Episodes

  • Cultural Differences in Monitorships

    Cultural Differences in Monitorships
    Mar 2 2021
    In this podcast, I am joined by Mikhail Reider-Gordon, Managing Director of Global Affairs at Affiliated Monitors. In this episode, we consider the cultural differences between international and US domestic monitorships. Gordon noted that when structuring a monitorship of an entity or an individual, it can be an unknown. Some of the issues include how to approach and interact with all the stakeholders and how that is organized, as monitorships are heavily impacted by cultural considerations. Gordon stated, “I’ve lived in, worked in numerous countries and I can tell you that those legal processes, there are absolutely important cultural differences that have to be built in. For instance, I’ll take an example here in the US there really is not the same expectation that a corporation will take care of its employees beyond what is required under labor and employment law and safety laws. Yet in many other countries, employers may develop deep personal relationships with employees, really on a level that you and I might associate with familial relationships.” Obviously, this has impacts for monitorships with an international component. Additionally, there may be separate monitorships from different sets of prosecutors. For instance, the Odebrecht corruption case mandated a US and Brazilian monitor. Gordon said that in such a situation, “as a monitor, we are appointed to help the organization remediate and approve. We need that buy-in, all the stakeholders.” Equally importantly, when a US based monitor is in other countries, considerations of cultural sensitivities, norms, values, are part and parcel of the design of the monitoring program. There can be “cultural values such as maintaining harmony within the organization, change how we approach interviews, dialogue with employees and managers, building consensus and so on. This can extend to seemingly basic monitoring elements such as asking and receiving questions. It can also be around how poor decisions can even be challenged within the company as in many cultures, they do not embrace challenging management even when employees know that what the managers are doing are violating the law.” All of these factors must be taken into consideration. For more information on AMI, check out their website. For more information on Mikhail Reider-Gordon, check out her LinkedIn profile.
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    10 mins
  • The Continuing Evolution of Monitorships

    The Continuing Evolution of Monitorships
    Feb 23 2021
    In this podcast, I have been joined by Mikhail Reider-Gordon, Managing Director of Global Affairs at Affiliated Monitors, Inc. We have discussed various aspects of monitorships, including why independence matters, the American Bar Association’s (ABA) Guidelines on Monitors, Gordon’s professorial career at the International Anti-Corruption Academy, cultural differences between international and US domestic monitorships and the continuing evolution in monitorships. In this episode, we consider the continuing evolution in monitorships. Just as compliance programs and the role of the Chief Compliance Officer (CCO) have evolved, the situations involving a monitor have evolved. We began with a consideration of some of Gordon’s thoughts about how the intersection of law and technology, including privacy, data management and data bias are really driving the conversation with clients around oversight and monitorships. Gordon began with the trend and growth in monitoring entities that have violated data privacy laws. Interestingly, this can come not from any overt or even poor decision on a company’s part or action. It could be from a data breach or it could be they misuse data. Gordon pointed to misuse such as Facebook, under evolving privacy laws. Here Gordon related that “Companies are a little on the back foot.” The evolution of monitorships has also occurred around timing. Originally, monitors were brought in at the conclusion of an enforcement action. Now monitors are often brought in during and even before an enforcement action begins on a pro-active basis, to get out ahead of the problem. This can be to see if an issue exists or to remediate the issue before the conclusion of an enforcement action. If it is the former situation, it can help to prevent an enforcement action from even getting off the ground. If the enforcement action has already begun, the pro-active approach can help a company garner a declination or if one cannot be obtained prevent a multi-year, post-settlement monitorship from being mandated. For more information on AMI, check out their website. For more information on Mikhail Reider-Gordon, check out her LinkedIn profile.
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    12 mins
  • Teaching at the International Anti-Corruption Academy

