The economic uncertainties and continuing concerns for what lies ahead in 2009 create many challenging issues for American businesses. Many companies are finding themselves not only worrying about their own financial stability, but also that of their vendors and customers. The tensions and pressures created by these difficult times can be the impetus for great American ingenuity. But those same tensions and pressures can also push employees to take risks that can come back to haunt the company.

Though corporate compliance efforts are perceived as a revenue drain rather than a revenue source, compliance should demand more attention in 2009 than ever before. History has demonstrated that economically challenging times can cause even good people to miss the moral or ethical issues implicated by some of their business decisions. The drive and desire to do the right thing can be overrun by more immediate needs, such as “making the numbers” or saving one’s job. Employees want to do the right thing. This year may challenge some to do otherwise. Companies need to help its employees to continue to perform with integrity and within the law.

Additionally, while President Obama’s Administration has promised many opportunities for our country, it also comes with an expectation that there will be a heightened focus on the conduct of corporate America. Not only is there an assumption that the U.S. Department of Justice will place corporate fraud as a high priority, but incoming United States Attorneys across the country will also be looking for matters with which to make a name for themselves.

We also anticipate more than just government employees will be looking for missteps by companies. In this economically difficult time, you should also expect that certain competitors, vendors and customers will be

keeping a lookout for possible misconduct that they can use to their advantage. History suggests that competitors are more likely to blow the whistle on each other during recessionary periods. Likewise, misconduct which might not rise to the level of criminal conduct can still be used by vendors or customers to attempt to maneuver out of unfavorable contracts or other business relationships.

While we can never prevent all possible misconduct within a company, it is important to have in place a program that ensures that an employee who violates an ethical or legal responsibility is seen as an individual acting alone in violation of company policy versus an individual acting with the implicit approval of the company. An effective compliance program is the best way to convince a prosecutor or the court that a company should not be held liable for an employee’s misconduct.

Therefore, we strongly recommend that reinvigorating your company compliance program be a priority for 2009. At a minimum, for all companies, we urge you to address directly with your employees the dangers of these challenging times and take steps to reinforce the tone at the top through messages that doing the right thing is always the first priority.

For companies contemplating taking steps to strengthen their compliance programs, we urge you to put those plans into action in 2009. While budgetary concerns may at first suggest delaying additional compliance efforts, the downside risks of doing so could be even more financially damaging to the company. During economic downturns, it can be much harder to recover from the financial and reputational damage caused by the announcement of an investigation.