COMPLIANCE & ETHICS BASICS

Knocking it out of the Park


Per the Federal Sentencing Guidelines for Organizations (FSGO) a compliance program must establish two fundamental elements to be considered an effective program:


– Procure an organizational culture of law abiding ethics and conduct
and
– Exercises due diligence to prevent, discourage, and identify criminal misconduct


The FSGO requires the following seven elements in a compliance program:

1. Establish Standards and Procedures to prevent/detect criminal conduct

2. Governing Authority understands program content; ensures oversight of implementation and effectiveness; designated manager of program

3. On-boarding/employment due diligence exercised to keep persons with known criminal history/conduct out of managerial/key roles

4. Communicate program periodically through training and disseminating practices

5. Make the program a working one, by ensuring it is followed, monitored; evaluate effectiveness; and has system for reporting misconduct or suspicion of such without the fear of retaliation

6.Have incentives promotion and disciplinary corrective action plan for misconduct


7. Respond to criminal misconduct and take steps to prevent future misconduct

 

Each industry has their own set of regulations and laws that  govern them; thus subsequently adding more requirements to the compliance programs.