    Teaching at the International Anti-Corruption Academy
    Feb 16 2021
    In this episode, I am joined by Mikhail Reider-Gordon, Managing Director of Global Affairs at Affiliated Monitors. In this episode, we consider how Gordon’s teaching compliance and investigations at the International Anti-Corruption Academy inform her view of wide-ranging cultural differences in monitorships. Gordon is a frequent Guest Lecturer at the IACA, having been on the faculty for about five years, teaching investigations and compliance. She also supervises graduate students in writing their thesis. The IACA is an international organization formed by 70 member States, about eight and a half years ago. It is dedicated to enhancing knowledge and education in the field of anti-corruption. It runs graduate level programs and degree programs dedicated to training professionals in combating corruption in all its married forms. It is headquartered in Laxenburg, Austria, and hosts students from over 70 countries, including US, Europe and a heavy presence of African students. Many of the student are prosecutors and investigators from developing countries who are looking to expand their capabilities and technical skills in combating corruption back in their home countries. Gordon said that from her work at the IACA she has garnered a wider appreciation of the cultural differences that every compliance practitioner and monitor need to be attuned to in monitorship work. She said, “that is one of the more enjoyable elements of it. We touch on a lot of cultural differences and we will raise scenarios or questions in the class. We’ll have folks from the Middle East, from Africa, from China, from Indonesia, India, Western European countries, from Brazil, from the US, from Canada, basically from across the globe. This leads to a wide range of opinions.” For more information on AMI, check out their website. For more information on Mikhail Reider-Gordon, check out her LinkedIn profile. For more information on the IACA, click here.
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    10 mins
  • Why Independence in a Monitor Matters

    Why Independence in a Monitor Matters
    Feb 11 2021
    In this episode, I am joined by Mikhail Reider-Gordon, Managing Director of Global Affairs at Affiliated Monitors, Inc. Today, we consider why independence in monitors is so critical. Gordon has seen the continuing and ever-present need for independence by monitors and in monitorships. She noted that she has observed the selection of monitors “where their true independence is perhaps dubious.” There has also been a trend of “hiring former colleagues with their agencies or people that have worked with in the past by regulators.” This has led some commentators to accuse the process of cronyism but also that monitors may be more sympathetic to the enforcement side. This latter point has led many companies to shy away from monitorships when perhaps they could best use their assistance. It has also led into what Gordon characterized as the “danger of informal sympathies” with “subtle influences that can remove true impartiality.” Gordon underscored that true neutrals are not as easily come by as many may have thought. Such informality can be found in so many of our human relationships, former law school classmates, work colleagues, friendships, even home or social background can play such a significant role in allowing dispensations to occur, all of which can impact success of combating noncompliance. Gordon tied all this “back to understanding on ethical culture where informality can allow certain behaviors to slide into a negative situation.” It could be “a willingness to cross lines regarding a specific regulation or failing to see that the spirit of the laws are not being fully upheld in a particular entity.” All of this means a monitor “can start with the proposition that every compliance and ethics program can be improved and then move to address what changes have to occur that will demonstrate to the outside world company and to the regulator which is overseeing terms of settlement agreement. Let’s get you to that place and help you to understand the value of constant evolution and compliance and ethics program.” For more information on AMI, check out their website. For more information on Mikhail Reider-Gordon, check out her LinkedIn profile.
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    11 mins
  • ABA Guidelines on Monitors

    ABA Guidelines on Monitors
    Feb 2 2021
    In this episode, I am joined by Mikhail Reider-Gordon, Managing Director of Global Affairs at Affiliated Monitors, Inc. We discuss the ABA Guidelines on Monitors. Gordon has long been a part of the ABA’s discussions around monitors. These standards are found under the Criminal Justice Standards on Monitors (the “ABA Standards”). The ABA Standards emphasize the monitor selection process should encourage consideration of a broad range of monitor candidates and should not be artificially limited by demographic, professional and geographic factors. Gordon also emphasized that “qualifications, integrity, credibility and professionalism are the top of the list.”   Moreover, under potential exclusion, there are a number of examples the standard provides that should be baked into every monitor selection process. Basically, anything that appears to create a conflict of interest or would be perceived to impair the monitor’s judgment or independence are non-starters. Yet, Gordon believes the standards actually go further. She stated, “They go onto provide additional factors that should be considered, some of which may seem obvious to us; such as not having worked for the organization being monitored during the time of the activity in question; not holding prior affiliation with a firm that provided legal or other professional services to the organization being monitored; and even extending to any other factor that could bias or impair or be perceived bias or impair the monitor’s judgment, objectivity, independence, including the prospect of future engagement or other economic considerations that could influence it”. The bottom line is that the ABA Standards “emphasizes the importance of independence.” All of this extends beyond the criminal side where a monitorship might be put into place concerning a prosecution. It also extends to the civil side of enforcement. Moreover, the ABA Standards can also be applied to a variety of over situations where the independent third-party might be an ombudsman, Independent Sector Inspector Generals or other nomenclature. Gordon believes that “encoding true independence is essential no matter what form a monitorship takes, what title you give it, or whatever you might call it.”  
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    9 mins
  • How Ethical Culture is a Part of an Overall Ethics and Compliance Assessment

