Trust, transparency, and acting with integrity are at the heart of Barrick’s partnership culture.
June 25, 2018
Complying with our policies and procedures and the laws and regulations of our host countries is the minimum standard that we must meet. To help us exceed this bar we recently named Jonathan Drimmer our first-ever Chief Compliance Officer. In this interview, Drimmer discusses his new role, the link between compliance and Barrick’s values, and the key to building a culture of compliance.
Jonathan Drimmer is Chief Compliance Officer at Barrick
Why is compliance important?
Jonathan Drimmer: Compliance is important for every company, particularly larger multinational companies that have a suite of policies, procedures, guidelines, and codes. At Barrick, we are looking to drive behaviors to help the Company achieve its mission, live its values, maximize its potential, and minimize its risks.
For the Legal Governance and Compliance Group, compliance can be distilled into two parts. The first is the Code of Conduct, which is the basic framework that takes values and turns them into identified behaviours. The second is transnational legal and regulatory requirements, like anti-corruption and fraud, money laundering, and sanctions issues.
Corruption is a particular issue of concern for multinational companies today. The Securities and Exchange Commission insists that companies that are publicly listed in the U.S. maintain an affirmative program to prevent and detect corruption, and the Securities and Exchange Commission and Department of Justice continue to enforce the Foreign Corrupt Practices Act very aggressively.
“The idea that there can’t be a change isn’t the right answer.
As Chief Compliance Officer, how do you hope to improve Barrick’s compliance programs?
JD: We will be looking to simplify the program with crisper and clearer policies and procedures that are presented in easy-to-understand ways. We are also looking at technology solutions to make compliance easier, and we also want to tailor the program more for local needs and effectiveness.
Another adjustment is to try to connect our program to Barrick’s values in a more clear and tangible manner. The current program is very rules-oriented, which is not unusual, particularly in our sector. We are a company of engineers, and we like rules. But what enforcement agencies really want to see these days is how we integrate our values into a compliance program.
Can you elaborate on how you will integrate Barrick’s values into our compliance program?
JD: One example is through training. We may, for example, examine some major ethical failures in countries where we operate, focusing on how and why they occurred. We will look at the companies involved in those failures, and deliberate on how we can avoid making the same mistakes. We want to be more open in talking about ethical challenges, and how ethics and values can be integrated into our decision-making.
Barrick operates in some regions that are fraught with complex social, political, and economic challenges. Is change possible?
JD: We all live and work in communities. We all want to see our kids have better lives. We want access to healthcare, food, and clean drinking water. These are things that all of us want. And we can help people see that there is a different path; that change is possible. That is part of the Company’s shared mission.
Our Executive Chairman, John Thornton, talks very emphatically about seeing a change in China, where corruption was believed to be institutionalized for decades. Today, China has taken a huge turn in terms of fighting corruption. So the idea that there can’t be a change isn’t the right answer.
What is the best way to create a culture of compliance?
JD: For senior leaders and middle management to walk the talk. We do what our bosses do and what their bosses do. We want our leaders to exhibit ethical behaviors in a visible way that is consistent with the overall culture and vision of the group.
Procedural fairness is also important, which includes consistent discipline, rewards and promotions, and incentives that are aligned with a company’s objectives and values. Unfairness creates employee cynicism, and we want to avoid that.
The third aspect is a by-product of the first two, and is in many ways a barometer of how you’re doing as a program, which is to develop a good ‘speak-up’ culture. Are our employees willing to speak up without fear of retaliation? It’s another important part of a culture of compliance.
Is the Chief Compliance Officer role new to the mining industry?
JD: Many senior mining companies have dedicated compliance functions. Some companies do it differently; they have compliance embedded in the legal function, which is what we did for years, and I think our program was effective for years. However, as Barrick continues to move towards a decentralized operating model, it’s the right time to have a standalone function for compliance.
It is also critically important to understand that compliance is not doing this alone. We still collaborate closely with the legal teams around the world. We are partnering with Human Resources and Communications to articulate and drive values, whether it is with regards to leadership training, on-boarding, integration, or performance commitments. Supply Chain is also taking the lead in the simplification of rules processes. This is a collaborative effort between a lot of functional units, key leaders, and people in different countries; and it’s aimed at making ethics and compliance a real part of what we do.
How can we better monitor compliance at Barrick?
JD: Our current compliance approach is based on a lot of manual testing and subjective reporting. We are going to use more technology to carry out real-time monitoring. And as we improve our technological capabilities, we should be able to know fairly quickly whether people are meeting requirements or not. If we make compliance easier, more people will do it and do it effectively. It isn’t just about ethical breaches, but all the other smaller aspects that go into fulfilling the elements of the program.
What are the potential consequences of non-compliance?
JD: Everybody at this Company knows what worst-case scenarios look like. There is no bottom to that well of how bad it can get if you’re involved in non-compliance—not only in terms of ethics, but other areas, such as health and safety, environment, and security.
If we’re not complying in one area, then it will have an impact on other areas. It will not only dilute Barrick’s brand, but will be incredibly corrosive for the communities we operate in. We want to go places and make life better. Our mission is to generate wealth through responsible mining. To do that, we want to limit the number of non-compliances, and when they do occur, they should not happen because of bad intent, but because of an oversight or mistake.
We want to be an ethical company where people look forward to coming to work at a place they respect and admire. We don’t want to be a company that contributes to the degradation of larger communities.