CORPORATE COMPLIANCE MANUAL
TABLE OF CONTENTS
- Message from the President
- Corporate Compliance Program Overview
- Executive Corporate Compliance Statement
- Employee Code-of-Conduct Guidelines
- Procedures for Reporting Corporate Compliance Violations
- Corporate Compliance Violation Report Form
- Corporate Compliance HOTLINE
- Corporate Compliance Acknowledgement Statement
- Message from the President
The CBD Oil Factory LLC (Hereinafter Referred to as “The Company”) has developed a reputation for basic honesty and ethical behavior. The Company is widely respected and admired for the high standards with which it conducts its business relationships. Adherence to a superior level of business integrity has allowed The Company to generate a loyal customer base. Satisfied customers are essential to the Company’s success. I am counting on you to maintain and enhance the Company’s reputation by adhering to the highest professional standards in your dealings with each other and with respect to your relationships with current and future customers.
Our Industry is a regulated and we must all be aware of the necessity of complying with Local, State, and Federal legal requirements. As an employee of The Company, you will be expected to obey the law and to act in an ethical manner at all times. This manual provides the essential guidelines for resolving a variety of legal and ethical issues that may arise during your employment with the Company. Included is information regarding your responsibilities as an employee of The Company, including your obligation to comply with the law and to advise Company Management of behavior that is not in compliance with the law.
The Company has a strong commitment to honesty, integrity and principled business practices. If we continue to honor these beliefs and values, and to live by the code of conduct that underpins them, we can look forward with confidence to continued success.
CORPORATE COMPLIANCE MANUAL
II. Corporate Compliance Program Overview
A. Statement of Policy
The Company (the “Company”) will establish and maintain an effective Corporate Compliance Program (the “Compliance Program”) that conforms to the standards established in the Sentencing Guidelines for Organizational Defendants effective 1 November 1991 (the “Guidelines”). Such a Program will be designed, implemented and enforced with the purpose of preventing and detecting violations of Local, State, Federal and foreign laws. It remains the policy of the Company to operate as a good corporate citizen and comply with all laws and regulations applicable to its business at all government levels worldwide. This policy applies to all employees and agents of the Company and must be strictly observed. All employees and agents should be informed and periodically reminded of the importance of adherence to the principles set forth in the Compliance Program.
To ensure that (i) violations or potential violations of the Compliance Program are reported, investigated and remedied and (ii) appropriate disciplinary action is imposed upon employees who violate the Compliance Program.
The entire Company.
D. Compliance Program
The Company will exercise due diligence in attempting to prevent and to detect unlawful conduct by its employees and agents. To that end, the Company will establish and maintain the policies and practice set forth in the following Statements and Comments.
Statement 1. The Company will identify those areas where there is substantial risk that certain types of unlawful activities may occur.
Statement 2. The Company will establish and maintain compliance standards and procedures to be followed by its employees and agents, which are reasonably capable of reducing the prospect of unlawful conduct.
Statement 3. The Executive Vice President of the Company (the “Executive Vice President”) and the President shall designate, for their respective organization, within thirty (30) days of the effective date of this policy, in writing, a person at the vice-president level or higher to serve as the Company’s Compliance Officer. A replacement Compliance Officer shall be so designated within fifteen (15) days of any vacancy. The Compliance Officer(s) shall have overall responsibility for exercising compliance oversight with respect to Company standards and procedures.
The Compliance Officer(s) may delegate portions of such responsibility to senior employees within their respective organizations, but they will remain responsible for the establishment and maintenance of this compliance program and for the enforcement of such standards and procedures.
Each such designation and delegation shall be acknowledged in writing and filed with the Office Manager.
Statement 4. The Company will not delegate substantial discretionary authority to any individual it knows, or through the exercise of due diligence should have known, has a propensity to engage in unlawful activities.
Statement 5. The Company will take reasonable steps to communicate effectively its standards and procedures to all employees and other agents.
The Company believes that education and awareness of employees and agents promotes ethical behavior and helps to prevent conduct that may be regarded as unlawful. Compliance Officers should, therefore:
- Ensure the adequate training of employees in the legal requirements which are relevant to their work including, as appropriate, Equal Employment Opportunity Commission, Federal Trade Commission law, Federal Communications Commission, Office of the Comptroller of the Currency, and applicable Local, State, and Federal laws addressing our Industry.
- Assure the dissemination of written materials that explain in a practical manner what is required of employees.
If applicable - the Compliance Officer(s) will report monthly to the President of the Company with a copy to the Office Manager, regarding education and training programs conducted in the Company.
