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Anti-Corruption Compliance Program Benchmarking Survey

Anti-Corruption Compliance Program Benchmarking Survey

www.ethixbase.com


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Anti-Corruption Compliance Program Benchmarking Survey

CONTENT 06

Selected Highlights Of The Survey

07

Introduction And Demographic Information

08

Risk Assessment

09

Policies And Procedures

11

Overall approach to Anti-Corruption policy

12

Specific requirements concerning providing items of value to government officials

14

Gifts and entertainment

14

Travel

16

Charitable contributions and community support payments

18

Facilitating payments

20

Personal safety payments

21

Requirements concerning retaining and using third-party intermediaries

22

Due diligence requirements in engaging tpis

23

General TPL agreements/certifications regarding Anti-Corruption laws

24

Specific TPL compliance program requirements: training, auditing and monitoring

26

Requirements concerning mergers, acquisitions and joint ventures

29

Program Governance And Management

33

Training And Communications

33

Web-based training

35

In-person training

36

Role-based training

36

Training best practices

37

Other communications

38

Compliance Checking

38

Auditing

39

Self-assessments

41

Incentives

42

Program Documentation

43

Authority And Independence

43

Other Best Practices

45

Appendix – Demographic Information Regarding Respondents


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Anti-Corruption Compliance Program Benchmarking Survey

Which of the following best describes Anti-Corruption risk assessment at your company?

3.9%

My company does not conduct an Anti-Corruption risk assessment

11.8%

2% Other

A largely informal, undocumented process

33.3%

A stand-alone, documented process dedicated solely or largely to Anti-Corruption risk

26.5%

Part of a documented, enterprise-wide process focusing on risks of all kinds – meaning not only compliance risks, but others encompassed within an “ERM� framework

22.5%

Part of a documented process focusing on compliance risks of all kinds

Comments of note about risk assessment included the following: Fewer than 4% of respondents do not conduct any type of Anti-Corruption risk assessment, and fewer than 12% have a largely informal, undocumented Anti-Corruption risk assessment process.

t

A combination of internal and external assessments.

t

No formal risk assessment has been performed; however, during an FCPA investigation [a] significant amount of information was gathered and used in the same manner as if a risk assessment had [been] conducted.

t

Global and focused risk assessment in each of the big ticket compliance areas, i.e., AntiTrust, Anti-Bribery.

t

On an annual basis, we distribute a self-assessment for our locations around the world to complete. The self-assessment includes information such as % of sales to government entities, third party sales agents, training, etc. The information is then included in the risk assessment and scored to identify the higher risk locations who then receive an on-site review of transactions the following fiscal year.


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Anti-Corruption Compliance Program Benchmarking Survey

Specific requirements concerning providing items of value to government officials Given the thrust of Anti-Corruption laws, policies and procedures regarding providing things of value to government officials are central to effective Anti-Corruption compliance. Such policies and procedures typically address the issues noted immediately below,9 with a key consideration being the extent of approval requirements for sensitive transactions.

Gifts and entertainment Which of the following best describes your company’s approach to gifts and entertainment? t

Employees must seek approval of the Compliance function or someone else other than their manager (e.g., the legal department) prior to providing gifts or entertainment to government officials in all instances 33.3%

t

Employees must seek approval of the Compliance function or someone else other than their manager (e.g., the legal department) prior to providing gifts or entertainment to government officials in certain instances 24.5%

t

Employees must comply with the Company’s standards governing providing gifts and entertainment to government officials, but need not seek prior approval from management or the Compliance function 20.6%

t

Employees must seek approval of their manager prior to providing gifts or entertainment to government officials in certain instances 9.8%

t

Employees must seek approval of their manager prior to providing gifts or entertainment to government officials in all instances 7.8%

t

Other 3.9%

t

Don’t know 1%

33.3% 24.5% 20.6% 9.8% 7.8% 3.9% 1.0%

9

These topics also largely track those in Item 5 of the OECD Anti-Bribery Guidance, quoted above in footnote 6.


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Anti-Corruption Compliance Program Benchmarking Survey

Travel Some FCPA cases have involved providing travel to government officials,10 and AntiCorruption policies and procedures generally address this issue. The majority of respondents (53.1%) indicated that their organizations require approval of the Compliance function or someone else other than a manager (e.g., the legal department) before offering to provide travel expenses to a government official in all instances.

Which of the following best describes your company’s approach to providing travel to government officials?

13.3%

Employees must comply with company standards regarding providing travel to government officials but need not seek prior approval

6.1% Other

5.1%

Employees must seek prior approval of their manager before offering to provide travel expenses to a government official in certain instances

7.1%

Employees must seek prior approval of their manager before offering to provide travel expenses to a government official in all instances

15.3% 53.1%

Employees must seek approval of the Compliance function or someone else other than their manager (e.g., the legal department) before offering to provide travel expenses to a government official in all instances

10

E.g., US v Ingersoll Rand Company Limited, DDC 1:07-cr-00294-RJL.

Employees must seek approval of the Compliance function or someone else other than their manager (e.g., the legal department) before offering to provide travel expenses to a government official in some instances


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