Innovation in Compliance with Tom Fox

Tomell Ceasar is the Group Head of Ethics and Compliance at Careem (An Uber Company). He is one of the founders of the Middle East and Africa Compliance Association (MEACA). This organization strives to raise awareness on business ethics and provides tools to build stronger and more responsible businesses. Essentially, they promote global regulatory compliance and effective governance in the Middle East and Africa. In this week’s episode, he explains to Tom the intricacies of practicing compliance outside the US, specifically the EAME. Compliance Practice in the EAMETom asks Tomell to describe what it is like practicing compliance in EAME. Tomell responds that it's difficult to make broad generalizations on compliance region-wide since the EAME is such a huge territory. Compliance is a “Western value in terms of the way one approaches international business”, Tomell remarks, so adoption would take some time. However, appreciation of compliance roles and professionals grew exponentially over the past decade. International companies are seeing compliance through the US lens, and “they identified values of compliance being important enough to them to adopt similar frameworks and ideological perspectives as it relates to commercial enterprise, to be equivalent to the United States,” Tomell remarks.The Birth of the MEACA As a co-founder of the Middle East and Africa Compliance Association, Tom wants to know how Tomell came up with the idea for the MEACA. Tomell explains that “the values of compliance have traditionally not been a staple of commercial enterprises in these regions.” Compliance has had a real maturation process over the last 10 years, and Tomell and his team saw a major opportunity to support the development and growth towards that end. There was a need for an organization willing to serve the distinct purpose of “serving and supporting the compliance community and to give them an avenue to connect, to network, to broaden their skill set.” Thus, the MEACA was born. To this day, they help companies promote and catalyze the compliance movement toward fighting corruption in companies and society. Resources Tomell Ceasar | LinkedInThe Middle East and Africa Compliance Association

Mollie Nichols is the co-founder and CEO at Redgrave Data, a technology solutions provider. Redgrave Data aims to re-explore how data is analyzed and utilized to drive effective business and legal solutions. Mollie’s legal career spans 3 decades; her mission, she tells Tom Fox, is to provide services at the intersection of law, technology, and science. She and Tom discuss her company, as well as the importance of data governance and ESG. Technology HelpsHer stint as assistant to the Texas Attorney General in the late 1990s aroused Mollie’s interest in how data and technology could impact the practice of law. Mollie found an analytics tool that did exactly what they needed to have a breakthrough in the investigation. She remarks, “For me, it was like an ‘Aha!’ moment that showed how powerful technology could be in the practice of law. I literally changed my career at that moment in time, to focus on technology and how it could help clients deal with legal matters.” Automating Regulatory ProcessesTom asks Mollie what led her to co-found Redgrave Data and what are the data analytic abilities of the organization. Redgrave Data is associated with Redgrave LLP, a law firm that focuses on information law. Mollie explains that she left Redgrave LLP to focus more on data. She had previously worked as the Head of Advanced Data Solutions, and she had an exceptional team that was able to build a program to deal with client data issues; this program enhanced lawyers’ ability to help their clients. She re-assembled this team to execute the same mission at Redgrave Data. Previously, lawyers had to search regulatory websites to assist their clients with regulatory needs. She and the team automated the entire process, making it less costly and more accessible for lawyers. She describes how they use commercial and cloud tools to do content analytics as well as communication analysis. This allows them to develop a sound legal strategy. Data Governance and ESGTom asks how Redgrave Data helps a company in the area of data governance as it relates to ESG. Mollie explains that data is crucial as it helps them make better business decisions by tracking trends, results, and KPIs. Data also can guide legal decisions. Mollie observes that data governance is important to both businesses and lawyers as it intersects information governance, data privacy, cybersecurity, and e-discovery. From a data governance and corporate governance perspective, businesses need to be transparent about what’s going on within the organization, how to find specific data, and how to measure success. Redgrave Data can assist with finding these data points, and pull the data to a dashboard so it can be viewed and analyzed. ResourcesMollie Nichols | LinkedIn | Redgrave Data