Statement 6. The Company will take reasonable steps to achieve compliance with its standards and procedures. Such steps include the establishment of monitoring and auditing systems that are reasonably designed to assure that the activities of the Company comply with all applicable Local, State, and Federal laws and regulations. The Company will install and publicize to employees a reporting system which will allow abuses of corporate policy, including suspected unlawful conduct, to be reported and acted upon by executives with authority over such matters. It will be a violation of Company policy to intimidate or impose any other form of retribution on any employee or agent who utilizes such reporting system for the purposes for which it is intended.
Statement 7. The Company will consistently enforce its standards through appropriate disciplinary mechanisms, including as appropriate, discipline of individuals responsible for the failure to detect an offense.
Statement 8. If an unlawful offense is suspected or detected, the organization must take reasonable steps to respond appropriately to the offense and to prevent similar offenses. The Office Manager or Compliance Officer shall promptly investigate or cause to be investigated the possible occurrence of unlawful conduct and the appropriate Local, State, or Federal authorities shall be notified promptly when required by law.
Statement 9. These Compliance Statements and Comments are intended to establish a procedural framework; they are not intended to set forth in full the substantive compliance programs and practices of the Company. Additional standards for compliance are established and maintained by virtue of the practices, procedures and policies of the Company, and those additional practices, procedures, policies and organization are an integral part of the compliance program of the Company.
The Company has already adopted various compliance policies, which were not instituted in response to the Guidelines. Those policies include compliance with applicable Local, State, and Federal laws, rules and regulations. It is specifically contemplated that additional compliance policies may be issued in accordance with this Program.
III. Executive Corporate Compliance Statement
- The Industry
The Company is committed to maintaining its leadership position. The Company will continue to make the necessary investments in our employees, and in technology, training, periodic compliance program updates and equipment, to maintain our leadership position.
Maintenance of our leadership position entails meeting or exceeding governmental regulations and controls concerning the proper use of this medium. We acknowledge that respecting a person’s privacy, with or without government regulations, is a matter of sound business practice. We respect every customer’s right to request not to be solicited via the telephone and we will ensure that these requests are honored.
Consistent with the above statement, we recognize that it is a privilege to be allowed to receive a customer call or make a call to a prospective customer’s home for a sales presentation and we must earn that privilege with each and every call.
IV. Employee Code-of-Conduct Guidelines
A. Personal Conduct
The hard-earned reputation The Company has achieved for its high standards of business conduct should never be taken for granted. It rests on the high measure of mutual trust and responsibility that exists between employees and the Company. It's based on you as an individual acting in accordance with the Codeof-Conduct guidelines set forth by the Company.
Ethical behavior on the job essentially comes down to honesty and fairness in dealing with other employees and with customers, the government and the public. It's no exaggeration to say that integrity and reputation of the Company are in your hands.
The Company’ basic belief of respect for the individual has led to strict regard for the privacy and dignity of each employee. However, if Company management determines that your personal conduct on, or off the job, adversely affects your performance, that of other employees, or the legitimate interests of the company, it may become a concern to The Company employees who are found to have engaged in unlawful or unethical behavior are subject to disciplinary measures, including dismissal.
B. Work Environment
The Company strives to provide all employees with a healthy, safe and productive work environment. The Company work climate must be free from discrimination and harassment based on race, color, religion, sex, sexual orientation, age, national origin, disability, veteran status or other factors that are unrelated to the Company’s legitimate business interests. The Company will not tolerate the use of racial or religious slurs.
If you believe that you have been subjected to such conduct, you should bring such activity to the attention of the company, either by informing your manager or using the Speak Up program or the Open Door policy. All employee complaints of such conduct will be investigated promptly. Any employee who is found to have engaged in harassment or discrimination, or to have misused his or her position of authority in this regard, will be subject to disciplinary measures, including dismissal.
Other activities that are prohibited because they clearly are not conducive to a good work environment include: (i) threats, (ii) violent behavior, and (iii) the possession of weapons of any type without written permission of your supervisor.
C. Employee Privacy
The Company collects and maintains personal information pertinent to its employees. Access to this information is restricted to employees with a need-to-know. Personal information is released to individuals outside the Company only with employee approval, except (i) to verify employment, (ii) to satisfy the legitimate requirements of a successor to the Company’s business operations or (iii) in response to appropriate investigatory or legal requirements. Employees who are responsible for maintaining personal information and those who are provided access to such information must ensure that the information is not disclosed in violation of Company policies or practices.
