2. Open
Disclosure:
Why
and
How
to
Manage
Conflict
of
Interest
Disclosures
April 30, 2015
3. Chelsie Chmela
Events Manager
Chelsie.chmela@ethisphere.com
847.293.8806
We
encourage
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engage
during
the
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porKon
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webcast
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funcKon
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HOST
QUESTIONS
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3
4. 4
SPEAKING TODAY
Philip
Winterburn
Chief
Product
Officer,
Convercent
Marc
Leu
Global
Head
of
Ethics
and
Compliance
Risk
Management
&
Planning
,
Philip
Morris
InternaKonal
Charles
Pare
Manager,
Compliance
Risk
Management
&
Planning
,
Philip
Morris
InternaKonal
5. OPEN DISCLOSURE: WHY AND HOW TO MANAGE
CONFLICT OF INTEREST DISCLOSURES
LIVE WEBINAR | APRIL 30, 2015
6. 2
Introductions
Charles Pare
Manager, Compliance Risk Management & Planning
Philip Morris International
Philip Winterburn
Chief Product Officer
Convercent
Marc Leu
Global Head of Ethics and Compliance Risk Management & Planning
Philip Morris International
8. 4
What is a Conflict of Interest (COI)?
When an individual’s personal interests have the potential to interfere with their ability to
act objectively in the best interests of the company.
Other Jobs InvestmentsPersonal Relationships
Direct and indirect relationships (influence and sharing)
9. The downside of COIs:
• Hard to detect
• Tough for individuals to recognize/manage on their own
• Escalate in likelihood/severity at executive levels
The opportunity with properly managed COI disclosures:
• Easier to disclose than misconduct
• Provide a first and ongoing interaction with compliance
• Allow gap analysis and early insight to risk
• Foster employee responsibility
é risk, ê employee trust and retention
5
Impact of COI
ê risk, é employee trust and retention
10. 6
Managing the Process: The Traditional Ways
Annual certification,
free-form narrative
Hotline reporting
channel
The drawbacks:
• One and done
• Unstructured
• Intimidating
• Cumbersome
• Follow-up action and
communication impaired
• Impossible to analyze
• Volume and scale issues
• Difficult to ensure
consistency
11. 7
Managing the Process: The New Way
Compliance
Human Resources
Management
Disclosure(s) & Update(s)
Real-Time Dashboard & Historical Reporting
Clearance/Conditions
Clearance/ConditionsDisclosures/Updates
12. 8
Managing the Process: The New Way
Easy to comply, easy to manage, easy to report on
Employee perspective Admin perspective
13. 9
Ensuring Success
• Make it easy to comply
• Make it easy to manage
• Make it ongoing
• Focus on clearance and conditions
• Keep managers apprised
• Provide picklists
• Translate the intake
• Close the communication loop
• Mince words:
• Disclose, not report
• Save, not submit
• Clear, not accept/reject
• Disclose and manage, not investigate and sanction
Give employees ownership à shape and change behavior à
manage risk
14. 10
Measuring the Impact
• Richer data and insight (by region, job, nature of conflict, conditions, etc.)
• Easier to act on
• Better benchmarking
• Continuous dialogue between employees and compliance
• Drive participation and engagement
• Validate with survey results
• Easier, more informed investigation process
• Less time spent on administrative tasks
• Improve organizational justice, transparency and employee retention
What’s the cost and impact of not knowing
about and managing COIs?
17. This webcast and all future Ethisphere webcasts are
available complimentary and on demand for BELA
members. BELA members are also offered
complimentary registration to Ethisphere’s Global
Ethics Summit and other Summits around the world.
For more information on BELA contact:
Laara van Loben Sels
Senior Director, Engagement Services
laara.vanlobensels@ethisphere.com
480.397.2663
Business Ethics Leadership
Alliance (BELA)
18. Friday, May 15 at 12:00 p.m. ET
Whistleblower
Best
Prac8ces:
What
do
Companies
and
Business
Leaders
Need
to
Know?
All upcoming Ethisphere events can be found at:
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