The Anti-Corruption Report

The definitive source of actionable intelligence covering anti-corruption laws around the globe

Articles By Topic

By Topic: Compliance Culture

  • From Vol. 7 No.8 (Apr. 18, 2018)

    DOJ Steers the Compliance Conversation Toward Culture

    Under the current administration, the DOJ continues to stress the importance of a company’s culture in preventing corruption, Philip Bezanson and Kevin Collins, both partners at Bracewell, stated at a recent Strafford panel where they discussed the DOJ’s compliance expectations and detailed how companies can shield themselves with compliance programs that demonstrate an appropriate compliance culture. See also “Effective Compliance Programs Reject Checklist Approach and Focus on Culture and Behavior” Nov. 29, 2017).

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  • From Vol. 7 No.7 (Apr. 4, 2018)

    ISO 37001: Ready for Take-Off?

    Companies around the world recognize the International Organization for Standardization (ISO) 9001 Standard as the definitive criteria for quality management. Up and down value chains, companies turn to ISO 9001 as a form of verification that business processes are in place to ensure that products and services meet customer requirements. In this guest article, Leslie Benton, the vice president of advocacy and stakeholder engagement at CREATe.org, discusses how the ISO 37001 standard has generated significant international attention and weighs in on the debate of how useful it will be to the field of anti-corruption. For more on ISO 37001, see “Developing Key Performance Indicators and Tracking Metrics Using ISO 37001 (Part One of Two)” (Nov. 9, 2016); Part Two (Nov. 23, 2016).

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  • From Vol. 7 No.6 (Mar. 21, 2018)

    Wal-Mart CECO Discusses the Retailer’s Decision to Seek ISO 37001 Certification

    Less than two years after the announcement of ISO 37001, its utility is yet to be determined. While some companies believe that implementing the standard will differentiate them from their peers and therefore be a useful marketing tool, others remain skeptical. Wal-Mart, a company that has been the subject of one of the most high-profile internal anti-corruption investigations, has determined that the ISO 37001 process is valuable and plans to seek certification. The Anti-Corruption Report discussed the reasoning behind that decision and the process of seeking certification with the retailer’s chief ethics and compliance officer, Daniel Trujillo. For more from Wal-Mart see “Insights From Wal-Mart on Using a Gift Policy to Create a Corporate Culture of Integrity” (Mar. 30, 2017).

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  • From Vol. 7 No.5 (Mar. 7, 2018)

    The “Human” Side of FCPA Compliance: How to Best Work With HR in the Current Global Enforcement Environment

    Coordination between the compliance department and the human resources department helps ensure the best outcome in the case of corruption-related misconduct. A cross-functional approach allows the company to receive maximum cooperation credit while satisfying local labor and data privacy law requirements and meeting employee expectations. Further, the HR department can play an important role in preventing anti-corruption violations in the first place. In a guest article, Paul, Weiss partner Alex Oh and former senior compliance attorney Kim Vinocour explain the practical implications of DOJ guidance and enforcement actions for corporate compliance and HR departments, focusing on hiring decisions, internal investigations and corruption-related disciplinary actions. See The Anti-Corruption Report’s three-part series on the DOJ’s FCPA Corporate Enforcement Policy: “What’s New and What’s Not” (Jan. 10, 2018); “How Important Is the Presumption of Declination?” (Jan. 24, 2018); and “Cooperation and Compliance Expectations” (Feb. 7, 2018).

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  • From Vol. 7 No.4 (Feb. 21, 2018)

    Promoting Values to Encourage Reporting and Discourage Retaliation

    Employees who feel safe approaching their managers or using the company’s anti-corruption hotline are more likely to report potential corruption issues. But without a strong ethical culture, individuals who report issues, particularly those sitting far from the watchful eye of corporate headquarters, can be subjected to reprisals. In a recent interview, Katie Smith, chief compliance officer at Convercent, discussed how to establish and demonstrate a company’s values to encourage reporting and simultaneously discourage retaliation. See “In-House Compliance Experts Provide Practical Insights on Establishing and Maintaining Whistleblower Hotlines” (Aug. 16, 2017).

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  • From Vol. 7 No.3 (Feb. 7, 2018)

    DOJ’s FCPA Corporate Enforcement Policy: Cooperation and Compliance Expectations (Part Three of Three)

    Following the announcement of the DOJ’s new FCPA Corporate Enforcement Policy (the Policy) late last year, the focus was on the incentives it offered companies to self-report anti-corruption issues. The Policy, however, also contains important clarifications on what the DOJ expects from companies in terms of cooperation and compliance program remediation. In this final article in a three-part series on the DOJ’s new Policy, we look at the new guidance the DOJ has provided on de-confliction, compliance authority and document retention. See “Using the FCPA Pilot Program’s Remediation Requirements to Build a Best-in-Class Compliance Program” (May 18, 2016).

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  • From Vol. 7 No.2 (Jan. 24, 2018)

    Finding the Softer Side: VMware’s Senior Director of Ethics and Compliance Discusses Her Department’s “Re-Brand”

    With the potential to cost companies billions of dollars, anti-corruption violations are no laughing matter, but compliance does not have to be all shock and awe. In a recent conversation with The Anti-Corruption Report, Gwen Romack, the senior director of ethics and compliance at software company VMware, discussed her efforts to better spread the compliance message by softening the edges of her program. See “Creating Engaging and Globally Relevant Ethics & Compliance Materials” (Oct. 18, 2017).

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  • From Vol. 6 No.22 (Nov. 15, 2017)

    Hui Chen Suggests Companies Focus on Ethics and Metrics to Move Beyond a Rules-Based Approach to Compliance

    As much as corporations may seek a list of dos and don’ts from government regulators in the anti-corruption space, taking such a formulaic, rules-based approach to compliance is missing the mark, warned former DOJ compliance counsel Hui Chen during a presentation at Converge 17. Instead, companies should avoid treating their compliance programs like a checklist and focus on ethics, metrics and measurable results, she advised. Metrics should not merely be used to demonstrate the number of policies a corporation has on hand or to tick off the amount of training conducted, Chen said. Rather, data should be generated and evaluated to demonstrate how the “tone at the top” translates to actual conduct at the upper echelons and then trickles down to the rank and file. See our four-part series on measuring compliance: “Getting Started” (Aug. 2, 2017); “Seven Areas of Compliance to Measure” (Aug. 16, 2017); “How to Measure Quality” (Sep. 6, 2017); and “Gathering and Analyzing Data” (Sep. 20, 2017).

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  • From Vol. 6 No.20 (Oct. 18, 2017)

    Creating Engaging and Globally Relevant Ethics & Compliance Materials

    Making sure that a work force spread across the globe is familiar with and understands company policies is a major challenge in designing ethics and compliance programs. In a guest article, Rielle Miller Gabriel, ethics officer and the international ethics operations manager for Lockheed Martin, explains how Lockheed creates ethics and compliance materials – including the company’s code of conduct, online training modules and annual ethics training videos – that have global appeal. See “Creating Tomorrow’s Code, Today: Designing an Effective Mobile-First Code of Conduct” (Oct. 4, 2017).

