This paper responds to a problem expressed by many professionals tasked with leading the ethics and compliance efforts in their organizations: most CECOs do not believe they have been given sufficient authority and resources to accomplish their missions. Even further, they struggle to raise the discussion with executives and directors.
The whitepaper represents the first cooperative effort of OCEG, the Business Roundtable Institute of Corporate Ethics (BRICE) , the Ethics Resource Center(ERC) , the Ethics and Compliance Officer Association (ECOA), and the Society of Corporate Compliance & Ethics (SCCE). The release of the paper was announced on August 13, 2007 in a joint press release. OCEG looks forward to further collaborative initiatives with these organizations. To the extent that these other organizations have established related resources for this whitepaper, links to those sites have been provided.
The paper is divided into five sections, each addressing a slightly different aspect of the role of the CECO. OCEG is building out this page to reflect additional OCEG or OCEG member resources that we believe will be of keen interest with respect to each of these sections and some additional related topics. Please check back on this page as we add additional resources specific to each of these sections.
SECTION I: Chief Ethics & Compliance Officers—The Value Proposition
OCEG PERSPECTIVE: A well-run GRC capability that includes an empowered, effective CECO is necessary in today's heavily regulated and scrutinized business climate. Organizations who devote adequate resources, a CECO or empowered committee to provide strategic direction, and championship to integrated GRC efforts can realize organizational value and benefits directly linked from program outcomes to desired business objectives.
RELATED OCEG MATERIALS AND RESOURCES:
This Key Findings Report particularly reflects the enhanced value attributable to integrating GRC processes.
2007 OCEG Benchmark Series: GRC Strategy Study All Participants' ReportThis study reflects current assessment as to the value of and benefits for an organization from improvements in the areas of governance, risk, and compliance. The study has a subsection focused on tactical approaches to the area of compliance, the degree of integration of compliance into business processes, the degree of standardization across similar processes.
This Guide describes an approach to developing a measurement program that specifically aligns GRC program outcomes to business objectives and provides an extensive list of potential indicators.
SECTION II: Chief Ethics & Compliance Officers—Definition of the Role
OCEG PERSPECTIVE: The CECO is a strategic position vested with accountability for executing on a compliance and ethics program. As such, the CECO needs appropriate tools for strategic planning and tactical execution to mature the capabilities of the organization. To be effective in this role, consistent, coordinated processes like an integrated inquiry and issue resolution awareness and resolution process are essential to advancing a culture of organizational integrity. The CECO's job description should reflect a clear understanding among the board, executive management and the CECO on their respective roles and responsibilities. This whitepaper expands on the core practices from the OCEG Foundation. You can see those practices by mousing over the links in the right column of this page.
RELATED OCEG MATERIALS AND RESOURCES:
This document describes how the compliance and ethics capabilities of an entity progresses from "unformed" to "infused" along six attributes (Awareness, Structure & Accountability, Culture & Consistency, Process / Controls Automation & Integration, Measurement, and Technology) helping to frame the responsibilities of the CECO.
This section of this document details the "as is", "to be", and expectations related to years to attain target maturity and greatest areas of challenge to reaching targets along the six attributes of the compliance segment of the OCEGâ Corporate Compliance and Ethics Maturity Modelä.
This Handbook details each stage in a model inquiry and issue awareness and resolution process along with an approach to planning and designing the helpline/hotline capability with model data structures, a policy and procedure framework, and a model issue taxonomy.
This template provides an outline for all the key elements that should be understood as the expectations of the CECO role.
SECTION III: Chief Ethics & Compliance Officers—Skills and Qualifications
OCEG PERSPECTIVE: The CECO position requires a unique combination of skills that need to be continually refreshed through education and resources. Beyond the skills and qualifications advocated by consensus in the paper, OCEG additionally recommends a periodic rotation from other positions in the organization into the CECO role.
RELATED OCEG MATERIALS AND RESOURCES:
SECTION IV: Relationship with Governing Authority & Professional Responsibility
OCEG PERSPECTIVE: The CECO has specific responsibilities for both educating and informing the governing authority as to the effectiveness and performance of the GRC capability. Additionally, the CECO should be enabling the governing authority to mature in their governance capabilities.
RELATED OCEG MATERIALS AND RESOURCES:
SECTION V: Conclusions and Next Steps
For the Board of Directors
For the Chief Executive Officer
For the Chief Ethics and Compliance Officer
For Professional Organizations, Consultants, and Vendors
OCEG PERSPECTIVE: OCEG continues to provide tools and resources that advance all aspects of GRC, including benchmarking, educational programs and illustrations that facilitate the discussions the CECO should have with others in the organization.
ADDITIONAL OCEG MATERIALS AND RESOURCES OF PARTICULAR INTEREST TO THE CECO ROLE
