Chicago partner Dan Collins was quoted in a recent Inside Counsel article, titled, “Mistakes and Realities of Implementing and Executing Effective Compliance Programs.” The article discusses how employers handle legal and regulatory compliance within their companies and how there is no one-size-fits-all approach.
Lawyers in the compliance arena identified six fixable missteps that they see the most. By addressing these common shortcomings, companies can ensure their compliance functions are poised to uncover and address any issues that may arise.
One of those mistakes is focusing on punitive measures when in actual fact, “a carrot can be just as meaningful as the stick.” This means that, while it’s vital that companies enforce their compliance program internally, those that go beyond the corrective action to actually reward employee compliance provide a friendlier incentive for employees while integrating the idea that compliance is an inalienable component of business success.
“Companies that actually reward employees who take compliance seriously and take the right steps stand out. It exemplifies from a management level a commitment to a culture of compliance, which is an important part of showing the government you have an effective compliance program,” said Dan.