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New Chief At the CEO's Roundtable

By Willie J. Epps Jr.

Recent reports of criminal investigations, indictments and resignations of high-ranking company personnel coming out of the Hewlett-Packard boardroom remind us that, even after the scandals of the 1990s and the host of new laws, regulations and internal corporate practices that followed, bad things can happen at good companies. Among other things, the saga at HP reinforces the need for an independent compliance and ethics function at all publicly traded corporations. What follows is a proposal to create such a function by improving on the considerable advances in this area made by U.S. companies over the past several years. The foundation for this proposal is this: Ethical and compliance issues are best addressed by corporate officers who are organizationally, physically and financially independent from those of their colleagues who might be subject of their investigatory and reporting work.

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