{"id":1371,"date":"2017-11-20T13:49:24","date_gmt":"2017-11-20T18:49:24","guid":{"rendered":"https:\/\/www2.law.temple.edu\/10q\/?p=1371"},"modified":"2017-11-20T13:49:24","modified_gmt":"2017-11-20T18:49:24","slug":"caremark-decision-21-corporate-compliance-comes-age","status":"publish","type":"post","link":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/","title":{"rendered":"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age"},"content":{"rendered":"

R<\/span><\/p>\n

Pictured Above:<\/strong> Leonard McCarthy, former Vice President for Institutional Integrity at the World Bank, speaks at Shusterman Hall<\/small><\/p>\n

Reaching the age of majority brings both opportunities and responsibilities, and the 21st<\/sup> anniversary of the celebrated decision in Caremark\u00a0<\/em>was no exception.<\/p>\n

On October 26th<\/sup>, the Temple Law Review<\/em> and Temple\u2019s Center for Compliance and Ethics<\/a> hosted a Symposium with leading scholars, practitioners and jurists to assess this milestone in corporate governance and compliance, The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age<\/em>.<\/p>\n

The 1996 Caremark <\/em>opinion by Delaware Chancery Court Judge William Allen was a seminal event in corporate compliance. Most observers believe that Caremark <\/em>established an obligation by corporate boards to assure that the corporations they direct have internal reporting systems and controls to detect, deter and address illegal or problematic activities.\u00a0\u00a0 Temple\u2019s Symposium gathered leading academics, practitioners, and regulators to assess Caremark\u2019s<\/em> legacy.<\/em><\/p>\n

Professor Paul McGreal from Creighton University School of Law opened the Symposium by highlighting key milestones in the evolution of compliance that set the stage for Caremark<\/em> and contributed to its legacy. \u00a0Through a series of panels, the Symposium sought to examine in depth the nature and scope of Caremark\u2019s<\/em> influence.<\/p>\n

During the first panel, Professor James Fanto from Brooklyn Law School analyzed Caremark\u2019s <\/em>impact on corporate governance.\u00a0 Professor Fanto concluded that the trends established by the opinion \u2013 proactive oversight and direct reporting to corporate boards on compliance – have been widely adopted, if not enhanced due to changes in criminal and regulatory law.\u00a0 Professor Claire Hill, from the University of Minnesota Law School, examined how the normative dimensions of Caremark <\/em>extended its influence beyond formalistic compliance driven solely by liability concerns. \u00a0Peter Driscoll, Acting Director of the SEC\u2019s Office of Compliance Inspections and Examinations, provided a regulator\u2019s perspective on the evolution of compliance in the financial sector in the post Caremark<\/em> era.<\/p>\n

Leonard McCarthy, former Vice President for Institutional Integrity at the World Bank, delivered keynote remarks on the influence of Caremark<\/em> and the U.S. compliance movement on anti-corruption laws worldwide. \u00a0Although acknowledging ongoing challenges in emerging markets, Mr. McCarthy was optimistic that the aspirational goals of Caremark <\/em>would continue to drive ethical business practices in the developing world.<\/p>\n

Perhaps the most provocative remarks came from Georgetown Law\u2019s Donald Langevoort, who argued that Caremark\u2019s<\/em> influence on corporate boards was overstated.\u00a0 Although recognizing that compliance is undeniably a focus for corporate boards, he viewed this as largely attributable to factors beyond the opinion itself.\u00a0 Myron Steele, former Chief Justice of the Delaware Supreme Court and Vice Chancellor of the Court of Chancery in 1996, countered with a first hand perspective of Judge Allen\u2019s reasoning at the time.\u00a0 Although Chief Justice Steele emphasized the forward thinking nature of Judge Allen\u2019s opinion, he cautioned against overstating the judiciary\u2019s role in transforming corporate behavior.<\/p>\n

The final panel addressed Caremark\u2019s<\/em> implications for the legal and compliance professions and the necessary expertise for lawyers and compliance officers in the future.\u00a0 Todd Haugh, from Indiana University\u2019s Kelley School of Business, highlighted the emerging importance of behavioral science to the field of compliance.\u00a0 The panel agreed that compliance is now a highly interdisciplinary profession requiring an understanding of law, business and organizational behavior and culture.<\/p>\n

The Symposium was part of a broader commitment by Temple to corporate compliance and ethics.\u00a0 Its Center<\/a> is promoting path-breaking developments in practice and scholarship (as evidenced by the Symposium).\u00a0 The Law School also sponsors the leading eJournal<\/a> devoted to cutting-edge thought in the field.\u00a0 The Law Review<\/em> will publish Symposium papers<\/a> in the summer of 2018.<\/p>\n

