Reference no: EM131743976

Case Scenario: Compliance Officer and Confidentiality The employee who decides to place confidence and trust in a corporate compliance officer must understand the following points, among others, prior to filing a complaint against any organizational practice, individual, and/or department within or entity owned by the organization:

• The compliance officer is hired by and is responsible to the corporation by which he or she is hired.

• Compliance officers often report directly to the organization's corporate counsel and/or chief executive officer and/or board of directors/trustees.

• The compliance officer is expected to abide by the laws of the land and follow the code(s) of ethics applicable to compliance officers in general and any ethical principles or codes of ethics that apply to his or her profession. For example, a compliance officer who is a lawyer is expected to adhere to those professional code(s) of ethics that apply to lawyers from both a professional and state licensing standpoint. Failure to do so can result in professional discipline and sanctions against the compliance officer.

• Compliance officers are expected to maintain confidentiality of the names of employees who file complaints.

• Organizations often have compliance hotlines to protect the identity of employees who file complaints.

The compliance officer has a difficult balancing act in maintaining the confidentiality of employees, working for the organization, adhering to standards of ethical conduct, and abiding by applicable federal and state laws. This is no easy task, as Phil was about to learn. Phil, having exhausted all other appeals, called Beth, the compliance officer, to speak with her about a decision that the human resources department had made that he believed was out of compliance with the Federal Equal Pay Act. The office assistant, Mary, stated, "Beth will not be in the office until next week." Phil then scheduled a telephone conference with Beth for the following week. He asked Mary, "Will my telephone conference with Beth remain confidential?" Mary said, "Most certainly. Our office is here for you. Everything in our office remains confidential." The following week Phil called Beth to discuss his concern that certain professionals were performing the same work as he was and were getting paid more. He described the specifics of his concern. Beth asked, "Is it OK for me to reveal your name to human resources so that I can obtain the necessary records that I would need from them to see if you are being paid equally to others for the same work?" Phil agreed to Beth's request. During his discussion with Beth, Phil asked that his conversations with her remain confidential. Beth responded, "If you wanted confidentiality, then you should have asked for it before speaking to me."

1. What lessons could employees learn from Phil's experience?

2. Discuss how this scenario can end with a win-win conclusion for both the employee and the compliance officer.