| t corporate financial scandals have highlighted the | | | | companies have found it easier to develop their |
| importance of business ethics and legal compliance. | | | | business ethics program. And to do this, they look for |
| Yet a recent National Association of Corporate | | | | what a strong program needs. |
| Directors (NACD) survey of 280 corporate CEOs and | | | | A highly effective tool for creating, organizing and |
| directors found that "only one of three directors felt | | | | implementing a sound business ethics and compliance |
| that they were highly effective in ensuring legal | | | | program should provide: |
| compliance". | | | | • Sample policies and procedures |
| Building an Ethics and Compliance Program | | | | • Step-by-step instructions for the development |
| Most companies realize that they need to develop and | | | | of a program |
| implement a business ethics and compliance program. | | | | • A business ethics training program outline with |
| An effective program can: | | | | classroom materials and a detailed session |
| • Establish a code of conduct that reduces risk | | | | leader’s guide |
| of criminal behavior | | | | • Business ethics and compliance officer |
| • Detect wrongdoing, foster quick investigations, | | | | position description |
| minimize consequences | | | | • Templates for employee involvement |
| • Demonstrate company’s ethical/legal | | | | • Sample code of conduct |
| philosophy during an investigation | | | | Implementing Your Ethics Program |
| • Reduce fines if company is found guilty of | | | | If the company board has committed to a strong |
| wrongdoing | | | | business ethics and compliance program, the next step |
| • Enhance company reputation and stature | | | | is to put the manual in the hands of corporate |
| Looking at the Options | | | | executives responsible for implementation. Used |
| But how do you build an effective program? | | | | properly under advice of legal counsel, this efficient tool |
| Companies find themselves with three options to build | | | | will yield a solid program that the board can |
| the program: | | | | understand, endorse, and monitor for effectiveness. |
| • Develop in-house from scratch | | | | With step-by-step guidelines and accompanying |
| • Hire an external consultant | | | | examples of policies, procedures, training program, and |
| • Use a pre-written manual | | | | employee survey, an effective tool provides an |
| And most of these companies learn a few lessons - | | | | excellent road map for implementing an ethics and |
| sometimes the hard way. | | | | compliance initiative. |
| Making a Strong Decision | | | | Maintaining a Culture of Integrity |
| Developing a program from scratch can be very time | | | | Companies should make certain that their ethics |
| consuming and costly. Also, the company might not | | | | compliance manual provides fully editable MS Word |
| have the knowledge or understanding of the | | | | files with sample policies, surveys, forms and training |
| complexity involved. But hiring an external consultant is | | | | session outlines. Also, businesses should ensure their |
| not always a cost effective option either. So | | | | ethics compliance system manual is fully endorsed by |
| what’s left? | | | | The National Association of Corporate Directors |
| Developing Your Ethics Program | | | | (NACD) as a tool to maintain a culture of integrity. |
| By using a pre-written template or manual, many | | | | |