March 22, 2016
Ethics and Compliance Basics
Note to Trainer
Copyright © 2010 WeComply, Inc. All rights reserved.
March 22, 2016
Ethics and Compliance Basics
Introduction
Copyright © 2010 WeComply, Inc. All rights reserved.
Ethics and Compliance Basics
Honesty and Fairness
We expect our employees —
• Not to misrepresent our position
• To promptly correct anything that seems to be
misunderstood
• To follow established accounting procedures that
ensure complete and accurate recording of
business transactions
• To report suspicions of improper accounting or
auditing practices to a supervisor, audit-committee member or Legal
Department
There will be no retaliation against employees who report questionable
accounting or auditing matters
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
2
Ethics and Compliance Basics
In the news…
March 22, 2016
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3
Ethics and Compliance Basics
Diversity and Respect
Respect for diversity is a fundamental part of —
• Maintaining a respectful and productive work
environment
• Serving a diverse customer base
We hire and promote people based on qualifications,
performance and abilities
All employees and applicants have equal opportunities
for success
Discriminating against or harassing a co-worker may be against federal and/or
state law
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
4
Ethics and Compliance Basics
Pop Quiz!
Sandy is interviewing Henry for a job. She can see that Henry is probably in his late
fifties. She says to him, "You know, a lot of people who work here are just out of
college; we have a very young environment." Is Sandy's statement appropriate?
A.
Yes, Sandy is just stating a fact about the job — not making a comment
about Henry.
B.
It depends whether Sandy actually asks Henry how old he is at some
other point in the interview.
C.
March 22, 2016
No, Sandy's statement could have discriminatory implications.
Copyright © 2010 WeComply, Inc. All rights reserved.
5
Ethics and Compliance Basics
Conflicts of Interest
Conflict of interest: A situation in which personal or private interest
interferes with your ability to do your job fairly and ethically
Don't compete with our organization, and never let business dealings be
influenced by personal or family interests
Conflict-of-interest settings:
• Receiving gifts or favors from a customer or
supplier
• Participating in activities that compete with
our organization
• Allowing family or personal relationships to influence judgment
• Giving or offering gifts or favors to government employees
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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Ethics and Compliance Basics
Conflicts of Interest (cont’d)
Conflict of interest: A situation in which personal or private interest
interferes with your ability to do your job fairly and ethically
Don't compete with our organization, and never let business dealings be
influenced by personal or family interests
Conflict-of-interest settings:
• Receiving gifts or favors from a customer or
supplier
• Participating in activities that compete with
our organization
• Allowing family or personal relationships to influence judgment
• Giving or offering gifts or favors to government employees
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
7
Ethics and Compliance Basics
Conflicts of Interest (cont’d)
Conflict of interest: A situation in which personal or private interest
interferes with your ability to do your job fairly and ethically
Don't compete with our organization, and never let business dealings be
influenced by personal or family interests
Conflict-of-interest settings:
• Receiving gifts or favors from a customer or
supplier
• Participating in activities that compete with
our organization
• Allowing family or personal relationships to influence judgment
• Giving or offering gifts or favors to government employees
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
8
Ethics and Compliance Basics
Conflicts of Interest (cont’d)
Conflict of interest: A situation in which personal or private interest
interferes with your ability to do your job fairly and ethically
Don't compete with our organization, and never let business dealings be
influenced by personal or family interests
Conflict-of-interest settings:
• Receiving gifts or favors from a customer or
supplier
• Participating in activities that compete with
our organization
• Allowing family or personal relationships to influence judgment
• Giving or offering gifts or favors to government employees
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
9
Ethics and Compliance Basics
Information Security
We have confidential and valuable information that qualifies as trade secrets
Federal and state laws require that we meet strict confidentiality standards
for certain types of information we handle
Our policies require —
• Storing paper documents securely
• Not leaving computer unattended with
confidential information on screen
• Using strong password for network access
and not sharing it with others
• Safeguarding mobile devices that contain sensitive personal data
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
10
Ethics and Compliance Basics
Information Security (cont’d)
We have confidential and valuable information that qualifies as trade secrets
Federal and state laws require that we meet strict confidentiality standards
for certain types of information we handle
Our policies require —
• Storing paper documents securely
• Not leaving computer unattended with
confidential information on screen
• Using strong password for network access
and not sharing it with others
• Safeguarding mobile devices that contain sensitive personal data
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
11
Ethics and Compliance Basics
Business Records
Our business records are among our most important and valuable assets
Business records include essentially everything you produce,
regardless of format
We are required by law to maintain certain types of
business records
We have established policies and guidelines regarding —
• What records to keep and for how long
• What records to dispose of and how to dispose of
them
If you have record-management questions, ask your supervisor
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
12
Ethics and Compliance Basics
Pop Quiz!
Mike learns that the company is involved in a major lawsuit that affects another
office in a different state. What does he need to do with regard to the company's
record-retention policy?
A.
Nothing, because the lawsuit involves another office.
B.
Nothing, except follow the existing record-retention guidelines.
C.
Consult with the Legal Department before following existing recordretention guidelines.
