Ethics Compliance Certification

Presented to
Barton, Perry

Team Project

By
Yuri Reyes

3/20/2015

The ethics and compliance certification program is responsible for the development and
implementations all applicable laws and regulations that adjoins an organizations policies for the
best training for employees. In todays society it is now very popular that organizations are each
day more involved in establishing ethics programs in their organization. What influences
organizations to seek ethics and a compliance program is the demanding environment we are
surrounded by each day. More customers today are driven by businesses that strive by making
best decisions and choices that plays a big role in how that affects the environment we live in and
our future one. In this paper I will describe the cons and pros of how important it is to have
ethics and compliance certifications applied in todays businesses. This subject will also
emphasize what all involves in this program and training. As important it is to have ethics and
compliance certification inside an organization is also plays a big role on the external part of an
organization. In order to successfully apply this program it is necessary to follow step by step of
all the requested guideline and turn into excellent results.
In order to maintain an effective ethics and compliance program in an organization it is also
necessary to know the reasons of why it should be applied and what should it influence overall.
An ethic and compliance program is designed to meet external requirements, which are guided
by core values and code of business conduct. Organizations that decide to take this route, takes a
huge step towards a long term relationship with their customers and towards their future
reputation. It is also very important to understand the differences between both ethics and
compliance program. Ethics teaches the importance of making good decisions based on values
and morals more like doing things right and a compliance program is more like encouraging
behavior that is following the rules and regulations. With both of these descriptions makes both
ethics and a compliance program good teaching methods in caring for the organizations wellbeing. Applying ethics and compliance program within an organization does not necessary
guarantees that an organization is going to be all of the sudden perfect but will prevent from
committing big mistakes that could take the organization to a terrible downfall. Reasons for why
organizations opt for these standards are for an overall improvement in staff and customers,
grow, reputation, or future lawsuit. Reasons like these and many more follow great benefits by
Appling ethics and compliance program. Establishing these standards in an organization also
reinforces and acquaints new employees to its culture and values. This method also helps better
communicate its expectations to the staff suppliers, vendors, and customers. Through these
standards it also help minimize inconsistent management standards where it reduces the risk of
preferential treatment of employees. In todays market it is not only challenging to keep up to
level with so many changes expected from customers but also helps a company remain in
compliance with government compliance as well. When considering the importance of how
ethics and compliance will impact an organization in such beneficial way it is also important not
to forget that the top reason is not to enhance productivity, profits, or public relations but to
promote better behavior and conduct which will keep the organization social responsible.
When an organization decides not to apply ethics and compliance program in their organization
it holds risk of major mistakes that could lead an organization huge loses. Major risks that could
lead an organization by not practicing good behaviors could be by corrupted behavior, bribery,
fraud or money laundering. These major risks not only affect the organization but also their

