Upload
nguyenlien
View
219
Download
4
Embed Size (px)
Citation preview
Making Integrity Part of Your Brand Building Trust and Transparency
FCPA Enforcement Trends • 50 companies - over $2.5 billion FCPA
settlements 2010- 2012 • Top ten FCPA settlements (8 in 2010 & 2011)
total $3 billion • 9 of top 10 involve non-US companies – the
FCPA has a very long reach • Settlements of KBR/JGC/Technip/Snamprogetti
case totaled $1.6 Billion. 3 now in jail. • Longest ever FCPA-related prison sentence (15
yrs) in 2011 • 90 companies under FCPA investigation in 2013
Canada’s Record with CFPOA Only 1 prosecution to 2009; 1 investigation in 2010. Initially no centralized investigation or prosecution as in the US All offenses Criminal – burden of proof issue New RCMP anti-corruption unit – Ottawa and Calgary. 35 investigations in progress Niko Resources - $10 million fine for a $200 k bribe in Bangladesh Griffiths Energy – voluntary disclosure - $10 million fine for a $2 million bribe Actions to strengthen CFPOA before Parliament
What can happen to your firm?
Reputational damage can be severe
Bonny Island – Largest FCPA Fine to an Engineering Firm
A reputation problem!
Are Transparency and Integrity good for business?
• Industry associations can inform, but individual firms must take action
• The “Trusted Advisor” must be trustworthy! • Investing in Integrity and Compliance yields
long term dividends • May need to walk away from some clients
or countries • Consider your firms’ stakeholders and their
expectations – owners, employees, clients, communities
Avoidance of Legal Consequences
• This is the “negative” side of anti-corruption for individual firms
• Many clients and potential partners conduct Due Diligence – want to see no scandals and an anti-corruption culture – Denied Party Lists, Internet searches
• Reputational damage very hard to repair • Fines and jail time are becoming more
common • A sound Compliance program is essential
if facing legal action
Be Aware of Compliance Steps
• Tone from the Top, senior leadership • Independent reporting channels • Code of Business Conduct – specifically
forbid bribery. Publicize and train all staff • Risk analysis – rigour and focus of
Compliance measures depends on risk • Compliance effort and cost proportional to
firm size, risk profile • Due Diligence for high risk situations –
especially Partners and Representatives • Auditable – like a QA system
Extra Slides
Consulting Engineers as Export Leaders
• Beginning in the 1950s with the Colombo Plan, Canadian Consulting Engineers led the way in many developing country markets
• Bilateral (CIDA) projects were relatively uncomplicated, but CIDA has declined in importance in the 1990s
• MDB programs took over – new consultants, slow domestic markets – intense competition
• Canadian firms competed well, expanded their business, and received positive publicity collectively and individually
Changing Attitudes to Corruption • Until mid-90s, corruption seen by many as “the
price we have to pay for development” • Corrupt relationships developed involving
consultants, Government Officials, intermediaries – condoned by many
• Too many development projects were tainted by corruption, diversion of resources
• Led to formation of TI in 1993 by Peter Eigen (former World Bank Regional Director)
• In 1996, World Bank initiated its anti-corruption program. Acres International was one of the first major engineering firms affected by the WB program
Parallel Anti-Corruption Developments
• 1977 – US FCPA passed. Amended in 1988 and 1998.
• US lobbying to “level playing field” – led to OECD Anti-Corruption Convention in 1999.
• Canada’s CFPOA in effect March 1999 • UN Convention Against Corruption in 2005 • Acceleration of FCPA prosecutions in
2000’s. • UK Bribery Act enacted in 2010 – viewed
as even tougher than the FCPA
The Role of FIDIC • 1996 – FIDIC issued policy statement on
corruption, in response to World Bank initiatives • BIMS outlined by FIDIC in 1997-98, and presented
at BIMILACI 1999. JWGI formed • Engeli & Pieth Background Paper for FIDIC 2000 • BIMS Guidelines presented at FIDIC 2001, followed
by Training Manual, Model Rep. Agreement • FIDIC continues to work via IMC and MAs
(including ACEC) to develop tools for use with BIMS, expand its adoption by members. Regular dialogue with WB continues
• Name change to FIMS to make the IMS unique to FIDIC