Practical Applications of the Code of Ethics for Compliance & Ethics Professionals
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1 Practical Applications of the Code of Ethics for Compliance & Ethics Professionals Urton Anderson, CCEP Marjorie Doyle, JD, CCEP -F Chair, Department of Accounting Principal University of Texas at Austin Marjorie Doyle & Associates LL C urton@mail.utexas.edu marjoriedoyle@comcast.net Society of Corporate Compliance and Ethics 6500 Barrie Road, Suite 250, Minneapolis, MN 55435, United States Agenda Why a Code of Ethics? Structure of the Code How the Code of Ethics for Professionals can help in making tough decisions How others are using the Code How to educate your team and your management on the Code 2 1
2 Why a Code of Ethics? Promote an ethical culture for the compliance profession Clarifies the compliance professionals ethical responsibilities Sets expectations for those who rely on the work of compliance professionals Provides guidance in resolving ethical dilemmas 3 Where did the code come from? HCCA Professional Code of Ethics (1999) Code of Ethics Development Committee(2007) JOE MURPHY REBECCA WALKER URTON ANDERSON MICHAEL HOROWITZ SHELLY MILANO MARJORIE DOYLE 2
3 The Framework Principles: broad standards 1. Obligation to Public 2. Obligation to Employing Organization 3. Obligation to the Profession Rules of Conduct: minimum level of professional conduct for CEPs 17 rules Commentary: clarifies/elaborates on the Rules The Framework Three Principles: broad standards - obligations to the public, the employing organization & the profession Rules of Conduct: minimum level of professional conduct for CEPs Commentary: clarifies/elaborates on the Rules Enforcement: primarily - CEP s own understanding/voluntary actions secondarily - peers & general public. 3
4 Principle I Obligations to the Public Compliance and ethics professionals (CEPs) should abide by and promote compliance with the spirit and the letter of the law governing their employing organization s conduct and exemplify the highest ethical standards in their professional conduct in order to contribute to the public good. R 1.2 CEPs shall take such steps as are necessary to prevent misconduct by their employing organizations. 8 4
5 Misconduct includes both illegal acts and unethical conduct Principle II Obligations to the Employing Organization Compliance and ethics professionals (CEPs) should serve their employing organizations with the highest sense of integrity, exercise unprejudiced and unbiased judgment on their behalf, and promote effective compliance and ethics programs. 5
6 Principle III Obligations to the Profession Compliance and ethics professionals (CEPs) should strive, through their actions, to uphold the integrity and dignity of the profession, to advance the effectiveness of compliance and ethics programs and to promote professionalism in compliance and ethics. How the Code of Ethics for Professionals can help in making Case 1 The Case of the Fishy Fishing Trip 12 6
7 How the Code of Ethics for Professionals can help in making Case 2 The Case of the Unknown Risk 13 How the Code of Ethics for Professionals can help in making Case 3 The Case of the Perilous Inquiry 14 7
8 How the Code of Ethics for Professionals can help in making Case 4 The Case of the Hackneyed CEP 15 How the Code of Ethics for Professionals can help in making Case 5 The Case of the Compromising Spouse 16 8
9 How the Code of Ethics for Professionals can help in making Case 6 The Case of the Muffled Orator 17 How the Code of Ethics for Professionals can help in making Case 7 The Case of the Twitters 18 9
10 How others are using the Code How do you use the Code? 19 How to educate your team and your management on the Code Incorporate in compliance function charter Refer in terms of employment or engagement Include the Code in organizational compliance training Give copies of the Code to Board members and managers 20 10
11 Questions? Urton Anderson McCombs School of Business The University of Texas at Austin (512) Marjorie Doyle Marjorie Doyle & Associates LL C (484) marjoriedoyle@comcast.net 11
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