LRN (company)

Last updated
LRN Corporation
LRN
FormerlyLegal Research Network Inc [1]
Company type Corporation
Industry Ethics and legal compliance education
FoundedOctober 1994;30 years ago (1994-10) [1]
Founder Dov Seidman [2]
Headquarters41 Madison Avenue,
New York City
,
United States
Number of locations
 New York City, London, Dublin, India
Area served
Worldwide
Key people
Dov Seidman (Chairman), [3] Kevin Michielsen (CEO) [4]
Number of employees
522 [5]
Website lrn.com OOjs UI icon edit-ltr-progressive.svg

LRN, founded in 1994, is an American company which provides advising and educating on ethics, regulatory compliance, and corporate culture to other organizations. [6] [7] When founded, the company focused on the legal industry and was named Legal Research Network, [1] before expanding into other fields. [8]

Contents

History

Founding

Dov Seidman founded Legal Research Network (later changed to "LRN") two years out of Harvard Law School. [1] Seidman's business plan was to offer legal knowledge and analysis services through an expert network of academics and lawyers. [9] [10] This research could then be repurposed in a database licensed to companies. He was able to pre-sell a $500,000 contract to MCI based on the idea. [1] He raised $2 million from 42 investors to launch the company. [11]

In its first year, LRN had a network of 1,100 legal experts in over 2,500 subjects reported by The Washington Post as being "mostly law professors, solo practitioners and lawyers on leave from their regular jobs". [1]

Expansion into Training

The company added ethics and compliance training in the late 1990s, in order to provide legal and ethical awareness throughout organizations, not just to their internal counsel. [12] Online classes, starting in the 2000s, [13] facilitated mass training of thousands of employees at large multi-nationals like Johnson & Johnson and Pfizer. [14] Pfizer trained 150,000 of its employees with LRN courses. [14] Subjects included compliance with sexual harassment laws, trade secrets and anti-trust. [12] [15]

As of 2000, 200 of the Fortune 500 companies were clients of LRN. [14] [15] Starting in the early 2000s, the company offered "common standards" for ethics and corporate compliance education. Competitors like Johnson & Johnson and Pfizer shared as much of 90% of the course materials, helping to standardize best practices for business ethics in corporate America. [14]

Seidman testified in 2004 before the U.S. Sentencing Commission, regarding the Federal Sentencing Guidelines, about the need for companies to develop ethical cultures instead of "check-the-box", compliance-only approaches. [16]

Operations

Services

LRN's services include analyzing corporate cultures, rewriting their codes of conduct, and providing ethical-compliance education and training to their employees. [14] LRN emphasizes principles and values rather than "blindly" following rules. [17]

In its annual Ethics & Compliance Program Effectiveness Report, which is based on surveys of ethics, compliance, and legal executives from various industries around the world, LRN has found that companies with ethical workplace culture. in contrast to those that focused on rules and procedures, were less likely to experience misconduct among employees, and that 97% of values-based companies outperformed their competition. [18] [19] In both the 2021 and 2022 reports, the majority of people surveyed said their companies’ ethical cultures had been strengthened by their handling of the COVID-19 pandemic. [20] [21]

Its online education platform offers about 500 courses in 50 languages, on topics including international corruption law, intellectual property, data protection, and environmental sustainability. [14] LRN ethics training materials include videos, blogs, quizzes, social media and video games. [22] Dell told The Wall Street Journal in 2014 that LRN developed an ethics game for it entitled the "Honesty Project." [22]

In 2021, LRN published a “Benchmark of Ethical Culture” report, based on surveys of approximately 8,000 employees of companies worldwide representing 17 industries. [23] According to the report, companies with strong ethical cultures outperform other companies by 40 percent across several metrics including customer satisfaction, employee loyalty, and innovation. [24]

Organization

LRN was originally headquartered in California, then moved its headquarters to New York City in 2012. [25] It also has offices in London and India. [26]

Job titles were largely eliminated from the company, according to a 2014 Wall Street Journal article. [27] But, as of 2021, the company was using job titles such as “Chief Human Resources Officer“, [28] "Chief Marketing Officer” and “Chief Financial Officer” again. [5]

In 2007, Seidman published the book How , which discussed the business philosophy on which LRN is based. In it, he argues that companies that behave more ethically than their competitors will also outperform the competition financially. [29]

Since 2008, LRN has been the corporate partner of The Elie Wiesel Foundation for Humanity’s Prize in Ethics Essay Contest, an annual competition for students to analyze ethical issues. [16]

Finances

LRN received a $30 million investment from Softbank in 2000. [13]

In 2018, Leeds Equity Partners made a “substantial” investment in LRN. [2] The investment enabled LRN in 2020 to acquire Interactive Services, a Dublin-based e-learning company which offers workplace policy compliance training. The combined companies had about 40% of the Fortune 500 as clients, as of 2020. [2] [30]

Related Research Articles

Business ethics is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. These ethics originate from individuals, organizational statements or the legal system. These norms, values, ethical, and unethical practices are the principles that guide a business.

