The Challenge
Recent political events in the United States have highlighted the need for companies to have a robust process in place for identifying the risks associated with political contribution and outside organizations. What can seem like a lo risk opportunity to curry favor and influence with politicians or and employee’s association with outside political organization can potential be problematic for the company and its reputation with its employees, customers, and the community at large.
Where the political donations used to fund illegal, criminal or questionable
Recent political events in the United States have highlighted the need for companies to have a robust process in place for identifying the risks associated with political contributions and outside organizations. What can seem like a low risk opportunity to curry favor and influence with politicians or an employee’s association with outside political organizations can potentially be problematic for the company and its reputation with its employees, customers, and the community at large.
Were the political donations used to fund illegal, criminal or questionable activities? Are employees serving on Boards or engaging in pro bono work for organizations that don’t share the same values as the company? Any of these situations can cause permanent damage to a company’s reputation. And as we have seen, social media can inflame the public’s reaction to the company’s involvement.
So, what is a company to do to prevent and mitigate these risks from occurring in the future. First, companies need a well-defined policy for political contributions and employee involvement with outside organizations. Second, companies need to train employees on the risks associated with political contributions and outside organizations. Third, companies need to put in place a robust process for disclosing and vetting political contributions and outside organizations.
Informed360’s Dynamic Disclosures can help your company with political contributions and outside organizations. Our simple and easy-to-use automated disclosure tool allows employees to request political contributions before they are made Management and other key stakeholders can then review and approve them. Employees can also disclose their involvement in outside organizations including non-profit and for profit organizations. These disclosures can then be evaluated for compliance with company policies and tracked for potential risks.
To learn more about Dynamic Disclosures and Informed360’s suite of leading compliance tools and data integration services, please contact….
Recent political events in the United States have highlighted the need for companies to have a robust process in place for identifying the risks associated with political contributions and outside organizations. What can seem like a low risk opportunity to curry favor and influence with politicians or an employee’s association with outside political organizations can potentially be problematic for the company and its reputation with its employees, customers, and the community at large.
Were the political donations used to fund illegal, criminal or questionable activities? Are employees serving on Boards or engaging in pro bono work for organizations that don’t share the same values as the company? Any of these situations can cause permanent damage to a company’s reputation. And as we have seen, social media can inflame the public’s reaction to the company’s involvement.
The Solution
So, what is a company to do to prevent and mitigate these risks from occurring in the future. They need:
1. A well-defined policy for political contributions and employee involvement with outside organizations.
2. To train employees on the risks associated with political contributions and outside organizations.
3. To put in place a robust process for disclosing and vetting political contributions and outside organizations.
Informed360’s Dynamic Disclosures can help your company with political contributions and outside organizations. Our simple and easy-to-use automated disclosure tool allows employees to request political contributions before they are made Management and other key stakeholders can then review and approve them. Employees can also disclose their involvement in outside organizations including non-profit and for profit organizations. These disclosures can then be evaluated for compliance with company policies and tracked for potential risks.
To learn more about Dynamic Disclosures and Informed360’s suite of leading compliance tools and data integration services, please contact us at info@informed360.com
The Conclusion
The volume of activities and speed of change for ethics and compliance programs is accelerating. As a result, the need to consistently follow through and drive continuous improvement is more critical than ever. Implementing these best practices and technology changes will allow you to not only deliver, but also continuously improve. They will also increase productivity, improve decision making and reduce risk.
If you face any of these challenges and are interested in learning more, please contact us at info@informed360.com.
