The Anti-Corruption Report

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

Articles By Topic

By Topic: Compliance Team

  • From Vol. 7 No.14 (Jul. 11, 2018)

    Beyond Technical Capacity: The Importance of Building Relationships As a CCO

    No matter how skilled a chief compliance officer is, if the business does not trust its compliance leader, little is likely to be accomplished. The Anti-Corruption Report recently spoke with Kristy Grant‑Hart, founder and CEO of Spark Compliance and formerly the CCO at United International Pictures, about the importance of building relationships throughout an organization. From the business to the board, Grant-Hart shares her strategies for establishing rapport and building trust. See “Finding the Softer Side: VMware’s Senior Director of Ethics and Compliance Discusses Her Department’s ‘Re-Brand’” (Jan. 24, 2018).

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  • From Vol. 7 No.13 (Jun. 27, 2018)

    Using Data Analytics to Boost Compliance Program Effectiveness

    Data analytics is becoming a critical component of FCPA compliance. Unfortunately, like other fields that involve math, many lawyers find it beyond their skill set, according to Richard W. Grime, a partner at Gibson Dunn, while moderating a recent PLI program on maximizing the use of data in compliance programs. However, lawyers must become familiar and comfortable with analyzing data if they are going to be doing any FCPA compliance work, he said. The speakers on the panel also included Hui Chen, an independent ethics and compliance consultant and former DOJ compliance counsel; Sulaksh R. Shah, a partner at PwC; and Zachary N. Coseglia, assistant general counsel and head of global compliance monitoring and analytics at Pfizer Inc. 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. 7 No.7 (Apr. 4, 2018)

    A Guide to Identifying and Working With Quality Local Counsel

    Operating internationally requires a company to identify and retain a multitude of advisors. According to Suzanne Rich Folsom, a corporate governance and ethics expert and the former general counsel, chief compliance officer and SVP of government affairs and global public policy at United States Steel Corporation, “any corporation seeking to compete lawfully in today’s dynamic global economy will be faced with the need to retain local counsel to assist in addressing a host of matters.” This is particularly true when a company is conducting routine anti-corruption compliance measures, such as building compliance policies or investigating potential corruption violations. The Anti-Corruption Report spoke with in-house counsel and their advisors about the best strategies for identifying, hiring and managing local counsel. See “The Curious Case of “All Relevant Facts” in Internal Investigations” (Mar. 7, 2018).

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  • From Vol. 6 No.24 (Dec. 13, 2017)

    2017 Compliance Salary Survey: Does Yours Measure Up?

    A new compensation survey by the Society of Corporate Compliance and Ethics addresses pay rates as they relate to job responsibilities, titles, type of organization, educational levels, geographic locations and a variety of other factors. While it is only logical that the higher up on an organizational food chain one might be located, the higher the compensation, there are a few surprises. The legal and regulatory compliance field does not seem to be ethnically diverse (with the majority of survey respondents identifying themselves as white), and the vast majority of those in this field, from the CCO on down, do not have employment contracts. The Anti-Corruption Report takes a close look at the details. See “Consero Survey Offers Benchmarking Data on Chief Compliance Officer Compensation, Budgets and Access to Top Management” (Jan. 9, 2013).

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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. 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.12 (Jun. 15, 2016)

    The Italian Organismo di Vigilanza, A Model for an Effective Compliance Committee

    As anti-corruption enforcement continues to expand around the globe, companies have much to learn from the way organizations operating in other regions approach compliance. In Italy, companies can avoid anti-corruption liability by adopting effective compliance standards and controls including a compliance committee called an Organismo di Vigilanza. According to the best practices and guidelines issued by relevant industry associations, a company’s Organismo di Vigilanza, in combination with company leadership, should be responsible for the supervision of the company’s compliance program, preventing prohibited behaviors and for reviews, updates and training. In a guest article, Aurelio Giovannelli and Roberto Cursano – partner and counsel, respectively, at Baker & McKenzie’s Studio Professionale Associato in Rome – discuss the laws governing the Organismo di Vigilanza and how to form such a committee. See also “Regional Risk Spotlight: Baker & McKenzie Lawyers Discuss Italy’s Corruption Risks and Unique Compliance Model” (Apr. 20, 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.9 (May 4, 2016)

