Compliance & EthicsProfessional

®

a publication of the society of corporate compliance and ethics www.corporatecompliance.org

April

2016

Meet Mark Lanterman

Chief Technology Officer

Computer Forensic Services

Minnetonka, MN

See page 14

45The Ethics

Wheel: Shaping corporate culture

Susan Korbal

39“To disclose, or not to disclose? That is often

a tough question.”Peter Anderson

29EU Data Protection Regulation: Are we

nearly there yet?Jonathan P. Armstrong

33Marketing and Data

Security Practices: The FTC v. LifeLock settlementKeith M. Gerver and Peter T. Carey

This article, published in Compliance & Ethics Professional, appears here with permission from the Society of Corporate Compliance & Ethics. Call SCCE at +1 952 933 4977 or 888 277 4977 with reprint requests.

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One of the best periods of my life was as a young college student. During that time, it seemed that life was a

plethora of boundless learning opportunities. A typical day involved visiting medical research facilities complete with a cadaver lab;

engaging in Shakespearean role-play activities; discussing the “meaning of life” with philosophical peers; and ending the day mixing math, poetry, and music with the cadences found within Edgar Allan Poe’s The Raven.

Upon starting my career with degree in hand, it was quite disappointing to find that learning

in the workplace seemed to be contained within packages of rigid parameters and standardized tests. Where were the impassioned individuals seeking converts to soak up the drops of shared wisdom without dampening the fires of curiosity?

During the ensuing years, I moved through a myriad of careers ranging from healthcare to communications, technical documentation, and project management.

Although all were enjoyable initially, they became mundane once the limitations of learning were met. In 2013, however, my career path took an unexpected turn. I became part of a corporate Regulatory Compliance area with responsibility over an ethics program. Although I was not completely sure how anyone “manages ethics” within a corporation, it piqued my interest.

After being in the position a year and a half, I realized two things: I was not bored and ethical reconnaissance was not limited to an individual, a department, or even a specific line of business—it involved the very embodiment of the corporation. It was during this epiphany I thought back to my college days. Although painting and design were my chosen focus, I would often spend time with one of my talented friends who identified as a potter.

The art of ethicsPersonally, I found the pottery studio to be dusty, dirty, and quite chaotic. The seven-step process my friend used to take a

The Ethics Wheel: Shaping corporate culture » Ethical reconnaissance is not limited to an individual, a department, or even a specific line of business; it involves the embodiment of the corporation.

» A focused strategy is built on the foundational commitment of “doing what’s right.”

» A holistic, integrity-driven culture is built by engaging key proponents across the organization to share their input and expertise.

» As we strive to champion the compliance program, we encounter challenges and roadblocks that take their toll on us mentally and physically every day.

» The desired outcome of material, process, and program creation is engaged usage by the workforce community.

by Susan Korbal

Korbal

For 27 years, ethics and compliance experts have gathered to share ideas

in the pages of Ethikos.

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non-descriptive piece of clay and turn it into a beautiful piece of functional art amazed me. I began to compare what I remembered from my visits to the pottery studio with my current position as Ethics Program Manager and the similarities were surprising.

1. Compose yourselfContrary to modern society’s stereotypical artist profile, my friend had already identified the appropriate process that would lead to his desired artistic outcome and was committed to this purpose. As I was busy trying to find a “safe” place to sit, my friend began preparing himself to “commune” with the clay. To do this he ensured his hands were clean, his fingernails clipped, his workspace organized to mimic his thought processes, and his tools displayed and ready for use.

Any individual who represents the ethical component of an organization would be wise to follow this same attention to detail, by making sure they keep their hands “clean,” their strategy focused, and their tools up-to-date and easy to access. Most importantly, citing from the Compliance 101 manual,1 this individual must commit to an “ethical way of conducting business and a system for helping individuals to do the right thing.”