The Company collects and maintains personal information pertinent to its Customers and Client's. The Company actively retains Customer and Client contracts and including those stored electronically for a minimum of three years from the date the Customer and Client completes or otherwise terminates the Company's relationship; maintains a record keeping system to account for all client contacts and transactions; actively prevents records from being altered or destroyed; provides policies and procedures for correcting information in records; safeguard records from damage or deterioration; recovers or reconstructs damaged or deteriorated records; and protects records from unauthorized access.
E. Asset Protection
The Company has a large variety of assets; many are critical to the Company’s competitiveness. Protection of the Company’s assets is very important—their loss, theft or misuse jeopardizes the future success of the Company.
The Company’s assets include extremely valuable proprietary information. The Company’s proprietary information pertains to intellectual property, typically the product of the ideas and hard work of many talented employees of the Company. Company assets also include the confidential data and customer personal information entrusted to many The Company’s employees, as well as physical assets such as technological and office equipment.
You are personally responsible not only for protecting The Company’s property entrusted to you, but also for helping to protect the company's assets in general. Here is where your awareness of security procedures can play a critical role. You should be alert to any situations or incidents that could lead to the loss, misuse or theft of Company property. You should report all such situations to your manager, the Compliance Officer or the Office Manager as soon as such information comes to your attention.
F. Proprietary Information
As an employee, you are responsible for protecting The Company’s Proprietary Information. Proprietary information is information that is the property of The Company. Such information includes business materials, database information, customer service management and procedure, financial data, marketing materials and strategy, and any and all other information and products associated with the Company.
Proprietary information would include information considered to be confidential. This would include information that is not generally known and that is proprietary to the Company or any of its clients, consultants, licensors, licensed dealers or distributors. Confidential Information includes, without limitation, business plans, customer lists, customer financial information, customer personal information, merchant company credit card and checking account information, employee personal information, employee credit card and checking account information, consultants, financial information, and trade secrets about the Company and its products and information or other proprietary information, know-how, Industry materials and strategy, products, processes, computer programs, training information, databases, sales strategy, sales scripts, sales consulting, finance, marketing, promotion, distribution and selling activities, whether now existing, acquired, developed or made available anytime in the future to the Company.
The Company’s proprietary information is the result of substantial investment in planning, research and development. If competitors could secure proprietary information, database management, customer management and procedure, or financial management, without making the same substantial investment in research and program design, they would be getting a free ride at the expense of The Company.
As an employee, you will have access to information that the company considers proprietary. Given the widespread interest in the Company, as well as the increasingly competitive nature of the Industry, chances are you will probably come into contact with someone interested in acquiring information in your possession. It is very important that you not use or disclose proprietary information except as authorized by the Company. Your refusal to disclose proprietary information helps to safeguard an important Company asset.
G. Recording and Reporting Information
All employees are expected to record and report all information accurately and honestly. Every employee at The Company records information of some kind and submits it to the Company. For example: a representative enters a customer’s name, address, and checking account information after receiving approval from the consumer to enter the information to fill out an application; and another employee enters the final checking account information of a consumer during the verification process. All customer personal information is to be kept secure and stored in a secure location at all times.
Dishonest reporting of information is strictly prohibited—this prohibition includes information reported to organizations and people outside the Company. Such behavior could lead to civil or even criminal liability for you and The Company. You must not report information inaccurately or organize it in a way that is intended to mislead or misinform those who receive it. Employees must ensure that they do not make false or misleading statements in external reports and other documents submitted to or maintained for government agencies. No matter what type of organization you are dealing with and regardless of an organization’s relationship with the Company, you should always observe the following general standards:
H. Avoid Misrepresentation
Never make misrepresentations or dishonest statements to anyone. If you believe that the other person may have misunderstood you, promptly correct any misunderstanding. Honesty based on clear communications is fundamental to ethical behavior. The resulting trustworthiness is essential to sound, lasting relationships.
I. Comply with State and Federal Laws and Regulations
Our Industry is subject to legal restrictions. It is Company policy to comply with all laws and regulations that apply to its business. As you conduct Company business, you may encounter a variety of legal issues and situations. Should you have questions regarding the interpretation and effect of Local, State, and Federal laws, or corporate compliance in general, it is your responsibility to consult with a Manager.
V. Procedures for Reporting Corporate Compliance Violations
A. Reporting Corporate Compliance Violations
It is the policy of The Company that the Company and each of its employees comply with all applicable Local, State, and Federal laws as set forth in the Corporate Compliance Manual and that each employee be responsible for reporting any violation thereof.
