.7. THE WARNING SIGNS OF COMPLIANCE FAILURES
    8. 1.8. NOTES
  8. 2. Tone at the Top and Throughout
    1. 2.1. INTEGRITY AT THE TOP
    2. 2.2. IT'S BETTER TO BE LUCKY THAN GOOD
      1. 2.2.1. An Absence of Tone at the Top
    3. 2.3. COMMUNICATING VALUES
    4. 2.4. HOW THE CEO CAN MAKE THE DIFFERENCE
    5. 2.5. NOTES
  9. 3. The Growth and Evolution of Compliance
    1. 3.1. A BRIEF HISTORY OF COMPLIANCE
      1. 3.1.1. Teddy Roosevelt and Corporate Regulation
      2. 3.1.2. FDR and a New Deal for Investors
      3. 3.1.3. The Development of Modern Compliance
      4. 3.1.4. The Outrageous $300 Hammer
      5. 3.1.5. Sentencing Guidelines for Organizational Crime
    2. 3.2. CRACKING DOWN ON FRAUD
    3. 3.3. THE MCNULTY MEMORANDUM
    4. 3.4. EVALUATING THE SEABOARD CRITERIA IN MITIGATING ENFORCEMENT ACTIONS
    5. 3.5. NOTES
  10. 4. Caremark and Sarbanes-Oxley: Enhancing Compliance
    1. 4.1. THE CAREMARK CASE
    2. 4.2. CAREMARK: A CRITICAL LOOK BACK
    3. 4.3. SOX RECONSIDERED
    4. 4.4. ADDITIONAL COMPLIANCE LAWS AND STANDARDS
    5. 4.5. NOTES
  11. 5. CA's Compliance Rebirth: Don't Lie, Don't Cheat, Don't Steal
    1. 5.1. THE "35-DAY MONTH" ACCOUNTING FRAUD
    2. 5.2. THE DEFFERED PROSECUTION AGREEMENT
    3. 5.3. CA'S FIRST CHIEF COMPLIANCE OFFICER
    4. 5.4. UNFETTERED ACCESS
    5. 5.5. BUILDING THE COMPLIANCE PROGRAM
    6. 5.6. CA'S REVISED CODE OF CONDUCT
    7. 5.7. JOINING THE DEFENSE INDUSTRY INITIATIVE
    8. 5.8. CA'S TONE AT THE TOP
    9. 5.9. RESPONSE TO VIOLATIONS OF BUSINESS PRACTICES
    10. 5.10. ENSURING FUTURE COMPLIANCE
    11. 5.11. BUSINESS PRACTICE OFFICERS
    12. 5.12. COMPLIANCE AND ETHICS LEADERSHIP COUNCIL PROGRAM ASSESSMENT
    13. 5.13. PAT GNAZZO'S FIVE BEST PRACTICES FOR A WORLD-CLASS COMPLIANCE PROGRAM
    14. 5.14. A NEW ERA OF OPPORTUNITY
    15. 5.15. NOTES
  12. 6. The International Landscape of Compliance
    1. 6.1. THE FOREIGN CORRUPT PRACTICES ACT
    2. 6.2. SCHNITZER STEEL AND THE FCPA
      1. 6.2.1. The FCPA Violations and Subsequent Discovery
      2. 6.2.2. The Conspiracy
      3. 6.2.3. SSI's Remedial Efforts
    3. 6.3. METCALF AND EDDY CIVIL FCPA SETTLEMENT
    4. 6.4. THE CHALLENGE OF IMPLEMENTING CORPORATE COMPLIANCE IN FOREIGN ISSUERS
    5. 6.5. NOTES
  13. 7. Compliance Programs and Anti-Money Laundering Efforts
    1. 7.1. WHAT IS MONEY LAUNDERING?
