9/20/2012

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SCCE 2012Compliance & Ethics Institute, Las Vegas, NV

Barbara HarmonCompliance Program SupervisorAlyeska Pipeline Service Co.

Dev‐Suroop KhalsaChief Compliance Officer

Akal Security, Inc.

• US Government security contractorLargest U.S. Judicial Security contractor

• Privately held New Mexican company• Protecting facilities vital to our nation's security in

all 50 states, all U.S. territories, and 20 countries• 7,200 employees in more than 500 locations

• ~ 750 regulatory commitments; 22 agencies (federal, state, local) with jurisdiction

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• Alaskan company that maintains and operates the 800 mile long Trans Alaska Pipeline System on behalf of five owner companies

• 800 employees; 1,200 contractors

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Program design and implementation

TwoApproaches to Program Maintenance

Rational ‐Classical Approach

Creative ‐ Romantic Approach

Quality and Balance

Your company has invested time and resources into designing and implementing a compliance & ethics program that incorporates the 7 elements: 

1. Appointed a Compliance & Ethics Officer, a Compliance Committee; the Board has been properly informed

2. Written a code of conduct and compliance and ethics policies and procedures

3. Rolled out basic compliance and ethics training

4. Established periodic monitoring and auditing schedules

5. Taken steps to prevent and detect criminal conduct

6. Established methods to raise concerns

7. Have methods to investigate and resolve concerns

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PROGRAM MAINTENANCETwo approaches to compliance management:

The Compliance Classic focuses on the details and the inner workings of the compliance and ethics program.

The Compliance Romantic focuses on the big picture utilizing creativity and intuition.

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Classic ~

Romantic ~

Which approach do you take?

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~ Which approach do your executives/board take?

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ACHIEVE PEACE OF MIND(with regards to company compliance & ethics program)

Compliance Maintenance is best achieved by embracing both the rational and the intuitive  

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PERFORMANCE MONITORING = utilize your “classical” rational management techniques and analysis

TRAINING & COMMUNICATION =  use “romantic” creativity and intuition/ soft skills to create a culture, and ensure people know expectations for  business behavior

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Think of it like SCHEDULED MAINTENANCE

Key Metrics Tied to the Seven Elements # of Management Reviews per Yr

Random Sample of Methods of Compliance

% Training Complete

Risk Assessments, Internal Audits complete

# Disciplinary Actions per Yr

# Employee Concerns/Severity

# Compliance Concerns Raised/Resolved

(See Handout for Examples)

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MANAGE YOURSELF Five Tools of Wisdom

INSPIRE OTHERS Using Compliance Violation Headlines to Spice 

Up Your Board Meeting Reports

Ethical Dilemma Videos

Compliance & Ethics Week

You Make the Call Discussion Groups

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Five Tools of Wisdom for the Modern Compliance Professional

1. There is a Way Through Every Block• Remember there’s a solution for everything

• Utilize the wisdom of others

• Shift your thinking. How can you look at it differently?

• What do I have control over? Focus on the aspects of the situation that you can influence or control.

• Take a personal break ~ Do something else for a while.

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Five Tools of Wisdom for the Modern Compliance Professional

2. Understand Through Compassion or  You Will Misunderstand the Circumstances

• Get the facts

• In this application, ‘compassion’ doesn’t mean pleasing the other person and their agenda. It does mean listening openly and ferreting out the neutral reality of the situation

• Avoid over-reacting or under-reacting – appropriate level of response

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Five Tools of Wisdom for the Modern Compliance Professional

3. When a Situation Presses Upon You~ Start ~ and the Pressure Will be Off

• Be brave. Step forward and start working on the issue.

• The longer we churn an issue, the bigger and more burdensome it becomes.

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Five Tools of Wisdom for the Modern Compliance Professional

4. Embody the Highest Values, and the Path Forward Will be Made Clear

• Remember your Code of Conduct, as well as your own sense of principles and ethics.

• Pressure test everything against the fundamental values of the organization. Trust the solutions will come forward.

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Five Tools of Wisdom for the Modern Compliance Professional

5. Recognize the Other Person is You(Find Commonality)

• Put yourself into the other person’s situation and perspective. Practice seeing what you have in common. Listen.

• When we polarize with others and focus on our differences rather than our commonalities, we can block the solution from coming forward.

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EXAMPLES OF CREATIVE WAYS TO COMMUNICATE A CULTURE OF COMPLIANCE

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Use Compliance

Violation Headlines to

Spice Up Your Next

Board Meeting

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A Compliance & Ethics “(ACE) Soap Fable” Storyboard

1. Title, IntroOur Company Presents…A Compliance & Ethics

ACE Soap Fables

2. DISCLAIMER:The scenarios depicted in this video are purely fictional and meant only for educational purposes.  Persons in this video are amateur wanna‐be actors and by no means actually behave this way in real life, nor support the life‐style choices depicted.

3.  Video employee discussions posing ethical dilemma 

4.  Dramatic organ music swells as the Narrator reads a couple of silly soap opera questions (e.g. “Should Chris have gotten more than 2 hours of sleep before reporting to work?”;  “Will Ginger’s sister’s cousin’s brother’s best friend lose his license?” …Stayed tuned for the next exciting episode of ACE Soap Fables…But first, a word from our Sponsors…

5.  Office Interview with Executive or Manager accountable for that business area citing from the Code of Conduct what behaviors are expected.

6.  And the Moral of the Story is…

Key Point(cue organ music.  Exit slide:  Stayed tuned for the 

next exciting episode of ACE Soap Fables..)

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When is it inappropriate to don your company logo-wear in public? Review our Political Activities policy

Are you aware of our policies with regards to data and images generated or stored on company IT equipment?

Do you understand what a conflict of interest is? Review expectations for avoiding any appearance of conducting company business for personal gain

What is our policy with regards to protecting confidentiality?. Review when care should be taken in communicating confidential employee information

What should you do if a vendor or person seeking to do business with our company offers you a gift or entertainment?

Did you know that it’s illegal for the general public to possess eagle feathers? Review our Environmental Protection policies regarding reporting dead or injured protected species.

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These videos use humor and melodrama to examine a number of compliance and ethics issues that our employees may face.  Each vignette will help employees to understand how to apply our Code of Conduct to their business actions and decisions.”

A Compliance & Ethics “(ACE) Soap Fables”

“Our employees and contractors are expected to conduct business in a manner that conforms to the highest ethical and legal principles.  

“If you have had too much too much to drink and only a couple of hours of sleep ‐ you may still be legally under the influence of alcohol.   Should you report to work?   Watch this video to review Code of Conduct expectations to provide a safe workplace that is drug and alcohol free.”

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Video Example

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Compliance and Ethics Week Examples

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Quality can be recognized, but not defined

How do we know what is a “good” program?

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Achieving inner peace: 

Nurturing the right maintenance strategy to ensure sustainability

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Monitor PerformanceManage Yourself

1. There is a Way Through Every Block

2. Understand Through Compassion or  You Will Misunderstand the Circumstances

3. When a Situation Presses Upon You ~ Start ~ and the Pressure Will be Off

4. Embody the Highest Values, and the Path Forward Will be Made Clear

5. Recognize the Other Person is  You (Find Commonality)

Inspire Others

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Everybody…(to the tune of “This Land is Your Land”)

Compliance and Ethics ~ It can get crazy

If you over‐focus ~ or get too lazy

Monitor performance

Nurture self and others

Seek a ~ balance to set you free

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