Compliance Glossary

A

Abuse of Functions

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

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Active Bribery

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

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Agent

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

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Anti-Corruption Training

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

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Attestation

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

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Audit

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

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B

Bid Rigging

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

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Blacklisting

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

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Blackmail

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

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Bribery

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

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Business Ethics

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

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C

Cartel

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

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Chief Risk Officer

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

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Code of Conduct

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

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Code of Ethics

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

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Collusion

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

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Compliance Audit

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

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Compliance Burden

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

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Conflict of Commitment

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

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Conflict of Interest

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

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Corporate Governance

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

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Corporate Liability

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

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Cronyism

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

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Culture of Compliance

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

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D

De Minimis

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

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Debarred

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

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Dodd-Frank Act

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

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Donations

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

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E

Embezzlement

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

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Ethical Congruence

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

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Ethical Dilemma

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

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Extortion

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

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F

Facilitation Payments

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

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Fraud

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

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G

Gifts and Hospitality

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

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Governance

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

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Governance Risk and Compliance

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

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Graft

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

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Gray Area

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

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I

Influence Peddling

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

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Integrity

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

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K

Kickbacks

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

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L

Leniency

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

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M

Money Laundering

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

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N

Nepotism

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

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P

Passive Bribery

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

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Patronage

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

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Petty Corruption

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

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Price Fixing

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

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Proportionality

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

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R

Red Flags

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

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Regulatory Compliance

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

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Reputational risk

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

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Risk Exposure

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

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S

Sarbanes-Oxley Act

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

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T

Third Party Intermediary

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

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Tone at the Top

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

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Transparency in Business

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

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W

Whistleblower

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

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