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Listen "Day 6 - The Code of Conduct"
Episode Synopsis
What is the value of having a Code of Conduct? In its early days, a Code of Conduct tended to be lawyer-written and lawyer-driven to wave in regulator’s face during an enforcement action as proof of ethical overall behavior. Is such a legalistic code effective? Is a Code of Conduct more than simply your company’s internal law? What should be the goal in the creation of your company’s Code of Conduct?
Indeed violation of your Code of Conduct can form the basis of a domestic FCPA enforcement action. In an enforcement action involving United Airlines, Inc., a breach of the Code of Conduct by the Company CEO was determined to be a FCPA internal controls violation. It involved a clear quid pro quo benefit paid out by United to David Samson, the former Chairman of the Board of Directors of the Port Authority of New York and New Jersey, the public government entity which has authority over, among other things, United’s operations at the company’s huge east coast hub at Newark, NJ.
The substance of your Code of Conduct should be tailored to your company’s culture, and to its industry and corporate identity. It should provide a mechanism by which employees who are trying to do the right thing in the compliance and business ethics arena can do so. The Code of Conduct can be used as a basis for employee review and evaluation. It should certainly be invoked if there is a violation. Your company’s disciplinary procedures must be stated in the Code. These would include all forms of disciplines, up to and including dismissal, for serious violations of the Code. Further, your company’s Code should emphasize it will comply with all applicable laws and regulations, wherever it does business. The code needs to be written in plain English and translated into other languages as necessary so that all applicable persons can understand it.
Three key takeaways:
1. A Code of Conduct is a foundational document in any compliance regime.
2. The substance of your Code of Conduct should be tailored to the company’s culture, to its industry and corporate identity.
3. “Document, Document, and Document” your training and communication efforts regarding you Code of Conduct.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Indeed violation of your Code of Conduct can form the basis of a domestic FCPA enforcement action. In an enforcement action involving United Airlines, Inc., a breach of the Code of Conduct by the Company CEO was determined to be a FCPA internal controls violation. It involved a clear quid pro quo benefit paid out by United to David Samson, the former Chairman of the Board of Directors of the Port Authority of New York and New Jersey, the public government entity which has authority over, among other things, United’s operations at the company’s huge east coast hub at Newark, NJ.
The substance of your Code of Conduct should be tailored to your company’s culture, and to its industry and corporate identity. It should provide a mechanism by which employees who are trying to do the right thing in the compliance and business ethics arena can do so. The Code of Conduct can be used as a basis for employee review and evaluation. It should certainly be invoked if there is a violation. Your company’s disciplinary procedures must be stated in the Code. These would include all forms of disciplines, up to and including dismissal, for serious violations of the Code. Further, your company’s Code should emphasize it will comply with all applicable laws and regulations, wherever it does business. The code needs to be written in plain English and translated into other languages as necessary so that all applicable persons can understand it.
Three key takeaways:
1. A Code of Conduct is a foundational document in any compliance regime.
2. The substance of your Code of Conduct should be tailored to the company’s culture, to its industry and corporate identity.
3. “Document, Document, and Document” your training and communication efforts regarding you Code of Conduct.
Learn more about your ad choices. Visit megaphone.fm/adchoices
More episodes of the podcast 31 Days to a More Effective Compliance Program
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Day 26 - CCO Authority and Independence
26/01/2025
Day 24 - Internal Reporting and Triage
24/01/2025
Day 23 - Investigative Protocols
23/01/2025
Day 22 - Levels of Due Diligence
22/01/2025
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