What is compliance & ethics? As a law student, it is impossible to know every legal career path, and compliance and ethics is one path that may seem particularly abstract. As one NYU law professor explains, “The compliance function consists of efforts organizations undertake to ensure that employees and others associated with the firm do not violate applicable rules, regulations or norms. It is a form of internalized law enforcement which, if it functions effectively, can substitute for much (although not all) of the enforcement activities provided by the state.” [1] Put simply, employees in a compliance and ethics role at different organizations work to ensure that their organization and its constituents comply with the applicable laws and regulations. This may entail establishing and enforcing corporate policies to address federal and state laws, holding compliance training sessions for employees at all levels within the organization, and creating an infrastructure for anonymous reporting of violations. Although such a process may resemble what in-house attorneys do, companies are increasingly compartmentalizing the compliance and ethics function into its own group—focused on facilitating compliance with the law as well as internal policies. The compliance and ethics discipline is looking at the totality of not only what the relevant laws and policies are, but why are individuals, often including those acting in good faith, not complying. What does it take to encourage compliance on a cost-effective basis, while furthering business objectives?

Recently, the Swiss natural resource company Glencore International settled with the U.S. Department of Justice and the U.S. Commodity Futures Trading Commission on bribery and market manipulation conspiracy charges. As part of the settlement agreement, for the first time in the Justice Department’s enforcement history, Glencore’s Chief Compliance Officer and its Chief Executive Officer were required to certify that their anti-corruption compliance program is reasonably designed to detect and prevent violations of anti-corruption laws in any of the countries where Glencore does business. This added requirement is likely to motivate similarly situated organizations to learn more, care more, and better support their compliance and ethics efforts. [2] Though the direct and indirect effects of the certification as a settlement requirement remain to be seen, this settlement evidences the changing landscape in corporate governance and that compliance and ethics deserves its own within the organization’s leadership.

What also makes compliance such an interesting practice area is the fact that almost every industry has a need for a compliance and ethics specialist. Manufacturing companies must establish policies that address fair labor practices for its factories, food and catering providers must comply with U.S. Food and Drug Administration regulations, and healthcare providers (and others with access to personal medical information) must follow the Health Insurance Portability and Accountability Act of 1996. But companies are never this simple. Manufacturing companies must also consider third-party suppliers, shipping contractors, and joint venture partners, who have their own set of laws and regulations to comply with. Companies in other industries also work with multiple parties who pose unique compliance risks. This wide range of risk variables further makes compliance and ethics expertise valued by many companies. Thus, learning about compliance & ethics while you are in law school can open doors to industries and other career paths you may have been interested in but were not able to find your way into.

The Center for Compliance and Ethics at Temple University Beasley School of Law was established in 2015 to address the increasing focus on corporate fraud and corruption and the emergence of compliance and ethics as its own field of academic research and scholarship. Since then, the Center has hosted an array of events for compliance and ethics professionals, academics, and students. Some notable events include a roundtable among compliance officers, private practitioners, and in-house counsel and a panel with Securities Exchange Commission leadership; a half-day executive education seminar where women in senior roles share their wisdom on succeeding in this diverse, challenging, and richly rewarding field; and an academic symposium honoring the 21st anniversary of the Delaware Chancery Court’s transformative opinion In re Caremark Int’l Inc. Derivative Litigation. There are some exciting events in the pipeline as well. In October, there will be interesting student-facing events, such as the opportunity to chat with and ask questions of the Center’s Director Michael Donnella on the 13th, and the Careers in Compliance Panel with compliance and ethics professionals on the 19th.

Attending some of these events will certainly be an informative experience but the Center offers other ways to explore the field of compliance and ethics. There are compliance and ethics focused practicums in both the fall and spring semesters, which are not only good ways to get academic credit and complete the experiential learning component of your graduation requirements but also great opportunities to work on compliance and ethics assignments in a professional setting. Some previous placements include Aramark, Temple University Hospital System, and the United States Attorney’s Office. If you feel that your semesters are too hectic as you try to keep up with schoolwork and other events, the Center also provides summer internship opportunities. Students have had great experiences working as summer compliance fellows at industry-leading corporations, such as Comcast, Lincoln Financial Group, and Tabula Rasa HealthCare. The time spent at these organizations is valuable because they are rare chances to work on in-house compliance matters and build personal relationships with seasoned attorneys.

Temple Law School recognizes the importance of the rapidly expanding compliance and ethics field and offers a variety of compliance-related courses. Some foundational courses include Introduction to Compliance & Ethics, taught by the Director of the Center, Michael Donnella; Corporations, an essential course that is offered by several professors; International Compliance, taught by an Advisory Board Member of the Center, Matt Siembieda; and Corporate Scandals and Crises, a riveting course taught by Tom Lin. Then, there are other courses, such as Health Care Law and Regulation or Environmental Compliance and Enforcement, that have been sporadically offered during the academic year. The Center is actively working to create new curricula with diverse faculty, so keep your eyes peeled for interesting courses to be offered soon!

Again, compliance and ethics is an expanding field that is now receiving more attention from corporate leaders and government agencies as a result of growing interest in corporate governance and social responsibility. There is no better place to learn more about this burgeoning practice area than the Center for Compliance and Ethics at Temple Law School, so apply for an experiential learning opportunity or attend one of our exciting events! Or simply reach out to us to talk compliance over a cup of tea. We are only an email click away.

[1] Geoffrey P. Miller, The Compliance Function: An Overview, Law & Economic Research Paper Series Working Paper No. 14-46, 1 (Nov. 2014).

[1] Read more at https://www2.law.temple.edu/10q/novel-certification-requirement-by-chief-compliance-officers-not-always-a-bad-thing/.