The fines against corporations found guilty of violating laws
regarding ethics are hefty under current federal sentencing
guidelines. However, the fines can be reduced substantially if a
company has an effective program in place before a violation
occurs.
Although there's no formula, the government has issued
recommendations on the components that make up an
"effective" compliance program. The recommendations, as
summarized by Victoria Wesseler, president of Ethics and Compliance
Strategies in Indianapolis, are:
- The development of standards and procedures reasonably capable
of reducing the prospect of criminal conduct
- Appointment of a senior-level individual within the company to
monitor standards and procedures
- Care taken to prevent hiring individuals with a propensity
toward criminal misconduct
- Communication and training regarding standards for all
employees
- Monitoring and auditing the system, including an internal
mechanism for employees to report violations
- Consistent reinforcement of standards
- And, in the case of a violation, timely responses to curtail
the activity and prevent future occurrences.
Wesseler also suggests integrating standards into employee
performance reviews.
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