B. Communication Channels
If you are aware of an unlawful or unethical situation, there are several methods for bringing such information to the Company’s attention. Your manager is the best place to start, however, you may also contact the Corporate Compliance Officer or the Office Manager. Use of the Open Door policy or the Speak Up program are also acceptable communication channels.
C. Protection for Employees Reporting Corporate Compliance Violations
No employee shall be penalized in any respect for reporting as required by the Compliance Program where such employee is not otherwise engaged in the reported activity. The Company maintains a zero tolerance level regarding any and all threats or acts of retaliation or retribution against employees who make use of the aforementioned communication channels.
D. Investigation and Disciplinary Action
All employee reports of unlawful or unethical conduct will be investigated thoroughly and promptly by the Compliance Officer in consultation with the Office Manager. A written record of the investigation report of the disposition of the matter (“Report”) shall be sent to the Office Manager. If, in the opinion of the Company's managerial personnel, a violation of law has occurred, the managerial personnel shall determine the appropriateness of disclosing the violation to the proper authorities and promptly shall make, or cause to be made, any required disclosure.
VI. Corporate Compliance Violation Report Form
To: Corporate Compliance Officer or Office Manager
Re: Criminal Conduct/ Illegal Activity/ Compliance Program Violations
This form should be used to report conduct, which constitutes a violation, or a potential violation of Local, State, or Federal or foreign law or other violation of the Company Compliance Program. Use specific detail in describing the offense.
Date of violation: ___________
Identity of individual(s) involved:
Statute/ Company policy violated (If known)
Description of violation (Provide detail and use additional pages if necessary)
VII. Corporate Compliance HOTLINE
A. What is the Corporate Compliance Hotline?
The HOTLINE is a simple, risk-free way for you to anonymously report activities that may involve criminal conduct, violation of Local, State, or Federal law, or violations of the Company’s Corporate Compliance Program.
B. Who Should Use the Compliance Hotline?
You should . . . if you have information about possible criminal activities, violation of Local, State, or Federal law or violations of the Company’s Compliance Program. Your first option is to report your suspicions to your supervisor or to another member of management. If you are uncomfortable with the direct approach, call the Compliance HOTLINE.
C. Why is the HOTLINE important to the Company?
As outlined in the Corporate Compliance Program Overview, the company is committed to conducting business in compliance with all applicable laws. The Compliance HOTLINE—with the support of all employees—is an effective way to report potentially criminal activities or violations of the Compliance Program.
D. What information should I have when I contact the HOTLINE?
Describe the situation as completely as you can, including dates, names, facilities and/or departments involved and names of other employees who could provide additional information.
E. Will I be required to give my name?
No. Your call to the Compliance HOTLINE is answered by an independent third-party communication specialist who assigns your call a special coded number you can refer to during any follow-up calls. You are not required to identify yourself, and calls are not recorded.
F. What procedures are followed when a call is made to the HOTLINE?
The communications specialist will document the reported information and generate a written report that will be forwarded to the Compliance Officer of the company. After review by the Compliance Officer and Office Manager, the report will be assigned to the appropriate department to initiate an inquiry. To protect everyone involved, no disciplinary or legal action will be taken based only on Compliance HOTLINE calls. Only substantiated findings will result in action. Remember, your name is never required.
G. Should I use the HOTLINE even if I do not have all the facts?
Call the Compliance HOTLINE even if you are not sure there is a problem. The Compliance Officer and Office Manager will look into the information you do provide, attempt to verify it and take appropriate action as necessary. That’s the Company’s job.
H. How can I make a confidential compliance Hotline report? Compliance HOTLINE reports can be made in either of two ways:
- Over the telephone; call toll free: 1 (855) 262-4638.
- In writing; use the address provided below: Office of the Compliance Officer
Compliance Ninja 1801 E. 51st
Ste 365 #315
Austin, TX 78723
VIII. The Company Corporate Compliance
By signing the The Company Corporate Compliance Acknowledgement Statement, I am attesting that I have read and understand the information contained in the Corporate Compliance Manual.
During my employment with the Company, I agree to the following conditions:
A. I pledge adherence to the regulations enforced by the EEOC, FDIC, OCC, FTC, the FCC, and all Local, State, and Federal rules and regulations.
I understand and agree to the above stated conditions of employment. I am not providing my signature due to coercion or threat of duress. I have received a copy of the Corporate Compliance Manual, and am signing this document of my own free will.
Corporate Compliance Manual
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