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  • From Vol. 6 No.17 (Sep. 6, 2017)

    Measuring Compliance: How to Measure Quality (Part Three of Four)

    One of the biggest challenges companies face when evaluating a compliance program is finding ways to measure quality and effectiveness. Often, companies focus on quantitative measures which can be easy to collect but lacking in insight. Many such metrics, like the number of trainings or dollars spent on compliance, offer little information on how effective a program is at achieving its goals. Because quality can be so challenging to measure, many companies just do not do it, which can leave them at risk. This article, the third in a four-part series, provides specific methods companies can use to measure the quality of their program and the strength of their compliance culture. See “Developing Key Performance Indicators and Tracking Metrics Using ISO 37001 (Part One of Two)” (Nov. 9, 2016); Part Two (Nov. 23, 2016).

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  • From Vol. 6 No.16 (Aug. 16, 2017)

    Regional Risk Spotlight: Matteson Ellis of Miller & Chevalier on Maturing Attitudes Towards Anti-Corruption Compliance in Latin America

    The past year has seen a significant number of anti-corruption enforcement actions in Latin America, with Brazilian enforcement agencies taking a leading role. As the level of enforcement increases, and as enforcers become more sophisticated, compliance is becoming more and more important for companies doing business in Latin America. The Anti-Corruption Report recently spoke with Matteson Ellis, a member of Miller & Chevalier and the author of The FCPA in Latin America, about changing attitudes towards compliance in the region and how companies should be adjusting their programs. See “J&F Investimentos’ Record-Breaking Fine Highlights Brazil’s Commitment to Fighting Corruption” (Jun. 21, 2017).

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  • From Vol. 6 No.7 (Apr. 12, 2017)

    Managing Subsidiary Risks: Culture and Communication (Part Two of Three) 

    Recent corporate FCPA settlements with the SEC and DOJ show that foreign subsidiaries continue to be an area of anti-corruption risk for multinational companiesEven if a parent company has a strong compliance culture and accompanying program, failing to integrate that culture with its subsidiaries can lead to problems, as can failing to keep lines of communication open between the parent and its subsidiaries. In this second article in our three-part series on managing subsidiary risk, we look at how companies can make subsidiary employees partners in complianceThe first article in the series discussed how companies can set up their subsidiaries to minimize risk, and the third part will examine the internal controls a company should have in place to prevent corruption at its subsidiaries. See How to Build a Compliant Culture and Stronger Company From the ‘Middle’ (Part One of Three) (Apr. 1, 2015); Part Two (Apr. 15, 2015); Part Three (Apr. 29, 2015). 

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  • From Vol. 6 No.6 (Mar. 29, 2017)

    A Conversation With Jeff Johnson of Cargill About Risk Assessments

    Most practitioners know that anti-corruption risk assessments are crucial to robust compliance programs, and are expected by regulators, but efficient methods of performing these assessments that address business as well as legal and compliance concerns can be elusive. Jeffrey Johnson, compliance lead for anti-bribery, competition and trade sanctions at Cargill, spoke with The FCPA Report about how the company has structured its recent anti-corruption risk assessment, and its approach as it embarks on a global compliance risk assessment. See “Conducting Effective Anti-Corruption Risk Assessments: An Interview With David Simon, Partner at Foley & Lardner” (Nov. 20, 2013); and “An Interview With Kevin Bennett, Managing Director, Forensic and Valuation Services, at Grant Thornton” (Dec. 4, 2013).

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  • From Vol. 6 No.6 (Mar. 29, 2017)

    Insights From Walmart on Using a Gift Policy to Create a Corporate Culture of Integrity

    Gifts and hospitality are an accepted part of business culture, but they are also the source of many anti-corruption law violations. Because the practice is so entrenched, creating a gift policy that suits a company’s business needs is a significant challenge. In a guest article, Daniel Trujillo, the chief compliance and ethics officer for Walmart’s international operations, discusses how Walmart has implemented a strict no-gifts policy and used it as a tool to underscore the company’s corporate culture rooted in personal and professional integrity. See The FCPA Report’s three-part series on travel and entertainment corruption risks: “Five Hallmarks of an Acceptable Hospitality Expenditure” (Mar. 9, 2016); “Three Musts for a Strong T&E Policy and Five Ways a Company Can Customize Its Program” (Mar. 23, 2016); and “Internal Controls to Ensure the Program Is Working” (Apr. 6, 2016).

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  • From Vol. 6 No.5 (Mar. 15, 2017)

    To Certify or Not to Certify: Considerations for Whether to Certify Compliance With the Anti-Bribery Standard ISO 37001

    Considerable interest surrounds the International Organization for Standardization’s Anti-Bribery Standard, referred to as ISO 37001 and published in October 2016. However, it is important for businesses to be mindful of the distinction between an exacting technical standard for a product and the broad, principle-based nature of the Anti-Bribery Standard. In a guest article, Ryan Rohlfsen, a partner at Ropes & Gray, and associates Kia Grant and Molly Gachignard, discuss how companies should weigh the costs and benefits of choosing to certify under ISO 37001. See “Developing Key Performance Indicators and Tracking Metrics Using ISO 37001 (Part One of Two)” (Nov. 9, 2016); Part Two (Nov. 23, 2016).

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  • From Vol. 5 No.24 (Dec. 7, 2016)

    A Dish of Cream? Some Caviare? Or Strassburg Pie? How to Properly Respond to Bribery Requests  

    “Before a Cat will condescend to treat you as a trusted friend, some little token of esteem is needed, like a dish of cream,” T.S. Eliot wrote in his Book of Practical Cats. Ensuring that an employee properly responds to a bribe request is no easy task because providing the soliciting individual with a “little token of esteem” may be the path of least resistance for employees. In a guest article, Hogan Lovells attorneys Peter Spivack and Rafael Ribeiro discuss how a company can strengthen all aspects of its compliance program to minimize the risk that bribes will be requested and ensure that their employees respond appropriately when they are. For further insights from Hogan Lovells, see “How Companies Can Use Enhanced Auditing Techniques to Address the Government’s Increasing Focus on Internal Controls” (May 13, 2015).

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  • From Vol. 5 No.20 (Oct. 12, 2016)

    PwC State of Compliance Survey Explores Compliance and Ethics Leadership, Risk Assessments and Compliance Oversight

    How are companies relating ethics and compliance controls to business strategy and risk management functions? PwC recently surveyed 800 executives at top global companies to examine how they approach compliance, including their methods of assessing risk and the structures of their compliance functions. See also “PwC Report Offers Five Ways to Elevate the Role of the Compliance Function” (Jul. 8, 2015); and “PwC Survey Examines the Role of the Compliance Officer” (Jul. 9, 2014).

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  • From Vol. 5 No.18 (Sep. 14, 2016)

    Five Ways a Company Can Leverage Its Anti-Bribery Compliance Program to Facilitate Sanctions Compliance

    While often treated separately by companies, anti-bribery and sanctions compliance risks frequently intersect. Companies can ensure effective compliance with both types of regulations more efficiently, effectively and economically by combining certain knowledge and resources to jointly address these areas. In a guest article, Baker & McKenzie partner Ryan Fayhee and his associates Geoff Martin and Alexandre Lamy review how the jurisdictional reach and risks presented by anti-bribery and sanctions regulations tend to converge and suggest concrete ways that companies can leverage their anti-bribery compliance programs to facilitate sanctions compliance. Fayhee will also be sharing his thoughts on the topic at the upcoming SCCE Compliance and Ethics Institute in Chicago. See “Finding Synergies in OFAC and FCPA Compliance” (Nov. 19, 2014). 

