Compliance &Ethics - Society of Corporate Compliance and Ethics

Compliance & Ethics Professional May/June 2013problem worsening and becoming more difficultand expensive to solve once the ruseis uncovered.Fast forward 50 yearsIt was more than 50 years ago that I learnedthe lessons of diagnosis while under the hoodof a ’53 Dodge. However, knowing and doingare not the same. As a consultant, I am limitedin what I can do. My role is “Recommenderin Chief.” I typically have the opportunityto try and persuade, but lack any authorityto compel. For example, in one recent projectI had the opportunity to work with a globalcorporation’s headquarters team. This company’sname and reputation had been smeared all overthe headlines, and I was asked to comment onwhether the corrective actions they had takenwere appropriate and adequate.Having spent some time talking to thepeople in their Ethics and Compliance Officeand senior members of their line managementteam, I shared my observations andconclusions with them. We shook hands andcalled it a day. On my way home that evening,I reflected on what had just happened. Theyhad asked me to address very specific andvery narrowly defined questions. I had providedspecific answers. And, in the end, I feltas though we had accomplished nothing. I haddone what was asked of me. I confirmed theirsuspicions, but had failed to actually servethis client in a way that would significantlyhelp them in their recovery from the recentissue or reduce their risk of future failures. Itis not that my answers to their questions wereinaccurate or inappropriate. Rather, they hadasked the wrong questions and resisted anyefforts to redirect or broaden the inquiry.During our conversation I had suggestedthat their questions were too narrow and thatthe answers provided might, in fact, be givingthem a false sense of confidence. I suggestedthat they were asking me to evaluate theirresponse to a set of symptoms—the equivalentof asking a doctor whether or not the calaminelotion one applied to a rash was an appropriateway to soothe the itch.I thought they should have been askingabout what had caused the rash and whetheror not the rash was symptomatic of somethingmore significant. We should not simply havebeen exploring how to calm the existing situation.We should have been learning from theexperience. How might they, and other organizationslike theirs, prevent future circumstancesthat could produce future problems? Howmight they go beyond masking the symptomsand address the deeper, underlying malady?I had raised my concerns about the cultureaspect of the problem. My clients then went onto explain that they knew that “issues” withintheir executive management team had causedthe problem and addressing those issues was“off limits.” They knew full well what wascausing the rash. They simply felt powerlessto do anything about it. They believed that thebest they could hope for was to ensure thattheir office was doing what it was required todo. Anything more was above their pay grade.They did not see it as their responsibilityto make the case to their management or theirboard that the unresolved issue was certain toerupt again and, perhaps, cause even greaterdifficulties. As internal staff, they felt powerlessto do what was required. As an externalresource, I lacked access to those who had thepower to address the causes. I pressed andthey made the “not my job” argument. I lostthat battle.That company was yesterday’s headline.As I flipped through a newspaper while waitingfor my flight home, I saw today’s headlines.The headline in the “Business” section wasabout yet another company with unanticipatedand unnecessary ethics troubles. I wonderedabout tomorrow’s headlines. Which wellrespected,well-managed organization was62 www.corporatecompliance.org +1 952 933 4977 or 888 277 4977