HR - Corporate Accountability

Organizations implementing ESG strategies are focused on managing their companies in ways that are ethical, transparent and responsible to stakeholders. Equally important is implementing good governance practices, including managing privacy compliance and risk. 

A New Jersey federal court has ruled that a company’s self-disclosure of potential Foreign Corrupt Practices Act (FCPA) violations did not render the company a state actor, allowing evidence obtained by its internal investigation to be used against two former employees alleged to have engaged in misconduct.

Despite acknowledging the necessity of integrating ESG policies, organizations face difficulty determining how their programs are governed. As a result, leaders may encounter challenges when implementing ESG strategies and monitoring and reporting information responsibly. 

Corporate governance reporting is a framework that gives stakeholders insight into a company’s ESG practices, allowing them to better understand the demographic makeup of its corporate board and overall workforce.

Employers are leveraging ESG to address various employees’ and shareholders’ concerns, including appropriate workplace safety controls that respond to employee input while maintaining compliance with state and federal standards.

In a $35 million settlement that emphasizes the “S” for social in Environmental, Social and Corporate Governance (ESG) issues in public filings, publicly traded video game developer Activision Blizzard, Inc. has agreed with the Securities and Exchange Commission (SEC) to pay to resolve the company’s alleged failure to maintain adequate disclosure controls and procedures that would have allowed it to evaluate properly the adequacy of its human capital disclosures.

It is a new year and that means a fresh round of compliance reporting obligations for many companies. Here’s what lies ahead for 2022.

When it comes to consolidations and restructurings, in-house counsel and the corporate law firms that support them have competing priorities to further a company’s business objectives and mitigate legal risk. Labor and employment considerations are equally critical to a successful transaction.

Compliance or internal audit departments frequently carry out audits intended to assure that business partners in an organization, such as human resources or legal departments, have in place policies and procedures that are effective for maintaining corporate compliance and consistent with the myriad laws with which the organization must

Ken Najder, a partner in the Corporate Practice Group in the New Orleans office, authored the Private Company Director article “The Role of Minutes in Protecting Companies and Their Directors” discussing the benefits of well-prepared minutes and how companies and directors can help shield organizations from a host of pitfalls. Ken explains the amount of detail that should be included in minutes and how to handle privileged communications at board meetings.

The need for an effective compliance program to assist companies in preventing, detecting and, if necessary, promptly correcting issues before they become problems is nothing new. However, there is an increased focus by the government designed to induce employees to report suspected unlawful conduct by their employers to regulatory agencies. While this focus may benefit consumers and investors, it also raises the real possibility a company will first learn about an issue after an audit or enforcement action has already been commenced, and control of the situation is largely out of the company’s hands. This new era of external enforcement means that companies must place an even greater emphasis on their internal compliance programs. But where to start?

The following scenario is more common—and more troubling—than ever before. A high-ranking employee who has signed an agreement to preserve the confidentiality of business plans, financial information, and trade secrets stealthily collects confidential information belonging to the employer.

Attorney General Jeff Sessions has announced a new Department of Justice policy regarding the federal adoption of assets seized by state or local law enforcement under state law. The new policy, issued on July 19, 2017, is intended to strengthen and streamline the civil asset forfeiture program allowing a more aggressive pursuit of asset forfeiture cases and the increased sharing of proceeds of those seizures with local law enforcement.

During his campaign, President Donald Trump raised uncertainty with statements that he disapproved of the Foreign Corrupt Practices Act. Since then, however, the Department of Justice has emphasized its continued enforcement efforts for FCPA violations.