1© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Reaching and Monitoring Remote Workers

SCCE

February 21, 2017

Eric Morehead, Principal Consultant

Morehead Compliance Consulting

Morehead Compliance Consulting

Today’s Outline

• Who is a Remote Worker?

• Strategies and Resources for Reaching and Monitoring  Remote Workers

• Can We Show Our Ways to Show Program is Risk‐Based?

2

Who is a Remote Worker?

3

2© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Remote Workers

4

Who is a remote worker?

• Working from home• Working at fixed remote site• Working from mobile site • Working at distant locations• Some mix of the above

Some Characteristics of Remote Workers

The Positive

• Overall, remote workers tend to feel more valued

• Several studies point to increased productivity and efficiency

• Just over 52% report daily contact with a manager

5

The Challenging

• Feeling of value does correlate to perception of flexibility

• “Relationships with coworkers” are rated lower – collaboration penalty

• Up to 37% of North American organizations report having some remote workers, or some remote working capabilities.

See:”What Leaders Need to Know About Remote Workers,” TinyPulse Survey,  https://cdn2.hubspot.net/hubfs/443262/TINYpulse_What_Leaders_Need_to_Know_About_Remote_Workers.pdf?t=1462203875281

Some Strategies to Reach Remote Workers

6

3© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Mobile Platforms & Other Technology

• Mobile training (LMS, handheld and tablet apps)

• Portals

• “Live” training via Skype or Webinar

• Give and take

• Face to a name

• Engagement

• Beware of more “layers”

7

Human Resources

• Ethics “Ambassadors”, “Evangelists”, “Heroes”  ‐ there are many names for this function and can be adapted to suit the needs of the company

• Helps connect remote managers to the E&C organization. It also provides another resource for managers to help them identify and manage emerging risks and can facilitate learning and communications.

• Address/conduct compliance training heavily up‐front/onboarding of any new position

• Link performance review & compensation to compliance initiatives

• Live training ‐ Personally meeting with and talking to employees at various locations adds credibility to the messages senior and middle managements are trying to convey.

8

The Key To Unlock the Door…

9

4© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Involving The Middle

• Most trusted source• Most contact

• Most likely to connect on issues of importance

• “All Culture is Local”

• No Need to remake the wheel• HSE Networks

• HR Networks

10

Using Local Language and Customary Norms

• Language as used by your workers

• Not just foreign countries

• Suit and tie versus…

• By “customary” we mean both local culture AND local/regional/  organizational norms

• Managers are best‐placed to get this right

11

Some Strategies for Middle Managers

• Mangers should:• Speak frequently about ethical values and the commitments of the company (including retaliation and organizational justice)

• Anticipate common issues and discuss them

• Talk about the bottom‐line reasons for compliance and ethics (business case)

• Learn to recognize issues like perception of retaliation and how (and when) to escalate

12

5© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Tone at the Middle

13

53.6%36.8%

9.1% 0.5%

Indicate your level of agreement with the following statement: “The organization’s mid‐level managers regularly and consistently communicate 

with employees regarding ethics and compliance.”

Strongly agree

Agree

Neutral

Disagree

Source: World’s Most Ethical (WME), Ethisphere (2015)

Support for Managers

• Training on their role, business case, specific compliance risks.

• Resources• Available materials on 

• Reporting and employee roles

• Specific risk topics

• Business case

• Communication

• Periodic specific messaging

• Establish support network

• Objective criterion as part of manager’s review

14

Tone at the Middle

15

39%

11%

50%

Does your compliance and ethics function provide targeted training to management with direct reports on their special 

responsibilities related to compliance and ethics? 

Yes, to all managers

Yes, to senior managers only

No

Source: Society of Corporate Compliance and Ethics (SCCE) and NYSE CEPE Survey (2014)

6© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Tone at the Middle

16Source: Society of Corporate Compliance and Ethics (SCCE) and NYSE CEPE Survey (2014)

Tone at the Middle

72% 72%77%

55%

76%

53%

34% 34%

Part of newmgr training

 Periodictraining (<2 yrs)

New content <2yrs

Includescertification

Tracked forcompletion

Includes testing Testing resultsare maintained

Part of a mgrperformance

eval

The following applies to the manager training on ethics and compliance

17Source: World’s Most Ethical (WME), Ethisphere (2015)

Making the Case to the Middle

18

7© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Motivation for the Middle – Negative Case

• Headlines (VW, Takata just the most recent)

• Yates Memoranda and other pronouncements 

• The data (USSC) shows 60% of organizational cases include individual defendants

• Those defendants are mostly not “high‐level”.

19

Relationship of Individual Offender To Organizational Cases Fiscal Years 2014‐2015

No Individual 

Co‐Defendants

42.0%

At Least One 

Individual Co‐

Defendants58.0%

FY14

No Individual 

Co‐Defendants

41.4%

At Least One 

Individual Co‐

Defendants58.6%

FY15

SOURCE: United States Sentencing Commission, 2014‐2015 Datafiles, CORPFY14 and CORP15.20

Percentage of Individual Offenders Who Were“High‐Level” Officials of Co‐Defendant Organizations Fiscal Years 2014‐2015

Owners21.4%

Board Members15.6%

Mgrs./Supvs.

8.2%

Not High‐Level 

Officials54.9%

FY14

Owners19.8%

Board Members21.2%

Mgrs./Supvs.