    Corporate Governance Is Key to Avon’s FCPA-Related Civil Settlements

    The ramifications of corporate FCPA cases often extend beyond a settlement with the DOJ or SEC, as evidenced by the civil cases against Avon. The company, which resolved FCPA charges in December 2014 with the DOJ and SEC for $135 million, recently announced that it has settled several pending shareholder derivative and books and records lawsuits stemming from those FCPA allegations. The actions include claims for failure to comply with the FCPA, inadequate internal controls, breach of fiduciary duty, corporate waste and unjust enrichment. In addition to mutual releases, and the payment by Avon of a portion of the plaintiffs’ legal fees, a cornerstone of the settlement is Avon’s undertaking to adopt or maintain certain corporate governance measures aimed at assuring FCPA compliance. See also “Avon Class Action Dismissal Illustrates Challenges of FCPA-Related Shareholder Derivative Suits” (Oct. 22, 2014).

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  • From Vol. 5 No.4 (Feb. 24, 2016)

    Best Practices for Performing Compliance Program Assessments:  An Interview With Susan Markel of AlixPartners

    Last week, both the SEC and DOJ settled with Massachusetts-based software firm PTC and, as part of the non-prosecution agreement, the DOJ once again outlined what it expects from compliance programs, including a “periodic risk-based review.” The DOJ recommended that such reviews assess the risks the company faces but also look at the anti-corruption policies and procedures to ensure their continued effectiveness. These program assessments can take different shapes and forms, and can involve a variety of in-house and outside experts. To get an auditor’s perspective on program assessments, The FCPA Report spoke with Susan Markel of AlixPartners about the benefits of program assessments and how teams of lawyers and auditors can work together to perform such assessments effectively and efficiently. See “Best Practices for Performing Compliance Program Assessments: An Interview With Jeffrey Kaplan of Kaplan & Walker” (Nov. 4, 2015).

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  • From Vol. 4 No.26 (Dec. 16, 2015)

    Breaking Down Compliance Silos and Creating a More Centralized Compliance Program

    Growing companies, particularly those expanding through mergers and acquisitions, face many challenges when trying to integrate and upgrade their anti-corruption programs.  A company may discover, for example, that various business units are approaching compliance in very different ways and have different levels of sophistication.  One way to address these issues is to move towards a more centralized compliance model, Bobby Kipp, compliance, ethics and risk management leader at PwC, explained during an interview with The FCPA Report.  Kipp recommends that companies consider a hybrid approach, centralizing some functions but allowing the businesses to be involved in implementation.  Kipp addressed the risks and benefits of using a hybrid approach and detailed the steps a company should take to break down compliance silos and create a hybrid system.  See “Creating a Values-Based Compliance Code and Recruiting Compliance Champions to Spread the Message,” The FCPA Report, Vol. 4, No. 23 (Nov. 4, 2015).

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  • From Vol. 4 No.25 (Dec. 2, 2015)

    Defining, Documenting and Measuring Compliance Program Effectiveness

    The risks of having a compliance program that exists only on paper are well-known, but measuring whether the program is actually working, how it is working, and documenting those findings for internal and external stakeholders present challenges.  A recent program at the SCCE Annual Compliance & Ethics Institute considered how compliance professionals can take steps, through documentation and measurement, to demonstrate the effectiveness of their compliance programs.  The program featured Scott Hilsen, a managing director at KPMG Forensic and Jean-Paul Durand, a vice president and chief ethics and compliance officer at Tech Data Corporation.  See also “How Can CCOs Demonstrate Compliance Program Effectiveness?,” The FCPA Report, Vol. 3, No. 19 (Sep. 24, 2014).

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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.19 (Sep. 23, 2015)

    How the Board and Compliance View Each Other

    Robust communication between the board and the compliance department is integral for a strong anti-corruption program, but relations between the two groups are not always straightforward.  The Society of Corporate Compliance and Ethics (SCCE), in cooperation with New York Stock Exchange Governance Services (NYSE), recently explored the interaction between board-level personnel and compliance personnel in their 2015 Board of Director’s Compliance and Ethics Survey.  NYSE senior compliance counsel Eric Morehead and senior analyst Leslie Prendergast, along with SCCE vice president Adam Turteltaub, discussed the survey in a webinar.  They compared various compliance topics from the perspective of both compliance officers and the board, including how companies should structure reporting lines, how frequently compliance should report to the board, how comfortable the board is hearing from compliance and the traits boards look for in CCOs.  See also “Customizing Codes of Conduct to Spread the Message of Compliance,” The FCPA Report, Vol. 4, No. 5 (Mar. 4, 2015); “Using Behavioral Psychology Tools to Leverage Compliance Resources,” The FCPA Report, Vol. 4, No. 3 (Feb. 4, 2015).