stakeholders, vendors, and suppliers. And when companies get caught doing illegal action they
are penalized with high fines even closure of businesses until they get things straighten out to
start business again. After a stage where an organization has suffered penalties and loses it also
loses the reputation it had before have the environment another aspect of the organization now.
This process drastically hurts an organization and it takes time to get back to their feet.
Regulators want companies to demonstrate serious commitment, not merely lip service, to ethics
and compliance. Manifestations of how an organization can demonstrate commitment can be by
establishing a Code of Conduct that teaches the companies values and expectations. The
organization could also demonstrate by taking corrective actions towards code violations,
conflicts of interest, fraud, or retaliation against the program. Increasingly now in a days
regulators are also holding companies and executives accountable for their business partners
illegal actions too. Regulators opinion that what organizations are not allowed to do nor their
partners are allowed as well, accepting no pity excuses towards illegal actions. This has been one
of the most significant changes in todays ethics and compliance area. Bringing awareness to an
organization of ethics and compliance risks is a good way to start implementing early teachings
towards a better environment to work in. We are all aware that ethics and compliance programs
are good for an organization but mostly better for the staff well-being as well. Risks that could be
preventive by establishing ethics and compliance program is to sex discrimination, sexual
harassment, sexual assault, and least included whistleblowing. The risks that an organization can
suffer emphasizes many issues that are unforeseen as important in an organization but also plays
an important role for the growth of the employees as well. What good it is to have such a
prosperous business when employees growth is poor? Researches have proven that a person
with low self-esteem does not performs well in their daily lives. Having an organization concern
for their employees development not only enriches their productivity but also their performance
thru well developed employees, creating a desired environment to work in. Ethics and
compliance programs also delivers assurance to their employees that they are actually working
for an organization that cares, making them feel proudly in what they do. Establishing an ethics
and compliance program in an organization is not cheap but there are also ways towards how an
organization could slowly start applying them. Though changes are not easy especially for an
organization that is just starting this process but with a strong will and commitment they should
be able to endure this process easily. When applying an ethics and compliance program it is also
important to consider if it is being applied in good interest and good faith not only to be used as
an excuse to cover unnecessary actions or to get away from penalties and fines. Generally what
organizations can do when their budget allows them is to hire a professional that is able to create
their program based on their needs and expectations for their company, and they will be
responsible in teaching all the guidelines to all employees towards ethical behavior and
compliance. Now when organizations are faced with a tight budget they could choose an
exemplary person within the organization that could teach the ethics and compliance program.
There are universal programs towards certain points of views as far as basic information towards
identifying from bad to good when making a decision to laws and regulations for performance.
Organizations today have adopted towards applying ethics and compliance program in their
system because it allows them better credit towards the society it serves. In order to see effective
results it is also best that once the training is in the system to continually offer it on a daily basis.

Executive management could also practice supporting and encouraging line managers to
employees the true benefit of acting socially responsible. It is also best to reward good decision
making when handling certain clients. Rewarding constantly may not be recommended as
employees could miss identify true meanings and values behind the whole concept of being
ethical. Ethical and compliance program should always be taught as making better decisions
versus making better business. Most of these programs are made up of social events, product and
training videos, and continuing education that includes certification. People need ethical
teachings because it helps a person through complex, difficult, and often confusing moral choices
that are often faced on a daily basis. Ethics and compliance programs emphasize subjects like
Code of Conduct, Global Integrity, Employee Rights, Sexual Harassment, Organizational Justice,
Whistle-Blowing, and Social Responsibility. The well-known Foreign Corrupt Practices Act was
the first step that initiated the whole compliance program in the United States which not only
made a difference but also shaped the way businesses was done about 40 years ago. This story all
started when investigators discovered major bribery in businesses and trades from other
countries. Clearly these illegal action well benefited organizations profitable but affected
employees working status as they were also treated and paid poorly even though these
organizations were just getting wealthier. Since ethics and compliance programs are very
important subjects that should be discussed carefully it should also be taught and monitored by
exemplary and responsible that are also responsible and accountable. Applying these standards in
an organization could be challenging but it promotes exceptional performance from top to
bottom. Obviously issues are never guarantee to arise but when an organization has established
these standards within their systems, one they detect an issue they are immediately taken care of
minimizing the impact onto the organization. As ethics and compliance programs reach a
maturity within an organization is clearly reflects actions like cultural trust, accountability and
integrity, and become proactive in everything they do. One important aspect that this program
does is that it allows a high-performing status in a diverse culture, it influence everyone equally
towards behaving social responsible which then drives the workforce to productivity. Once this
program has started many may refuse it but as it is progressively given it will they mark a
difference towards their aspect towards the program once they discover that it also benefits them
widely. Ways that ethics and compliance program could catch everyones involvement is by
allowing demonstrated leadership, encouraging accountability and ownership, and provide an
open culture where they are also allowed the freedom to an expression and opinion. As important
it is in applying the ethics and compliance program right it is also important to make sure that it
is also measured correctly. Managers can accurately measure the progress of ethics and
compliance programs through performance observation and evaluation. It is also best to have
them down in a time data where it tracks the organizations beginning and end and observe how it
progressively reaches its objectives that were established from the beginning. Ethics and
compliance program not only influences the overall performance of the staff in an organization
but it also influences the behavior of each person and their overall conduct within an
organization. Design effectiveness of the overall program not only emphasizes on reaching
certain objectives within the system but also to observe how it could be improved to go way
beyond their expectations to meet legal and defined requirements. Three keys that identify the
outcome of a program is through their effectiveness, efficiency, and responsiveness.

