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Systems for Combating Criminality

Designing and Implementing Compliance Management Systems

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Managing Business Integrity

Part of the book series: Management for Professionals ((MANAGPROF))

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Abstract

Forensic trace analysis is only one tool that corporate leaders need to understand in order to manage white-collar crime. However, a comprehensive compliance management system is a much more sustainable solution than only reacting to certain incidents. Compliance expert Heissner develops a clear and pragmatic blueprint of such a system, showing the possibilities of uncovering crimes by integrating it in an organization, but in additional steps focusing on prevention of corruption through establishing a value oriented corporate culture.

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Notes

  1. 1.

    Zimbardo quickly became a much discussed psychologist due in particular to his sensational social experiments. Probably the most well known was the “Stanford Prison Experiment” in which the test subjects took on the role of inmates and guards in a prison. The experiment had to be aborted after 6 days because the test subjects were faced with serious physical and psychological danger.

  2. 2.

    Compliance means in the first instance “observing the rules.” This could be any form of compliance—the term does not originate from the field of economics. It became popular due to its use in the field of medicine. Compliance was used in this context to describe how willing patients were to follow the instructions issued by their doctors or those issued on the leaflet found inside their prescribed medication.

  3. 3.

    For more details, see Chap. 1.

  4. 4.

    The subject of auditing standards will be addressed in more detail at the end of this chapter in Sect. 4.5.1.

  5. 5.

    The model can be originally traced back to the European Institute of Internal Auditors; see here Burger and Schmelter (2012, p. 105).

  6. 6.

    It is interesting that empirical studies have shown that managers attribute almost no significance to the calculated probabilities that risks will occur. Most managers base their risk assessments more on subjective convictions (see Hofmann 2008, p. 374).

  7. 7.

    See: http://www.ussc.gov/

  8. 8.

    For definition see DOJ Online http://www.justice.gov/criminal/fraud/fcpa/

  9. 9.

    Economic policy motivations cannot be excluded in such a process, the role of the SEC and their conduct in transnational investigations needs to be critically examined from case to case.

  10. 10.

    See Chap. 2.

  11. 11.

    See Articles 331, 333 of StGB.

  12. 12.

    Transparency International: http://www.transparency.org/research/cpi/overview

  13. 13.

    Bribe Payers Index: http://www.transparency.org/research/bpi/overview

  14. 14.

    Can be followed for example at http://www.financialstabilityboard.org/index.htm

  15. 15.

    Also see here Siemens (2008): http://www.siemens.com/responsibility/report/08/de/management/compliance/incentivierung.htm

  16. 16.

    Ruwan Weerasekera, Chief Operating Officer of Securities at UBS, revealed during the proceedings that the “umbrella account” would have been more carefully examined if there had been appropriate controls of the communication data and relevant logs; refer to publications such as Bloomberg (2012).

  17. 17.

    For ethical and data protection reasons, this naturally requires valid suspicions or the clear consent of the employee.

  18. 18.

    Translation: “when in doubt, for the accused.” This principle has not been made the legal standard under German law but can be derived from various paragraphs of the Code of Criminal Procedure (Strafprozessordnung).

  19. 19.

    The principle of dismissal on the grounds of suspicion is in line with the consistently taken decisions by the German Federal Labor Court (Bundesarbeitsgerichts—BAG)—it being an important enough reason for the extraordinary termination of an employment contract according to Article 626 of BGB.

  20. 20.

    Although the targeted development and promotion of values in the sense of value management overlaps to a large extent with the subject of compliance, the subject matter has experienced significant developments and will thus not be examined further at this point.

  21. 21.

    Source in: Montesquieu “The Spirit of the Laws,” 1748.

  22. 22.

    In the sense of the duty of supervision according to Article 130 of OWiG and other relevant laws and ordinances.

  23. 23.

    For a detailed description of the individual cases: see Chap. 1.

  24. 24.

    Sector association for commercial auditors http://www.idw.de/

  25. 25.

    In this context, this deals with the implications for compliance that can be derived from international “hard law” and “soft law.”

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Authors and Affiliations

  1. Ernst & Young, Cologne, Germany

    Stefan Heissner

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  1. Stefan Heissner
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Heissner, S. (2015). Systems for Combating Criminality. In: Managing Business Integrity. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-12721-7_4

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