Ateneo Law Entrance Exam Reviewer
Corporate Compliance Answer Book.book Page 29 Thursday, June 17, 2010 4:20 PM
2
Implementation of Effective
Compliance and Ethics
Programs and the Federal
Sentencing Guidelines
Steven D. Gordon*
How should a company go about designing and implementing a compliance program? While other chapters address the specifics of compliance programs in particular industries, this chapter considers issues relating to designing and implementing compliance and ethics programs generally. The biggest influence on the design and implementation of a compliance program is guidance from the U.S. Sentencing
Commission contained in the Federal Sentencing Guidelines that apply to companies convicted of federal criminal offenses.
The Sentencing Guidelines set standards that have become the
* The author wishes to acknowledge Jennifer Dure, Michael Manthei, Christopher
A. Myers, and Jonathan Strouse for their contributions to this chapter.
29
Corporate Compliance Answer Book.book Page 30 Thursday, June 17, 2010 4:20 PM
Q 2.1
CORPORATE COMPLIANCE ANSWER BOOK
norm for virtually all companies, even though relatively few will ever be prosecuted or convicted. In fact, the most useful benefit from using the Guidelines to design and implement a compliance and ethics program is that it can help companies avoid investigations and convictions in the first place.
In addition to complying with the Sentencing Guidelines, if the company is publicly held, it must comply with the SarbanesOxley Act of 2002. And if the company is a federal government contractor or subcontractor, the Federal Acquisition
Regulation (FAR) comes into play. Other compliance requirements apply to other industries. Fortunately, these various guidelines and requirements do not conflict and, instead, tend to complement each other.
Sentencing Guidelines Basics.............................................................. 30
Components of an Effective Compliance Program ................................ 32
Designing and
2
Implementation of Effective
Compliance and Ethics
Programs and the Federal
Sentencing Guidelines
Steven D. Gordon*
How should a company go about designing and implementing a compliance program? While other chapters address the specifics of compliance programs in particular industries, this chapter considers issues relating to designing and implementing compliance and ethics programs generally. The biggest influence on the design and implementation of a compliance program is guidance from the U.S. Sentencing
Commission contained in the Federal Sentencing Guidelines that apply to companies convicted of federal criminal offenses.
The Sentencing Guidelines set standards that have become the
* The author wishes to acknowledge Jennifer Dure, Michael Manthei, Christopher
A. Myers, and Jonathan Strouse for their contributions to this chapter.
29
Corporate Compliance Answer Book.book Page 30 Thursday, June 17, 2010 4:20 PM
Q 2.1
CORPORATE COMPLIANCE ANSWER BOOK
norm for virtually all companies, even though relatively few will ever be prosecuted or convicted. In fact, the most useful benefit from using the Guidelines to design and implement a compliance and ethics program is that it can help companies avoid investigations and convictions in the first place.
In addition to complying with the Sentencing Guidelines, if the company is publicly held, it must comply with the SarbanesOxley Act of 2002. And if the company is a federal government contractor or subcontractor, the Federal Acquisition
Regulation (FAR) comes into play. Other compliance requirements apply to other industries. Fortunately, these various guidelines and requirements do not conflict and, instead, tend to complement each other.
Sentencing Guidelines Basics.............................................................. 30
Components of an Effective Compliance Program ................................ 32
Designing and