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  • From Vol. 4 No.18 (Sep. 9, 2015)

    Thinking Outside the Box: Examining the Growing Trend of Compliance Outsourcing (Part Two of Two)

    Chief compliance officers are regularly being pressured to do more with less.  Many are operating in businesses that are rapidly becoming more complex, both in terms of their global reach and in their use of sophisticated information technology, PwC partner Jerry Stone told The FCPA Report.  At the same time, a CCO faces increasing expectations from global regulators, the board of directors and the C-Suite, all while trying to keep compliance costs low.  To address this myriad of concerns, many companies are outsourcing some or all of their compliance functions to third-party vendors.  In this two-part article series, The FCPA Report examines the outsourcing trend and discusses the benefits and risks of outsourcing various compliance functions.  The first article discussed why a company might outsource some or all of its compliance functions and explored the associated benefits and risks.  This second article looks at how companies are outsourcing various compliance functions and details three steps a company should take before selecting a vendor.  See also “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); Part Two of Two, Vol. 2, No. 8 (Apr. 17, 2013).

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  • From Vol. 4 No.17 (Aug. 19, 2015)

    Thinking Outside the Box: Examining the Growing Trend of Compliance Outsourcing (Part One of Two)

    As anti-corruption enforcement efforts mature, governments are raising the compliance bar.  Implementing and maintaining a best-in-class compliance program that meets these ever-rising standards requires significant human resources and can overwhelm a compliance department, even at a large company.  To help ease the burden on in-house compliance personnel, many companies are outsourcing compliance activities – such as proactive monitoring, training and hotline operations – to third-party vendors.  Some have even gone so far as to hire an outside vendor to serve as their chief compliance officer.  In this two-part article series, we examine the outsourcing trend and discuss the benefits and risks of outsourcing various compliance functions.  This first article discusses the reasons a company might outsource some or all of its compliance functions and explores the associated risks and benefits.  The second article will look at how companies are outsourcing various compliance functions.  See “The Nuts and Bolts of Anti-Corruption Hotlines: An Interview with Benjamin Haley of Covington & Burling,” The FCPA Report, Vol. 3, No. 19 (Sep. 24, 2014).

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  • From Vol. 4 No.14 (Jul. 8, 2015)

    Ten Steps a Company Can Take to Mitigate Corruption Risk When Entering a New Market (Part Two of Two)

    Expanding into new markets provides companies with unparalleled opportunities for growth, but establishing operations in a new location requires a company to navigate numerous corruption landmines.  The FCPA Report’s ten-step guide to mitigating corruption risk when entering a new market is designed to help companies create and implement an effective market-entry strategy.  This second article in the series discusses the final six steps: addressing logistical challenges; making disclosures to local governments; creating an integration plan; establishing a compliance program; implementing internal controls; and monitoring and reviewing that program.  The first article in the series addressed the first four steps, including how a company can build a risk profile for the country; the various methods companies can use to enter new markets; and how to mitigate the risk from local partners and other third parties.  See also “Gibson Dunn Attorneys Take the Pulse of Anti-Corruption Risks in Emerging Markets,” The FCPA Report, Vol. 3, No. 3 (Feb. 5, 2014).

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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.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.7 (Apr. 1, 2015)

    Experts Discuss the Crucial First 48 Hours of an Internal Investigation and Beyond

    When a company uncovers an anti-corruption problem, it must be ready to react quickly.  “The first 48 hours of any investigation are often critical to the success of that investigation,” Andrew Foose, Vice President of Advisory Services at NAVEX Global, said during a panel at the recent Global Ethics Summit, hosted by Ethisphere Institute and Thomson Reuters.  Foose and the other panelists, William Jacobson, a partner at Orrick, Herrington & Sutcliffe; Adam Briggs, Regulatory Compliance & Ethics Attorney for United Parcel Service; and Benjamin Gruenstein, a partner at Cravath, Swaine & Moore, detailed strategies for those crucial first days and also discussed long-term best practices for conducting effective investigations.  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. 4 No.2 (Jan. 21, 2015)

