Fight Skyrocketing Corruption Risk with Training:
A Guided Tour of ELT’s All-New Anti-Bribery & Corruption Series
Reid Bowman
• General Counsel of ELT.
• Close to 30 years of HR, labor & employment law, and compliance experience, primarily working with multi-state and global employers.
• Designs strategic ethics, wage & hour, discrimination prevention, and employment law compliance programs.
Scott Schneider
• Director of Compliance
• Over 10 years experience representing aerospace industry in environmental and compliance matters.
• Over 10 years of experience helping employers roll out organization-wide online ethics and compliance programs.
Agenda for Today’s Meeting
Introductions
Legal Drivers
Demonstration
Q&A
Has your organization identified bribery and corruption as emerging risk areas?
Yes
It hasn’t, but it should
No
I don’t know
A Question For You
A Growing Risk
Wage & Hour
FCPA ∙ UKBA ∙ Global ∙ 3rd Party
Legal Drivers
↑ Greater Enforcement in the US
↑ Dodd-Frank “Bounty Hunters”
↑ New Laws in the United Kingdom
New Awareness
•Big fines for companies
•Jail time for individuals, including senior leaders
For Example: FCPA Risk in 2010
Wage & Hour
FCPA ∙ UKBA ∙ Global ∙ 3rd Party
$1.8 Billion in fines and penalties in 2010!
Department of Justice Investigations up by 3,250% in the last 7 years
Big names in the news!
Irreparable harm to brand and reputation
Legal Drivers
International Legal Drivers
Many countries have at least some Anti-
bribery & Corruption laws
The Most Significant:
Foreign Corrupt Practices Act
UK Bribery Act
FCPA
• Prohibits bribery of public officials
• Limited Exceptions
‒ Facilitation (Grease) Pmts.
‒ Bona fide Pmts.
‒ Pmts. Authorized by Law
• Applies to:
‒ US-based companies
‒ Overseas companies doing business here
• Liable for the conduct of 3rd Parties
How do Organizations Get in Trouble?
• Example: What is a payment?
• Buying lunch?
• Sending a birthday present?
• Example: Who is a government official?
• Payment to a political party?
• Contribution to the Minister’s favorite charity?
• State owned companies?
• Example: Is it a bribe or a facilitation payment?
What about Dodd-Frank?
Creates an incentive for employees to go directly to the feds –
up to 30% finders’ fee!
While we think of Dodd-Frank as financial regulation reform…
…the bounty hunter provisions expressly include violations of
corruption laws (FCPA)
FCPA Compliance: Training is Critical
Wage & Hour
FCPA ∙ UKBA ∙ Global ∙ 3rd Party
Avoid up to 90% of fines and penalties under the Federal Sentencing Guidelines with:
Comprehensive training
Periodic, recurring training
Reaching a broad audience
Quality matters!
UK Bribery Act..Goes Further than FCPA
• Prohibits all bribery – not just bribery of governmental officials
• Creates liability for failing to stop bribery from happening
• No exceptions
• Applies to:
• Any UK-based entity / Any entity doing business in the UK
• The subsidiary of any business based in the UK or doing biz there
• UK Citizens / Living in UK / Connection to UK
• Liable for the conduct of 3rd Parties
The Good News
• Organizations can avoid all liability by showing they had “adequate procedures” to prevent bribery in place
• Can be a complete defense
• Guidance from the Ministry of Justice expressly refers to training (and online training) as a necessary part of “adequate procedures.”
To Summarize…
• Bans bribery of public officials and private “commercial” bribery
• No Exceptions
• Training is necessary to show you had “adequate procedures” in place
• Bans bribery of public officials
• Limited Exceptions
• Training is necessary to mitigate damages under the Federal Sentencing Guidelines
Distributors
Local counsel
Franchisees
Contractors
Agents
Intermediaries
Consultants
Suppliers
Joint venture partners
Putting your organization’s reputation and bottom line at risk
Third Parties Can Create Risk for Your Organization
• Is your organization currently conducting Anti-Bribery and Corruption training?
Yes
No, but we are considering it
No
I don’t know
A Question For You
The most innovative and flexible set of
anticorruption training solutions on the market
4 Courses Tailored to Your Needs
Anti-bribery & Corruption Courses
Resources Designed to Meet Your Needs
The most innovative and flexible set of
anticorruption training solutions on the market
4 Courses Tailored to Your Needs
Anti-bribery & Corruption Courses
Resources Designed to Meet Your Needs
Focus on FCPA compliance and your FCPA policies
~60 minutes
Optional UK Bribery Act content (10 Minutes)
4 Courses Tailored to Your Needs
Resources Designed to Meet Your Needs
Focuses on the UK Bribery Act and your organization’s anticorruption policies
~60 minutes
Optional FCPA summary content (10 minutes)
4 Courses Tailored to Your Needs
Resources Designed to Meet Your Needs
High level overview, summary of FCPA, UK Bribery Act and key conventions
Focus on spotting and reporting
~30 minutes
4 Courses Tailored to Your Needs
Resources Designed to Meet Your Needs
4 Courses Tailored to Your Needs
Resources Designed to Meet Your Needs
Train 3rd parties Distribute your policies &
procedures Obtain regular compliance
certificates from 3rd Parties ~30 minutes
The choices you need
Tailor the message to the audience needs
Resources that grow with your organization’s needs
4 Courses Tailored to Your Needs
Resources Designed to Meet Your Needs
ELT’s FCPA
Brand New in 2011!
New Media!
New Video!
New Stories!
New Characters!
New Course Features!
New Characters!
ELT’s FCPA
2 Learning Experiences
Fundamentals News Story
MyReports Interactive Exercises
+
Fundamentals News Story
Bringing the Corruption Fight to Life
The fight against global corruption
Why it matters to your organization
What learners can do to turn the tide
The importance of seeking guidance
and reporting
Fundamentals News Story
Your Learners Join the Story
MyReports Interactive Exercises
Research Files
Breaking News
Poll
Hot Topics
The Wall
The Interview
Video
Fact Check
Quick Tips
Demonstration
1. Assess Your Needs and Risks
2. Choose an Appropriate Resource
3. Periodically Reassess
• Effectiveness
• Impact on Risk
• Legal and Regulatory Environment
Choosing the Right Resources
1. Demonstrate your attention and commitment to compliance and training
2. Start! Do something!
3. Don’t let the “perfect” be the enemy of the “very good”
Compliance is a Process – Not an Event
1. FCPA: your US-based workforce
2. UK Bribery Act: UK personnel
3. Global: Others around the globe,home office – one step back
4. Third Party: overseas partners and agents
Compliance is a Process – Not an Event
A Question For You
• How has Anti-Corruption training been conducted in your organization?
Live training
Online training
We have never conducted anti-corruption training
Interested in ELT’s solutions?
www.elt.com │ 877.358.4621
Additional substantive questions?
Thank You