Perspectives of Chief Ethics and Compliance Officers on the Detection and Prevention of Corporate Misdeeds: What the Policy Community SHould Know (Conference Proceedings (Rand Corporation))

In March 2009, RAND convened a conference on the role and perspectives of corporate chief ethics and compliance officers (CECOs). The discussions featured input from current and former officers and other stakeholders in the nonprofit sector, academia, and government. Themes included the unique position of CECOs in corporate management, the relevance of ethics and culture as a prophylaxis to malfeasance, and the importance of open communication and employee reporting in guarding against fraud and misconduct. 'Improvements in corporate compliance, ethics, and oversight have been a significant policy goal for the U.S. government at least since the enactment of the U.S. Federal Sentencing Guidelines in 1991 and the Sarbanes-Oxley Act in 2002. Notwithstanding these earlier government initiatives, the collapse of financial markets in late 2008 has invited renewed questions about the governance, compliance, and ethics practices of firms throughout the U.S. economy. On March 5, 2009, RAND convened a conference in Washington, D.C., on the role and perspectives of corporate chief ethics and compliance officers (CECOs) in supporting organizations in the detection and prevention of corporate misdeeds. The conference brought together leaders from among ethics and compliance officers in the corporate community, as well as stakeholders in the nonprofit sector, academia, and government. Discussions focused on the challenges facing corporate ethics and compliance programs as a first line of defense against malfeasance and misbehavior; on the role of CECOs as champions for implementation in their companies; and on potential steps that might be taken by government to empower CECOs and, by extension, the corporate ethics and compliance programs that they oversee.'--Publisher's website. Preface......Page 4 Contents......Page 6 Summary......Page 8 Acknowledgements......Page 12 Abbreviations......Page 14 1. Introduction......Page 16 Overview......Page 18 CECOs Play a Different Role from That of Chief Counsel......Page 26 CECO Effectiveness Depends on Independence and Voice......Page 27 Directors Play a Key Role in Compliance Oversight, but Inexperience and Lack of Focus Hampers That Role......Page 28 Law and Regulation may Help to Facilitate CECOs and C&E, but Mandates can Sometimes have Perverse Effects......Page 29 Building a Strong Ethical Culture is a Key Aspect of the CECO Role......Page 30 Overview......Page 32 Anti-Retaliation Mechanisms are Focal to Encouraging Workers to Come Forward......Page 33 Anti-Retaliation and Whistleblower Protection Tie Directly to Corporate Culture, and to Norms About Honesty, Trust, and Open Communication......Page 34 ROI Argument for C&E, and Ethical Culture, has been Difficult to MAke......Page 35 Top Leadership Commitment can Sometimes Drive Major Cultural Shifts in Firms, and Even Across Industries......Page 36 Appendix A: Conference Participants......Page 38 Appendix B: Conference Agenda......Page 40 Appendix C: Invited Papers from Panel Participants......Page 42 References......Page 60 Invited remarks from conference participants Corporate governance, compliance, and the impact of regulation : the CECO perspective and role Corporate culture and ethics : considerations for boards and Policymakers.