    The Board’s Role in an Anti-Corruption Investigation

    An educated and active board of directors can do a lot to keep companies in compliance with anti-corruption laws, and if there is a potential violation, can steward the company successfully through the investigation process.  An effective board must maintain a working relationship with the members of management responsible for the compliance program and must understand the specific risks faced by the company.  During a recent panel at the Practising Law Institute’s Directors’ Institute on Corporate Governance 2014, experts explained the active role boards should take in the current environment of increased enforcement actions and sanctions.  The panel featured Dennis Beresford, Executive in Residence at the J.M. Tull School of Accounting at the University of Georgia and former Chairman of the Financial Accounting Standards Board; Larry Boyd, Executive Vice President, Secretary, and General Counsel of Ingram Micro Inc.; Robert Khuzami, a partner at Kirkland & Ellis and former SEC Director of Enforcement; and Antonio Yanez, Jr., a partner at Willkie Farr & Gallagher.  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. 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.23 (Nov. 19, 2014)

    Management Compliance Committees: Operation and Support (Part Three of Three)

    A management-level compliance committee can address corruption risks, improve relationships between compliance and business personnel and show regulators that the company takes compliance seriously.  But unrealistic plans and failure to follow through can have the opposite effect.  To assist companies in establishing and maintaining effective compliance committees, The FCPA Report is publishing a three-part series on the topic.  This, the third article, advises companies about how to structure their compliance committees.  It includes discussions of who should oversee the committee, advice on how to support the committee, and pointers on committee operations.  In the first article, we weighed the pros and cons of having a committee and discussed what types of companies may benefit from having a compliance committee.  The second article detailed best practices for forming and operating a compliance committee.

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  • From Vol. 3 No.22 (Nov. 5, 2014)

    Management Compliance Committees: Creation and Formation (Part Two of Three)

    Many companies with established compliance programs are turning to management-level compliance committees to enhance their oversight capabilities.  “When carefully designed and crafted, a compliance committee can be a very effective component of a company’s overall compliance program,” Erich Grosz, counsel at Debevoise & Plimpton told The FCPA Report.  What exploratory steps are necessary to create a compliance committee?  Once established, how should the committee function?  This article addresses these questions and more, detailing best practices for forming a compliance committee.  In the first article, The FCPA Report weighed the pros and cons of having a committee and discussed what types of companies may benefit from having a compliance committee.  The third article will discuss best practices for operating a compliance committee.  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 of Three, Vol. 2, No. 23 (Nov. 20, 2013); Part Three of Three (Dec. 4, 2013). 

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  • From Vol. 3 No.21 (Oct. 22, 2014)

    Management Compliance Committees: Risks and Benefits (Part One of Three)

    As companies strive to integrate compliance into the fiber of their business cultures, many are turning to compliance committees to enhance their compliance programs.  A compliance committee at the management level can help mitigate corruption risk for companies operating multi-nationally, it can facilitate the relationship between compliance and business personnel and it can demonstrate to regulators that a company is serious about compliance.  But, a compliance committee can also add additional bureaucracy, result in the loss of privilege protections for sensitive information and facilitate enterprise-wide chatter about sensitive issues.  This article weighs the pros and cons and discusses what types of companies may benefit from having a compliance committee.  The second article in this series will discuss the mechanics of forming and operating such a committee; a third article will discuss best practices for operating a compliance committee.  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 of Three, Vol. 2, No. 23 (Nov 20, 2013), Part Three of Three (Dec. 4, 2013).

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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.18 (Sep. 10, 2014)

    Compliance Experts from Altria, Noble Energy and HP Share Corruption Investigation Best Practices

    A recent American Bar Association program brought together compliance executives from several public corporations to discuss how to both satisfy the client and mollify the government during an anti-corruption investigation – no easy task.  The panelists, along with moderator Mara V.J. Senn, a partner at Arnold & Porter, shared insights and experiences on preparedness for internal investigations, the role of outside counsel, the calculus of voluntary disclosures and a number of other common issues faced by companies conducting internal investigations.  For more from Senn on internal investigations, see “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); and “Developing and Implementing the Investigation Plan (Part Two of Two),” The FCPA Report, Vol. 3, No. 1 (Jan. 8, 2014).  

