12 Corporate Integrity, Ethics and Compliance Guidelines

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (TheStreet) -- How can your company avoid fraud, scandal and illegal conduct? We list these 12 Corporate Integrity, Ethics, and Compliance guidelines:

1. A well-written Code of Conduct

2. CEO sign-off on the Code of Conduct and communication to internal and external stakeholders

3. Lawyers to review anything that may appear improper

4. C-suite endorsement of Compliance and Ethics policies and management and staff training on the subject

5. A comprehensive handbook detailing policies, procedures, and examples of 'do's and don'ts'

6. Periodic audits by a trusted accounting firm

7. Strong, visible, and financial community involvement

8. A stellar reputation in the industry

9. A huge footprint in the market

10. Great marketing and PR to communicate the firm's stance on integrity, ethics, and compliance

11. An enviable history of responsible, profitable growth

12. A board to govern the oversight of risk management issues as presented by the CEO

Sadly, every company caught in scandal probably followed this list and still fall short. Why?

Regardless of the PR, advertising, and copywriting experts -- in spite of the scrutiny and strategizing of lawyers -- and accounting and audit creativity aside, it takes a concerted effort for people to refuse to rationalize what they know to be wrong into believing it is right.

In addition to 12 Corporate Integrity, Ethics, and Compliance guidelines, it takes:

Courage to refuse compromise on certain values

Strength to resist the temptations for profit over principles

Faithfulness to reject the crowd that suggests, "No one will find out" -- someone always does

Our world of 24/7 media scrutiny together with a craving for decent, honorable leaders -- is making a comeback in America. Add courage, strength, and faithfulness to make a firm really stand in the spotlight of corporate integrity.

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