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  • From Vol. 5 No.18 (Sep. 14, 2016)

    Room for Improvement: Miller & Chevalier Survey Reveals Troubling Perceptions of Corruption and Compliance in Latin America

    Business executives and in-house legal counsel in Latin America observe high levels of corruption in their countries and generally perceive domestic anti-corruption laws to be ineffective, a recent survey by Miller & Chevalier found. However, they are becoming increasingly familiar with the FCPA and other global anti-corruption laws. We analyze the results of the survey and highlight the issues most relevant to those operating in the region. See “Six Compliance Lessons from the 2012 Latin America Corruption Survey” (Sep. 5, 2012).

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  • From Vol. 5 No.16 (Aug. 10, 2016)

    Addressing Employees’ Perception That Internally Reporting Compliance Violations Is Futile 

    FCPA investigations triggered by whistleblower reports are increasingly likely as the SEC whistleblower program matures. According to the 2015 Annual Report on the Whistleblower Program, 80 percent of employee or former employee whistleblowers raised their concerns internally to their supervisors or compliance personnel (or otherwise understood that the company knew of the violations) before reporting their tips to the Commission. In a guest article, Cravath’s David Stuart and Harry Black discuss why employees often feel compelled to report violations outside of the company after they have reported internally and suggest how companies can incentivize prompt internal reporting and decrease external disclosures without running afoul of SEC rules prohibiting a company or individual from impeding reports to the SEC. See “Implications of the SEC’s First-Ever Whistleblower Protection Enforcement Action” (Apr. 15, 2015). 

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  • From Vol. 5 No.12 (Jun. 15, 2016)

    Board Responsibility for Ethics and Compliance

    In recent months, the DOJ and SEC have made it abundantly clear that they are focused on prosecuting individuals for their part in FCPA violations. In light of this additional attention, board members and others responsible for company compliance programs must be even more diligent about meeting their obligations. In a recent conversation with The FCPA Report, Jean-Marc Levy and Susan Divers of training, advisory and education company LRN discuss the nature of a board’s compliance and ethics responsibilities and provide suggestions for how board members can fulfill their anti-corruption compliance duties. See “Directors and CCOs Share Insights on Maximizing a Board’s Impact on Compliance” (May 4, 2016).

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  • From Vol. 5 No.9 (May 4, 2016)

    Directors and CCOs Share Insights on Maximizing a Board’s Impact on Compliance

    How can a board best shape and support a company’s compliance efforts? At Ethisphere’s 2016 Global Ethics Summit, a panel featuring directors, executives and compliance experts from JLL, AT&T, U.S. Steel Corporation, Walmart, ManpowerGroup and PwC discussed the challenges boards face and best practices for approaching compliance issues. See also “How the Board and Compliance View Each Other” (Sep. 23, 2015).

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  • From Vol. 5 No.7 (Apr. 6, 2016)

    Compliance Professionals Share Insights on Revitalizing Codes of Conduct

    A company’s code of conduct is the bedrock of a strong compliance program but it cannot be set in stone. Companies need to reevaluate and periodically update their codes to ensure their relevance. A recent panel discussion at Ethisphere’s 8th Annual Global Ethics Summit looked at the experiences of three large corporations in updating and upgrading their codes of conduct, focusing on the key issues they faced in the process. The program was moderated by Ed Petry, vice president at NAVEX Global, and featured Megan Belcher, vice president and chief counsel at ConAgra Foods, Bettye J. Hill, vice president and chief ethics and compliance officer at Oshkosh Corporation, and Peter Loftspring, assistant general counsel and chief compliance manager at Black & Veatch Corporation. This article summarizes the key takeaways from the program. See also “Customizing Codes of Conduct to Spread the Message of Compliance” (Mar. 4, 2015); and “Six Steps to Revitalize the Company Compliance Code” (Aug. 20, 2014).

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  • From Vol. 5 No.6 (Mar. 23, 2016)

    How to Educate Top Management on the Importance of Anti-Corruption Compliance

    It is no accident that all of the world’s migration flows are in one direction – from more corrupt nations into less corrupt ones, Anne Eberhardt, a senior director at Gavin/Solmonese, argues in a guest article. Looking at the history of corruption informs more than just public policy arguments, she says. It bears on anti-corruption compliance today and provides concrete lessons on how individuals charged with the responsibilities of governance (such as CCOs and GCs) can best frame anti-corruption compliance for their organizations. See also “Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part One of Two)” (Apr. 3, 2013); Part Two (Apr. 17, 2013).

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  • From Vol. 5 No.6 (Mar. 23, 2016)

    Twenty Ways a Company Can Use Behavioral Psychology to Improve Compliance

    Compliance resources are never unlimited, but there are ways for compliance personnel to improve the effectiveness of compliance messages at minimal expense. Behavioral psychology can be used to leverage compliance resources and to more effectively encourage people to do the right thing in their jobs, Virginia MacSuibhne, vice president and general counsel of Ventana Medical Systems, explained during a recent Clear Law Institute program. MacSuibhne presented 20 inexpensive, but effective, communication tools that can be used to assure that a compliance message hits home. See also Five Practical Steps for Creating a Compliant Tone in the Middle (Dec. 16, 2015).

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  • From Vol. 5 No.5 (Mar. 9, 2016)

    Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program (Part Two of Two)

    Key Performance Indicators (KPIs) and tracking metrics, regularly used to measure and evaluate the success of a variety of business actors and activities, are increasingly being used to take the temperature of a company’s compliance department as well. A company can use KPIs and metrics to help determine (1) whether its compliance program is being implemented in a robust and good faith manner and (2) whether the elements of the program, and the program itself, are effective in achieving their desired goals. In a two-part guest article series, Jonathan Drimmer, vice president and deputy general counsel at Barrick Gold Corp., and Matthew Herrington, a partner at Steptoe & Johnson, provide a guide for developing and using KPIs and metrics in anti-corruption compliance programs. The first article outlined how to develop and use metrics and KPIs to assess robustness and effectiveness. This second article provides specific examples of KPIs and metrics that can be used to evaluate many of the hallmarks of an effective compliance program, as identified in the DOJ/SEC FCPA Resource Guide.

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  • From Vol. 5 No.1 (Jan. 13, 2016)

    Experts at GE and LRN Say Think Globally, Act Locally to Build a Stronger Global Compliance Program

    Without a strong corporate culture, leadership and planning, a compliance program can get lost in a miasma of legal and cultural differences. At a recent PLI workshop, Felipe Paez, chief compliance officer of GE Global Research, and Mark Rowe, an ethics, compliance and culture strategist and advisor at LRN, discussed how companies can create (and how GE has created) a global compliance program by thinking globally, acting locally and using codes of conduct and investigations as tools to build an ethical culture and strong world-wide compliance program. See “Google, Boeing, Walmart and PwC Leaders Share Strategies for Overcoming Cultural Hurdles in Compliance” (Apr. 29, 2015).