Connor Borrego is the Chief Executive Officer at Emergent Digital. He is an expert in data warehousing, artificial intelligence, and business applications, with over 10 years of experience in the digital marketing industry. “The highlight of my career was landing at Google, where I did a two-year stint coaching startups that have raised between $5 and $50 million on how to profitably use Google Ads to grow their business,” he tells Tom Fox. Currently, he is building a Web 3.0-powered productivity and growth marketing tool for content creators to help them fully own the value of their first-party data. He joins Tom on this week’s show to explore the world of NFTs, Web 3.0, what it means for business professionals, and how Emergent Digital handles the changing technological landscape.  What is Web 3.0 Connor explains that Web 3.0 is the next iteration of the internet and online technologies. To fully understand Web 3.0, you should first understand Web 1.0 and 2.0, he tells Tom. Web 1.0 is the ‘read and post internet’: only the tech-savvy could have a website or app with minimum functionality that other users could access. Web 2.0 is ‘the social Internet’, with the emergence of social media platforms and cloud-driven technology that make it easier for internet users to create content and tools for other users. Web 3.0, Connor remarks, is “focused on a user-owned internet … if we provide users with a standard socket to encrypt and hold their data, they can plug it into any application or website they use, giving them privacy and protection… without losing the functionality of today's modern technologies.”The Role of Emergent DigitalTom asks how Emergent Digital ties these together for the content creator. Connor explains that Emergent Digital is a marketing agency that is prepared for the shift to Web 3.0. He says that if you are a brand or artist that is interested in making NFTs, Emergent Digital can provide web or application development and digital marketing. UniPro, their software tool currently under development, is going to be the cryptocurrency wallet that would host their first-party data to allow the user to plug it into additional applications. First-party data, he explains, is data a company keeps about its own operations. He contrasts this with third-party data and comments on the privacy issues arising from third-party data.Driving Stakeholder Engagement“An integrated metaverse can drive stakeholder engagement,” Tom remarks. He and Connor discuss the idea of a headless brand. He says, “It's the idea that someone's putting an image, a brand aesthetic as well as values out there and creating a community of stakeholders around that concept, and giving them ownership in the development of that brand and the use cases and application of that brand.” This has the potential to amplify the voice of customers and brand advocates, ultimately improving the company's image and market share. Tom asks how he helps creatives develop a long-term strategy. Connor explains that it starts with his first-party data strategy paired with paid advertising analytics. Creators often give digital products away for free, usually in the form of an image, video, or audio clip. The company has an efficient, non-invasive method using their proprietary tool that raises valuable engagement from the customer on behalf of the creative. “We are working to build your first-party data because all of that … data is useful to analyze what … content on your site is driving the most performance… allowing you to double down where your success is. At the same time, each level you achieve increases the probability that you're making money on your advertising investment, which is the ultimate goal.” Connor explains.ResourcesConnor Borrego | LinkedIn |  Emergent Digital UniPr0.com

James Shannon is the founder and CEO of Xone, a mixed reality platform that makes it easy to build, share and interact inside virtual worlds. Their mission is to create a bridge into the metaverse using familiar social media interfaces and immersive environments, to onboard creators into Web 3.0. He and Tom Fox talk about Xone, and its place in the current technological sphere and metaverse. Defining Web 3.0 Terminology James defines key Web 3.0 terms, including NFT, metaverse, and augmented reality social media platforms. NFTs or non-fungible tokens are attached to digital assets to make them scarce using blockchain technology. The metaverse, he says, is “an interconnected series of virtual worlds that can be accessed through mixed reality devices and blockchain technology”. He explains that “augmented reality is overlaying digital information on top of the physical world”. Thus augmented reality social media will be a combination of augmented reality and social media interfaces. Bridging the GapTom asks James how Xone integrates NFTs, the metaverse, Web 3.0, and augmented reality social media in a coherent framework. James responds that the biggest challenge with the Web 3.0 world is its newness: only 1% of internet users are familiar with it, and it's quite difficult to use. He wants to make Web 3.0 more accessible and suggests that developers should help new users adopt this new technology through applications they already use, such as TikTok. “Xone is trying to bridge the gap between those social media platforms we know so well and the Web 3.0 technology that we don't,” he tells Tom. “It merges the familiar interfaces that we’re used to on current social media apps with immersive and blockchain technology.” Are NFTs the Future?James believes that NFTs would always have a place in Web 3.0 as they are the “gateway to the metaverse”. However, users aren't going to have the same relationship with NFTs as they do now. “In the next 2 to 5 years, NFTs will have evolved dramatically,” he predicts. Companies, brands, and strategies would combine the NFT token with a use case. For example, musicians could sell them to fans and they would provide access to an exclusive fan club that unlocks special content, backstage passes, and discounts on future shows. Resources James Shannon | LinkedIn | TwitterXone