2. Know your materialsIt is critical as a potter to understand the various decisions regarding art production. Everything from type of clay (e.g., low fire, mid-range, and high fire) to the pottery wheel used (e.g., kick wheel versus electric)

plays an important role in the final product outcome. My friend would often spout words like plasticity, oxidation, and reduction in his efforts to explain the process he felt so passionately about. For him, it wasn’t enough to create something; you needed to know why the final product was the way it was.

This is good advisement to the individual(s) working to build an effective compliance and ethics program. Even with a perfectly structured, well-documented project design, if the program manager does not understand or cannot articulate the overarching purpose, it is highly unlikely that other individuals

within the company will embrace the proposed mantra. At the very least, credibility takes a hit; at the very worst, believability becomes non-existent.

3. Prepare the clayAside from the design portion, I found the preparation of the clay to be the most intriguing part of the process. It fascinated me how the clay could be malleable yet unyielding at the same time. Carefully, my friend was able take clay that was too soft and exact the correct firmness by wedging it on canvas; conversely, he would sprinkle water and fold the clay inward to soften clay rigidity. Additionally, he was fanatical about ensuring no air bubbles were present in the clay. He continually stressed that he didn’t want any “blebbing” or blistering, because in extreme cases these trapped air bubbles could cause the pottery to explode during the firing process. The patience demonstrated in this

I began to compare what I remembered from my visits to the pottery studio with

my current position as Ethics Program Manager

and the similarities were surprising.

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phase of the process was unlimited. He would take whatever time was necessary to ensure the clay was ready for shaping.

I view individuals encountered throughout the workplace as organizational “clay.” These include employees, managers, senior leaders, shareholders, board members, third-party representatives, customers, etc. Similar to the clay used when making pottery, these individuals can be both malleable and unyielding. It is imperative that those responsible for ensuring an “ethical” corporate environment elicit patience and adapt an instructional attitude. Building an ethical workplace is not a role accomplished through one individual, department, or line of business. We as compliance professionals must deliberately engage key proponents across the corporate footprint and encourage their input and expertise. Sometimes we get so focused on the materials and excited for the process implementation, we shortchange the preparation piece of engaging our workforce.

4. Throw on the wheelI often found myself looking for a way to escape watching my friend perform this portion of the process. As he melded with the materials, a higher-level connectivity seemed to ensue. Oppositionally, I clearly saw the toll the process was taking on him physically. Preferring to use the kick wheel meant that as he bent the clay between his finger joints, his legs were working to keep the rhythmic momentum of the wheel going. Even at his young age, the painful joint damage was already beginning. When questioned as to why he put himself through such physical stress, he simply stated, “Because it’s who I am.”

Those of us working in the Compliance and Ethics field can relate to such a situation. Our goal is to create and maintain a holistic environment of ethical integrity and alignment—a beautiful masterpiece in the midst of business operations that, like the pottery studio, may be somewhat dirty and chaotic. As we strive day by day to create a utopia that meets legal regulations, enforces corporate policies, adheres to human resource mandates, and supports consumer advocacy

rights, we encounter challenges and roadblocks that take their toll on us mentally and physically. Although many of us pride ourselves on not taking things “personally” in this field, when you invest so much of

yourself in something you care deeply about, remaining unimpassioned is truly not an option “because it’s who we are.”

5. Understand design layersAs a painter and designated “colorist,” I often provided requested input into this phase of the process. At times, I found it extremely difficult to resist picking up a brush and personally applying a layer of glaze, which usually led to being promptly ushered back to my own canvas. To a painter, this was the stage where unlimited artistic expression thrived, complete with overglazes, underglazes, ash glazes, crystalline glazes, slips and engobes, burnishing, etc. With all of this opportunity, I was surprised when I first saw my friend painstakingly applying wax resist to the bottom of a bowl. What was so important about the underside of the vessel? The practicality of his answer was indisputable: “Any fleck of glaze on the bottom of a vessel may cause it to weld to the

I view individuals encountered

throughout the workplace as

organizational “clay.”

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kiln during the firing process and potentially destroy the art piece.”

