What Patanjali can teach to Compliance

I am now waiting for my flight coming back from the United States, where I spoke in a panel at the High-Risk Markets Antibribery-Anticorruption (ABC) conference organized by the American Conference Institute. In 2013 I was also part of the Brazilian spotlight panel but then the subject of my presentation was over the possible effects of the (then to be enacted) Anticorruption Law/”Clean Company Act” in Brazil, and essentially what should be the measures that multinational companies subject to the FCPA and UKBA could take locally in Brazil so not to be inadvertently caught (also under successor liabilities) while doing business in emerging and high-risk markets.

Then, I delivered that speech under (suspicious and) curious eyes of ABC colleagues from all over the world, and honestly there was not much I could say about local compliance (under the concept of business ethics) enforcement, aside of analog cases of antitrust infringements and related penalties. Regulators in the United States where far from accepting any voluntary settlement pleas and no one was seriously considering self-remediation proposals from Brazilian subsidiaries of global entities (let alone Brazilian companies) to the extent of their potential infringements. The so-called Carwash Operation (“Operação Lava Jato”) was only triggered out (to change the ethics & compliance world forever I dare to say) in March of the next year (2014). The global watchers, at that time, could only see Brazil as a global leader in all things uncompliant, and it is remarkable to realize that a complete landscape has been changed in such a short period of time. The world was claiming for “enforcement” by those nations under the rule of law; the businesses demands were for consistent and applicable rules and regulations to enhance a level-playing competition landscape. Now, from a time-distance, it feels that we were possibly living the very last days of the box-checking/paper compliance programs, although individual behaviors and personal skills (and conducts) were not yet in the spotlight as today — the latter being the reason of this writing.

While the cases involving Brazil are sufficiently exposed and discussed by now, and global business culture remains difficult to navigate by while pushing forward an Ethics & Compliance program, after just hearing so many experienced E&C professionals from all over the world talking about their recent challenges (and some regulators on their expectations), it was worth noting that several jurisdictions are doing their job in implementing appropriate regulations (from 2017–18, remarkably most of the countries in Latin America have enacted new or reformed ABC legal frameworks) , and what shoots out from all that are the aspects of individualization of conducts and accountability as a “trend” following the “Yates Memo” in 2015 and many of the enforcement actions and settlements that were done since then. Yes, we have been struck by ISO 37001 and all the polemic involving having systems that are meant to certify what cannot be certified without a strong foundation on principles. The message and trend is clear:

What you, teams and peers do on individual level are what really matters.

No one is anymore able to hide by the corporate veil, on higher level decisions, complex box-checking set of policies and claim that as being effective. The underlying message is that we shall only prosper if our individual decisions are based in greater common-values; our individual empowerment is used within the trust and scope that it was once given; our behaviors are based in an awaken conduct, deliberate honesty and rightful speech & walk. That includes recognizing our ignorance on many aspects of our existence and daily work, coming forth with questions and openly debating the grey zones.

We shall only prosper if our individual decisions are based in greater common-values; our individual empowerment is used within the trust and scope that it was once given; our behaviors are based in an awaken conduct, deliberate honesty and rightful walk.

Roughly since 10+ years ago, when I started working in this field, I have been hearing comments such as “idealistic”- said those that cared about me personally and did not want to offend. “Utopic”, “bureaucrat” and “lunatic” — said others that were more interested in following the same way of doing things. Some of them are now in jail or facing expensive financial penalties and prosecution charges. I regret that each of these people are in such a situation, although I realize many of them might not think they even have done anything wrong. I regret because what bonds us ultimately as earthlings is that the right thing is done and continues to be done to the benefit of all. That might be called a “sustainable” aspect of existence, by which our resources are not depleted without adequate balance and that other´s interests are taken into account in our own decision-making, a simple yet extremely hard accomplishment for overachievers-modern-business-people.

Today we still live compliance as a time when people call the compliance officer to ask “can I do this?”; when multiple companies and people with no experience in the complex framework of laws, business and regulators advocate as being compliance experts offering “practical” and “simplified” off-the-shelf services because this is easy bucks and trendy. We are not yet at the point where practical, mindful and relevant business decisions are taken by doing the right thing and reliant that most of your peers and competitors will follow the same path. The “dark forces” will however always exist and we must remain vigilant and forceful to counterweight their influence. The answer might by in the ancient knowledge, thankfully not forgotten or lost.

I now reach the point the stroke me in the last days. I have been humbling studying the vedic scriptures and approached this culture as a concept of life for some years already while humbling practicing yoga, challenging my body and soul constantly by doing that. No, I had not become enlightened, a full-time vegan or reached samadhi, neither have disposed of all of my belongings and still, sometimes, I want to smack some people. I still have things that keep me awake at night, but I managed to have more things that keep me awaken at day. I managed to be able to recognize the subtle aspects of the teachings coming from sages dated several thousands of years ago and I see how many of these teachings are just common sense that we could apply to our routine as compliance professionals and ethical individuals. We lost them because of greed, because of pressure for results, because of lack of long term views, because of selfishness, because our ego takes control once we let it happen.

