Actions and Words

by Bart M. Schwartz

The pain we all are witnessing following the killing of George Floyd should make all rethink how we can fight racism and give everyone an equal opportunity.  Even if we think we are doing the right things, we must examine if we are and if that is enough. We must redouble our efforts, but we also must talk about the value of life, opportunity and freedom for all people. Speaking out needs to be combined with actions. Actions alone are not enough. Racism in any form must not be tolerated.

I appreciate the opportunity provided by NYU School of Law’s Program on Corporate Compliance and Enforcement to contribute to the discussion.

I am a so-called compliance expert and I am always telling CEOs and other corporate leaders that setting a tone includes talking about values, ethics and doing the right thing. But did I take my own advice when it comes to bigotry and discrimination? How could I have missed this message in my own life? Actions are not enough. Talk is not cheap.

Combined with our actions, we must be talking about values, respect for individuals, caring about other people. Equal opportunity. Quietly doing the right thing is not enough.

I respect symbolic speech, such as taking a knee, but that is not the action or the speech that I am addressing. I am referring to everyday conversation, everyday decision making, everyday decency.

I have been asked how compliance professionals and compliance resources can contribute to helping us reach the goal of equality for all. There is a role.  Here are a few thoughts and not in any order. I am sure there are many others.

  1. Too often compliance programs do not focus enough on ethics.  They should, since ethics is a safety net for companies. Treating others with respect and treating them fairly is part of acting ethically.
  2. Human Resources professionals often see themselves as the protectors of employees. They need to protect all employees and take a more active role in reviewing existing policies and practices.
  3. Risk assessments should be expanded to include the harm done to companies reputationally and financially when they are lax about protecting the rights of everyone in the company or, worse, affirmatively discriminating.
  4. To whom the message is delivered is extremely important and by whom. It is easy to say that it should be delivered to everyone, but that is too facile an answer. Companies have succession plans. An extra effort should be made to convey the company values to the future leaders of the company and not just focus on the current leaders.
  5. Company Town Halls should address the issue directly.  And company leadership should be meeting with employees who could be the object of discrimination.
  6. The Board should make it clear where it stands and then prove that by ensuring that Compliance and Human Resources are doing their jobs and reporting at least quarterly to the entire Board and not just to a committee.
  7. Tone at the top always is important. But remember that the “top” is in different places for different employees.
  8. I have developed an “Ambassadors” program for compliance. I like it and so do companies because it does not add full time employees and serves as an early warning system. It is relatively simple. Give a title and training to individuals in each department or unit who are already respected by their co-workers and colleagues. Let it be known that they have that role and they are available to discuss any issues anyone wants to bring up—in this case, highlighting the issues of racism, discrimination and equality.  
  9. Do not ignore those who are victims. They need to be part of the process so that everyone understands each other. Training, talking and working together to achieve our goals is for everyone.
  10. The other side of talking is listening. Listen to what people are saying. Companies relentlessly review social media to see if their products or services are being criticized. Use the same tools to determine what your employees and others think of your values and working conditions.

Bart M. Schwartz ‘71 is the chairman of Guidepost Solutions. He also serves on the board of HMS Holdings Corp., where he is chairman of the Compliance Committee and a member of the Audit Committee, and on the boards of philanthropic organizations including the Stuyvesant High School Alumni Association, the Police Athletic League of New York City, and the All Stars Project, Inc. (whose New York board he also chairs).

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