The IBM Case: FCPA Compliance Programs And Internal Controls

There was Congressional testimony last fall to consider possible modifications to the Foreign Corrupt Practices Act. In part the testimony focused on the issue of FCPA compliance procedures as a defense for a business organization. Under current practice those procedures are not a defense but mitigation...

Johnson & Johnson, DePuy Pay $76.9M To Settle Foreign Bribery Claims

(Mealey's) - Johnson & Johnson (J&J) and subsidiary DePuy International Ltd. will pay $76.9 million to resolve criminal and civil allegations in the United States and in the United Kingdom that they paid kickbacks to doctors in Greece, Poland, Romania and Iraq to use the companies'...

Johnson & Johnson Deferred Prosecution Agreement-Part II: Compliance Program Best Practices

Yesterday we reviewed the background facts of the Johnson & Johnson (J&J) Deferred Prosecution Agreement (DPA) and the issue of self-reporting. In this posting we will review some of specific compliance program best practices which Johnson & Johnson agreed to implement. I. Attachment...

Johnson & Johnson Becomes the Newest Member of the FCPA Top 10 Settlements List

Current trends in FCPA enforcement are evident in the latest settlement with Johnson & Johnson. U.S. v. Depuy, Inc. , (D.D.C. Filed April 8, 2011); SEC v. Johnson & Johnson , Civil Action No. 1:11-cv-00686 (D.D.C. Filed April 8, 2011). To resolve the case with DOJ and the SEC the company...

Warren Buffet, Berkshire Hathaway and the End of Armageddon-Some Lessons Learned

We have previously written about the importance of getting your investigation right before publicly announcing the results. In other words, do not allow your CEO, as Renault did, to go on national television and decree that three (former) executives had foreign bank accounts filled with money from the...

White Collar Crime-Fighting and Other Web Notes

In a May 27, 2011 post on the FCPA Compliance and Ethics Blog ( here ), Tom Fox has some interesting observations about the ongoing FCPA gun sting trial. (Readers will recall that this prosecution involves numerous individuals from the armaments industry who were caught up in a government sting...

The Compliance and Ethics Program: Outsourcing Inspiration

In the June issue of the Harvard Business Review is an article by Alan Grant entitled, " How Customers Can Rally Your Troops ". In this article Grant argues that "End users can energize your workforce better than your managers can." His basic thesis is that employees are highly...

Compliance Lessons from Weinergate

In a tearful statement to the media, Rep. Anthony Weiner admitted he posted a lewd picture of his anatomy to Twitter. Not only that, he says he's engaged in "inappropriate" online communications with at least six other women. It was just a few days ago that I revisited the Fabulous...

Governance Center Crash Course: Shareholders Focused on Executive Compensation, Diversity

by Gary Larkin During our recent Corporate Governance and Compliance Crash Course, we had the opportunity to hear from three key people at three of the largest institutional investors who gave us their take on some of the most important governance/shareholder issues. While it is not our policy...

Compliance Lessons from the Tour de France

I would guess that most of you reading this story do not share my love of the Tour de France. It can be a confusing mix of skinny guys, tarted up with sponsors like a NASCAR racer, with hard to pronounce names, following tactics unusual outside of cycling. But I since I became a fan a decade ago...

End of the Annual Compliance and Ethics Training ‘Flea Dip’

In an article in the July/August edition of the ACC Docket entitled " Rethinking the Annual Compliance and Ethics Flea Dip ", author James Nortz discusses the annual compliance and ethics training program that most US company's employees receive which he calls a ' flea dip' . While...

Remind People to Do the Right Thing

Dan Ariely continues to find small, easy ways to change behavior. This time it was his students running the experiment instead of him. Two students sent an email to everyone in the class that included a link to a website that was supposed to contain the answers to a past year's final exam. ...

Don’t Fold ‘Em: Making the Case for Ethical Leadership

In an article published in the June issue of ACC Docket, entitled " Playing the Cards You're Dealt ", James Nortz raised the interesting issue of the lack of company leadership to "create an ethical vision, the moral courage to pursue that vision and the ability to effectively ...

How to Engage Employees in Compliance

In the September 2011 issue of the Harvard Business Review , in an article entitled " How to Cultivate Engaged Employees " , author Charalambos A. Vlachoutsicos wrote about his experiences in working for a family-owned multi-national organization. From his experiences he learned how to...

Utilizing the Corporate Secretary in your Ethics and Compliance Efforts

How can a Corporate Secretary enhance a company's overall ethics and compliance efforts? Corporate Secretary Deputy Editor Aarti Maharaj recently explored these issues and others in an interview with Matt Lepore, Vice President and Chief Council for Corporate Assistant General Counsel at Pfizer...

Succession Planning from the Compliance Perspective

My " This Week in FCPA " colleague, Howard Sklar and I often call the News Corp matter the case that keeps on giving. However, the same might be said about the ongoing issues surrounding Hewlett-Packard (HP). From a bribery and corruption scandal centered in Germany, the announcement of...

Jeannette Rankin, Infosys, Ethics and Compliance

Who was Jeannette Rankin and why do we celebrate her today in the context of ethics and compliance? She was the first female to be elected to Congress, as a Representative from Montana in the 1916 elections. In 1917 she was one of 50 votes opposing America's entrance into World War I. She had...

How Charles Ponzi Can Inform Your Compliance Program

Yesterday, I used some of the wisdom from current CIA Director General David Petraeus to suggest how senior management might move forward with a compliance program. Today I will use a very different individual to help inform your third party due diligence, Charles Ponzi. My colleague Tracy Coenen...

Chesapeake Lighthouses and Lighting the Way for Compliance

In the winter 2013 issue of the Colonial Williamsburg magazine is an article by Michael Lombardi, entitled " Lighthouses Marked the Shoals of the Commerce Clause ". In this article, Lombardi wrote about four lighthouses authorized by Congress in the late 18 th and early 19 th century to...

The Convergence of Bear Bryant and Johnny Football – Lessons In Compliance

Sedona Arizona is known for its four vortexes, some of those alleged places where the universe has holes in it or overlaps (I can’t remember which). I have been to Sedona but I have never experienced such convergence (or the voids for that matter). However, in other ways the universe does seem...

Naval Theorists and the Measurement of Compliance

If are interested in naval history, strategy and tactics, I have a question for you: Are you a disciple of Alfred Mahan or Julian Corbett? If you are a Mahanian, you probably focus on large naval engagements or the great battle concept. If you are Corbettian, you probably think about a series of smaller...

The Abbey Grange, the Quality of Justice and Codes of Conduct

In honor of the return of Sherlock Holmes to PBS with Season 3, I begin a week of Sherlockian themed posts. Today we consider the quality of justice that Holmes discussed in The Abbey Grange , he allowed a man who murdered a wife-abusing husband to go free. Holmes concern with justice, as opposed to...