Category Archives: To report

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.

Advertisements

Leave a comment

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

Churn ’em, Burn ’em, and Learn ’em

More of the same old stuff.

“Advisers Blew Whistle on Wells Fargo Wealth Unit,” The Wall Street Journal, July 28 2018 B1.  Sales incentives drive improper behavior at Wells Fargo.  Again.

The good news is that four Wells Fargo financial advisers tipped off the DOJ and the SEC to what was happening.  High-wealth investors were steered to investments that would result in higher fees paid to Wells Fargo.

So the culture wasn’t entirely corrupt.  There’s hope.

Leave a comment

Filed under Compliance, Compliance (General), Controls, Corporation, Culture, Duty, Employees, Governance, Internal controls, Investor relations, Policy, To report

Higher learning

Sometimes, I select stories just for the headline I can write over it.

“Temple Is Probed Over Online MBA Marketing,” The Wall Street Journal, July 26, 2018 B5. University accused of deceptive marketing to prospective MBA students.

What is the lesson here?  School may have tweaked some test data to improve the school’s ranking.  Did non-students learn more than students?

Dean lost his job.  The school’s reputation takes a hit.  US News & World Report it told the school can’t verify its information.  Maybe the ex-Dean can be the subject of a case study in the Ethics curriculum.  Or a Compliance course, if the school has one.

Leave a comment

Filed under Accuracy, Compliance, Compliance (General), Controls, Culture, Data quality, Duty, Employees, Governance, Information, Internal controls, To report

Tracking

Apparently, law firms don’t do background checks on incoming partners, at least not if they’re big money makers.

“Top Lawyers Evade Harassment Claims,” The Wall Street Journal, July 31, 2018 A1.  Partner switches to a new firm that didn’t know of his history of harassment.

See also a posting last month on a related topic: https://infogovnuggets.com/2018/07/23/sexting/

Do law firms think they are somehow immune from the laws that apply to their clients?  Do they read the news?  Do they have a fundamentally different culture?

Just asking.  But this does go to both Compliance and Governance.

 

 

Leave a comment

Filed under Controls, Culture, Duty, Governance, Internal controls, Lawyers, Third parties, To report

Caesar’s Wife

One of the common law duties of all employees is to report material departures from the company’s Code of Conduct.  Interesting when that’s applied to a super star.  Over something that happened nine years ago, at a different school.

“Ohio State Puts Meyer On Leave Amid Probe,” The Wall Street Journal, August 2, 2018 A6.  Coach put on admin leave pending investigation into whether he knew that one of his assistant coaches beat up his spouse in 2009, when the coaches were both at Florida.

It was not alleged that Coach Meyer knew of the abuse, but that his wife did.  But Coach Meyer said he’d learned of the abuse before his wife did, and he and his wife counseled the offender and his wife at the time.

How could Coach Meyer have purged himself of this taint?

 

Leave a comment

Filed under Culture, Duty, Employees, Governance, To report

Loose lips sink ships

“Paramount TV’s Head Fired Over Remarks,” The Wall Street Journal, July 20, 2018 B3. Amy Powell fired over remarks of a racial nature.  Probably got a cinder block parachute, although the article doesn’t say.

Good news is that someone reported the remarks to HR, as the policy probably required.

I’d file under

(a) Governance (maintaining the culture you want, by applying standards to the top of the shop as well),

(b) Compliance (enforcing your firm’s ethics)(and the policy worked when an employee followed it and reported the remarks), and

(c) Information (what you say in the course of your job is also “information” that is subject to company control.

Leave a comment

Filed under Compliance, Compliance (General), Controls, Corporation, Culture, Duty, Employees, Governance, Information, Internal controls, Policy, To report

Privacy breaches

“SEC Takes Close Look At Facebook Data Lapse,” The Wall Street Journal, July 13, 2018 B1. SEC looks at whether Facebook responded appropriately after learning that user data was being used inappropriately.

Is keeping investors apprised of violations of contracts or policies part of your crisis response process?  Even when it wasn’t “your” data that was breached?  Would you have caught this in time to avoid an SEC inquiry?

Leave a comment

Filed under Access, Compliance, Compliance (General), Controls, Corporation, Duty, Duty of Care, Governance, Internal controls, Investor relations, Oversight, Ownership, Privacy, Protect assets, Security, Third parties, To report