The Anti-Corruption Report

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

Articles By Topic

By Topic: Code of Conduct

  • From Vol. 7 No.18 (Sep. 5, 2018)

    Modernizing a Code of Conduct: What to Include

    A well-drafted code of conduct can address employees’ most pressing ethics and compliance questions and help to communicate the company’s values. On the flipside, a code that lacks the information truly relevant to employees is a missed opportunity and one that is overly dense or hard to navigate can keep employees from finding what they need. The Anti-Corruption Report spoke with compliance professionals from a wide variety of companies as well as outside vendors about how to strike the right balance. This third article in our series discusses the meat of the code: what should be included, what each section should look like, what techniques a company can use to highlight information and more. Previous articles discussed what to consider before drafting and choosing a medium and creating content.

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  • From Vol. 7 No.16 (Aug. 8, 2018)

    Modernizing a Code of Conduct: Choosing a Medium and Drafting

    A modern code of conduct must be engaging, easily accessible and serve as a resource for employees. Beyond those basics, a company has a tremendous amount of flexibility. The Anti-Corruption Report recently spoke with compliance professionals from a wide variety of companies as well as outside vendors about their approaches to modernizing the company’s code. This second article in our series shares their thoughts on what a code should look like, how it is published, who should draft it and what information should be included. See also “Modernizing a Code of Conduct: What to Consider Before Drafting” (July 25, 2018).

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  • From Vol. 7 No.15 (Jul. 25, 2018)

    Modernizing a Code of Conduct: What to Consider Before Drafting

    In an ideal universe, a company’s code of conduct serves as its constitution: an inspiring document that provides guidance to employees and highlights the company’s values. Yet, often codes are lengthy, rules-based tomes that serve more to bore company employees (if they read the code at all) than to motivate them. To combat this, many companies are revising and revitalizing their codes to make them more accessible and useful. The Anti-Corruption Report recently spoke with compliance professionals from a wide variety of companies as well as outside vendors about how, when and why to update a company’s code. See “Creating Engaging and Globally Relevant Ethics & Compliance Materials” (Oct. 18, 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.19 (Oct. 4, 2017)

    Creating Tomorrow’s Code, Today: Designing an Effective Mobile-First Code of Conduct

    Creating a digital, mobile-first code of conduct is an effective means of delivering crucial policy information and ethical decision-making guidance to the modern workforce. In a guest article, Michael Lane, a managing director at marketing agency Designory, discusses the societal changes that have spawned the need for a mobile-first code of conduct and then provides guidance on how companies can begin to adapt their codes to be effectively mobile-first. Lane will present a panel on creating a mobile-first code of conduct at the Society for Corporate Compliance & Ethics’ 16th Annual Compliance and Ethics Institute in Las Vegas on October 17, 2017, along with Krishna Juvvadi, a director at Uber Technologies. See “Creating a Values-Based Compliance Code and Recruiting Compliance Champions to Spread the Message” (Nov. 4, 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.8 (Apr. 20, 2016)

    Regional Risk Spotlight: Baker & McKenzie Lawyers Discuss Italy’s Corruption Risks and Unique Compliance Model 

    There is a growing trend, particularly in European countries, of implementing laws that outline the best practices for an anti-corruption compliance program and then allow a company to assert their effective compliance program as a defense to anti-corruption violations. Italy – a country riddled by corruption scandals, most publicly during the tenure of Prime Minister Silvio Berlusconi – has recently introduced an innovative set of laws that takes these proscriptive best practices a step further, particularly with regard to monitoring compliance programs. The FCPA Report recently spoke with Roberto Cursano and Aurelio Giovannelli of the Studio Professionale Associato of Baker & McKenzie located in Rome about the state of anti-corruption compliance in Italy. See previously “Analyzing Spain’s New Corporate Compliance Defense” (Apr. 6, 2016).

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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.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.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.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)

    Checklist of FCPA Issues to Consider Before and After Making a Charitable Donation

    Charitable donations can be effective guises for bribes, but can also be perfectly legitimate and benefit whole communities – in a sense, countering the corrosive impact of corruption.  Separating the altruistic payments from the problematic payments that improperly influence a foreign official can be challenging, especially when a foreign official has some connection to the charity.  The FCPA Report has compiled a non-exhaustive list of considerations to help companies formulate policies for smart charitable giving and to encourage good corporate citizenship while avoiding FCPA violations.  See also “Defining the Corruption Risks of Foreign Political Contributions,” The FCPA Report, Vol. 3, No. 18 (Sep. 10, 2014).

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  • From Vol. 4 No.5 (Mar. 4, 2015)

    $16 Million Goodyear SEC Settlement Highlights M&A Risks and Subsidiary Liability

    Goodyear Tire & Rubber Company has agreed to pay $16 million to settle civil FCPA charges, resolving allegations that it failed to detect more than $3.2 million in improper payments made by its Kenyan and Angolan subsidiaries.  The SEC says that due diligence failures relating to the acquisition of the Kenyan subsidiary and weak internal controls allowed the bribery to occur unchecked.  Goodyear received credit for self-disclosure, cooperation and remediation.  “Goodyear did very well,” Robert Appleton, a partner at Day Pitney, told The FCPA Report.  The company “got the best result I think it could have hoped for,” he said.  See also “Seven Issues to Address When Performing Pre-Acquisition Due Diligence,” The FCPA Report, Vol. 2, No. 23 (Nov. 20, 2013).