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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Ethics and Compliance Basics
Electronic Communications
We provide secure network, e-mail, Internet access, instant-messaging and
voicemail for use in conducting our business
Communications and information on these systems are our organization's
records
We may monitor these systems without permission
from employees
Employees should not have an expectation of privacy
in anything they do on our e-communication systems
Improper use of our e-communication systems can lead to discipline — and
possibly termination — of employee(s) involved
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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Ethics and Compliance Basics
Health, Safety and the Environment
Maintaining safe and sustainable environment is vital to our health and
well-being
We strive to provide safe working environment and to meet or exceed
standards governing workplace safety, health and
environment
You should be familiar with our
emergency-preparedness plans and assist in
implementing emergency response
If asked to do something harmful to health or environment,
do not comply and report it immediately
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
15
Ethics and Compliance Basics
Alcohol and Drug Abuse
Drug and alcohol abuse in the workplace has significant negative effects
Drug and alcohol abuse reduces productivity and is detrimental to
workplace atmosphere
We are committed to providing safe and drug-free
environment
We require employees to be free of illegal drugs or
alcohol in the workplace
Employees may not drink alcoholic beverages during work hours, except at
business meals or when served at events that we sponsor
If you suspect that a co-worker has a substance-abuse problem, report the
matter to your supervisor or Human Resources
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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Ethics and Compliance Basics
Alcohol and Drug Abuse (cont’d)
Drug and alcohol abuse in the workplace has significant negative effects
Drug and alcohol abuse reduces productivity and is detrimental to
workplace atmosphere
We are committed to providing safe and drug-free
environment
We require employees to be free of illegal drugs or
alcohol in the workplace
Employees may not drink alcoholic beverages during work hours, except at
business meals or when served at events that we sponsor
If you suspect that a co-worker has a substance-abuse problem, report the
matter to your supervisor or Human Resources
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
17
Ethics and Compliance Basics
Workplace Violence
We are committed to an environment free from violence, threats,
harassment, intimidation and other disruptive behavior
All reports of workplace-violence incidents will be
taken seriously
Individuals who commit violent acts may be subject to
disciplinary action and/or criminal penalties
Don't ignore violent, threatening, harassing or
intimidating behavior
If you observe or experience such behavior, report it immediately to a
supervisor
Threats or assaults requiring immediate attention should be reported to 911
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
18
Ethics and Compliance Basics
Pop Quiz!
For the past week, you've watched tensions mount between two co-workers who
have very different political views. This morning, they almost came to blows. Which
of the following prevention techniques should you avoid using?
A.
Report the two co-workers to your supervisor.
B.
Make sure you have the right emergency phone numbers handy.
C.
Step between the two co-workers the next time they start arguing and
order them to stop.
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
19
Ethics and Compliance Basics
Political Activity
Right to make political contributions and lobby is heavily regulated
Rules regarding political activity:
• You have right to vote and be politically active on your
own behalf, on your own time and using your own
resources
• Only designated representatives may speak on our
behalf about politics and related matters
• Never use our funds or resources for political activities
• Never feel pressured to make political contribution or to vote in a certain
way by anyone working for us or on our behalf
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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Ethics and Compliance Basics
Anti-Competitive Conduct
Antitrust laws are intended to promote competition for benefit of
consumers
Laws target various anti-competitive practices:
• Agreements between competitors
• Agreements between manufacturers and distributors
• Agreements between suppliers and customers
• Predatory practices by companies with monopoly power in their markets
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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Ethics and Compliance Basics
Bribery and Kickbacks
Employees may not give anything to a customer or supplier as inducement
to obtain business or favorable treatment
Employees may not give anything to public officials to have law or
regulation enacted or defeated, or for award of
business
Employees may not accept anything in return for
favorable treatment from customers or suppliers
Foreign Corrupt Practices Act (FCPA) makes it illegal to give anything of
value to a foreign official to obtain or retain business
Violations of the FCPA can lead to substantial civil and criminal liability
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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Ethics and Compliance Basics
Bribery and Kickbacks (cont’d)
Employees may not give anything to a customer or supplier as inducement
to obtain business or favorable treatment
Employees may not give anything to public officials to have law or
regulation enacted or defeated, or for award of
business
Employees may not accept anything in return for
favorable treatment from customers or suppliers
Foreign Corrupt Practices Act (FCPA) makes it illegal to give anything of
value to a foreign official to obtain or retain business
Violations of the FCPA can lead to substantial civil and criminal liability
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
23
Ethics and Compliance Basics
Pop Quiz!
Knowing that a high-ranking foreign-government official will soon be awarding a
new contract on which XYZ Inc. is bidding, an XYZ sales manager contacts the
official's son and offers to help him get admitted to a U.S. university. Does this
raise any legal issues?
A.
herself.
No, because the offer was made to the official's son — not to the official
B.
Maybe, if the son accepts the offer.
C.
Yes, if the son's admission would have been of value to the official.
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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Ethics and Compliance Basics
Working with Integrity
Acting dishonestly or unethically will not work to your or our advantage
• You will have to live with consequences
• You will be working in unethical environment that
you helped create
You have a zone of control
• When you act ethically within this zone, your environment is one of
integrity
• You are less affected by any unethical people around you because you are
not engaged in their activities
• We will take all reports of unethical conduct seriously and do all we can
to contribute to an ethical business environment
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
25
Ethics and Compliance Basics
Reporting Violations
All employees are responsible for understanding and following policies,
procedures and applicable laws
Violations may lead to disciplinary action, up to and
including termination of employment
Employees are required to report violations that they
observe or learn of
Employees who have knowledge of wrongdoing but fail to report it may be
subject to disciplinary action
We will treat the information reported confidentially to the extent possible
We will not retaliate against an employee who makes a good-faith report
of a suspected violation or irregularity
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
26
Ethics and Compliance Basics
Final Quiz
March 22, 2016
Copyright © 2010 WeComply, Inc. All rights reserved.
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March 22, 2016
Questions?
Copyright © 2010 WeComply, Inc. All rights reserved.
March 22, 2016
Thank you for participating!
This course and the related materials were developed by
WeComply, Inc. and the Association of Corporate Counsel.
Copyright © 2010 WeComply, Inc. All rights reserved.