Jared Connors and Daniel Zamora join Tom Fox in the final episode of the Supply Chain and ESG – What You Need to Know series, to discuss how market expectations have evolved with regards to due diligence in the responsible sourcing field.Due diligence used to be a data collection exercise where you get transparency into your supply chain, but now it's all about what you do with that information after you collect data - how a company can move from being reactive to being proactive. The first step to making this move is collecting data more efficiently; this allows you to have the resources in place to perform risk management within your supply chain. You need to know who’s on your supply chain, and you need to have a specific program in place to identify the risks of smelters.Under the Biden administration, there has been a major focus on critical minerals when it comes to sanctions and regulations. Critical minerals are not specifically tied to the Dodd-Frank Act, but this focus has emphasized to stakeholders in the industry to be vigilant about them in general. Having an entity in your supply chain that is tied to a sanction puts you at risk no matter how direct or indirect that linkage is. ResourcesAssent

In part 4 of the Supply Chain and ESG - What You Need to Know series,Tom Fox is joined by Devin O’Herron and Jared Connors of Assent to discuss Scope 3 emissions reporting as the key to disclosure success. They talk about the importance of accounting for Scope 3 in your emissions strategy.There are three scope levels within the emissions reporting strategy: Scope 1 refers to things like your vehicle or things you’re doing around your facility; Scope 2 is the purchased heat or electricity powering your facility; and Scope 3 is all those variables outside your four walls. The most important aspect of Scope 3 is purchased goods. This has a large impact on organizations that may not necessarily take in raw materials and directly manufacture those raw materials into a finished good. The supply chain is a very significant factor to consider when coming up with the emissions strategy as a company.A recent study found that Scope 3 emissions are typically 11 times larger than an organization's Scope 1 and 2 emissions combined. As mandatory climate disclosure legislation progresses into the future, the overall emissions strategy needs to start accounting for Scope 3 as much as possible. ResourcesAssent

In part 3 of the Supply Chain and ESG - What You Need to Know series, Cally Edgren and Devin O’Herron join Tom Fox to discuss product compliance and sustainability. They explore how the two worlds are starting to intersect. This series is sponsored by Assent Compliance. Making sure products meet regulatory requirements is what product compliance is all about. In recent years, the requirements have been changing. There used to be a focus on safety features like mechanical and electrical safety, but things changed with the RoHS Directive in 2002. That directive was meant to make sure electronic waste from third-world countries was safe. It was one of the first times a regulatory rule had more to do with sustainability than traditional product safety.Manufacturers need to understand that their customers are no longer just concerned with what they hold in their hands at the end of the process - they want to make sure that their suppliers are using responsible processes. The two worlds of operations compliance and product compliance are starting to connect. As we become increasingly aware of the importance and relevance of the social and environmental costs associated with manufacturing processes and the barrier they present towards sustainability, ESG metrics represent another way of managing and measuring these externalities. ResourcesAssent