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  • From Vol. 4 No.26 (Dec. 16, 2015)

    Brockmeyer and Stokes Offer Four Benefits of Cooperation and Four Ways Companies Can Go Wrong in Their Internal Investigations

    As government enforcers become increasingly sophisticated about business practices and bribery – and adjust their strategies accordingly – companies can be left befuddled as to what is expected from them.  In our previous issue, The FCPA Report analyzed the DOJ and SEC’s changing approaches in detail based on the “Year in Review” panel at this year’s ACI FCPA conference.  During that panel Kara Brockmeyer, Chief of the FCPA Unit of the Division of Enforcement of the SEC, and Patrick Stokes, Deputy Chief of the Fraud Section of the Criminal Division of the DOJ, also clarified their expectations for companies and their compliance programs.  The FCPA Report spoke to several anti-corruption defense experts to find out whether these expectations are reasonable and how companies can best meet them.  For coverage of last year’s panel, see “Top FCPA Enforcers Tout Voluntary Disclosure and Warn About International Cooperation; The Defense Bar Responds,” The FCPA Report, Vol. 3, No. 24 (Dec. 3, 2014); and “Top FCPA Officials Talk Compliance Tips and the Defense Bar Weighs In,” The FCPA Report, Vol. 3, No. 25 (Dec. 17, 2014).

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  • From Vol. 4 No.26 (Dec. 16, 2015)

    Five Practical Steps for Creating a Compliant Tone in the Middle

    As more corporate leaders recognize the impact of organizational culture on the bottom line, they are also realizing just how important front-line management is when intentionally crafting corporate culture.  Recent studies demonstrate that line managers can directly influence the tone of acceptable behavior in an organization.  In a guest article, Dr. Marsha Ershaghi Hames, a practice leader in LRN, Inc.’s education advisory services group, discusses the importance of leading from the middle and provides five practical tips for implementing a stronger tone in the middle strategy.  See “Eight Ways Compliance Officers Can Build Relationships with the ‘Middle’,” The FCPA Report, Vol. 4, No. 20 (Oct. 7, 2015).

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  • From Vol. 4 No.23 (Nov. 4, 2015)

    Creating a Values-Based Compliance Code and Recruiting Compliance Champions to Spread the Message

    How can a company create a compliance policy that reflects its core business values?  Once that policy is created, how can a company spread the compliance message effectively across multiple nationalities, languages and countries?  How can it encourage employees to comply with the updated policy?  Accomplishing those goals is no easy task, Dr. Marsha Ershaghi Hames, practice leader in LRN’s education, culture and leadership advisory services department, told The FCPA Report during a recent interview.  Ershaghi Hames discussed how a company should evaluate its current code, how it can spread the message amongst employees, how it can use regional compliance champions to strengthen its messaging and more.  See also “How to Build a Compliant Culture and Stronger Company from the ‘Middle’ (Part One of Three),” The FCPA Report, Vol. 4, No. 7 (Apr. 1, 2015); Part Two, Vol. 4, No. 8 (Apr. 15, 2015); Part Three, Vol. 4, No. 9 (Apr. 29, 2015).

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  • From Vol. 4 No.23 (Nov. 4, 2015)

    In-House Compliance Experts Share Five Strategies for Building a High-Performing Compliance Team

    A chief compliance officer is often asked to “build the ship while sailing” – to staff a high-performing compliance department and develop a compliance strategy while simultaneously meeting the company’s ongoing compliance needs.  During a recent panel at SCCE’s Compliance & Ethics Institute, a distinguished group of in-house compliance experts discussed five best practices for developing effective compliance and ethics teams.  The panelists – whose experience spans a range of companies – included Donna Boehme, a principal at Compliance Strategists and formerly the group compliance and ethics officer for BP; Stephen Naughton, chief ethics and compliance officer for Kimberly-Clark and previously chief compliance officer for PepsiCo; Janice Innis-Thompson, chief compliance officer at TIAA-CREF; and Judi Nocito, senior advisor with Compliance Strategists and previously a director of global compliance for Alcoa.  See also “How to Structure Chief Compliance Officer Reporting Lines to Maximize the Efficacy of Anti-Corruption Compliance (Part One of Three),” The FCPA Report, Vol. 2, No. 22 (Nov. 6, 2013); Part Two, Vol. 2, No. 23 (Nov. 20, 2013); Part Three, Vol. 2, No. 24 (Dec. 4, 2013).

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  • From Vol. 4 No.20 (Oct. 7, 2015)

    Eight Ways Compliance Officers Can Build Relationships with the “Middle”

    The much-talked-about “tone at the top” is often cited as crucial for an effective compliance program.  Ensuring that that tone is conveyed throughout the organization, however, is equally important.  Getting the compliance message across typically falls on an organization’s middle managers.  A recent Society of Corporate Compliance & Ethics program featuring Charlotte Nafziger, director of compliance of T-System, Inc., explored the importance of middle management in developing an effective ethics and compliance program and the ways compliance officers can engage middle management in doing so.  See also The FCPA Report’s three-part series, “How to Build a Compliant Culture and Stronger Company from the ‘Middle,’” Part One (Apr. 1, 2015); Part Two (Apr. 15, 2015); and Part Three (Apr. 29, 2015).  

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  • From Vol. 4 No.17 (Aug. 19, 2015)

    Former Sales Exec Discusses How to Combat Corruption in the Field

    Anti-corruption policies are generally formulated in a company’s home office by attorneys and other compliance personnel.  But corruption usually happens on the front lines of a company’s international business – miles and sometimes oceans away.  Policies that seem sensible from corporate headquarters may look very different in far-flung locations around the world.  How can companies shape their business and compliance programs in such a way that they can stand up to the realities of life in the field?  At a recent event hosted by The Network, Inc., former sales executive Richard Bistrong, who spent 14 months in prison for FCPA violations, presented six risk factors employees on the front line face and provided actionable insight about combating those risks.  See “Mitigating Bribery Risks Using Financial Controls, Risk Assessments and Leveraging Internal Resources,” The FCPA Report, Vol. 3, No. 18 (Sep. 10, 2014).

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  • From Vol. 4 No.16 (Aug. 5, 2015)

    DOJ’s New FCPA Compliance Counsel: A Fairer Assessment for Companies

    For companies in the unenviable position of waiting to see whether federal prosecutors will criminally charge their company – an often existential question – the Department of Justice may have just leveled the playing field, at least slightly.  It has just announced that it will hire a new in-house compliance counsel who will take an active role in determining key aspects of FCPA resolutions.  In a guest article, G. Derek Andreson and Thomas M. Buchanan, partners at Winston & Strawn, and Francesca M.S. Guerrero, an associate, explain how the position came to be, how it will affect companies with varying types of anti-corruption compliance programs and how companies can take advantage of the new program.  See also “Comparing and Contrasting Three FCPA Experts’ Advice on Negotiating FCPA Settlements,” The FCPA Report, Vol. 3, No. 17 (Aug. 20, 2014).

