“Sticking with ethical behaviors advances a business’s sustainability. Ethical conduct builds customer trust, retains more customers, improves employee behavior, maintains brand recognition, and increases positive employee reviews.”
– Michael Volkov, CEO, The Volkov Law Group
This week, learn how to approach internal investigations during a time in which remote work is widespread. Explore the inextricable link between ethical corporate culture and profitability. Finally, consider how using ephemeral messaging and global uncertainty makes compliance efforts more challenging.
Tackling Internal Investigations in the Era of Remote Work
Implementing strong data policies, security protocols, and supervision around remote work is crucial to navigating internal investigations effectively in a landscape of increased remote work. Adequate data preservation and understanding of where relevant data resides are important for case strategy and preventing eDiscovery roadblocks. Increased oversight, defined protocols, and clear enforcement mechanisms ensure better data management and storage. Regarding eDiscovery platforms, user-friendliness, cost-savings, process automation, updated software, increased collaboration, and flexibility are key features to look for. Enlisting the help of technology vendors and consultants can simplify investigations in data-heavy or time-sensitive cases. Adequate preparation, auditing, and monitoring of internal investigation protocols are essential for successful workflows in remote working environments.
The Inextricable Link Between Ethical Culture and Profitability
Corporate governance frameworks aim to maximize management efficiency, risk mitigation, and business success, and a culture of ethics and compliance is vital to achieving these objectives. Business leaders increasingly recognize the importance of an ethical culture and its impact on profitability. Compliance professionals have long advocated for this, and now corporate leaders are embracing the concept, asking questions about culture, and seeking ways to advance it. To convince corporate boards and executives about the link between ethical culture and profitability, Chief Compliance Officers should present evidence showing that companies with strong ethical cultures have lower employee turnover, reduced misconduct, increased productivity, customer trust, brand recognition, and positive employee reviews. Ethical companies enjoy better financial performance, market value, stock prices, innovation, and employee decision-making. Studies consistently show that ethical companies outperform unethical ones financially, making the message clear: ethical companies perform better.
Ephemeral Messages Muddy the Compliance Waters for Cos.
Using messaging apps in business is widespread, but the rise of ephemeral messaging platforms has raised regulatory concerns. The Department of Justice and the Securities and Exchange Commission have warned about compliance issues and dangers associated with these platforms. Companies should be cautious about their choice of communication platforms, as regulators are scrutinizing ephemeral messaging apps. These apps create challenges for compliance and preservation of communications during regulatory investigations and litigation. Establishing policies, mobile device management, and employee training can mitigate legal and compliance risks.
How the Surge of Global Uncertainty Undermines Compliance
Uncertainty is widespread and undermines compliance efforts in companies worldwide. Factors such as the pandemic, global supply chain disruptions, geopolitical events like Russia’s invasion of Ukraine, and economic challenges like inflation have contributed to the increase in uncertainty. The impact is seen with job cuts, downsizing, and labor shortages. The distracted nature of uncertainty hampers leadership and affects employee confidence, leading to compliance risks such as unethical behavior. The current climate of scarcity further exacerbates compliance challenges. The prevalence of uncertainty highlights the need for companies to adapt and maintain focus on compliance despite these destabilizing factors.
