9-22-11 Anti-Bribery and Corruption Prevention

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?

info@elt.com

www.elt.com │ 877.358.4621

Additional substantive questions?

rbowman@elt.com

sschneider@elt.com

Thank You