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  • From Vol. 4 No.16 (Aug. 5, 2015)

    LRN Survey Suggests that Companies Should Move Beyond the “Nuts and Bolts” of Compliance and Focus on Values

    Ethics and compliance consulting firm LRN Corporation (LRN) recently released its 2015 Ethics and Compliance Effectiveness Report (Report).  Its study of more than 250 organizations considers the relative effectiveness of dual-hatted chief compliance officers, explains how a values-based tone at the top may improve program effectiveness and details the elements of ethics and compliance programs that distinguish companies with the most effective programs from those with the least effective ones.  The Report drives home the message that the most effective ethics and compliance programs are incorporated into the fabric of a business rather than “bolted on” to an existing operation.  This article summarizes the key takeaways from the Report.  For coverage of LRN’s 2014 report, see “Measuring the Efficacy of Ethics and Compliance Programs,” The FCPA Report, Vol. 3, No. 12 (Jun. 11, 2014).

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  • From Vol. 4 No.15 (Jul. 22, 2015)

    EY’s Asia-Pacific Fraud Survey Finds Correlation Between Talent Retention and Ethical Business Conduct

    EY's 2015 Asia-Pacific fraud survey examined the prevalence of third-party and cybersecurity risks and found that although an ethical business culture can help retain talent, significant weaknesses persist in the anti-corruption measures of organizations in the region, especially when it comes to whistleblowers.  This article summarizes the key takeaways from the report.  See also “Ernst & Young’s 2013 Asia-Pacific Fraud Survey Highlights Disconnect Between Company Policies and Employee Perceptions,” The FCPA Report, Vol. 2, No. 20 (Oct. 9, 2013).

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  • From Vol. 4 No.9 (Apr. 29, 2015)

    How to Build a Compliant Culture and Stronger Company from the “Middle” (Part Three of Three)

    During the last decade, conversations about a company’s compliance messaging have shifted from a focus on tone at the top to a more holistic approach emphasizing tone at every level of the company.  Today, tone in the middle is a crucial element of effective compliance communications, Jennifer Newstead, a partner at Davis Polk & Wardwell, told The FCPA Report.  This article, the third in a series, details ten actions middle managers can take to spread the compliance gospel and provides strategies for monitoring tone.  The first article discussed who the “middle” actually is, why tone in the middle matters and the challenges of creating a compliant tone.  The second article outlined eight steps companies that are implementing or revamping compliance programs can take to support middle-level compliance messaging.

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  • From Vol. 4 No.9 (Apr. 29, 2015)

    Google, Boeing, Walmart and PwC Leaders Share Strategies for Overcoming Cultural Hurdles in Compliance

    Developing and implementing a compliance program that delivers a consistent message while simultaneously conforming to widely varying regional customs is daunting.  At a panel during the recent Global Ethics Summit, hosted by Ethisphere Institute and Thomson Reuters, compliance leaders from Google, Walmart, Boeing and PwC shared their personal experiences with spreading a compliance message in a global company, confessed their cultural blunders and what they learned from them, and outlined five strategies for overcoming cultural challenges.  See “Representing Foreign Companies in Criminal FCPA Actions: Strategies for Handling the Legal, Practical and Cultural Challenges,” The FCPA Report, Vol. 2, No. 8 (Apr. 17, 2013).

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  • From Vol. 4 No.8 (Apr. 15, 2015)

    How to Build a Compliant Culture and Stronger Company from the “Middle” (Part Two of Three)

    Effective compliance initiatives must move beyond the board and C-suite and infiltrate the entire organization.  The key to that infiltration is reaching middle managers who are on the ground with employees.  Fostering a compliant tone in the middle, however, requires coordinated efforts by company leadership and the compliance department.  The FCPA Report’s multi-part series is designed to help companies assess their current culture and strengthen their tone in the middle.  This article, the second in the series, details eight steps companies that are implementing or revamping compliance programs can take to support middle-level compliance messaging.  The first article discussed who the “middle” actually is, why tone in the middle matters and the challenges of creating a compliant tone.  The third article will address actions that middle managers can take to emphasize compliance and strategies for monitoring tone.  See also “Customizing Codes of Conduct to Spread the Message of Compliance,” The FCPA Report, Vol. 4, No. 5 (Mar. 4, 2015).

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  • From Vol. 4 No.7 (Apr. 1, 2015)

    How to Build a Compliant Culture and Stronger Company from the “Middle” (Part One of Three)

    Tone at the top has been a compliance talking point for years, but as compliance programs mature, tone at the top is no longer enough.  “A tone at the top approach alone is not likely to reach as effectively the groups of employees who make real decisions that are going to affect the business,” Jennifer Newstead, a partner at Davis Polk & Wardwell, told The FCPA Report.  To effectively spread the compliance message, companies must also focus on tone in the middle.  This multi-part series will assist companies in evaluating their current culture and enhancing their tone in the middle to strengthen their compliance program.  This, the first article in the series, will discuss who the “middle” actually is, why tone in the middle matters and the challenges of creating a compliant tone.  Future articles will specify: how a company should prepare middle managers to spread the compliance message, actions that middle managers can take to emphasize compliance, and strategies for monitoring tone.  See also “Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part Two of Two),” The FCPA Report, Vol. 2, No. 8 (Apr. 17, 2013) (discussing tone at the top).

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  • From Vol. 4 No.5 (Mar. 4, 2015)

    Customizing Codes of Conduct to Spread the Message of Compliance

    A carefully-drafted code of conduct should be a written manifestation of a company’s compliant tone and the bedrock upon which the company can build an effective set of anti-corruption policies and procedures.  The code should serve as a mission statement, emphasizing the company’s commitment to compliance and ethics, advised Eric Morehead, CCEP, Senior Compliance Counsel with NYSE Governance Services, who spoke at a recent program offered by the Society of Corporate Compliance and Ethics.  It should also provide employees and others with a roadmap for identifying and reporting issues and outline the company’s commitment to responding to problems, he said.  During his presentation, Morehead discussed actions a company should take prior to updating its code, suggested issues companies should consider when drafting a code from scratch and provided insight into recent relevant benchmarking surveys.  See also “Six Steps to Revitalize the Company Compliance Code,” The FCPA Report, Vol. 3, No. 17 (Aug. 20, 2014).

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  • From Vol. 4 No.3 (Feb. 4, 2015)

    Compliance Experts Discuss Setting the “Tone in the Middle”

    In the realm of ethics and compliance, there is a great deal of emphasis on setting an appropriate “tone from the top.”  However, a lot can be lost in translation as that message reaches – or does not reach – the broader employee population.  One way to assure that that message reaches its intended recipients, and achieves its intended effect, is to have managers set an appropriate “tone in the middle.”  A recent program sponsored by the Society of Corporate Compliance and Ethics explained why setting the tone in the middle can help to achieve ethics and compliance goals and discussed strategies for setting that tone, as well as potential impediments to doing so.  The program featured Michael Levin, Senior Director of Compliance at Freddie Mac; and Kirsten E. Liston, an Associate Vice President of SAI Global Limited.  See also “Measuring the Efficacy of Ethics and Compliance Programs,” The FCPA Report, Vol. 3, No. 12 (Jun. 11, 2014). 

