New Administration: Continued Emphasis on Compliance

1.20.2017

A New Outlook From The White House? Following eight years of a Democratic President with a career businessman will likely lead to a regulatory climate that is more friendly to business generally. However, the legal framework that emphasizes corporate compliance will not likely change in the near future. The United States Sentencing Guidelines still provide that organizations can benefit from a significant reduction in the impact of a criminal prosecution if the offense occurred despite the organization’s “effective compliance and ethics program.” U.S.S.G. Section 8B2.1 and Section 8C2.5(f). Effective ethics and compliance means promoting “an organizational culture that encourages ethical conduct and a commitment to compliance with the law.” Further, the U.S. Attorney Manual provisions regarding corporate liability specify consideration of corporate compliance programs in all potential corporate prosecutions. USAM 9-28.800 (Corporate Compliance Programs).

How Do We Respond? For companies, this raises important questions: Are our current policies and practices doing the job? How can we evaluate that? If we need to make changes, what do we need to do, and how should we do it? Ultimately, every company should position itself to show that its compliance program works, with documentation of how the company accomplished that.

Companies that do not ask or answer these questions will be subject to increasing risk. In the compliance area, particularly antitrust and foreign corrupt practices, the failure to implement and maintain an effective compliance program can mean millions of dollars in fines and a host of negative collateral consequences that may be highly disruptive to the company. Collateral consequences may include civil claims, debarment from government-related work, and outside compliance monitoring, among other things.

Maintaining an effective and current compliance program can avoid investigations or significantly limit their impact. Our goal is to provide companies with a risk assessment tailored to the company’s business; deliver policies and procedures designed to address the company’s risk profile; and develop a management strategy to help companies implement the compliance program in a meaningful way.

Compliance Audits: An effective compliance program requires periodic reassessment of the company’s risk profile and program. Butzel Long can provide an independent and objective view of a company’s risks and advise companies on how to limit those risks. We conduct compliance audits by finding a mutually agreeable fixed fee that includes administration of a written questionnaire to a sampling of employees, review of written materials, limited interviews of key personnel, and recommendations for improving the compliance program.

Our compliance counseling includes:

  • A risk assessment that targets the areas of greatest risk for a company’s business, whether that means geographical areas that have historical challenges, particular lines of business, accounting practices, and business relationships that may create regulatory risk;
  • An evaluation of upper and middle management’s role in administering and supporting business ethics and compliance –the ‘tone from the top’ regarding attitudes and resources dedicated to compliance;
  • A review of the company’s policies and practices, such as:
    • written policies, procedures, and training materials;
    • reporting avenues for compliance challenges such as anonymous hotlines or published whistleblower policies;
    • internal handling of compliance challenges, including stated disciplinary consequences for compliance program violations;
    • how the company addresses relationships with business partners, affiliates, and subsidiaries who may be beyond the company’s full control regarding compliance;
    • contacts with competitors that can lead to antitrust compliance issues; and,
    • recommendations for improvements to the program.

Related Services: Our strong government investigations background makes Butzel Long well-suited to conduct internal investigations of any compliance challenge. In addition, our expertise in particular industries and areas of the law allows us to put together a team particularly well-suited to your company's needs.

For example, any company with government contracts also routinely faces regulatory requirements from the Federal Acquisition Regulations (FAR). Butzel Long has the skill and expertise to advise you on FAR compliance.

Health care regulations often require annual audits and training. If your company must comply with HIPAA, the Telephone Consumer Protection Act (TCPA), and/or Affordable Health Care (ACA)-related mandates, Butzel Long has extensive expertise in these compliance areas.

We also offer a wide range of counseling related to construction, telecommunications, cybersecurity, employment, export controls, and immigration law (I-9 compliance). We can provide both "independent" investigations and advice on compliance.

Standard Approach, Standard Pricing: We offer compliance counseling as a fixed fee service based on the size and complexity of your company’s issues. Please reach out to your attorney at Butzel Long for more information, or any of the attorneys listed below.

Andrew M. Friedman
202.454.2877
friedmana@butzel.com

Debra A. Geroux
248.258.2603
geroux@butzel.com 

What's Trending

Follow us on social media

Jump to Page

By using this site, you agree to our updated Privacy Policy and our Terms of Use.