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  • From Vol. 3 No.17 (Aug. 20, 2014)

    Compliance Experts from AT&T and Southern Co. Share Anti-Corruption Auditing and Assessment Best Practices

    Key compliance personnel at two major public companies recently shared their insights on the best ways to monitor and assess compliance programs.  At a panel at PLI's 2014 Corporate Compliance and Ethics Institute, James R. Turner, compliance director at Alabama Power Company, a subsidiary of Southern Company, and Kathy Rehmer, Vice President of Corporate Compliance at AT&T, discussed how their companies perform audits and routine testing of their compliance programs. See also The FCPA Report’s three-part series, “Best Practices for Reviewing Anti-Corruption Compliance Programs”: Government Expectations, Scheduling and Staffing; Challenges, Preparation and Risk Evaluation; and Implementation, Remediation and Documentation.

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  • From Vol. 3 No.14 (Jul. 9, 2014)

    PwC Survey Examines the Role of the Compliance Officer

    In today’s rapidly changing business environment, continually benchmarking and assessing compliance procedures is integral to maintaining a robust program.  PricewaterhouseCooper’s 2014 State of Compliance Survey Report depicts the state of compliance programs and provides compliance insights, including three ways CCOs can improve their relationships with the business units.  The survey also reveals how companies are using social media, how much they are spending on compliance, how they are structuring reporting lines and more.  See also “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); Part Two of Two, Vol. 2, No. 8 (Apr. 17, 2013).

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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.10 (May 14, 2014)

    Walmart’s Global CCO Discusses the Company’s Restructured Anti-Corruption Compliance Program

    The high-profile bribery allegations against Wal-Mart Stores (Walmart) put the FCPA in a global spotlight, prompting board members across the country to ask counsel about corruption risks.  The company itself, a global retail behemoth, has been deeply embroiled in a wide-ranging internal investigation since its 2011 SEC disclosure of possible FCPA violations, followed by the 2012 New York Times report that Walmart had paid over $24 million in bribes in Mexico.  The investigation has cost the company upwards of $500 million so far.  Walmart hired Jay Jorgensen as Senior Vice President and Global Chief Compliance Officer to lead the compliance efforts in 2012.  Jorgensen explained the details of Walmart’s new compliance program in a recent interview at the Dow Jones Global Compliance Symposium and discussed the lessons Walmart learned and the challenges that large multi-national companies face in constructing effective compliance programs.  See “A Guide to Disclosing Corruption Investigations in SEC Filings (Part Three of Four),” The FCPA Report, Vol. 2, No. 11 (May 29, 2013) (tracing Walmart’s disclosures).

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  • From Vol. 3 No.7 (Apr. 2, 2014)

    Top DOJ and SEC Officials Discuss FCPA Enforcement Priorities and Mechanics

    At this year’s Momentum Global Anti-Corruption Congress, Charles Cain, Deputy Chief of the SEC’s FCPA Unit and Jeffrey H. Knox, Chief of the Fraud Section of the DOJ, Criminal Division, lifted the veil on the government’s thinking in FCPA investigations.  The discussion, led by David H. Resnicoff, a member at Miller & Chevalier, covered a range of topics on the minds of FCPA practitioners and compliance officers, including the timing of voluntary self-disclosures, the kinds of cases the government may decline to pursue, effective cooperation with FCPA investigations, the role of audit committees in compliance strategies and the programmatic success of the FCPA Guidance released in 2012.  See “When Should a Company Voluntarily Disclose an FCPA Investigation?,” The FCPA Report, Vol. 3, No. 4 (Feb. 19, 2014); and “DOJ and SEC Officials Provide Candid Insight into the Recently Issued FCPA Guidance,” The FCPA Report, Vol. 1, No. 13 (Nov. 28, 2012).

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  • From Vol. 3 No.5 (Mar. 5, 2014)

    Do Compliance Officers Have More Seats in the C-Suite?

    The influence of CCOs in global companies has grown over the past decade as the enforcement landscape in many areas – notably the FCPA – has changed.  Yet, where a CCO should fit into a company's reporting structure remains unsettled.  A recent survey conducted by the Society of Corporate Compliance and Ethics and the Health Care Compliance Association examined how CCOs are interacting with boards of directors, providing benchmarks for companies.  See “How to Structure Chief Compliance Officer Reporting Lines to Maximize the Efficacy of Anti-Corruption Compliance (Part One of Three),” Vol. 2, No. 22 (Nov. 6, 2013), Part Two of Three, Vol. 2, No. 23 (Nov 20, 2013), Part Three of Three, Vol. 2, No. 24 (Dec. 4, 2013).