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  • From Vol. 4 No.3 (Feb. 4, 2015)

    Using Behavioral Psychology Tools to Leverage Compliance Resources

    How can simple communication tools increase the impact of a compliance program, without significantly increasing the budget?  A recent program offered by the Society of Corporate Compliance and Ethics (SCCE) explored how principles of behavioral psychology can be used to enhance the effectiveness of a compliance program – with a low price tag.  The program was hosted by the Adam Turteltaub of the SCCE and featured Virginia MacSuibhne, Chief Compliance Officer of Roche Molecular Systems, Inc.  See also “Strategies for Justifying Compliance and Ethics Budgets,” The FCPA Report, Vol. 3, No. 24 (Dec. 3, 2014). 

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  • From Vol. 3 No.25 (Dec. 17, 2014)

    Key Compliance Takeaways from the OECD Foreign Bribery Report

    For the first time, the Organisation for Economic Co-operation and Development has studied the entirety of the bribery cases (427 of them) brought by its 41 signatories over the past 15 years.  Calling the results of its Foreign Bribery Report a “new weapon in the global push to fight corruption,” the OECD says its Report seeks to “enable governments, companies and civil society to better understand and combat this insidious crime.”  Among other things, the Report found more bribery than many expected in wealthy countries and a drop in cases over the past two years.  FCPA experts Steven Michaels, counsel at Debevoise & Plimpton and Juan Morillo, a partner at Quinn Emanuel, talked to The FCPA Report about how compliance officers can use these findings.  See our previous coverage of the Report, “OECD Launches ‘New Weapon’ in Global Push to Fight Corruption,” The FCPA Report, Vol. 3, No. 24 (Dec. 3, 2014).

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  • From Vol. 3 No.24 (Dec. 3, 2014)

    Strategies for Justifying Compliance and Ethics Budgets

    Functions that do not directly impact the bottom line may be neglected when a corporation plans its budget.  Compliance and ethics in particular can be seen as a necessary evil, rather than as an integral part of a successful business.  A recent presentation at the 2014 Compliance & Ethics Institute, sponsored by the Society of Corporate Compliance and Ethics, explored how a compliance and ethics department can demonstrate its value to an organization and make it easier to secure sufficient funds to operate effectively.  The program featured Julie K. Moriarty, General Manager, Training and Communications Strategy, and Jimmy Lin, Vice President of Product & Corporate Development at governance, risk and compliance consulting firm The Network, Inc.  See also “CEB Analyzes Key Compliance and Ethics Data,” The FCPA Report, Vol. 3, No. 20 (Oct. 8, 2014).

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  • From Vol. 3 No.20 (Oct. 8, 2014)

    The Right Role for Legal in Compliance

    What makes for an effective relationship between the legal department and the compliance department?  Can one individual effectively serve as a company’s general counsel and its chief compliance officer?  If the roles are bifurcated, how should the relationship operate?  At the Society for Corporate Compliance and Ethics’ 2014 Compliance and Ethics Institute, Glenn Ware, a partner at PricewaterhouseCoopers LLP, and Suzanne Rich Folsom, General Counsel and Senior Vice President of United States Steel Corporation, discussed these questions and other nuances of the relationship between a company’s general counsel and its chief compliance officer.  See “PwC Survey Examines the Role of the Compliance Officer,” The FCPA Report, Vol. 3, No. 14 (Jul. 9, 2014).

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  • From Vol. 3 No.20 (Oct. 8, 2014)

    CEB Analyzes Key Compliance and Ethics Data

    The compliance function has increased in value and more departments are taking on responsibility for compliance.  Those were some of the preliminary findings from CEB's survey of 300 major companies, the State of the Compliance & Ethics Function.  The findings provide benchmarking information for multi-national companies and will help CEB shape its specialized compliance tools, Ronnie Kann, managing director of CEB’s legal, risk and compliance practice, told The FCPA Report.  He shared takeaways for compliance professionals from the survey.  See also “Anonymous Polling, Focus Groups and ‘Organizational Justice’ Help Companies Avoid FCPA Violations While Growing Revenue,” The FCPA Report, Vol. 1, No. 9 (Oct. 3, 2012).

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  • From Vol. 3 No.13 (Jun. 25, 2014)

    Ernst & Young’s Fraud Survey Warns of Anti-Corruption Complacency

    Despite the government’s continued focus on anti-corruption compliance, Ernst & Young’s 2014 Global Fraud Survey suggests “that companies continue to struggle to respond appropriately to fraud and corruption risks,” Brian Loughman, of EY’s Fraud Investigation & Dispute Services, told The FCPA Report.  Perhaps even more troubling, “a substantial minority of people in the C-Suite appear, at least based on the survey responses, to condone unethical and potentially illegal conduct when their businesses are under pressure,” he said.  The FCPA Report examines the findings and implications of the survey.  See also “Ernst & Young Experts Reveal How Forensic Data Analytics Can Transform Anti-Corruption Compliance,” The FCPA Report, Vol. 3, No. 9 (Apr. 30, 2014).

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  • From Vol. 3 No.12 (Jun. 11, 2014)

    Measuring the Efficacy of Ethics and Compliance Programs

    What exactly makes one anti-corruption compliance program effective and another, that appears to have the same elements, fail to detect and prevent violations?  “It’s all about the culture,” Wayne Brody, a senior advisor at LRN, an ethics and culture advisory firm, told The FCPA Report.  That culture is not intangible, Brody said – effective programs share certain characteristics.  In its 2014 “Ethics and Compliance Program Effectiveness Report,” LRN detailed the results of its extensive research, extracting the factors most commonly associated with an effective compliance program by using its proprietary Program Effectiveness Index.  See “Anonymous Polling, Focus Groups and ‘Organizational Justice’ Help Companies Avoid FCPA Violations While Growing Revenue,” The FCPA Report, Vol. 1, No. 9 (Oct. 3, 2012).

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  • From Vol. 3 No.6 (Mar. 19, 2014)

    Corruption Risks and Compliance Programs in the Oil & Gas Industry: An Interview with Samuel Cooper of Paul Hastings LLP

    Oil and gas was one of the first industries the DOJ and SEC seized on when they began to focus on the FCPA a decade ago.  The corruption risk profile of oil and gas companies remains high, but recent enforcement actions that appear to be the last breaths in a few wide-ranging and longstanding investigations (such as Panalpina and Oil-for-Food) have led to speculation that the government’s attention may be focused elsewhere.  Paul Hastings’ Samuel Cooper, a partner based in the firm’s Houston office, shared his insights with The FCPA Report about corruption risk and FCPA compliance in the oil and gas industry, discussing, among other things, the dynamics of the traditionally high-risk profile of oil and gas companies, the effect on the industry of the early enforcement actions, what’s next for the sector, as well as advice for oil and gas companies (and others) for strengthening their compliance programs.  See also “Compliance Lessons from Total S.A.’s $398 Million FCPA Settlement: Foreign Cooperation, Compliance Monitors, Broad Jurisdiction and the Effect of Reluctant Cooperation with the DOJ and SEC,” The FCPA Report, Vol. 2, No. 12 (Jun. 12, 2013).