9.0%

Not High‐Level 

Officials50.0%

FY15

SOURCE: United States Sentencing Commission, 2014‐2015 Datafiles, CORPFY14 and CORP15.21

8© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Motivation for the Middle – Business Case

• Compliance and maintaining an ethical culture are integral to business operations

• Compliance has a “bottom‐line” effect on business performance

• Compliance and ethical culture have effects on the business that may not be immediately apparent

22

Ethical Culture Matters: Reporting Percentage in “Strong or Strong‐Leaning” Cultures is Significantly Higher

80% Report In “Strong/ 

Strong‐Leaning Cultures

55% Report in 

“Weak/ Weak‐Leaning” Cultures

Source: Increasing Employee Reporting Free From Retaliation, Ethics & Compliance Initiative (2015) and Retaliation: When Whistleblowers Become Victims, Ethics Resource Center (2012).

23

Monitoring Lessons from Wells‐Fargo

• Sophisticated controls may not uncover even unsophisticated misconduct

• Incentives matter

• Employee perception of culture impacts reporting 

• Easy to have disconnect from C‐Suite and ground level

• Dissonant messages may actually depress reporting and sense of organizational justice

24

9© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Culture Provides Real Results

Companies with a strong ethical culture are much less likely to experience misconduct. 2011 NBES Survey, Ethics Resource Center.

Companies with a weak ethical culture experience up to TEN TIMES more misconduct than companies with strong ethical cultures. Compliance and Ethics Leadership Council, Corporate Executive Board 2013.

25

Perception is Reality on Culture

• “Tone from the top” has limitations

• Culture is local for employees

• No matter the organization, the size, scope and type of business the top two reasons given for not reporting on observed misconduct are:

• Fear of retaliation – or the perception of likelihood of retaliation

• Organizational justice concerns• Belief that the company will not investigate wrongdoing 

• Belief that the company will not treat allegations against management or top performers the same as for anyone else

26

Strength of Culture Correlates to Misconduct

29%46%

67%

90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Strong Strong Leaning Weak Leaning Weak Leaning

% of Employees who Observed Misconduct in Previous 12 Months

Source: 2013 NBES Survey, Ethics Resource Center

27

10© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

33%

60%

67%

84%

Zero Factors Two Factors Four Factors All Six Factors

Effective Compliance and Ethics Program Elements Correlate to Higher Reporting Percentages

Six Elements of a Program Measured in the Survey

• Written Standards• Training • Company provides 

resources and advice • Anonymous and/or 

confidential reporting• Performance evaluations 

on ethical conduct• Systems to discipline 

violators

Source: Increasing Employee Reporting Free From Retaliation, Ethics & Compliance Initiative (2015) and Retaliation: When Whistleblowers Become Victims, Ethics Resource Center (2012).

28

Compliance and Ethics is a Recruitment and Retention Issue• An Ethical Culture Aids in Getting Top Staff

• Survey of nearly 800 MBA grads showed that the overwhelming majority (97.3%) were willing to work for less money at companies with a strong ethical culture

• On average, they were willing to give up $14,902 a year (or 14.4% of their expected salary) to work at such companies1

1. Source: Stanford and UC Santa Barbara, 2008, https://www.gsb.stanford.edu/insights/mba-grads-corporate-responsibility-trumps-salary2. Source: Increasing Employee Reporting Free From Retaliation, Ethics & Compliance Initiative (2015).

Retaliation and Observing Misconduct Increases the Likelihood of Employees Leaving

Of Those Who Experienced Retaliation 

55%Leave Within 2 Years

Of Those Who Observed Misconduct

38%Leave Within 2 Years

Source: Increasing Employee Reporting Free From Retaliation, Ethics & Compliance Initiative (2015) and Retaliation: When Whistleblowers Become Victims, Ethics Resource Center (2012).

11© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Compliance and Ethics is a Career Development Issue• Managers Who Report Issues Experience retaliation at the same rate as non‐managers

• 22% of managers who report issues experience retaliation

• Retaliation includes not getting promotions or raises, being reassigned, demoted or harassed1

1. Source: Increasing Employee Reporting Free From Retaliation, Ethics & Compliance Initiative (2015) and Retaliation: When Whistleblowers Become Victims, Ethics Resource Center (2012).

Other Practical Monitoring Strategies and Resources• Get Compliance Committees involved – create network

• “Secret Shoppers” (3.20 SCCE Compliance Handbook) to anonymously review process.

• Audit, Audit, Audit

• Manager Training aimed at monitoring compliance of direct reports

• Engage senior managers and have peer manager training 

• Spend some time on spotting and reporting misconduct and your escalation policies and process – spell it out

• Online resources – online network

32

Can We Show Our Program is Risk Based?

33

12© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Can We Show Our Program is Risk Based?

• Determine/assess organizational risks by reviewing • Previous problem areas 

• Previous audits

• Reports or evaluations conducted internally and externally 

• Policies & Comms‐‐ do they exist, are they appropriate and are they being followed, 

• Peer benchmarking, 

• Current issues and emerging trends.

• Prioritize the risk

• Have a well managed hotline/website/email options (make it as easy as possible for your remote workers to communicate)

34

Can We Show Our Program is Risk Based?• Publicly available COC that is appropriate for audience• Distribute policies and procedures to all remote employees & follow up the delivery with a confirmation. Include a high level summary of the most important piece(s) of the policy when communicating with your remote workers. 

• Determine who needs what kind of training, which varies depending on location and job function of the remote worker

• Create training that is tailored and appropriate for that audience. Roll‐out training based on severity of risk

• Show continuous monitoring and be sure to update annually or as appropriate.

• Show that you deploy, train, resource and hold managers accountable

35

Morehead Compliance Consulting

Questions?

Eric Morehead

eric@moreheadconsulting.com

www.moreheadconsulting.com

512-961-3890