For several weeks now we’ve been spot-lighting good practices in corporate governance and compliance during the Covid-19 crisis. Today we’re flipping the script to call out some stupendously inept corporate behavior in these difficult times. Everyone, say hello to the Boston Sports Club. BSC is one of those upscale urban personal fitness chains; you probably…

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2020

Welcome to 2020, everyone! This has been a long winter break, but before we return to the grind of emails to answer and staff meetings to avoid, let’s spare a few moments to ponder how the corporate compliance landscape might evolve in the coming year.  Without further delay, then: my annual list of compliance issues…

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management override

Keeping pace with all the ethics and compliance lessons one can learn from the Trump Administration is no easy task. Nevertheless, we have yet another one: the perils of management override, as demonstrated by President Trump’s determination to keep a disgraced Navy SEAL in military service. The story evolved quickly over the weekend. It begins…

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internal audit

Internal audit professionals, fire up your keyboards. The Institute of Internal Auditors is calling for public comment about possible updates to its Three Lines of Defense model of risk assurance. The proposed updates are now available on the IIA’s website. You can download, read, and ponder them at your leisure; and start offering feedback on…

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compliance

Ethisphere has released another analysis of its World’s Most Ethical companies, finding a move toward a more clearly defined chief ethics & compliance officer role and more direct reporting to senior leadership. The study, released on Thursday, is the second in a series of reports Ethisphere is publishing about the 128 firms that made its…

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hacienda

A stunning story of corporate misconduct out of Arizona this week: A special investigator hired two months ago by Hacienda Healthcare has quit, saying the board thwarted his investigation into how a comatose patient there was raped and impregnated — and his departure seems to have driven 10 other managers there to resign, too. You…

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Next week I have the privilege of moderating an executive forum in Philadelphia, where four stellar thinkers about compliance, audit, and corporate governance will be discussing some of the big issues emerging for executives and board directors in 2019. To focus my thoughts, I’ve been pondering: what are some of the big issues emerging for…

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sec

The Securities and Exchange Commission quietly proposed Wednesday afternoon to review whether dozens of corporate governance and proxy rules should apply to small filers: everything from executive compensation disclosure, to posting proxy materials online, to shareholders’ ability to nominate board directors, and more. The timing of the notice — posted just a few hours before…

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Musk

Corporate executives can learn a lot from the daring and vision of Elon Musk — just probably not in the way that Musk might prefer. His tenure at Tesla lately has become a living case study in how not to govern a large organization. That’s been the fundamental problem with Musk for quite some time:…

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COSO

Nearly 30 years ago as young bank auditor, I learned about a private sector initiative known as “The Committee of Sponsoring Organizations of the Treadway Commission,” or more simply, “COSO.” It was the mid-1980s. The savings & loan crisis was raging. COSO was, and continues to be, a joint effort of five private sector organizations…

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