    2. 7.2. BANK SECRECY ACT
      1. 7.2.1. Reporting Requirements
      2. 7.2.2. Record Keeping Requirements
    3. 7.3. USA PATRIOT ACT
      1. 7.3.1. Regulations
      2. 7.3.2. Criminal Sanctions
      3. 7.3.3. Forfeiture
    4. 7.4. NON-FINANCIAL INSTITUTIONS
    5. 7.5. COMPLIANCE PROGRAMS
      1. 7.5.1. Red Flags
      2. 7.5.2. Internal Controls and the Audit Function
    6. 7.6. THE RISE OF FOREIGN STATUTES
    7. 7.7. NOTES
  14. 8. Interview with an Ethics and Compliance Thought Leader
    1. 8.1. NOTES
  15. 9. Building a World-Class Compliance Program: The Seven Steps in Practice (Part I)
    1. 9.1. THE SEVEN STEPS TO AN EFFECTIVE COMPLIANCE PROGRAM
    2. 9.2. SEVEN STEPS OVERVIEW
    3. 9.3. STEP 1: COMPLIANCE STANDARDS AND PROCEDURES
      1. 9.3.1. Code of Conduct
      2. 9.3.2. Code of Conduct Benchmarking and Evaluation
    4. 9.4. STEP 2: ORGANIZATIONAL LEADERSHIP AND A CULTURE OF COMPLIANCE
      1. 9.4.1. The Infosys Message
      2. 9.4.2. The Role of Executive Leadership
      3. 9.4.3. The Role of the Board of Directors
      4. 9.4.4. The Corporate First Responders
      5. 9.4.5. Chief Compliance Officer
      6. 9.4.6. Compliance and Ethics Staff Sample Job Description
      7. 9.4.7. Organizational Structures
      8. 9.4.8. Building an Appropriate Compliance Organizational Model
    5. 9.5. STEP 3: REASONABLE EFFORTS TO EXCLUDE PROHIBITED PERSONS
      1. 9.5.1. The Investigative Response
      2. 9.5.2. Investigator's Code of Conduct
    6. 9.6. NOTES
  16. 10. Building a World-Class Compliance Program: The Seven Steps in Practice (Part II)
    1. 10.1. STEP 4: TRAINING AND COMMUNICATION OF STANDARDS AND PROCEDURES
      1. 10.1.1. Designing and Distributing the Code of Conduct
      2. 10.1.2. Publicizing Ethical Lapses
      3. 10.1.3. Gift Policy and Cultural Differences
      4. 10.1.4. Other Training and Communication Best Practices
    2. 10.2. STEP 5: MONITORING, AUDITING, AND EVALUATING PROGRAM EFFECTIVENESS
      1. 10.2.1. Hotlines
      2. 10.2.2. Non-Retaliation Policy
      3. 10.2.3. Evaluating Compliance Programs
      4. 10.2.4. Other Best Practices for Evaluating Program Effectiveness
    3. 10.3. STEP 6: PERFORMANCE INCENTIVES AND DISCIPLINARY ACTION
      1. 10.3.1. Discipline
      2. 10.3.2. Awards and Recognition for Ethical Behavior
    4. 10.4. STEP 7: RESPONSE TO CRIMINAL CONDUCT AND REMEDIAL ACTION
      1. 10.4.1. Reasonable Response After the Discovery of a Business Conduct Violation
      2. 10.4.2. Compliance Emergency Preparedness Kit
    5. 10.5. AVOIDING ACCIDENTS ON THE ROAD TO COMPLIANCE
    6. 10.6. NOTES
  17. 11. Recognizing Compliance Excellence: Premier, Inc. and Winning the Baldrige Award
    1. 11.1. PREMIER, INC.
    2. 11.2. A CALL TO ACTION
    3. 11.3. PREMIER'S RESPONSE
    4. 11.4. PREMIER'S FIRST COMPLIANCE OFFICER
    5. 11.5. PREMIER'S ETHICS AND COMPLIANCE PROGRAM
    6. 11.6. COMPLIANCE AND ETHICS TOOLS AND ORGANIZATIONAL EXCELLENCE
    7. 11.7. NOTES
  18. 12. Designing Robust Fraud Prevention Policies: The Airservices Australia Fraud Control Plan
    1. 12.1. AIRSERVICES AUSTRALIA
    2. 12.2. THE KEY ROLE OF MANAGERS IN FRAUD PREVENTION
    3. 12.3. THE COMMONALITY BETWEEN FRAUD PREVENTION AND COMPLIANCE
    4. 12.4. NOTES
  19. 13. The Skunk in the Room
    1. 13.1. THE SKUNK IN KING DAVID'S COURT
    2. 13.2. JOHN F. KENNEDY, THE BAY OF PIGS, AND GROUPTHINK
    3. 13.3. THE PERFECT STORM OF CORPORATE AND PERSONAL FAILURE
    4. 13.4. THE NEW CA WAY
    5. 13.5. WORLD-CLASS COMPLIANCE MEANS SPEAKING UP
    6. 13.6. ACHIEVING WORLD-CLASS COMPLIANCE
    7. 13.7. NOTES
  20. A. Summary of the 2004 Federal Sentencing Guidelines Amendments and Recommended Action Steps
  21. B. Sample Compliance Program Charter
    1. B.1. CONTENT OF PROGRAM CHARTERS
    2. B.2. KEY PRINCIPLES
      1. B.2.1. Organization and Independence
      2. B.2.2. Authority
      3. B.2.3. Retaliation
  22. C. Resources for Compliance Professionals
    1. C.1. CORPORATE EXECUTIVE BOARD
      1. C.1.1. Compliance and Ethics Leadership Council
      2. C.1.2. Compliance and Ethics Program Assessment Wizard™
    2. C.2. SOCIETY OF CORPORATE COMPLIANCE AND ETHICS
      1. C.2.1. Certified Compliance and Ethics Professionals
    3. C.3. ETHICS AND COMPLIANCE OFFICER ASSOCIATION
    4. C.4. DEFENSE INDUSTRY INITIATIVE (DII) ON BUSINESS ETHICS AND CONDUCT
    5. C.5. UNITED STATES DEPARTMENT OF JUSTICE
    6. C.6. UNITED STATES SENTENCING COMMISSION
    7. C.7. NOTES