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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.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.9 (Apr. 30, 2014)

    When Are Reports of Internal Investigations Protected by Attorney-Client Privilege?

    In-house legal departments and outside counsel often work under the assumption that internal investigations conducted by, or under the supervision of, counsel are protected by privilege.  However, a recent decision by the U.S. District Court for the District of Columbia has raised questions as to whether such privilege extends to investigations that are not conducted primarily for the purpose of seeking legal advice or directly in anticipation of litigation.  This article delves into the recent Barko v. Halliburton decision and what it means for companies that may seek to invoke the attorney-client privilege or work-product doctrine to preserve the confidentiality of internal investigations.  See also “Preserving the Attorney-Client Privilege in Cross-Border Internal Investigations,” The FCPA Report, Vol. 2, No. 13 (Jun. 26, 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.8 (Apr. 17, 2013)

    FCPA Training That Works: An Interview with Billy Jacobson, Chief Compliance Officer of Weatherford International

    Creating and deploying best-in-class training is a fundamental aspect of maintaining a successful anti-corruption compliance program, and a robust training program can be a powerful defense if the SEC or DOJ finds a “rogue employee.”  But training is inherently limited – training sessions cannot cover the full range of anti-corruption situations an employee may face across geographies, and the sessions themselves are limited by time and cost.  How can a company maximize the impact of this important activity?  To answer this and related questions, The FCPA Report is undertaking a series of interviews on FCPA training with experts from different disciplines.  This article – the second installment in the series – includes our interview with Billy Jacobson, Senior Vice President, Co-General Counsel and Chief Compliance Officer of Weatherford International, one of the largest oil and natural gas service companies, operating in 100 countries.  Prior to his association with Weatherford, Jacobson served as a federal prosecutor for the Fraud Section of the U.S. Department of Justice’s Criminal Division, where he served in various positions, including as Assistant Chief for FCPA Enforcement.  He has also been in private practice as a partner at Fulbright & Jaworski L.L.P.  In the first installment of this series, The FCPA Report spoke with Joseph Spinelli, the head of Navigant’s FCPA practice and former Inspector General of New York State.  See “FCPA Training That Works: An Interview with Joseph Spinelli, Global Leader of Navigant’s Anti-Bribery & Corruption-FCPA Segment,” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013).

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  • From Vol. 2 No.5 (Mar. 6, 2013)

    Six Steps for Converting a “Paper” FCPA Compliance Program into a Pervasive Culture of Anti-Bribery Compliance (Part Two of Two)

    Breathing life into even a comprehensive compliance manual is a challenge for most companies.  How can a company ensure that its program is proactive and dynamic, and that it is working at every level of the company?  How can the company ensure that third parties are being vetted at every stage of the process?  A recent webinar featuring H. David Kotz, Director at Berkeley Research Group and former Inspector General of the SEC, and Paul Zikmund, Director of Global Ethics and Compliance at Bunge Limited, tackled these and other hard questions head on, incorporating their long and relevant experience, as well as lessons from the recently-issued FCPA Guidance.  This article, the second in a two-part series, discusses the panelists’ advice regarding the best path forward after a risk score is assigned to a third party, including details about a “boots-on-the-ground” approach to due diligence; ways to monitor third parties on an ongoing basis; compliance advice for smaller companies; and how to incentivize employees to report complaints internally before going to the government.  The first article in the series discussed how the hypotheticals in the Guidance provide insight into the government’s enforcement strategy and what the “flavor of the month” FCPA cases are; six ways to ensure an FCPA compliance program is best-in-class; and integral steps to take when conducting risk assessments of third parties.  See “Six Steps for Converting a ‘Paper’ FCPA Compliance Program into a Pervasive Culture of Anti-Bribery Compliance (Part One of Two),” The FCPA Report, Vol. 2, No. 4 (Feb. 20, 2013).

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  • From Vol. 2 No.4 (Feb. 20, 2013)

    Six Steps for Converting a “Paper” FCPA Compliance Program into a Pervasive Culture of Anti-Bribery Compliance (Part One of Two)

    Recent enforcement actions have highlighted the bribery risk inherent in retaining third parties in foreign countries.  To adequately address such risks, companies need more than a compliance manual sitting on the shelf – they need a culture of compliance that pervades the organization.  Drafting a thorough and customized compliance manual is the first step in this process.  But how can companies bring a complete compliance program to life?  A recent webinar tackled this hard question head on, incorporating the long and relevant experience of the webinar participants, as well as lessons from the recently-issued FCPA Guidance.  This is the first article in a two-part series summarizing the key takeaways from the webinar.  This article discusses: how the hypotheticals in the Guidance provide insight into the government’s enforcement strategy and what the “flavor of the month” FCPA cases are; six ways to ensure an FCPA compliance program is best-in-class; and integral steps to take when conducting risk assessments of third parties.  The second article will address: steps to take after a risk score is assigned to a third party, including details about a “boots-on-the-ground” approach; ways to monitor third parties on an ongoing basis; compliance advice for smaller companies; and how to incentivize employees to report complaints internally before going to the government.  See also “Five Themes for General Counsel to Monitor with Respect to Dodd-Frank Whistleblowers and the FCPA,” The FCPA Report, Vol. 1, No. 9 (Oct. 3, 2012).

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