With FCPA Guidance due from the Department of Justice (DOJ) any day now, journalists, bloggers, and lawyers have been busy analyzing the effects of FCPA investigations and settlements, and anticipating what the guidance will include.
One thing is clear; FCPA compliance is becoming very expensive. The Wall Street Journal reports that, on average, FCPA fines reach $25 million, although this number can be much larger. In 2008 Siemens agreed to pay $450 million in criminal penalties, and to disgorge $350 million in profits. In 2010, the Securities Exchange Commission and DOJ settled FCPA charges with 23 companies for a total of $1.8 billion in civil and criminal fines. Recent articles have also stated that companies are spending millions on internal compliance procedures to investigate bribery claims and verify the effectiveness of their existing processes. Companies like Avon and Wal-Mart have spent upwards of $50 million on internal investigations of bribery, with both cases ongoing.
For most multi-national corporations (MNCs), supply chains span the globe. Ensuring FCPA compliance of third parties including agents, distributors, and suppliers can be a difficult and expensive challenge.
For companies looking for ways to manage these compliance issues, the Center for Responsible Enterprise and Trade (CREATe) is offering a cost-effective, scalable solution to help companies gain insight into suppliers’ processes and management systems for anti-corruption compliance.
CREATe Leading Practices offers suppliers a cost-effective and practical way to showcase a commitment to leading practices; and provides companies with valuable benchmarking of practices and a tangible way for their suppliers and business partners to improve business management systems for protecting intellectual property and preventing corruption.
Learn more about CREATe Leading Practices: https://create.org/tools-training