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  • From Vol. 3 No.5 (Mar. 5, 2014)

    Troubled SNC-Lavalin Appoints New CCO

    SNC-Lavalin, the Canadian construction and engineering giant, has been mired in corruption allegations and charges for years.  Many of its executives face corruption charges and many of its affiliates are included on the World Bank debarment list.  Among its continuing efforts to turn the page on these scandals, the company recently appointed a new CCO, David Wilkins.  The FCPA Report examines that appointment, SNC-Lavalin’s corruption troubles and some of the steps it has taken to fix them.  See also “Doing Business with the World Bank: Understanding and Avoiding Debarment,” The FCPA Report, Vol. 2, No. 10 (May 15, 2013).

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  • From Vol. 3 No.3 (Feb. 5, 2014)

    Creating Efficiency in Legal and Compliance Departments: An Interview with Varun Mehta, Vice President at Clutch Group

    More than two-thirds of compliance officers say they don’t have enough resources to develop and implement sufficient compliance programs.  The complaints are, in part, prompted by the growing volume of data that companies produce and handle as well as the increasingly complex regulatory landscape.  When it comes to anti-corruption compliance, in-house departments must create and maintain programs effective at preventing, detecting and remediating FCPA violations all while minimizing costs to the company.  The stakes are high – a company that fails to maintain an adequate program can find itself at a disadvantage if a violation does occur, while an effective program can earn the company credit with the government.  The FCPA Report recently spoke with Varun Mehta, Vice President of Legal and Compliance Solutions at Clutch Group, about ways companies can identify and address inefficiencies in their legal and compliance departments, including handling data before and during an investigation, choosing automated software programs, structuring reporting lines, conducting risk assessments and performing due diligence on third parties.  See also “Conducting Effective Anti-Corruption Risk Assessments: An Interview with Kevin Bennett, Managing Director, Forensic and Valuation Services, Grant Thornton LLP,” The FCPA Report, Vol. 2, No. 24 (Dec. 4, 2014).

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  • From Vol. 2 No.24 (Dec. 4, 2013)

    How to Structure Chief Compliance Officer Reporting Lines to Maximize the Efficacy of Anti-Corruption Compliance (Part Three of Three)

    To whom a company’s chief compliance office reports fundamentally affects the authority of the CCO, directly influencing the effectiveness of the company’s anti-corruption compliance program and the company’s reputation and revenue.  However, there is little guidance, official or otherwise, on how to best tailor a reporting structure to a company’s needs.  To help companies with this critical task, The FCPA Report is publishing a three-part series on compliance reporting lines.  This, the third article in the series, explores the pros and cons of having the CCO report to both the board and a member of management, provides a roadmap for CCOs handling compliance violations (including insight from the former head of compliance at AIG), explores how CCOs can protect themselves from liability and discusses how companies should evaluate their reporting structures.  The first article in the series addressed the recent trend of companies shifting away from direct reporting of compliance to the legal department, discussed guidance provided by the government on this topic, outlined various issues a company should consider when choosing a reporting structure and explained why there is no one-size-fits-all solution to this compliance quandary.  The second article explored the benefits and drawbacks of five different reporting line structures.  See also “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); Part Two of Two, Vol. 2, No. 8 (Apr. 17, 2013). 

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  • From Vol. 2 No.23 (Nov. 20, 2013)

    How to Structure Chief Compliance Officer Reporting Lines to Maximize the Efficacy of Anti-Corruption Compliance (Part Two of Three)

    The structure of a company’s compliance reporting lines is a fundamental element of its ability to build and maintain an effective anti-corruption compliance program.  To whom a company’s chief compliance officer reports influences that CCO’s visibility, authority and effectiveness – which, in this era of increasing enforcement, affect the company’s revenue and reputation.  However, reporting structures vary among companies, and best practices are unsettled.  The FCPA Report is examining various reporting structures in a three-part series.  This article, the second in the series, explores the benefits and drawbacks of five different reporting line structures.  See also “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); Part Two of Two, Vol. 2, No. 8 (Apr. 17, 2013). 

