Archive for the ‘FCPA’ Category


Have you browsed the ISO catalog lately? Here are just some of the standards that will help your organization’s ethics and compliance program:

ISO 19600 – Compliance Management System – Guidelines
ISO 19600:2014 provides guidance for establishing, developing, implementing, evaluating, maintaining and improving an effective and responsive compliance management system within an organization.
ISO 19600:2014 is based on the principles of good governance, proportionality, transparency and sustainability.

ISO 37001 – Anti-bribery Management System – Requirements with Guidance for Use
ISO 37001:2016 specifies requirements and provides guidance for establishing, implementing, maintaining, reviewing and improving an anti-bribery management system. The system can be stand-alone or can be integrated into an overall management system.
ISO 37001:2016 addresses the following in relation to the organization’s activities: bribery in the public, private and not-for-profit sectors; bribery by the organization; bribery by the organization’s personnel acting on the organization’s behalf or for its benefit; bribery by the organization’s business associates acting on the organization’s behalf or for its benefit; bribery of the organization; bribery of the organization’s personnel in relation to the organization’s activities; bribery of the organization’s business associates in relation to the organization’s activities; and direct and indirect bribery (e.g. a bribe offered or accepted through or by a third party).
ISO 37001:2016 is applicable only to bribery. It sets out requirements and provides guidance for a management system designed to help an organization to prevent, detect and respond to bribery and comply with anti-bribery laws and voluntary commitments applicable to its activities.
ISO 37001:2016 does not specifically address fraud, cartels and other anti-trust/competition offences, money-laundering or other activities related to corrupt practices, although an organization can choose to extend the scope of the management system to include such activities.

ISO 31000 – Risk management
ISO 31000:2018 provides principles, framework and a process for managing risk. It can be used by any organization regardless of its size, activity or sector.
ISO 31000:2018 can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment.

ISO 26000 – Guidance on Social Responsibility
ISO 26000:2010 provides guidance to all types of organizations, regardless of their size or location, on: concepts, terms and definitions related to social responsibility; the background, trends and characteristics of social responsibility; principles and practices relating to social responsibility; the core subjects and issues of social responsibility; integrating, implementing and promoting socially responsible behavior throughout the organization and, through its policies and practices, within its sphere of influence; identifying and engaging with stakeholders; and communicating commitments, performance and other information related to social responsibility.
ISO 26000:2010 is intended to assist organizations in contributing to sustainable development. It is intended to encourage them to go beyond legal compliance, recognizing that compliance with law is a fundamental duty of any organization and an essential part of their social responsibility. It is intended to promote common understanding in the field of social responsibility, and to complement other instruments and initiatives for social responsibility, not to replace them.

ISO 30408 – Human Resource Management – Guidance on Human Governance
ISO 30408:2016 provides guidelines on tools, processes and practices to be put in place in order to establish, maintain and continually improve effective human governance within organizations.
ISO 30408:2016 does not address relations with trade unions or other representative bodies.

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Corruption’s Toll

Transparency International recently published ‘Corruption Perceptions Index 2011‘ which “ranks countries and territories according to their perceived levels of public sector corruption.” What is the toll of corruption on a country? One way to assess this is to see if an inverse relation exists between a country’s perceived corruption and its Human Development Index. (The HDI is a “way of measuring development by combining indicators of life expectancy, educational attainment and income.”) While I generally agree with Mark Twain — there are three kinds of lies: lies, damned lies, and statistics — the broader implications are clear: a country (state, organization) that plays fair does well. No wonder the US, UK, OECD and others continue to bolster initiatives to fight corruption.

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The UK Bribery Act will come into force April 2011 – “The Bribery Act reforms the criminal law to provide a new, modern and comprehensive scheme of bribery offences that will enable courts and prosecutors to respond more effectively to bribery at home or abroad.” More: www.justice.gov.uk/publications/bribery-act.htm.

In September 2010, the UK’s Ministry of Justice released ‘Consultation on guidance about commercial organizations preventing bribery (section 9 of the Bribery Act 2010).’ It provides “procedures which commercial organizations can put in place to prevent bribery.”

It lists Six Principles for Bribery Prevention:
Risk assessment – this is about knowing and keeping up to date with the bribery risks you face in your sector and market.
Top level commitment – this concerns establishing a culture across the organisation in which bribery is unacceptable.
Due diligence – this is about knowing who you do business with; knowing why, when and to whom you are releasing funds and seeking reciprocal anti-bribery agreements; and being in a position to feel confident that business relationships are transparent and ethical.
Clear, practical and accessible policies and procedures – this concerns applying them to everyone you employ and business partners under your effective control and covering all relevant risks such as political and charitable contributions, gifts and hospitality, promotional expenses, and responding to demands for facilitation demands or when an allegation of bribery comes to light.
Effective implementation – this is about going beyond ‘paper compliance’ to embedding anti-bribery in your organisation’s internal controls, recruitment and remuneration policies, operations, communications and training on practical business issues.
Monitoring and review – this relates to auditing and financial controls that are sensitive to bribery and are transparent, considering how regularly you need to review your policies and procedures, and whether external verification would help.

Thomas Fox writes: “While this Consultation only deals with the UK Bribery Act’s requirements, it could also be a valuable and welcome tool for companies subject to the US Foreign Corrupt Practices Act (FCPA) in measuring their FCPA compliance policy.”

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Toothbrush? Check.
Meds? Check.
Passport? Check.

Ethics? The Foreign Corrupt Practices Act Lay Person’s Guide states, “The FCPA prohibits corrupt payments to foreign officials for the purpose of obtaining or keeping business.” (See Guide: http://www.justice.gov/criminal/fraud/fcpa/docs/lay-persons-guide.pdf.) It is generally recognized that bribery is unethical (and illegal) in the US. The FCPA reminds travelers to add ethics to their do-not-forget list (or risk being put on DOJ’s not-so-friendly list). Regardless of place or circumstance, ethics is something you shouldn’t leave home without.

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