Category Archives: Employees

Finally, we have a winner

At least somebody goes to jail for leaking top secret information about Russian hacking of elections.  In less than a year and a half.

“Former Intelligence Contractor Gets Five Years in Prison for Leak,” The Wall Street Journal, August 24, 2018 A2. Reality Winner, a contract worker at the NSA, gets sentenced for leaking a secret report on election hacking by the Russians from the NSA to a news outlet.

The rules do need to be enforced from time to time, or they are more like guidelines.  And contractors seem to be a weak link.

Did anyone else in the chain of command get punished?  If she were in Washington, DC, rather than Augusta, Ga., would she have faced the same fate?

See also https://infogovnuggets.com/2017/06/06/we-have-a-winner/.

 

 

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Filed under Compliance, Compliance (General), Controls, Duty, Employees, Governance, Internal controls, Oversight, Protect assets, Third parties, Vendors

Who’s the boss?

To have governance, is a single point of accountability required?

“Workers Deal With Too Many Bosses,” The Wall Street Journal, August 21, 2018 B1.  According  to a recent poll, two-thirds of employees have more than one boss.  Some employees respond by trying to manage their bosses.

From a Governance perspective, if you have multiple bosses, who sets your priorities?  Who establishes the policies and procedures and instructions that you, as an employee, must follow?  How does one resolve conflicts?

And which one person in your organization bears responsibility/accountability for the overall Governance of your company’s Information?  Your company’s overall Compliance with law and with company policy and procedures?

Without such a single point of accountability/responsibility, who gets punished if things don’t go right?  If no one is held responsible/accountable at the C-suite level, do you really have a program-in-fact, as opposed to a program-on-paper?

 

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Filed under Compliance, Compliance (General), Controls, Corporation, Directors, Duty, Employees, Governance, Internal controls, Supervision, Who is in charge?

Loose lips, revisited

The prior post was about what you say and in what medium.  So’s this one.

“SEC Probes Musk Tweets On Possible Tesla Buyout,” The Wall Street Journal, August 9, 2018 A1.  Were Elon Musk’s tweets about having lined up financing for a buyout false or misleading?  The SEC may want to know.

So, is information false or misleading?  I thought we had freedom of speech?  And (altogether too much) freedom to tweet?

Falsely shouting fire in a crowded theater is still a bad thing (thank you, Justice Holmes).  As is misleading your shareholders.

Should a CEO of a listed company know better?  Loose lips sink ships.

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Filed under Accuracy, Communications, Compliance, Compliance (General), Controls, Corporation, Definition, Duty, Employees, Governance, Information, Internal controls, Investor relations

Value

The value of information can be calculated in multiple ways, from multiple viewpoints.

“My Boss Makes What? (Employees Work Harder If They Know),” The Wall Street Journal, August 6, 2018 R1. Salary transparency makes people work harder.

Is what you make “private”?  Should it be?  Whose interests are served by keeping this information private?  Who owns it, you or your employer?  Do anyone have a duty to keep this private?  Why would your employer want this kept quiet?  To avoid Sally complaining that she works harder/better/faster/quieter than Sue, and should be paid more? Or to keep a competitor enticing Sally away?

Ask yourself why you want to keep your salary private.  Sure, you don’t want marketing agencies targeting you because you’re wealthy, but they probably can approximate your salary anyway.

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Filed under Access, Accuracy, Communications, Controls, Corporation, Culture, Duty, Employees, Governance, Information, Internal controls, Managers, Ownership, Privacy, Third parties, Value

Shoot for the stars

Nailing a high-visibility target demonstrates that you’re serious about compliance.  Especially if he or she is a big money maker.  And especially if it is over violations of your company’s procedures.

“GAM Says Fund Manager Breached Policies on Gifts,” The Wall Street Journal, August 7, 2018 B10.  “[T]he star fund manager” also used his personal email to transact business for the company, and failed to follow other company procedures.

The company’s shares have dropped 44%.

Would you be surprised if your company did this?  What does that say about your culture?

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Filed under Compliance, Compliance (General), Controls, Corporation, Duty, Employees, Governance, Internal controls, Oversight, Policy

How much due process is due?

“CBS to Weigh CEO’s Fate,” The Wall Street Journal, July 30, 2018 A1.  Discussion over whether CEO accused of sexual harassment should stand down while the investigation continues.

Curious that Urban Meyer has to stand aside while an investigation into whether he should have reported domestic abuse by an assistant coach 9 years earlier at a different school, but Leslie Moonves remains on board as the CEO of CBS.  See https://infogovnuggets.com/2018/08/07/caesars-wife/

What does it say about a company’s culture when, in the current environment, the CEO can remain in his job during such an investigation?  How convinced are the rank-and-file employees that the sexual harassment policy is real, or just a piece of paper?  Are the directors serious about this policy?  What about other policies?

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Filed under Board, Compliance, Compliance, Compliance (General), Corporation, Culture, Culture, Directors, Duty, Employees, Governance, Oversight, Oversight, Policy

We didn’t know

Knowledge, or lack thereof, is often a good defense.

“Fiat Says It Didn’t Know CEO was Ill,” The Wall Street Journal, July 27, 2018 B1.  Company says privacy of health care information meant they didn’t know that their CEO had been sick for a year.

Who knew or should have known?  Was this insider information that would affect the value of investments?

Should the Board have known?  Did the CEO have a duty to disclose?  For more than a year!

Governance, Compliance, and Information.  All in one.  Add a dash of privacy.

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Filed under Access, Accuracy, Board, Communications, Compliance, Compliance (General), Compliance Verification, Controls, Corporation, Directors, Duty, Employees, Governance, Inform market, Inform shareholders, Internal controls, Investor relations, Oversight, Privacy, To report, Uncategorized