\n

Jon Smollen is a Temple Practice Professor of Law and the Director of Temple\u2019s Center for Compliance and Ethics.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Temple Law Review and Temple\u2019s Center for Compliance and Ethics host symposium on corporate compliance<\/p>\n","protected":false},"author":5,"featured_media":1372,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[52,14,8],"tags":[470,471,106,472,473,474,198,475],"coauthors":[2,305],"class_list":["post-1371","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-corporate-governance","category-faculty-authored","tag-caremark","tag-center-for-compliance-and-ethics","tag-compliance","tag-law-review","tag-oversight","tag-reporting","tag-sec","tag-symposium","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"yoast_head":"\nThe Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age - The Temple 10-Q<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age - The Temple 10-Q\" \/>\n<meta property=\"og:description\" content=\"Temple Law Review and Temple\u2019s Center for Compliance and Ethics host symposium on corporate compliance\" \/>\n<meta property=\"og:url\" content=\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/\" \/>\n<meta property=\"og:site_name\" content=\"The Temple 10-Q\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-20T18:49:24+00:00\" \/>\n<meta name=\"author\" content=\"Books Schatschneider, Jon Smollen (Temple Law Professor)\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Books Schatschneider, Jon Smollen (Temple Law Professor)\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/\"},\"author\":{\"name\":\"Books Schatschneider\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154\"},\"headline\":\"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age\",\"datePublished\":\"2017-11-20T18:49:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/\"},\"wordCount\":632,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png\",\"keywords\":[\"Caremark\",\"Center for Compliance and Ethics\",\"Compliance\",\"Law Review\",\"Oversight\",\"Reporting\",\"SEC\",\"Symposium\"],\"articleSection\":[\"Compliance\",\"Corporate Governance\",\"Faculty Authored\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/\",\"url\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/\",\"name\":\"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age - The Temple 10-Q\",\"isPartOf\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png\",\"datePublished\":\"2017-11-20T18:49:24+00:00\",\"author\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154\"},\"breadcrumb\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#primaryimage\",\"url\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png\",\"contentUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png\",\"width\":875,\"height\":470,\"caption\":\"Leonard McCarthy, former Vice President for Institutional Integrity at the World Bank, speaks at Shusterman Hall\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/law.temple.edu\/10q\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#website\",\"url\":\"https:\/\/law.temple.edu\/10q\/\",\"name\":\"The Temple 10-Q\",\"description\":\"Temple's Business Law Magazine\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/law.temple.edu\/10q\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154\",\"name\":\"Books Schatschneider\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g9dc77189f33a293d2c82a50cd24ebb9f\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g\",\"caption\":\"Books Schatschneider\"},\"url\":\"https:\/\/law.temple.edu\/10q\/author\/rschatsc\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age - The Temple 10-Q","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/","og_locale":"en_US","og_type":"article","og_title":"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age - The Temple 10-Q","og_description":"Temple Law Review and Temple\u2019s Center for Compliance and Ethics host symposium on corporate compliance","og_url":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/","og_site_name":"The Temple 10-Q","article_published_time":"2017-11-20T18:49:24+00:00","author":"Books Schatschneider, Jon Smollen (Temple Law Professor)","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Books Schatschneider, Jon Smollen (Temple Law Professor)","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#article","isPartOf":{"@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/"},"author":{"name":"Books Schatschneider","@id":"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154"},"headline":"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age","datePublished":"2017-11-20T18:49:24+00:00","mainEntityOfPage":{"@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/"},"wordCount":632,"commentCount":0,"image":{"@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#primaryimage"},"thumbnailUrl":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png","keywords":["Caremark","Center for Compliance and Ethics","Compliance","Law Review","Oversight","Reporting","SEC","Symposium"],"articleSection":["Compliance","Corporate Governance","Faculty Authored"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/","url":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/","name":"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age - The Temple 10-Q","isPartOf":{"@id":"https:\/\/law.temple.edu\/10q\/#website"},"primaryImageOfPage":{"@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#primaryimage"},"image":{"@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#primaryimage"},"thumbnailUrl":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png","datePublished":"2017-11-20T18:49:24+00:00","author":{"@id":"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154"},"breadcrumb":{"@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#primaryimage","url":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png","contentUrl":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png","width":875,"height":470,"caption":"Leonard McCarthy, former Vice President for Institutional Integrity at the World Bank, speaks at Shusterman Hall"},{"@type":"BreadcrumbList","@id":"https:\/\/law.temple.edu\/10q\/caremark-decision-21-corporate-compliance-comes-age\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/law.temple.edu\/10q\/"},{"@type":"ListItem","position":2,"name":"The Caremark Decision at 21 \u2013 Corporate Compliance Comes of Age"}]},{"@type":"WebSite","@id":"https:\/\/law.temple.edu\/10q\/#website","url":"https:\/\/law.temple.edu\/10q\/","name":"The Temple 10-Q","description":"Temple's Business Law Magazine","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/law.temple.edu\/10q\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154","name":"Books Schatschneider","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g9dc77189f33a293d2c82a50cd24ebb9f","url":"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g","caption":"Books Schatschneider"},"url":"https:\/\/law.temple.edu\/10q\/author\/rschatsc\/"}]}},"acf":[],"jetpack_featured_media_url":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2017\/11\/caremark_symposium.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/posts\/1371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/comments?post=1371"}],"version-history":[{"count":0,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/posts\/1371\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/media\/1372"}],"wp:attachment":[{"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/media?parent=1371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/categories?post=1371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/tags?post=1371"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/coauthors?post=1371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}