Sep. 16, 2020

Taking a Fresh Look at Hotlines: Fostering a Speak-Up Culture and Leveraging Data

Internal reporting systems are crucial tools for compliance programs, but if companies do not ensure their employees know about and trust them, even the most technologically up-to-date system is of little use. Periodic trainings and reminders that boost the profile of the reporting system must augment a corporate culture that promotes ethical behavior and makes reporting a part of an ethical employee’s duties. In the second part of this two-part series, we explore how companies can encourage employees to use hotlines and how data collected from a hotline can be used to improve a compliance program. In the first part, we looked at the growing attention different jurisdictions are paying to whistleblower protection and internal reporting as well as how companies can ensure that their reporting mechanisms are up to date. See “The Nuts and Bolts of Anti-Corruption Hotlines: An Interview With Benjamin Haley of Covington & Burling” (Sep. 24, 2014).

Herbalife Nutrition Sheds $123 Million to Resolve FCPA Problems in China

Even as nutrition and weight management company Herbalife Nutrition Ltd. settled FCPA charges with the SEC and the DOJ in late August by agreeing to pay more than $123 million over problems at subsidiaries in China, it is breaking sales records during a global pandemic – leaving some to wonder just how good a deal the company got. Given Herbalife’s experience, will others be deterred? See “DOJ Charges Former Executives of Herbalife Subsidiary in China with FCPA Violations” (Jan. 8, 2020).

Managing Corruption in Latin America’s Police Forces

While corruption scandals involving high-ranking officials and multinational companies grab the headlines, corrupt police and other public security forces have a more direct impact on the day-to-day lives of residents in Latin America and corporations are not immune from police corruption. How companies manage these interactions can have significant and far reaching consequences under anti-corruption laws such as the FCPA and sanctions laws, as well as human rights norms. In a guest article, James Tillen and Gregory Bates of Miller & Chevalier explain that corporations should seek to understand their interactions with the police and security forces, assess the risk the interactions pose and ensure their compliance programs are equipped to address those risks. See “Anti-Corruption Developments in Central America: A Clear Path Forward?” (Mar. 18, 2020).

Petrobras Denouement: Fixer Zwi Skornicki Gets Probation and a $50K Fine from the E.D.N.Y.

Zwi Skornicki, a consultant who funneled bribes to Petrobras officials to win business for his clients, was recently sentenced to just 18 months of probation and a fine of $50,000. Although the U.S. sentence is seemingly light, Skornicki’s experience – and the amount of information he provided to various authorities – is a reminder of the risks associated with using third-party consultants. See “Petrobras Finally Inks Deal With SEC and DOJ to Resolve Allegations of Systemic Bribery” (Oct. 17, 2018).

Privacy Compliant Return-to-Work Checklist

Our return-to-work checklist is designed to help balance health and safety concerns with privacy and other legal considerations, which can be overwhelming when implementing plans to have employees return to a physical workplace. This checklist is derived from an in-depth series by our sister publication, the Cybersecurity Law Report, on how to facilitate a safe and privacy compliant return to work – which featured insights from privacy leaders at Mastercard, Johnson Controls, Orrick, Dentons and Gibson Dunn – and from a panel presentation by Fenwick & West at the 2020 Privacy + Security Forum. See “How to Facilitate a Safe and Privacy Compliant Return to Work: Policies and Protocols” (May 27, 2020).

Morgan Lewis Welcomes Former Fraud Section Chief

Sandra Moser has joined Morgan Lewis as a partner in the firm’s white collar litigation and government investigations practice. She will split her time between Philadelphia and Washington, D.C. For more insight from Moser, see our two-part series on updates to the ECCP: “Encouraging Companies to Make Compliance a Positive Feedback Loop” (Jun. 24, 2020) and “Providing More Nuance on Training, M&A and Third-Party Management” (Jul. 8, 2020).

Resolution Economics Welcomes Patricia Etzold

She joins the financial advisory services practice of the consulting firm as the global head of investigations. For more insight from Etzold, see “Patricia Etzold of PwC Discusses Effective M&A Due Diligence That Won’t Hamper Future Relationships” (Apr. 12, 2017).