More than ever, high-level executive courses are bringing such human common-sense principles into the classroom for greater and improved life-changing results and innovation, with different names such as mindfullness and others. A friend just came back from a high-end executive education program at the MIT and was astonished to find that a morning meditation & yoga practice was included in the program. We may start reflecting these teachings in our compliance programs too, and I see a deeper rooting on them.

More than ever, high-level executive courses are bringing such human common-sense principles into the classroom for greater and improved life-changing results and innovation. We may start reflecting them in our compliance programs too.

The hindu sage Patanjali wrote, in his Yoga Sutras, a compound of 196 verses that simplified the complex framework of rules which serve for integrating Yoga into the daily routine and leading an ethical life. The exact date of the compilation of the Yoga Sutras is not precisely known, although it is believed that they were compiled somewhere around 400 AC but reflecting teachings that are much more ancient but spread over complex language throughout the upanishads, for instance. The core of Patanjali’s teachings lies in the eight fold path of yoga. Each is part of a holistic focus which eventually brings completeness to the individual as they find their connectivity. Because we are all uniquely individual a person can emphasize one branch and then move on to another as they round out their understanding. In brief the eight limbs, or steps to yoga, are as follows: Yama; Niyama; Asanas; Pranayama; Pratyahara; Dharana; Dhyana; Samadhi.

The first limb that Patanjali describes are the fundamental ethical precepts called yamas, and those will be the one I am dealing now in this writing. These can also be looked at as universal morality. Yamas are the suggestions given on how we should deal with people around us and our attitude toward ourselves. The attitude we have toward things and people outside ourselves is yama, how we relate to ourselves inwardly is niyama. Both are mostly concerned with how we use our energy in relationship to others and to ourselves.

The yamas are broken down into five “wise characteristics of universal morality”. Rather than a list of do´s and don’ts, “they tell us that our fundamental nature is compassionate, generous, honest and peaceful.” They are thousands of years old, yet as updated as ever, as follows:

1. Ahimsa — Compassion for all living things: Ahimsa is more than just lack of violence, it means kindness, friendliness, and thoughtful consideration of other people and things. It also has to do with our duties and responsibilities too. Ahimsa implies that in every situation we should adopt a considerate attitude and do no harm. It means respectful treatment to colleagues, subordinates and suppliers. It means your company´s plea to sustainability, avoidance of child labor and appropriate workplace conditions.
2. Satya — Commitment to Truthfulness: Satya means “to speak the truth”. Satya should never come into conflict with our efforts to behave with ahimsa. This precept is based on the understanding that honest communication and action form the bedrock of any healthy relationship, community, or government, and that deliberate deception, exaggerations, and mistruths harm others. This means open communication, dare-to-say, but not an excuse to be an asshole.
3. Asteya — Non-stealing: Steya means “to steal”; asteya is the opposite-to take nothing that does not belong to us. This also means that if we are in a situation where someone entrusts something to us or confides in us, we do not take advantage of him or her. This means integrity, doing the right thing when no one is watching.
4. Brahmacharya — Sense control : Brahmacharya is used mostly in the sense of abstinence, particularly in relationship to sexual activity. Brahmacharya suggests that we should form relationships that foster our understanding of the highest truths. Brahmacharya does not necessarily imply celibacy. Rather, it means responsible behavior with respect to our goal of moving toward the truth. Practicing brahmacharya means that we use our sexual energy to regenerate our connection to our spiritual self. It also means that we don’t use this energy in any way that might harm others or gain personal privilege. It means that harassment and all forms of retaliation are a no-go.
5. Aparigraha — Neutralizing the desire to acquire and hoard wealth: Aparigraha means to take only what is necessary, and not to take advantage of a situation or act greedy. We should only take what we have earned; if we take more, we are exploiting someone else. Aparigraha also implies letting go of our attachments to things and an understanding that impermanence and change are the only constants. It means that the incentives of frauds and wrongdoings based on self-realization and greed may be controlled, and that need for resilience and fortitude is a reality and a must for compliant cultures.

The Yoga Sutra describes what happens when these five behaviors outlined above become part of a person’s daily life. Thus, such moral virtues, if attended to, purify human nature and contribute to health and happiness of society. They are not extravagant concepts created by a millionaire guru, but simple aspects of self awareness and a very fair demand on the social contract that we all should be abiding by.

Take these simple, ancient, easy to comprehend mindset to put aside all the complexity involving the elements of an effective compliance program.

Without being called an utopic bureaucrat.

Yes, that day arrived.