As compliance and ethics professionals, we evangelize “tone at the top.” In her article The Advantages of Workplace Culture in an Organization, Miranda Brookins states, “Employees and organization members take cues from management as they form their opinions about the culture of a workplace. Once employees adopt the shared norms of a company, it unifies employees and management.”2 Senior leadership is the design hub of a corporation and, as with pottery, reflects the outward image of the company whether that be high gloss, stony matte, or lackluster. A critical component of our role within the organization is to ensure that, in the excitement of building a compliance program, we do not lose sight of the importance of our employee base. We are the corporate champions who establish and enforce protective barriers for our workforce in an effort to strengthen organizational integrity.

6. Formulate the firing processThe final phase of the pottery-making process is akin to watching a caterpillar transform into a butterfly. The potter must be aware of object composition and determine the firing method prior to placing the piece of art inside the kiln. After introduction to the firing process, the clay becomes a new substance called ceramic. Ceramic pieces are strong and durable, and many have withstood the test of time. It is important to remember the old adage “tried by fire” when going through this part of the

process. My friend always said that when he opened the kiln doors, he would instinctively close his eyes, as it was at this point he would have to acknowledge the results of his efforts. Although many masterpieces did emanate from the firing chamber, several others were lost due to imperfections missed during prior stages of the process.

How many times have we labored to implement a new process or an enhanced system to strengthen our corporate

environment, only to find that we forgot a certain component or the item did not work as designed? Even with the engagement of strong partners such as Internal Audit, Accounting, Information Technology, and Human Resources, it is impossible to remember everything. This is why

incorporating test plans and focus reviews into project plans is critical. These tests allow for the involvement of individuals to “heat” up what is “known,” allowing us to sample an outcome prior to fully opening the kiln doors.

7. Use the vesselEveryone has a personal preference when it comes to artwork. I still laugh when I think back to the day a potential customer haughtily informed my friend, “that I don’t know much about art, but I know what I like.” The ceramic in question was a large fruit bowl decorated in pale tones of taupe with crystallized glazing. Trying to make my friend feel better, I made the mistake of saying something like, “It is so beautiful, it should be displayed in a museum.”

Senior leadership is the design hub of a corporation and, as

with pottery, reflects the outward image of the company whether

that be high gloss, stony matte, or lackluster.

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Instead of the anticipated reaction of shared partnership, he informed me with angry disdain that, “Unless art is functional, it serves no purpose.”

Now there are varying schools of thought to my friend’s response, but for our purposes within the Compliance realm, his statement rings true. Even if a corporation has the best-designed, interactive code of conduct training program; frequent well-written communications; prominently displayed reporting mechanisms; and easy-to-access, structured policies and procedures—unless the information disseminated is put to use—the overarching purpose of creating an ethical environment becomes moot.

ConclusionIt does not escape me that my current role within Compliance has brought me full circle to my glorious college days. As compliance professionals, there are many truths to learn from artistic endeavors. To parody Oscar Wilde’s often quoted The Decay of Lying essay,3 I am convinced that “Art imitates compliance far more often than compliance imitates art.” ✵ 1. DebbieTroklus, Greg Warner: Compliance 101, Third Edition. Health

Care Compliance Association, 2011.2. Miranda Brookins: “The Advantages of Workplace Culture in an

Organization” Houston Chronicle, Small Business. Available at http://bit.ly/culture-in-org

3. Oscar Wilde: “The Decay of Lying—An Observation” Intentions (collection of essays), 1891.

Susan Korbal (smkorbal@aaamichigan.com) is the Ethics Program Manager at The Auto Club Group in Dearborn, MI.

Don’t forget to earn your CCB CEUs for this issueComplete the Compliance & Ethics Professional CEU quiz for the articles below from this issue:

· “To disclose, or not to disclose? That is often a tough question.” by Peter Anderson (page 39)

· Strengthening management beyond the Guidelines, Part 2: Additional core processes by Jason L. Lunday (page 55)

· Oldies but goodies by Mónica Ramírez Chimal (page 67)

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