Joe Murphy, CCEP Of Counsel, Compliance Systems Legal GroupJEMurphy@voicenet.com

September 2009

501 IDEAS FOR YOUR COMPLIANCE & ETHICS

PROGRAM:

COMMUNICATIONS & TRAINING

SENTENCING GUIDELINES ITEM 4

(4) (A) The organization shall take reasonable steps to communicate periodically and in a practical manner its standards and procedures, and other aspects of the compliance and ethics program, to the individuals referred to in subdivision (B) by

conducting effective training programs and

otherwise disseminating information appropriate to

such individuals’ respective roles and

responsibilities.

USSG’S ITEM 4 - COMMUNICATING EFFECTIVELY

TRAINING & COMMUNICATION ON THE RISKS & THE PROGRAM

COVER BOARD MEMBERS, OFFICERS, EMPLOYEES & “AGENTS, AS APPROPRIATE”

MUST BE PRACTICAL & EFFECTIVE BASED ON ROLES & RESPONSIBILITIES

WILL YOUR EMPLOYEES REMEMBER IT?

TRAINING & COMMUNICATIONS

STARTING STEPS:

• DEVELOP A COMMUNICATIONS PLAN– PRIORITIES BASED ON RISK ASSESSMENT

• INVENTORY WHAT YOU HAVE– WHAT TRAINING IS BEING DONE?

– WHAT DO YOU USE TO COMMUNICATE NOW?

• BRANDING THE PROGRAM

SOME TRAINING IDEAS

• TEAM AGREEMENTS• GROUP, INTERACTIVE SESSIONS• QUIZZES• LAWYERS BY PHONE• VIDEOS - COMMERCIAL, CUSTOMIZED & DOJ!• COMPUTER-BASED, MULTI-MEDIA TRAINING • JUST-IN-TIME TRAINING• EMBEDDED TRAINING• OVERSEAS• FEEDBACK FORMS• MOCK FILES• TRAIN THE TRAINERS• FOLLOW-UP TO KEEP IT ALIVE

TEAM AGREEMENT- EXAMPLE

WE AGREE TO:

• FINISH ON TIME

• TAKE A BREAK

• AVOID LEGAL JARGON

• KEEP IT RELEVANT

• ANSWER THIS QUESTION: WHAT IF A COMPETITOR DISPARAGES US?

GROUP INTERACTIVE SESSIONS

• SMALL TEAM INTERACTION & LEARNING

• PRACTICAL APPLICATION OF THE SUBJECT

• PEER REINFORCEMENT

QUIZZES

• INDIVIDUAL TESTS – STUDENTS GO INTO “TEST MODE”

• GROUP TESTS – COLLEGIAL

• “TESTS HOW GOOD THE INSTRUCTOR HAS BEEN”– SURFACES AREAS OF MISSED COMMUNICATIONS

• QUESTIONS – NOT INSULTING, NOT FRUSTRATING

• CAN TESTING REPLACE TRAINING?

LAWYERS BY PHONE

• Lawyers by phone. When expert lawyers cannot provide or attend the training, they can be brought in by phone when appropriate to handle questions and emphasize key points. Murphy, “Training ‘in a Practical Manner,’” 6 Corporate Conduct Quarterly (now ethikos) 2, 4 (1998).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

VIDEOS

Learning from past mistakes. Produce a training video covering actual compliance problems the company has experienced and what was learned from those experiences. Singer, “General Electric Company’s True Confessions Ethics Video,” 15 ethikos 5 (Sept/Oct 2001).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

VIDEOS

• AS AN ADJUNCT FOR LIVE TRAINING

• TALKING HEADS?

• DOCUDRAMA

• THE RAYTHEON SOAP OPERA STORY

• DOJ’s CARTEL VIDEO – THE REAL THING

COMPUTER-BASED TRAINING

• Bad live training is as bad as bad computer training

• 3 levels of expertise: technology, subject-matter & adult learning

• Advantages: provable, consistent message to all employees; can reach everyone; can test; real-time training

• Disadvantages: less opportunity for questions; misses personal interaction; compliance & ethics “feet on the street” ; ability of live C&E staff to detect problems

• Using a mix

JUST-IN-TIME TRAINING

• Just-in-time training. Arrange training to be provided just at the point an employee needs it. For example, if a company requires employees to get approval to attend a trade association, a training program could be designed to be completed online as part of the approval process. See Murphy, “Training ‘in a Practical Manner,’” 6 Corporate Conduct Quarterly (now ethikos) 2, 5-6 (1998).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

OVERSEAS

• Overseas lawyers’ presentations. In compliance presentations outside your home country, include a presentation by a local lawyer about that country’s similar legal requirements.

From 501 Ideas for Your Compliance Program (SCCE; 2008)

OVERSEAS

• Simultaneous translations. For compliance presentations that are to be simultaneously translated for employees who speak another language, provide advance information to the translators, such as copies of your notes, PowerPoints, and background materials, to assist them in accurately translating your presentation.

From 501 Ideas for Your Compliance Program (SCCE; 2008)

FEEDBACK FORM

ANTITRUST COMPLIANCE TRAINING FEEDBACK

Date of Training: ______ Presenter: Joseph E. Murphy

How would you rate:

The effectiveness of the overview?

Needs Help Adequate Outstanding

1 2 3 4 5

Videotape – “The Territory”

Needs Help Adequate Outstanding

1 2 3 4 5

The review session/Q&A

Needs Help Adequate Outstanding

1 2 3 4 5

FEEDBACK FORM

Your understanding of the antitrust “rules of the road”?

