Compliance &Ethics - Society of Corporate Compliance and Ethics

www.corporatecompliance.orgFeaturerequire registered lobbyists to disclose theamount of compensation they have received forlobbying. Public officials include members ofboth the legislative and executive branches andin some cases, members of the judiciary as well.Disclosure reporting is an area in constantflux as states introduce new legislationor regulatory agencies promulgate new rulesaffecting expenditure amounts or definitionalchanges to the term “gift.” Lobbying expenditurereporting overlaps with ethics and publicgift law, and compliance professionals need tobe current in both areas.Keeping track of 51 separate reportingsystems is a daunting-but -necessary taskto insure compliance. Penalties for noncompliancewith registration and reportingrequirements range from administrative finesto criminal charges. Non-compliance also createsa public record and an unnecessary publicrelations problem. Some states post the namesof late filers on the Internet.Lobbying is only one facet of politicalactivity that corporations are engaged in. Inthe post-Citizens United world, spending bycorporate political action committees (PACs)and Super PACs has increased substantially.Additionally, 28 states allow direct corporatecontributions to candidates or candidate committees.4 Ironically, while some states allowdirect corporate contributions, 28 states prohibitregistered lobbyists from making campaigncontributions while the legislature is in session.In most corporations, the general counselor the Government Affairs departmentare responsible for compliance. Althoughthis would seem to make sense, because theGovernment Affairs department should knowwhat is necessary to maintain compliance,the corporate compliance officer needs to beincluded as the person who is responsible forthe overall compliance functions of the organization.If political compliance is too timeconsuming for the compliance officer and/orthe general counsel, then serious considerationshould be given to outsourcing the registrationand reporting requirements. ✵Scott Stetson (scott@lobbyistcompliance.com) is Principal with LobbyistCompliance Services, Inc. in Fairlawn, OH.1. Citizens United, Appellant v. Federal Election Commission. Supreme Court 558U.S. 310 2010. (Struck down a Montana law that limited outside spending bycorporations in elections)2. OpenSecrets.org. Lobbying Database. Available at http://www.opensecrets.org/lobby/index.php3. Travis Pillow: “ Legislative Lobbying Hits $123 Million Last Year.”Tallahassee.com February 19, 2013. Available at http://www.tallahassee.com/article/20130216/POLITICSPOLICY/302160029/Legislative-lobbying-hit-123-million-last-year?nclick_check=14. National Conference of State Legislatures. List of state limits available athttp://www.ncsl.org/print/legismgt/limits_candidates.pdfCompliance & Ethics Professional May/June 2013Advertise with us!Compliance & Ethics Professional is a trusted resource for complianceand ethics professionals. Advertise with us and reach decision-makers!For subscription information and advertising rates, contact Liz Hergert at+1 952 933 4977 or 888 277 4977 or liz.hergert @ corporatecompliance.org.Compliance & EthicsMay/June2013 ProfessionalA PUBLICATION OF THE SOCIETY OF CORPORATE COMPLIANCE AND ETHICSMeetMichael MillerExecutive Director for Ethicsand Compliance, Aerojet,Sacramento, CASee page 14SCCE’s magazine is published bimonthly and has a current distribution ofmore than 3,000 readers. Subscribers include executives and others responsible for compliance:chief compliance officers, risk/ethics officers, corporate CEOs and board members, chieffinancial officers, auditors, controllers, legal executives, general counsel, corporate secretaries,government agencies, and entrepreneurs in various industries.25Seven strategiesfor preventing usersfrom hoardingdocumentsMark Diamond33You’veidentified acorporate risk—what next?C. J. Rathbun41Mind the gap!Where corporatepolicy and socialmedia meetSteve Carr47Political activity compliance:A complex but necessarysubject for complianceprofessionalsScott Stetson48 www.corporatecompliance.org +1 952 933 4977 or 888 277 4977