Abstract :
Financial markets have been rocked by scandals recently. While compliance (e.g., with health, environment, and state public utility regulations, etc.) normally is considered a hallmark of the power industry, it too has seen its share of questionable practices. What can a power company do to establish a foundation for sound business practices? This presentation will describe basic elements of a good ethics and compliance program. These elements can be, and have been, adopted at a number of power companies. Such program elements include: 1) High level oversight, 2) Compliance standards and procedures, 3) Effective training for employees, 4) Due care in the delegation of discretionary authority, 5) Monitoring and auditing systems, 6) Channels for making inquiries or reporting concerns with questionable practices, 7) Consistent enforcement of policies and 8) remedial modifications to the compliance program as necessary. The presentation includes examples of the range of resources that can be applied in each one of these program elements. Examples of telltale signs of imminent failure is also provided.