    How Ethical Culture is a Part of an Overall Ethics and Compliance Assessment
    Jan 30 2021
    In this episode, I visit with Jay Rosen, VP of Business Development for Affiliated Monitors, Inc. (AMI). Corporate culture exists in the space between what an organization professes and what it does. In this series Jay and I will be exploring key aspects of corporate culture, including why it matters, what influences culture, the CCOs role in culture, assessing corporate culture and how to use that information to improve culture. In this episode, we consider how an ethical culture is a part of an overall ethics and compliance assessment.    Highlights include: Begin with framework for such an assessment, usually the compliance program itself. Is your training both focused and effective? Is there institutional fairness in your promotion and compensation programs? Is there institutional justice around reporting, discipline and investigations? Is your compliance program a paper program or is it fully operationalized? Is there accountability in your organization? For more information see Jay’s blog post How is ethical culture a part of an overall ethics and compliance assessment? on Corporate Compliance Insights. For more information on Affiliated Monitors, Inc. check out their website here.
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    8 mins
  • How to Assess Your Culture

    How to Assess Your Culture
    Jan 20 2021
    In this episode, I am joined by Jay Rosen, VP of Business Development for Affiliated Monitors, Inc.. Corporate culture exists in the space between what an organization professes and what it does. today, we examine any key aspect of corporate culture, including why it matters, what influences culture, the CCOs role in culture, assessing corporate culture and how to use that information to improve culture. We consider how to assess your corporate culture.  Highlights include: Who should perform the assessment of corporate culture? An in-house resource may be seen as more ongoing monitoring than culture assessment. Conversely an independent outside expert may be able to garner more fulsome information of the true state of your corporate culture. Tools to assess the culture of an organization include employee surveys, conversations, visits to field operations. What are the differences, if any, which must be considered when assessing a global company? Why do you need to “fine-tune” a cultural survey to get a good understanding of the company’s culture and obtain meaningful metrics? The bottom line is you should take the temperature of your employees internally by doing regular monitoring of your company to understand its culture and what needs to be done. For more information on Affiliated Monitors, Inc. check out their website here. For more information see Jay’s blog post How does a company assess its culture? on Corporate Compliance Insights.
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    11 mins
  • The Role of a CCO in Culture

    The Role of a CCO in Culture
    Jan 12 2021
    In this podcast I am joined by Jay Rosen, VP of Business Development for Affiliated Monitors, Inc. In this episode, we consider to what extent the Chief Compliance Officer (CCO) should be involved in shaping a culture of ethics and driving ethical behavior. Highlights include: Who bears the responsibility for culture? The duty most often falls to the CCO, so both the CCO and the entire compliance function need to be able to coordinate the various inputs and support mechanisms that guide employee behavior. The CCO is often the face of the ethics program for the company – kind of the spokesperson for the company who helps to drive behavior. In hiring and recruiting, a CCO can create a culture where an organization would only hire the right type of people as employees. When managing upward, the CCO has an equally critical mandate through unfettered access to provide information to the Board regarding the compliance and ethics posture at the company, specifically including the culture. What are the warning signs of an unethical culture? It is up to the CCO to understand and have their finger on what the culture is, where the challenges are and what needs to be done to continually strengthen the culture. For more information see Jay’s blog post What is the CCO’s Role in Strengthening the Organization’s Culture of Ethics? on Corporate Compliance Insights. For more information on Affiliated Monitors, Inc. check out their website here.
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    8 mins