Each time an organization does things right it reinforces the understanding among their
employees, customers, suppliers, and shareholders. We have briefly emphasized the overall
benefits of an organization through ethics and compliance program that as good as it affects an
organization it also brings of a great support towards the employees. Ethics and compliance
program helps guide an organization ethical policies making them non tolerant towards in
response towards sexual harassment. This program also helps an organization to develop a work
culture that abides by the workforce laws reducing the chances of future fines and penalties
associated with lawsuits and regulations. An ethical and compliance program also helps an
organization create a better environment to work in where all employees are treated fairly and
with respect. This program allows open doors for employees equal access to advancement in the
workforce. It also converts an organization in a nurturing and positive environment, where hard
working employees are equally seen with others that acquire a higher position. Establishing an
ethical and compliance program also creates a strong working environment, creating strong
relationships with employees with their managers. This program also helps reduce employee
turnover, improves employees morale, and has a positive impact towards employees per
romance as well. The only disadvantage of an ethical and compliance program is that it should in
cases be monitored and taught by upper management to obtain the same good results all the time.
Meaning these special programs should not be left alone without supervision since it requires
working with people it suggested that a professional is there at all times delivering
comprehensive support to be effective. In most cases if certain professional or management
decides to teach or train the employees of an organization the same way they do at their
organization it will then crash their principles causing confusion since all organizations needs are
differently it will eventually not fit theirs. Ways and disadvantages of how this program could not
result effectively is if managers tend to look away from early signs of sexual harassment or
money fraud and allowing them to get to a severe and uncontrollable stage. When an issue has
reached a severe stage it could become costly for an organization. It is also very important to
keep in mind that an ethical and compliance program can be expensive and time consuming.
Human Resources also plays an important role in the ethical and complain program because they
make important decisions are in hiring, firing, and promoting employees in an organization. And
by this proper administration is required to deliver the best decision making in all areas of an
organization which is from hiring, training, and positioning. Organizations do not all the time
cover 100 percent support or courage an employee needs in order for the employee to be
effective as a character. An employee is also influenced by their personal lifestyle and
circumstances which it is also best for an organization to provide work and life balance for those
needing extra help balancing their lifestyles with so many changes. When an organization takes
the extra step in delivering the best support as possible towards their employees inside in out,
there is no doubt that employees could easily apply towards what is given to them in their
workforce.
When establishing ethics and compliance program in organization it is important for an
organization to consider what are their reasons and objectives the wish to reach. The ethics and
compliance program is a very special tool used to help guide and teach employees and staff of an
organization in making the best decisions, doing things right, and following rules and regulation
expected within a workforce. This program drastically influences an organization by making

them more social responsible towards their employees, customers, vendors, and shareholders.
Ethics and compliance has been around for many years but now more than ever organizations are
leaning towards these programs for building long term relationships that will take them a long
way in the future business. This program benefits an organization by building a great workforce
to work in, avoiding costly fines and penalties, and employee turnover. Based on all the great
things that this program offers an organization overall, at the end it is left to the organization to
always make the best decision as to always continually offer this program on a daily basis
because that is how it will achieve its desired results and needs.

Bibliography
Dipietro, Ben. www.blogs.wsj.com. 14 June 2014.
Inc, Alcoa. Ethics And Compliance Program. 2015.
Institute, Josephson. Business Ethics And Leadership. 30 December 2013.
Lilly, Eli. Ethics and Compliance Program. 2015.
Thimes, Jeffery Alan. Managing Ethics and Compliance Risk. 25 Febuary 2014.