effective compliance program
TRANSCRIPT
Reasons to Create and Maintain an Effec1ve Compliance Program
Scheidemantle Law Group, P.C.
Carla A. Ford Scheidemantle Law Group P.C. 35 East Union Street Suite B Pasadena, CA 91103 Phone : (626) 638-‐1758 Fax : (626) 628-‐1950 [email protected] www.scheidemantlelawgroup.com
What is Compliance?
Doing business ethically and within the laws, rules, and regula5ons that govern an organiza5on’s ac5vi5es.
Scheidemantle Law Group, P.C.
Compliance Areas Across Industries
Scheidemantle Law Group, P.C.
An Effec1ve, Pre-‐Exis1ng Compliance Program Can Protect Your Business Whether a corpora5on has an effec5ve, pre-‐exis5ng compliance program can affect federal law enforcement’s decisions as to whether to inves5gate, charge, and nego5ate a plea with a corpora5on. Department of JusOce (DOJ) Foreign Corrupt PracOces Act Resource Guide at pp. 52-‐32, ci5ng DOJ Principles of Federal ProsecuOon of Business OrganizaOons in Chapter 9-‐28.000 of the United States AMorney’s Manual.
Scheidemantle Law Group, P.C.
Scheidemantle Law Group, P.C.
Why Are Ethics and Compliance Important?
Conduc5ng business in compliance with the law and from a founda5on of being ethical avoids unnecessary risk and mi5gates the consequences of viola5ons, which can result in fines, penal5es, and loss of freedom.
Scheidemantle Law Group, P.C.
The Yates Memo: Corpora1ons and Employees Will Be Held Accountable for Corporate Wrongdoing
In a September 9, 2015 direc5ve to all federal prosecutors that has become known as “The Yates Memo,” the DOJ extended its commitment to hold corpora5ons accountable for wrongdoing to all culpable employees who par5cipated in the wrongdoing, no maMer the levels of the employees.
See Memorandum of DOJ Deputy AMorney General Sally Quillian Yates to U.S. AMorneys and other DOJ Division Heads regarding “Individual Accountability for Corporate Wrongdoing,” dated Sept. 9, 2015.
Scheidemantle Law Group, P.C.
California Is Highly Regulated: 200+ State Agencies, Regulators In 58 Coun1es ´ California Alternative Energy and Advanced
Transportation Financing Authority
´ California Apprenticeship Council
´ California Architects Board
´ California Blueberry Commission
´ California Debt Limit Allocation Committee
´ California Emergency Management Agency
´ California Energy Commission
´ California Film Commission
´ California Gambling Control Commission
´ California Highway Patrol
´ California Horse Racing Board
´ California Institute for Regenerative Medicine
´ California Pollution Control Financing Authority
´ California School Finance Authority
´ California Student Aid Commission
´ Department of Justice
´ Department of Managed Health Care
´ Department of Mental Health
´ Department of Motor Vehicles
´ Department of Pesticide Regulation
´ Department of Public Health
´ Department of Real Estate
´ Department of Resources Recycling and Recovery
´ Department of Social Services
´ Department of Toxic Substances Control
´ Department of Transportation
´ Department of Water Resources
´ Division of Juvenile Justice
´ Division of Workers Compensation
´ Employment Development Department
Scheidemantle Law Group, P.C.
“…an organiza1onal culture that encourages ethical conduct and a commitment to compliance with the law.” -‐-‐U.S. Federal Sentencing Guidelines §8B2.1(a)(2).
But, under a new DOJ pilot program, “more exac1ng” standards will apply –
A company must show that it “has established a culture of compliance, including an awareness among employees that any criminal conduct, including the conduct underlying the inves1ga1on, will not be tolerated.” -‐-‐The Fraud SecOon's Foreign Corrupt PracOces Act Enforcement Plan and Guidance, by Andrew Weissman, DOJ Criminal Division-‐Fraud SecOon Chief, dated Apr. 5, 2016, at pp. 3, 7.
Scheidemantle Law Group, P.C.
What makes an effec1ve compliance program?
The 9 Elements of the Effec1ve Compliance Management Program
1. Leadership 2. Risk Assessment 3. Standards and Controls 4. Training and Educa5on 5. Communica5on 6. Monitoring, Audi5ng and
Response 7. Con5nuous Improvement Cycle 8. Incen5ves 9. Accountability
Scheidemantle Law Group, P.C.
Con1nuous Improvement Cycle
Compliance Maturity Curve
Scheidemantle Law Group, P.C.
Ad Hoc Informal
Lacks consistency
Developing Repeatable Some consistency Lacks discipline
Prac1cing Defined controls Structure Standardized Consistent performance
Managed Enhanced controls Strategic use of metrics Targeted improvement
Op1mizing Con5nuous improvement Innova5ve changes Fully integrated controls
“Wins” with Effec1ve Compliance Programs
Ø Protect Interests of Customers, Employees and the Public
Ø Improve Quality of Products and Services
Ø Reduce Costs and Increase Revenue
Ø Reduce/Prevent Fines and Penal5es
Ø Restore/Prevent Damage to Brand and Reputa5on
Scheidemantle Law Group, P.C.
Ethically & In Compliance Is The Way To Do Business
Scheidemantle Law Group, P.C.
Business Ac1vi1es
Compliance Programs
Ethics Founda1on
Carla A. Ford, Esq. Carla Ford Law, A.P.C. 5670 Wilshire Boulevard, Suite 1800 Los Angeles, CA 90036 (323) 648-‐6659 (o); (323) 333-‐7738 (m)
Scheidemantle Law Group, P.C.