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  • From Vol. 3 No.4 (Feb. 19, 2014)

    Six Things Every Business Lawyer Needs to Know About the FCPA

    Whether you’re in-house counsel or a transactional lawyer at a law firm, anti-corruption is something that should very much be on your radar – the government is aggressive, the fines can be astronomical and people do go to jail.  That was the message from William H. Devaney, partner at Venable and moderator of the American Bar Association’s recent webinar, “What Every Business Lawyer Should Know About the FCPA.”  The panel discussion provided business lawyers with information and advice about staying compliant in this anti-corruption enforcement climate.  The panelists were Lynn A. Neils, a partner at Covington & Burling; Carlos Ortiz, a partner at Edwards Wildman; Brian T. Sumner, in-house counsel at Alcoa; and Douglas Tween, a partner at Baker McKenzie.  See also “How to Conduct an Anti-Corruption Investigation: Ten Factors to Consider at the Outset (Part One of Two),” The FCPA Report, Vol. 2. No. 25 (Dec. 18, 2013); “Developing and Implementing the Investigation Plan (Part Two of Two),” Vol. 3, No. 1 (Jan. 8, 2014).

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  • From Vol. 2 No.20 (Oct. 9, 2013)

    Ernst & Young’s 2013 Asia-Pacific Fraud Survey Highlights Disconnect Between Company Policies and Employee Perceptions

    The Asia-Pacific region is an enticing one for companies around the world, with its enormous markets, resources and opportunities.  But there is also significant corruption risk in the region, and that risk may be increasing.  In an extensive recent survey of fraud and corruption in eight APAC countries, Ernst & Young found that “fraudulent practices are on the rise” in APAC nations, and businesses operating there face heightened corruption risk due to weak controls and a weakening economic environment, which is leading businesses to take shortcuts.  EY interviewed employees of large corporations to gauge their perspectives on the extent of corruption in their respective countries and on the effectiveness of various anti-corruption controls.  For a global perspective from EY, see “Ernst & Young’s 2012 Global Fraud Survey Highlights Significant Challenges in Dealing with Corruption and Bribery Risks,” The FCPA Report, Vol. 1, No. 3 (Jul. 11, 2012).

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  • From Vol. 2 No.18 (Sep. 11, 2013)

    Anti-Corruption Professionals from GE, Abbott Laboratories and Navistar Share Proven Strategies on Third-Party Due Diligence, M&A, Training, Nepotism and Regional Risk

    Anti-corruption compliance can feel like a battlefield, with potential landmines at every turn.  But what do practicing in-house compliance professionals view as their biggest challenges?  What issues keep them up at night?  And, most importantly, what have they done to address those issues?  In a panel hosted by the American Conference Institute, three in-house compliance experts shared their practical experience.  They discussed specific challenges they have faced and outlined the strategies they used to effectively address those challenges.  The expert panelists included Matthew Hsu, Senior Counsel, Global Fraud and Anti-Corruption at Abbott Laboratories; Shannon Masson, Senior Counsel at Navistar, Inc.; and Kevin Matthews, Associate General Counsel at GE Oil and Gas.  See also “Insight from Top Companies and Practitioners on How They Are Addressing Current Anti-Corruption Issues, from Self-Reporting to Risk Assessments to Training,” The FCPA Report, Vol. 2, No. 10 (May 15, 2013).

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  • From Vol. 2 No.15 (Jul. 24, 2013)

    How to Demonstrate the Business Value of Anti-Corruption Compliance and Create Management Buy-In

    One of the major challenges faced by in-house compliance personnel and compliance advisors is how to encourage management to buy into the company compliance program – before the company gets into trouble.  Many compliance officers report that they struggle with convincing their colleagues and business partners that anti-corruption compliance is not only necessary for the company to avoid liability, but can also benefit the bottom line.  At a recent conference hosted by the American Conference Institute, Jim Portnoy, Chief Counsel, Corporate and Government Affairs at Kraft Foods, and Stephen Fishbein, partner at Shearman & Sterling LLP, shared their insights on how to get and keep management interested and engaged in anti-corruption compliance.  See also  “Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part Two of Two),” The FCPA Report, Vol. 2, No. 8 (Apr. 17, 2013).

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  • From Vol. 2 No.14 (Jul. 10, 2013)

    How To Keep Employees Engaged and Invested in an Anti-Corruption Compliance Program

    No matter how robust a compliance program is on paper, if employees do not understand the importance of compliance or are not actively participating in protecting the company, the program’s success will be limited.  Amplifying the challenge of maintaining a successful program is the reality that most corporate employees must be educated not only about anti-corruption compliance, but also about other ethical and compliance issues.  Companies attempting to spread the compliance gospel run the risk of over-communicating and losing the attention of their target audience.  In today’s complex regulatory environment, how can a company keep its employees actively engaged in its anti-corruption compliance program?  This article shares insights and strategies from in-house counsel for fostering employee interest in compliance.  See also “Comprehensive FCPA Guidance Provides a Roadmap for Companies to Reevaluate and Revise Their Compliance Policies,” The FCPA Report, Vol. 1. No. 13 (Nov. 28, 2012).

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  • From Vol. 2 No.14 (Jul. 10, 2013)

    Which Individuals Within a Company Face the Greatest Risk of FCPA Prosecution?

    Over the past several years, there has been an uptick in prosecutions of individuals – as opposed to companies – for FCPA violations.  Employees, agents and board members of multi-national corporations who interact with foreign officials, supervise others who interact with foreign officials or exercise control over a company’s finances are all at risk of violating the FCPA.  During a recent program, FCPA experts addressed which individuals are most at risk, which specific activities put these individuals at risk and how companies can mitigate these risks.  See also “Anti-Corruption Compliance Best Practices for Boards of Directors,” The FCPA Report, Vol. 2, No. 12 (Jun. 12, 2013).

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  • From Vol. 2 No.13 (Jun. 26, 2013)

    Top FCPA Practitioners Share Strategies for Detecting, Preventing and Responding to Whistleblower Allegations

    Organizations operating internationally are exposed to seemingly endless sources of complainants – employees, former employees, third-party sales agents, suppliers, distributors and even competitors could potentially become whistleblowers.  How, in such an environment, does a company decrease the likelihood that it will be the subject of a whistleblower complaint?  Corporate whistleblowers remain one of the top concerns of companies subject to the FCPA.  That concern is fueled by the recent implementation of the Dodd-Frank Act’s reward program, which awarded its second money prize on June 12, 2013 to whistleblowers who provided information about a “sham” hedge fund and its chief executive.  Experts predict that more awards are soon to follow.  During two recent panels – one held at the American Bar Association’s Fifth Annual National Institute on Internal Corporate Investigations and Forum for In-house Counsel, and the other at the Practising Law Institute’s Foreign Corrupt Practices Act and International Anti-Corruption Law Developments 2013 program – FCPA practitioners discussed strategies for identifying, preventing and addressing whistleblower allegations.  See also “Specific Strategies from Pfizer, Barrick Gold and Other Leading Companies for Handling Actual and Potential FCPA Whistleblowers,” The FCPA Report, Vol. 1, No. 11 (Nov. 7, 2012).

