“The Justice Department is looking to hit lawbreaking corporate executives where it hurts: their paychecks.”
– Dylan Tokar, Reporter, Wall Street Journal
This week, we explore the new Voluntary Self-Disclosure Policy and a pilot program that encourages companies to punish executives involved in criminal offenses through compensation policies recently introduced by the Department of Justice (DOJ). We provide insightful resources on reducing communications compliance risk on unapproved channels. Finally, we learn what to consider when preserving employee communications within the metaverse.
Confession, Cooperation and Corporate Compliance DOJ Rolls Out Nationwide Standards and Incentives for Voluntary Self-Disclosure
The DOJ recently announced the immediate implementation of a new Voluntary Self-Disclosure Policy, setting a national standard for U.S. Attorneys’ Offices. This new policy incentivizes companies to maintain effective compliance programs capable of proactively identifying misconduct, voluntarily disclosing, remediating, and cooperating fully with the government in corporate criminal investigations. As a result, companies that meet these standards may avoid criminal convictions, associated penalties, and the appointment of compliance monitors.
Reduce Communications Compliance Risk on Unapproved Channels
Unapproved communication channels, such as personal email accounts and messaging apps, can create significant risks for organizations, including legal and reputational issues. Therefore, compliance officers need a solution to monitor and analyze the risk of such communication channels to ensure compliance with regulations. However, achieving this may seem daunting. What do compliance officers need to consider when managing communications compliance? How is risk detected on these unapproved channels? What’s the deal with WhatsApp? Get all these questions answered and more in this Unapproved Communications Resource library.
Justice Department Seeks to Spread the Pain of Corporate Fines to Executives at Fault
A new pilot program introduced by the DOJ encourages companies to reward good behavior by executives while punishing those involved in criminal offenses through their compensation policies. The program allows companies to use executive-pay clawbacks to offset some financial penalties imposed on them when their employees violate the law. This program aims to shift the financial burden of corporate wrongdoing from shareholders—who typically do not have a role in misconduct—to those directly responsible.
Viewpoint: Preserving Employee Communications in the Metaverse
Work emails are closely monitored and preserved, but things can get tricky for companies when work is done through texts, social media, and messaging apps. With the emergence of the metaverse, a new level of difficulty has arisen. Companies must understand how their employees communicate in the metaverse and what business-related communication to preserve for practical and legal reasons. The metaverse is a blanket term for various emerging technologies, including augmented reality. The approach may differ depending on the platform used, technological limitations, device issues, and contractual and legal issues. Policies and practices need to evolve as quickly as the metaverse itself.