<span class="mw-page-title-main">Chief executive officer</span> Highest-ranking officer of an organization

A chief executive officer (CEO) is the highest officer charged with the management of an organization—especially a company or nonprofit institution.

<span class="mw-page-title-main">Pfizer</span> American multinational pharmaceutical and biotechnology corporation

Pfizer Inc. is an American multinational pharmaceutical and biotechnology corporation headquartered at The Spiral in Manhattan, New York City. The company was established in 1849 in New York by two German entrepreneurs, Charles Pfizer (1824–1906) and his cousin Charles F. Erhart (1821–1891).

<span class="mw-page-title-main">Corporate social responsibility</span> Form of corporate self-regulation aimed at contributing to social or charitable goals

Corporate social responsibility (CSR) or corporate social impact is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in, with, or supporting professional service volunteering through pro bono programs, community development, administering monetary grants to non-profit organizations for the public benefit, or to conduct ethically oriented business and investment practices. While once it was possible to describe CSR as an internal organizational policy or a corporate ethic strategy similar to what is now known today as Environmental, Social, Governance (ESG); that time has passed as various companies have pledged to go beyond that or have been mandated or incentivized by governments to have a better impact on the surrounding community. In addition, national and international standards, laws, and business models have been developed to facilitate and incentivize this phenomenon. Various organizations have used their authority to push it beyond individual or industry-wide initiatives. In contrast, it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels. Moreover, scholars and firms are using the term "creating shared value", an extension of corporate social responsibility, to explain ways of doing business in a socially responsible way while making profits.

A code of conduct is a set of rules outlining the norms, rules, and responsibilities or proper practices of an individual party or an organization.

<span class="mw-page-title-main">Unum</span> American insurance company

Unum Group is an American insurance company headquartered in Chattanooga, Tennessee. Founded as Union Mutual in 1848 and known as UnumProvident from 1999-2007. The company is part of the Fortune 500. Unum Group was created by the 1999 merger of Unum Corporation and The Provident Companies and comprises four distinct businesses – Unum US, Unum UK, Unum Poland and Colonial Life. Its underwriting insurers include The Paul Revere Life Insurance Company and Provident Life and Accident Insurance Company.

American Apparel Inc. is a North American clothing retailer. The brand began with operating retail stores between the late 1980s and late 2010s. Its operations are based in Los Angeles, California. Founded by Canadian businessman Dov Charney in spring 1989, it was a vertically integrated company that ranked as one of the largest apparel manufacturers and marketers in North America.

<span class="mw-page-title-main">Dov Charney</span> Canadian entrepreneur (born 1969)

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<span class="mw-page-title-main">Ethical banking</span> Bank concerned with the social and environmental impacts of its investments and loans

An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans. The ethical banking movement includes: ethical investment, impact investment, socially responsible investment, corporate social responsibility, and is also related to such movements as the fair trade movement, ethical consumerism, and social enterprise.

A personal injury lawyer is a lawyer who provides legal services to those who claim to have been injured, physically or psychologically, as a result of the negligence of another person, company, government agency or any entity. Personal injury lawyers primarily practice in the area of law known as tort law. Examples of common personal injury claims include injuries from slip and fall accidents, traffic collisions, defective products, workplace injuries and professional malpractice.

Compliance training refers to the process of educating employees on laws, regulations and company policies that apply to their day-to-day job responsibilities. An organization that engages in compliance training typically hopes to accomplish several goals: (1) avoiding and detecting violations by employees that could lead to legal liability for the organization; (2) creating a more hospitable and respectful workplace; (3) laying the groundwork for a partial or complete defense in the event that employee wrongdoing occurs despite the organization's training efforts; and (4) adding business value and a competitive advantage.

The chief compliance officer (CCO) is a corporate executive within the C-suite responsible for overseeing and managing regulatory compliance issues within an organization. The CCO typically reports to the chief executive officer or the chief legal officer.

Organizational ethics is the ethics of an organization, and it is how an organization responds to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture. Although it is to both organizational behavior and industrial and organizational psychology as well as business ethics on the micro and macro levels, organizational ethics is neither organizational behavior nor industrial and organizational psychology, nor is it solely business ethics. Organizational ethics express the values of an organization to its employees and/or other entities irrespective of governmental and/or regulatory laws.

The Ethics & Compliance Initiative (ECI) was formed in 2015 and consists of three nonprofit organizations: the Ethics Research Center, the Ethics & Compliance Association, and the Ethics & Compliance Certification Institute. Based in Arlington, Virginia, United States, ECI is devoted to the advancement of high ethical standards and practices in public and private institutions, and provides research about ethical standards, workplace integrity, and compliance practices and processes.

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Dov Seidman is an American author, columnist and businessman. He is the founder, chairman and former CEO of LRN, an ethics and compliance management firm. He is also the author of How, and founded The HOW Institute for Society.