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  • From Vol. 2 No.22 (Nov. 6, 2013)

    How to Structure Chief Compliance Officer Reporting Lines to Maximize the Efficacy of Anti-Corruption Compliance (Part One of Three)

    The structure of a chief compliance officer’s reporting line within a company fundamentally affects the authority and efficacy of the CCO.  Operating, investment and other companies generally agree on the stakes of appropriately structuring CCO reporting lines – they agree that the right reporting design is essential to revenue and risk mitigation – but industry practice on the topic is by no means settled.  Companies routinely ask, for example: Does having the CCO report to the company’s CEO – as opposed to the board of directors – confer sufficient authority?  Can the CCO operate effectively while reporting to the general counsel?  Is a direct line from the CCO to the board a requirement for an effective compliance program?  To help companies answer these questions, The FCPA Report is publishing a three-part series examining the pros and cons of various reporting structures.  This article, the first in the series, (1) assesses the recent trend of companies shifting away from direct reporting of compliance to the legal department, (2) discusses guidance provided by the government on this topic, (3) outlines various issues a company should consider when choosing a reporting structure and (4) explains why there is no one-size-fits-all solution to this compliance quandary.  See also “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); Part Two of Two, Vol. 2, No. 8 (Apr. 17, 2013).  On evaluating compliance programs generally, see “Best Practices for Reviewing Anti-Corruption Compliance Programs: Implementation, Remediation and Documentation (Part Three of Three),” The FCPA Report, Vol. 2, No. 18 (Sep. 11, 2013).

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  • From Vol. 2 No.16 (Aug. 7, 2013)

    Best Practices for Reviewing Anti-Corruption Compliance Programs: Government Expectations, Scheduling and Staffing (Part One of Three)

    The recent joint DOJ/SEC Guidance reflects the government’s view that, in order to be effective, an FCPA compliance program must be periodically reviewed and improved.  However, neither the Guidance nor any other authority specifies how frequently such reviews should be conducted, how expansive such reviews should be or what steps companies should take to improve discovered shortcomings.  In the absence of concrete and authoritative direction on this topic, how should companies approach the ambiguous but critical task of reviewing and improving their compliance programs?  This article is the first in a three-part series addressing this question.  Specifically, this article discusses the importance of regular anti-corruption compliance reviews; details the government’s expectations about reviews; outlines how to create an efficient and effective compliance review schedule; and specifies how companies should staff their compliance reviews.  The second installment will discuss the biggest challenges companies face when conducting a review; what a company should consider when preparing for a review; how a company should prepare to perform a review; and what areas the review should address.  The third and final article in the series will provide strategies for conducting the actual review; discuss what a company should do post-review; outline issues surrounding documentation of the review; and examine how FCPA settlement agreements affect reviews.  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)

    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.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. 2 No.1 (Jan. 9, 2013)

    Consero Survey Offers Benchmarking Data on Chief Compliance Officer Compensation, Budgets and Access to Top Management

    Consero Group LLC (Consero) recently conducted a survey of chief compliance officers (CCOs) of major corporations.  The survey provides data on compliance departments with respect to department size, access to top management, budgets and compensation.  Consero conducted the survey at its October 2012 Corporate Compliance and Ethics Forum, held in Palm Beach Gardens.  Forty-eight of the Forum’s attendees – all CCOs of Fortune 1,000 companies – responded to the questions.  See also “Top General Counsel Compensation Increasing Amidst Growing Pressure on In-House Law Departments,” The FCPA Report, Vol. 1, No. 14 (Dec. 12, 2012).

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  • From Vol. 1 No.14 (Dec. 12, 2012)

    Top General Counsel Compensation Increasing Amidst Growing Pressure on In-House Law Departments

    Equilar, Inc., an executive compensation data firm, recently released a report detailing compensation levels, components and trends for General Counsels (GCs) at Fortune 1,000 companies, as well as the impact on compensation of the growing role of GCs in FCPA compliance.

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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.2 (Jun. 20, 2012)

    Kroll Benchmarking Report Surveys State of FCPA Compliance at U.S. Multinationals

    Risk management firm Kroll Advisory Solutions (Kroll), a division of Altegrity, recently released its 2012 FCPA Benchmarking Report, including and analyzing the results of its annual survey of FCPA preparedness.  The survey report is “an in-depth study designed to take the pulse of corporate compliance officers at U.S.-based multinationals and to provide benchmarks for the current state of anti-bribery preparedness,” according to Kroll.  This article conveys the key points from the benchmarking report and offers critical insights for companies looking to measure their FCPA compliance programs against best practices.

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