Increased Compliance Commitment by Managers Starts with T.R.U.S.T

    

According to U.S regulators, one of the most common reasons companies are citied for Foreign Corrupt Practices Act (FCPA) violations is they have beautifully written compliance policies and procedures that are simply not implemented or enforced. Often, the regulators say, management is to blame either through a lack of commitment to a compliance program or sometimes even purposefully trying to circumvent it 

The U.S. Department of Justice (DOJ) recently updated its guidance to help refocus management on committing to corporate compliance programs. The DOJ zeroed in on senior leaders and middle managers’ shared commitment with compliance personnel, including remediation efforts. In response, corporations and trade associations around the world are stepping up management’s involvement in ensuring the success of compliance programs 

In Southeast Asia, the Malaysian Anti-Corruption Commission (MACC) issued its Guidelines on Adequate Procedures. MACC’s guidelines include the five principles of T.R.U.S.T: 

  • Top Level Commitment;  
  • Risk Assessment; 
  • Undertake Control Measures; 
  • Systematic Review, Monitoring and Enforcement; and  
  • Training and Communication. 

Management can’t build all five principles of T.R.U.S.T alone. Leaders and managers require “compliance ambassadors” who can help them more quickly identify compliance gaps and fixes according to a recent FCPA Blog article. These are point people on the front lines of a company who their peers trust enough to share ethical problems when they arise.  

To learn more about the DOJ’s updated guidance, MACC’s five principles of T.R.U.S.T, and how you can find and start utilizing compliance ambassadors in your organization, consider reading this article in the FCBA Blog.  

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