<i>How</i> (book) 2007 book by Dov Seidman

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References

  1. 1 2 3 4 5 6 Mintz, John (11 December 1995). "Getting an Expert Opinion at a Bargain Price". The Washington Post. No. Final Edition. United States. The Washington Post. p. F07. Retrieved 6 February 2017.
  2. 1 2 3 Sorkin, Andrew Ross; Hirsch, Lauren; de la Merced, Michael J.; Karaian, Jason (9 September 2020). "What If There Isn't a Vaccine for Years?". The New York Times. Retrieved 20 June 2022.
  3. ↑ "Dov Seidman, LRN Corp: Profile and Biography". Bloomberg Markets . Retrieved 20 June 2022.
  4. ↑ "Kevin Michielsen, LRN Corp: Profile and Biography". Bloomberg Markets . Retrieved 20 June 2022.
  5. 1 2 "LRN Company Profile". Pitchbook.com. Pitchbook. Retrieved 19 September 2022.
  6. ↑ Kleiner, Art (29 May 2012). "The Thought Leader Interview: Dov Seidman". United States: strategy+business. PwC network. Retrieved 27 May 2015.
  7. ↑ Mahler, Jonathan (5 October 2014). "If the Word 'How' Is Trademarked, Does This Headline Need a ™?". The New York Times. New York, N.Y., United States. The New York Times Company. p. A1. Retrieved 18 July 2015.
  8. ↑ Murphy, Richard (2 February 2010). "Why Doing Good Is Good for Business". United States: Fortune. Time Inc. Retrieved 8 June 2015.
  9. ↑ Heisel, William (5 July 2009). "His Keen Sense of Ethics Has Paid Off Handsomely". Los Angeles Times. Los Angeles, United States. Los Angeles Times. Retrieved 6 February 2017.
  10. ↑ Osborne, D.M. American Lawyer, "Should You Be Afraid of this Man?" June, 1995 (profile of Legal Research Network)
  11. ↑ Haaretz.com "Dov Seidman's secret: You don't have to be a sucker to succeed", July 1, 2012
  12. 1 2 Kleiner, Art (22 November 1999). "Learning the Law with a Mouse". National Law Journal.
  13. 1 2 Vrana, Debora (24 January 2000). "Southland's Attraction Grows for Large Internet Venture Firms". Los Angeles Times. Los Angeles, United States. Los Angeles Times. Retrieved 8 June 2015.
  14. 1 2 3 4 5 6 Kirkpatrick, David (October 2002). "Serving Up Scruples". Fortune Magazine.
  15. 1 2 Holding, Reynolds (3 February 2000). "Baby Lawyers Too Costly to Waste". San Francisco Gate. Retrieved 8 June 2015.
  16. 1 2 Clancy, Heather (26 October 2013). "Disruptor - Dov Seidman". ZDNET. Retrieved 8 June 2015.
  17. ↑ Bogoslaw, David (2 December 2013). "Wayne Brody: Making the business case for E&C". United States: Corporate Secretary. IR Media Group Ltd. Retrieved 10 June 2015.
  18. ↑ DiPietro, Ben (8 March 2017). "The Morning Risk Report: Values-Based Culture Pays Off for Companies". The Wall Street Journal. Retrieved 19 June 2022.
  19. ↑ Jaeger, Jaclyn (11 August 2021). "LRN survey: E&C programs thrive when boards are engaged". Compliance Week . Retrieved 25 May 2022.
  20. ↑ Tornone, Kate (28 April 2021). "Coronavirus proved an ethics stress test, but employers say they emerged stronger". HRDive. Retrieved 25 May 2022.
  21. ↑ Jaeger, Jaclyn (15 June 2020). "LRN survey: Values, not policies, drive ethical behavior". Compliance Week . Retrieved 25 May 2022.
  22. 1 2 DiPietro, Ben (26 September 2014). "Turning Employees Into Ethics Believers". United States: The Wall Street Journal. Dow Jones & Company Inc. Retrieved 8 June 2015.
  23. ↑ Miner, Emily (7 January 2022). "How creating an ethical workplace can boost your bottom line—and attract top talent". FastCompany.com. Retrieved 19 September 2022.
  24. ↑ Selko, Adrienne (30 November 2021). "Can a Strong Ethical Culture Affect Workplace Performance?". IndustryWeek . Retrieved 25 May 2022.
  25. ↑ Baker, Mila (5 September 2014). "21st Century Organization Design: Integrating Work Environment, Work Experience, and Leadership". United States: Work Design Magazine. Workspace Design Magazine, LLC. Retrieved 8 June 2015.
  26. ↑ Chaturvedi, Anumeha (20 July 2012). "LRN to Start Offering Its Services in India This Year". India: The Economic Times Of India. Bennett, Coleman & Co. Ltd. Archived from the original on March 5, 2016. Retrieved 9 June 2015.
  27. ↑ Weber, Lauren (9 April 2014). "Companies Say No to Having an HR Department". The Wall Street Journal. Retrieved 8 June 2015.
  28. ↑ "Margaret Sweeney, LRN Corp: Profile and Biography". Bloomberg Markets . Retrieved 23 June 2022.
  29. ↑ Murphy, Richard McGill (2 February 2010). "Why doing good is good for business". Fortune magazine. Retrieved 19 June 2022.
  30. ↑ Carey, Brian (13 September 2020). "E-learning provider Interactive Services sold to US rival, LRN Corporation". The Times . Retrieved 24 May 2022.
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