Needs Help Adequate Outstanding

1 2 3 4 5

5. Your understanding of what the compliance helpline is for and how to reach it?

Needs Help Adequate Outstanding

1 2 3 4 5

6. What part of the program was most effective?

7. What could we do to improve?

MOCK FILES - EXAMPLE

[Phone message]

TO: Daryl

RE: call 11:30 am

Will have to postpone our usual lunch. “Mother” wants a meeting with her children. Let’s plan for tomorrow, before the “big bang;” we don’t want anymore squabbles among the kiddies like last time. cu, your “cousin”

Singer, “Granite Construction Adds “Land Mines” to its Antitrust Compliance Training,” 18 ethikos 15 (May/June 2005).

TRAIN THE TRAINERS

• Train the trainers. Provide training on adult learning, public speaking and interactive training techniques for all those who present live compliance and ethics training. Murphy, “Training ‘in a Practical Manner,’” 6 Corporate Conduct Quarterly (now ethikos) 2, 6 (1998).

• Presentation pointers. Provide a checklist of presentation pointers for all those doing live compliance training and presentations.

From 501 Ideas for Your Compliance Program (SCCE; 2008)

FOLLOW-UP AFTER THE TRAINING

• Managers’ follow-ups. Require supervisors who attend the compliance training to report back within a stated time on steps they have taken to assure their subordinates’ understanding of and compliance with the points covered in the training. See Sigler & Murphy, Interactive Corporate Compliance: An Alternative to Regulatory Compulsion 93 (Greenwood Publ; 1988).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

TRAINERS BEWARE!

STENDER v. LUCKY STORES, INC., 803 F. SUPP. 259 (N.D. CAL. 1992)

OTHER COMMUNICATIONS

• Job aids & tchatchkas

• Web sites

• Email blasts

• Compliance manuals

• Newsletters

• Publicizing disciplinary cases

• “You be the judge”

• Posters w/ questions

• Best ideas/video contests

JOB AIDS

Baseball caps

“Be ethical and legal”

Bumper stickers

“Character Counts”

Calendars

Monthly ethics slogans

Pocket calendar with helpline & “guide to the right path”

Coasters

Helpline number & compliance program logo

Ice scrapers

“You may not need us often, but we’re here when you do”, helpline number

Mouse pads, Mugs, Pens

JOB AIDS

Post-It notes

Helpline number

Puzzles/toys

Refrigerator magnets - helpline number & program slogan

Screen savers

Antitrust compliance

Software infringement

Slinkys

Helpline & core values

T-shirts and sweatshirts

“No sale is worth jail” with picture of inmate

Toy cellphone

Helpline number

Murphy, “Job Aides, Toys or ‘Tchatchkas:’ Getting the Compliance Message to Employees,” 14 ethikos 8 (Mar/Apr 2001).

COMPLIANCE & ETHICS NEWSLETTER

• C&E newsletter. Have a separate compliance and ethics newsletter, including interesting case studies. See Murphy & McCollum, “Communicating ‘In a Practical Manner:’ Bell Atlantic’s Report on Integrity,” 4 Corporate Conduct Quarterly (now ethikos) 59 (1996).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

DISCIPLINARY CASES

• Publicize disciplinary cases. Publicize disciplinary cases from within the company as practical learning opportunities. See Singer, “Dupont’s Daring Communications Formula,” 17 ethikos 1 (Jan/Feb 2004); Murphy & McCollum, “Communicating ‘In a Practical Manner:’ Bell Atlantic’s Report on Integrity,” 4 Corporate Conduct Quarterly (now ethikos) 59 (1996); Singer, “Boeing Company’s Ethics Improvements Take Flight,” 20 ethikos 5, 6 (July/Aug. 2006).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

“YOU BE THE JUDGE”

• “You be the judge.” Include a compliance/ethics “you be the judge” feature in a company newsletter. This gives employees a practical problem and asks them to develop a solution. The answer can then be provided elsewhere in the newsletter or on a web site. See Murphy & McCollum, “Communicating ‘In a Practical Manner:’ Bell Atlantic’s Report on Integrity,” 4 Corporate Conduct Quarterly (now ethikos) 59, 66-67 (1996).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

POSTERS

• Posters. Use posters asking an interesting compliance question and giving the page in the Code, or the location on the compliance and ethics web site, where the answer can be found. See Boehme, “How BP Communicates Integrity: Creative Engagement to Win Hearts and Minds,” 19 ethikos 1, 2 (Mar./Apr. 2006).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

BEST IDEAS CONTEST

• Best ideas contest. Have a contest throughout the company for the best compliance and ethics communications ideas. See Boehme, “How BP Communicates Integrity: Creative Engagement to Win Hearts and Minds,” 19 ethikos 1, 3 (Mar./Apr. 2006).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

VIDEO CONTEST

• “Ethics film festival.” Stage an “ethics film festival,” and have a contest for employees to produce their own, short compliance and ethics video, then have a recognition ceremony for the best ones. See Sears, “Lights! Camera! Action! Lockheed Martin’s Ethics Film Festival,” 17 ethikos 8 (Jan/Feb 2004).

From 501 Ideas for Your Compliance Program (SCCE; 2008)

QUESTIONS?

EXTENDING THE LIFE OF TRAINING

• WHAT 1 IDEA COULD YOU TAKE BACK & IMPLEMENT? PICK AS GROUP

• IDEAS TO BE COMPILED & DISTRIBUTED

• EACH PERSON TO TAKE 1 & TRY IT

• REPORT BACK IN ONE MONTH – WHAT YOU DID & HOW IT WORKED

• RESULTS TO BE CIRCULATED AMONG PARTICIPANTS

• POST ON SCCE SOCIAL NETWORK SITE