Tom Fox welcomes Travis Miller and Jamie Wallisch to part 2 of the Supply Chain and ESG - What You Need to Know podcast series, sponsored by Assent. In this episode, they talk about the Uyghur Forced Labor Prevention Act (UFLPA), and how it impacts the way companies do business across the supply chain.The UFLPA is a United States federal law that stops companies from importing products made with forced labor in the Xinjiang region of China, or any other part of China with forced labor by workers or other minorities. This law is important because it makes sure that companies are aware of what is happening and take steps to stop it. The UFLPA makes companies use processes that already exist in their business. To follow the UFLPA, your company would need to have a compliance program in place. Jamie also explains how regulators could assess companies' compliance programs using the UFLPA. For ESG to succeed, ESG is important for companies to do well. Each company out there affects more than just the people who work there. It's not just about who you choose to do business with, but also who you choose to profit from. You can't just condemn bad business practices verbally. You have to be actively engaged in ethical behavior. ResourcesAssent

James Calder and Jared Connors are today’s guests on this premier episode of the 5-part series, Supply Chain and ESG - What You Need to Know. This series is sponsored by Assent. In this conversation, they chat with Tom Fox about how ESG impacts a company's performance presently and in the future.Before the pandemic, many companies were very dependent on global supply chains. But now that the pandemic has started, companies need to be more resilient and focus on environmental resilience. This means that they need to be careful about where they get their supplies from because there is a risk of disruptions. Additionally, companies that can't demonstrate that their products don't violate human rights are at a disadvantage. Without evidence that they are adhering to labor laws, they could lose business to their competitors, Jared tells Tom. ESG can help companies save money and be more efficient. "When you think about that in the context of labor… if you're helping the well-being of these organizations or these individuals out there working in these organizations, oftentimes you see a lot more efficiency and better quality in their work," Jared says. ResourcesAssent

Simon Severino studied philosophy at the University of Vienna and later became a business coach at a global consultancy. Two decades of experience led him to found his own consulting firm, through which he now advises business leaders about market strategy via his Strategy SprintsTM Method. He and Tom Fox explore his signature methodology and how it translates into creating value in the compliance space.The Problem of StrategySimon tells Tom that the problem was how to create strategy. There are tools to analyze the market and figure out how to enter it. However, the tools to build an organized, aligned team that gets feedback quickly were missing. Since the executive team is removed from the market, they don't have closed loops. "For the last 15 years, I've been obsessed with just building that [tool],” Simon comments. “How can an executive team have an agile way of doing things so it feels like a sports team? That's what I've been building. That's now the Strategy SprintsTM Method and the Strategy SprintsTM Company and the Strategy SprintsTM product, which is 90 days coaching of executives."The Chain of Value Creation“I always see the whole chain of value creation or the chain that really matters,” Simon says. The chain doesn’t stop at his clients; their clients are part of the chain as well. He says that compliance officers should consider how they can become a valuable contribution to the whole chain. He suggests that they see themselves as business partners. “Always see yourself as a business partner of your internal colleagues and… everybody serves the client out there.” Tom responds that putting the customer first translates into greater profitability. It means you become a business generator instead of a cost center, he tells Simon. They discuss Peter Drucker’s contribution to the practice of management, and how he influenced Simon’s work. “My whole work is Peter Drucker's philosophy plus agile methods for the digital age,” Simon comments. The concept of efficiency vs effectiveness is one of Drucker’s principles he adopts: “Spend more time on effectiveness, finding out what's the right thing to do in the first place.”Strategy SprintsTM Tom asks Simon to talk about the key points in his book Strategy Sprints: 12 Ways to Accelerate Growth for an Agile Business. Simon responds that it’s about asking yourself what is the right thing to do now. In today's digital age, with broken supply chains and volatile markets, it can be difficult to make decisions. The book provides case studies and blueprints for taking the right actions in various areas like operations, marketing, sales, hiring, and client onboarding. Many CEOS today are talking about how to renegotiate contracts so that they reduce the risk of something going wrong. They can do this by splitting the risk and making sure that costs are variable instead of fixed. This will help them be more prepared if something does happen. “Risk management is the highest art form when you run a business because everything is risk/reward ratio,” Simon comments. “You have to become very good at weighted probabilities.” He explains why he thinks Elon Musk is a master of risk management, and why it’s the safer way to build a business.ResourcesSimon Severino on LinkedInStrategy SprintsTM | Website | Book