How to Develop a Corporate Compliance Program: Essential Elements

ISBN-13: 978-1518670350

Word Count: 13,455

Page Count: 110


A compliance program is defined as a formalized approach that specifies an organizations policies, and procedures intended to prevent, deter and detect violations of laws and regulations. Primary focus: internal fraud and white-collar crime.


[Now You Know!]


Corporations, governmental units, labor union's, trusts, pension funds and non-profits may be federally prosecuted if an employee is convicted of a federal crime; a crime committed in the course-and-scope of their employment. Like individuals, organizations can be indicted, criminally charged, prosecuted, and found guilty of criminal conduct.


Every organization, notwithstanding vigorous efforts to prevent internal wrongdoing, will still be held, to some degree, criminally liable for the illegal activities of an employee; fraud, environmental waste discharge, taxes, antitrust, food and drug offenses are at the forefront. 




This risk is ever-present. Congress has emphasized the importance it places on organizational efforts for internal crime and fraud control measures and the effectiveness thereof; enter the term Compliance Program,  U.S Sentencing Commission, Sentencing of Organizations, U.S. Sentencing Guidelines, Federal court sanctions, and Culpability Score used to mitigate penalties.




Learn how to develop a risk mitigation plan designed to maximize a culpability score and minimize court imposed sanctions on all three of these Effective Strategic Planning Risk-management Strategies and Solutions.




An organization can't be sent to prison. However, upon conviction, a Federal judge may implement Sentencing Guidelines. Under Federal Sentencing Guidelines none, any one of, all, or a combination of, the following sanctions may be ordered:         


       (1) Heavy fine         

       (2) Restitution          

       (3) Probation          

       (4) Forfeiture of property


As a consequence of court-imposed sanctions, an organization can suffer public and stakeholder recriminations and even forced out of existence. Learn how to mitigate these risks and penalties with this guidebook and tutorial.




This Guidebook provides concise reference material, practical insight, content substance, structure and guidance in the design of an organizational crime-corruption prevention Compliance Program


The term Compliance Program is found in United States Sentencing Commission, Sentencing of Organizations, Sentencing Guidelines criteria set-forth in Chapter Eight, Section 8C2.5-Culpability Score.


WHAT IS A "COMPLIANCE PROGRAM?" A Definition: The totality of those actions taken to set the legal and ethical tone of your organization and to prevent, detect, report, and legally manage internal criminal behavior.



[7 Must know and meet criteria.]


Provided is an in-depth review and exploration of many of the elements that impact the design, content, and effectiveness of a Compliance Program and in mitigating court imposed sanctions through Mitigation Credits.


Allocation of any mitigation Credits is contingent upon the miscreant organization first meeting two requirements.


Those two requirements are essential and identified in this guidebook. Further, the Seven Criteria used by a judge in evaluating and establishing the Effectiveness of a Compliance Program are identified.


The Guidebook and tutorial are divided into four parts:


      Part I:    A Synopsis                 

      Part II:   The Real World               

      Part III:  Key Elements

      Part IV:  Conclusion




The design of a Compliance Programs should be intended to meet 7  Criteria outlined in United States Sentencing Guidelines, Chapter Eight, Sentencing of Organizations, Section 8C2.5-Culpability Score.  A judge will use the noted Criteria in evaluating the effectiveness of your Compliance Program; assuming you have one. 


Purpose: to maximize incentives that may create Credits that can mitigate court imposed criminal sanctions if your organization is convicted of a Federal crime. This purpose is but one of the Strategic Planning - Risk Management Strategies and Solutions offered in this guidebook that will instruct the reader on how to prepare for this situation and much more.


Even if an organization never has to deal with a Federal criminal conviction, the upside in internal crime-corruption prevention is sufficient justification for the design, implementation, and maintenance of Compliance Program. Tuck this tutorial into a resource library. Have it available when needed.


1. Creating A Compliance and Ethics Program from Scratch.  Association of Corporate Counsel (ACC)  Resource Library - ACC Document Jan 1, 2018. If not immediately accessed enter title in their "search site" tab.



This tutorial is an excellent supplement to the book Occupational Crime Deterrence, Investigation, and Reporting in Compliance with Federal Guidelines. 




“The information contained in this Manual was a wake-up call for me; a real eye-opener! I’m motivated to educate my clients on the United States Sentencing Commission and the expansive changes in Sentencing of Organizations Guidelines. Under these Guidelines Corporations, governmental units, labor unions, trusts, pensions and nonprofit organizations face the risk of criminal prosecution if an employee is convicted of a federal crime and that crime was committed in the course-and-scope of their employment. Organizations must know these changes, the risk, how to mitigate that risk, and how to mitigate sanctions if convicted. This Manual will be a tremendous asset to any organization, commercial or public, in the design of an asset protection, loss, crime, and corruption prevention program. Whether the organizational intent is on compliance with Sentencing of Organizations Guidelines, ensuring the legal and ethical functioning of an organization or both, this Manual is a high-value asset. If you are the owner of a small business or a senior executive in a large private or public organization, this Manual is a must-have resource.”


Reynolds Cochrane, C.P.A., P.F.S.