Compliance Glossary

Abuse of Functions

When we elect public officials, we expect them to carry out the duties of their office in accordance with the…

Active Bribery

The notion of a bribe refers to any illegal gift that is given to influence the actions of the recipient,…

Agent

Anti-corruption legislation prohibits business entities from engaging in misconduct such as paying bribes to foreign officials, but what happens when…

Anti-Corruption Training

Training employees on anti-corruption is necessary for protecting organizations from risk and ensuring that employees are acting in a way…

Attestation

The concept of attestation dates back to the earliest historians who attempted to independently verify recorded events by obtaining statements…

Audit

Businesses in certain regulated industries, or who engage in regulated activities, must develop systems and strategies to ensure their ongoing…

Bid Rigging

What is Bid Rigging? Bid rigging is a form of collusion in which bidders on a contract decide who should…

Blacklisting

A blacklist is a list of entities that an organization wishes to avoid interacting or doing business with in the…

Blackmail

Blackmail is an insidious form of coercion, a criminal act that uses threats or violence to force a victim to…

Bribery

Corporate executives and public officials are entrusted to make decisions and allocate resources on behalf of the individuals whose interests…

Business Ethics

Ethical guidelines within an organization can be influenced by law, public pressure, or a combination of both and are often…

Cartel

A group of firms or other entities who work together to monopolize a market, fix prices, or engage in other…

Chief Risk Officer

According to the 2020 State of Risk Oversight report published by the Enterprise Risk Management (ERM) Initiative at NC State,…

Code of Conduct

A code of conduct is the most common policy within an organization. This policy lays out the company’s principles, standards,…

Code of Ethics

A code of ethics is similar to a code of conduct in that it establishes behavior expectations that an organization…

Collusion

When a group of firms cooperates to maximize their profits in the marketplace instead of competing with each other, this…

Compliance Audit

Thanks to regulation, most large, global organizations are required to maintain a compliance program. Management teams within such organizations are…

Compliance Burden

When lawmakers impose rules and regulations on how organizations are permitted to operate, those organizations must invest time, capital, and…

Conflict of Commitment

Most professionals strive to maintain a work-life balance, faithfully executing their duties to an employer during business hours and pursuing…

Conflict of Interest

What is a Conflict of Interest? A conflict of interest happens when an individual involved in multiple interests finds themselves…

Corporate Governance

What is Corporate Governance? Corporate governance is the practice of creating systems, policies, procedures and rules that regulate how a…

Corporate Liability

Corporate liability is the legal responsibility a corporation assumes for acts committed by the organization’s employees or agents acting on…

Cronyism

Elected officials and corporate executives may be in charge of dispersing funds or hiring staff members within their organizations. When…

Culture of Compliance

What is a Culture of Compliance? A company has a compliance culture when compliance is a central and unalterable part…

De Minimis

What is De Minimis? De Minimis is a legal term that has been applied in many ways, including to copyright…

Debarred

The United States General Service Administration (GSA) was established as a government agency in 1949 to, among other things, provide…

Dodd-Frank Act

What is the Dodd-Frank Act? Passed in 2010 by the Obama administration as a direct response to the 2008 financial…

Donations

What are Donations? Donations are gifts of money or property conferred by a corporation or private individual on a non-profit…

Embezzlement

When an individual is given access to an organization’s funds or assets, there is an expectation that the individual will…

Ethical Congruence

Ethical decisions are expressions of individual values, but they can also be influenced by social and organizational behaviors. Corporations can…

Ethical Dilemma

Ethics are the moral standards and principles by which entities (individuals and organizations) govern their behaviors and decision-making. When these…

Extortion

What is Extortion? Extortion takes place when an entity (an individual or an organization) attempts to obtain money, property, or…

Facilitation Payments

Facilitation payments are typically demanded by low-level and low-income officials. In some countries, it is customary to provide small unofficial…

Fraud

Fraud involves the use of deception, trickery, and a breach of trust to gain an unfair or unlawful advantage. Occupational…

Gifts and Hospitality

Gifts and hospitality, including travel and entertainment, are legitimate expenses and common business practices to build relationships or express appreciation….

Governance

The activities of corporations must be directed to meet the needs of shareholders, executive management teams, employees, customers, suppliers, government…

Governance Risk and Compliance

As organizations undergo digital transformation and implement new technologies, they face challenges like increased management complexity, new sources of risks,…

Graft

When government employees or elected officials allocate public funds, they are expected to act in the best interests of the…

Gray Area

Individuals and organizations adopt ethical standards and moral frameworks to help them guide decision-making and differentiate between right and wrong….

Influence Peddling

Influence peddling occurs when an individual who has real or apparent influence over someone else another person exchanges their influence…

Integrity

The dictionary definition of integrity is firm adherence to a code of moral values. People with a strong sense of…

Kickbacks

Public or private sector employees who participate in awarding contracts must remain unbiased when choosing vendors and suppliers. In some…

Leniency

In the United States, the Antitrust Division of the Department of Justice (DoJ) takes charge of detecting and investigating corporate…

Money Laundering

The intention of money laundering is to make illegally obtained money appear to come from a legitimate source. What is…

Nepotism

The most common form of nepotism is increasing employment opportunities for relatives. Although there are arguments for nepotism practices when…

Passive Bribery

Passive bribery describes the actions taken by the person receiving the bribe. The bribe is considered passive, whether the person…

Patronage

Under the United States constitution, the President is empowered to appoint Federal judges, foreign ambassadors, cabinet officers, military officers, and…

Petty Corruption

Corruption takes place when an individual abuses their entrusted power for individual gain. When we think about corruption, we may…

Price Fixing

In a competitive marketplace, organizations compete to offer quality goods and services to consumers at the lowest possible price. When…

Proportionality

Proportionality is the principle of responding to an action with an equally-sized reaction. In criminal law, the principle of proportionality…

Red Flags

Detecting and preventing acts of corruption in the workplace can be challenging, especially when corrupt actors work intentionally to conceal…

Regulatory Compliance

All businesses must comply with the laws and regulations of the jurisdictions in which they operate. As organizations increase in…

Reputational risk

To protect their interests and ensure business continuity, companies allocate time and resources to strategic risk management. Risk management is…

Risk Exposure

Business risks are situations or circumstances that can lead to a decline in profits, negatively impacting a company’s ability to…

Sarbanes-Oxley Act

The United States government uses legislation to maintain a business environment where investors may be confident in the accuracy of…

Third Party Intermediary

Whaat is a Third Party Intermediary? A third-party intermediary (TPI) is an entity who helps connect two or more trading…

Tone at the Top

Businesses should be aware that ethical leadership can play an important role in preventing fraud, corruption, and other unethical practices…

Transparency in Business

What is Transparency in Business? Transparency in business is the basis for trust between a firm and its investors, customers,…

Whistleblower

What is a Whistleblower? A whistleblower is an individual who reports or exposes wrongdoing within a private or public company…