From the General Counsel Roundtable and the Compliance and Ethics Leadership Council
This year's corporate crises have reinforced important lessons for how companies should best respond publicly. The verdict on what's critical to public redemption: 1) timing (respond quickly), 2) transparency (be as open as possible about what you know and what you don't), and 3) the right messenger (mind accents and sartorial choices).
As companies make improvements to their external response strategies, legal and compliance teams must also help protect the company's internal culture during times of crises. Crisis communication templates should include action steps for shoring up employee morale and facilitating manager communications.
The SEC approved a rule allowing investors, with certain limitations, owning at least a 3% stake in a company for a 3-year period to nominate directors for the Board. It is expected that union-backed pension funds and shareholder activists will take greatest advantage of this increased access.
While the likelihood of shareholders nominating their own directors is difficult to predict, transparency and proactive communication with your largest shareholders may save your company from having to go on the defensive. General counsel, corporate secretaries and/or investor relations executives should improve shareholder communications by understanding the factors that drive activists to target peer companies and the relevant recommendations of proxy advisor firms.
Stay abreast of shareholder activity trends and practices through our Corporate Governance Resource Center and online peer discussion group.
A recent publication highlighted the ten most innovative legal departments of the last year, calling out in-house teams that made significant, and original, changes to the way they conduct business. The accomplishments of the featured departments are notable: DuPont learns how to better utilize the talent of their in-house paralegals, Cisco builds an platform to collaborate and share resources internally, and Qwest revamps their ethics training.
The key to legal and compliance department success is the ability to remain agile and open to ever-evolving business needs. Those departments that adapt well to changing conditions by rethinking internal processes and making adjustments to their systems and tools will be better positioned to keep employees engaged and clients happy.
See how your peers are making continuous program improvements, including organizing according to business needs and facilitating access to compliance guidance and resources.
If you thought your commute was bad, imagine being stuck in a 62-mile long traffic jam that's been clogging China's National Highway 110 outside Beijing for more than 10 days. Although it has cleared up to some extent, some local vendors have cleaned up big by going car-to-car selling instant noodles at four times the regular price.
CELC and CLC Human Resources research finds that managers that exhibit corporate values can improve employees' performance by 12%.
(GCR and CELC members: Learn more about the Cultural Diagnostic Survey and related findings on corporate performance and integrity.)
GCR Events:
Pulling Back the Curtain: Uncovering the True Drivers of Legal Costs
Regional Briefing | Multiple Dates & Locations
Special Session for GCs of our Largest Legal Departments
Webinar | 2 September
Managing Risk in Emerging Markets
Webinar | 15 September
Bracing for Growth: Balancing Business Opportunities and Risks in Emerging Markets
Executive Retreat | 7 October
CELC Events:
Ethical Leadership: The Important Connection between Culture, Risk Management, and Business Performance
Regional Briefing | Multiple Dates & Locations
New Whistleblower Provisions of U.S. Financial Reform
Webinar | 8 September
Managing Risk in Emerging Markets
Webinar | 15 September
Building the Compliance Function's Strategic Plan: A Conversation with Clorox
Webinar | 22 September