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  • From Vol. 2 No.8 (Apr. 17, 2013)

    Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part Two of Two)

    A highly qualified chief compliance officer (CCO) is necessary but not sufficient to implement and enforce a best-in-class FCPA compliance program.  In addition to being inherently capable, that CCO also must be empowered.  Even the best CCOs need certain tools to perform effectively in an FCPA compliance role; absent such tools, the work of otherwise effective CCOs can be dangerously undermined.  Unfortunately, studies have consistently shown that when it comes to FCPA compliance, CCOs feel under-resourced, overworked and not as impactful as they can and should be.  How can companies bridge the divide between their FCPA compliance aspirations and the reality of insufficiently empowered CCOs?  This is the second article in a two-part series designed to address this fundamental question.  Fortunately for companies, the most productive answer does not involve throwing more money at the problem, but rather rethinking the solution.  In particular, through a series of conversations with high-level sources with direct experience on this challenging topic, we have identified five essential tools that a CCO needs to do effective FCPA compliance.  Those tools include an appropriate title and actual authority, direct access to the board and management, sufficient budget and resources, a bona fide culture of compliance and an incentive structure that reinforces the culture.  The first article in this series addressed the first three tools – see “Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part One of Two),” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013) – and this article addresses the last two.  Notably, this article gives content and structure to the elusive but all-important concept of a culture of compliance.

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  • From Vol. 2 No.7 (Apr. 3, 2013)

    Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part One of Two)

    Hiring an outstanding chief compliance officer (CCO) is necessary but not sufficient for effective FCPA compliance.  To be effective, the right CCO needs the right tools – actual authority credibly conveyed by an appropriate title; access to the board and management; a workable reporting structure; sufficient budget; quality people; up-to-date technology; and a receptive culture.  Few companies would dispute the notion that a CCO needs the foregoing tools, among others, to do his or her job well.  But fewer still have a coherent and consistent approach to translating these concepts into practice.  How, for example, can a company structure reporting lines to maximize the effectiveness of its CCO and minimize the likelihood of FCPA violations?  What level of board access is appropriate for the CCO, and how can a company facilitate such access?  This article addresses these and similar questions.  In doing so, this article aims to help companies empower their CCOs and thereby minimize the probability and magnitude of FCPA and other compliance violations.  Many of the recommendations in this article do not involve increased spending, but rather a more prudent allocation of resources, better informed structuring and refocused culture.  More effective FCPA compliance is not just about spending more money; it’s about thinking differently, confronting reality and giving the right people the right tools.

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  • From Vol. 1 No.11 (Nov. 7, 2012)

    The New Landscape of Corporate Social Responsibility Regulation and Its Overlap with FCPA Compliance

    New legislative demands on companies go beyond just prohibiting bribery to impose broader social responsibility, such as certifying that their products were not made with child labor, that their employees and supply chain partners did not engage in any trafficking-related activities, and others.  A broad anti-corruption program can incorporate social responsibility and supply chain issues as well as FCPA and anti-bribery elements, as many of the risk areas and bad actors – third parties especially – overlap.  This article – based on a panel at the ABA’s Fifth Annual FCPA Institute in Washington, D.C. on October 19, 2012, as well as independent research – discusses the current international landscape of Corporate Social Responsibility (CSR) laws around the world; the potential tension between CSR and bribery laws; how CSR and FCPA violations overlap; how companies can adapt their FCPA compliance programs to integrate CSR and broader corruption issues; and the likely ways in which the new CSR laws will be enforced.

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  • From Vol. 1 No.10 (Oct. 17, 2012)

    When and How Should Outside Counsel Withdraw from an FCPA Representation or Report Violations to Authorities?

    When an attorney discovers, or strongly suspects, that bribery is taking place, or will take place, at a company she represents, but the company refuses to act, what should the attorney do?  The recent Wal-Mart revelation that the company allegedly thwarted the 2005 recommendation of outside counsel to conduct a thorough anti-corruption investigation is just one example of a potentially difficult situation for counsel.  When should an attorney withdraw from an investigation to protect herself from being complicit in the bribery?  When should she report the client to the government?  The attorney client privilege provides significant protection for attorneys when they learn of a violation, but that protection is not iron clad, especially as authorities say that they will not hesitate to prosecute lawyers who are involved in a client’s corruption.  Additionally, attorneys must weigh their reputations with other clients and with the government.  This article provides context and practical guidance for counsel facing the thorny question of withdrawal.  In particular, this article discusses: the legal and regulatory landscape, including ABA Model Rules and SEC rules that discuss withdrawal, reporting and the scope of the attorney client privilege; recent cases where attorneys withdrew from representation or were implicated in a client’s bad acts; considerations regarding how to document the representation to ease or prevent withdrawal later; factors that influence a decision to withdraw and whether to withdraw “noisily” or not; and when and why an attorney may want to report a violation to authorities.

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  • From Vol. 1 No.10 (Oct. 17, 2012)

    Transparency International UK 2012 Defence Industry Anti-Corruption Index Highlights Industry-Wide Deficiencies in Anti-Corruption Practices and Disclosure

    The Defence and Security Programme of Transparency International UK (TI-UK) has released its “Defence Companies Anti-Corruption Index 2012.”  TI-UK surveyed 129 companies from 31 countries, drawing information primarily “from what companies disclose publicly on their websites about their anti-corruption systems.”  Concluding that two-thirds of the defense companies surveyed “do not provide adequate levels of transparency,” TI-UK seeks to goad those companies into sharing more information about their anti-corruption efforts and to encourage stakeholders to push them in the right direction.  This article reviews TI-UK’s findings and recommendations.

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  • From Vol. 1 No.9 (Oct. 3, 2012)

    Anonymous Polling, Focus Groups and “Organizational Justice” Help Companies Avoid FCPA Violations While Growing Revenue

    The notion that anti-bribery compliance and revenue generation are at odds has a superficial appeal and a long tradition.  But the notion does not hold up under theoretical scrutiny, and it has been discredited empirically.  As a theoretical matter, it makes good sense that a culture of ethics and excellence leads to high long-term returns, while a culture of bribery leads to misallocation of resources, among other problems.  And as an empirical matter, deep research by CEB (formerly the Corporate Executive Board), along with CEB’s extensive advisory experience, highlight a strong correlation between long-term revenue growth and a corporate culture of integrity.  “Integrity capital,” as CEB calls it, is not just the right thing to do or, less charitably, applied sanctimoniousness.  Rather, it is good business and effective strategy.  Working from an interview with Tracy Davis Bradley, a senior director at CEB; a recent article by Dan Currell, an executive director at CEB, and Bradley in the Harvard Business Review; as well as research provided to The FCPA Report by CEB, this article sheds light on some of the footpaths connecting ethics and revenue.  In particular, this article outlines specific steps that companies can take to avoid FCPA violations while simultaneously driving business growth; why the shaky economy may be driving bribery in developing countries; how integrity capital can help businesses’ bottom lines; how companies can make their hotlines more effective; how anonymous polling and focus groups, if done well, can yield surprisingly good results; and why companies should not only consistently and quickly punish offenders, but give recognition to employees who report wrongdoing.

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