Page 69 - U.S. FOREIGN CORRUPT PRACTICES ACT

A Resource Guide to the U.S. Foreign Corrupt Practices Act. Second Edition.

appropriate, agents and business partners. 335 For with the violation. Many companies have found that
example, many larger companies have implemented publicizing disciplinary actions internally, where

a mix of web-based and in-person training conducted appropriate under local law, can have an important
at varying intervals. Such training typically covers deterrent effect, demonstrating that unethical and
company policies and procedures, instruction on unlawful actions have swift and sure consequences.
applicable laws, practical advice to address real-life DOJ and SEC recognize that positive incentives
scenarios, and case studies. Regardless of how a can also drive compliant behavior. The incentives
company chooses to conduct its training, however, can take many forms such as personnel evaluations

the information should be presented in a manner and promotions, rewards for improving and
appropriate for the targeted audience, including developing a company’s compliance program, and
providing training and training materials in the rewards for ethics and compliance leadership. 337
local language. For example, companies may want Some organizations, for example, have made

to consider providing different types of training to adherence to compliance a significant metric for
their sales personnel and accounting personnel management’s bonuses so that compliance becomes
with hypotheticals or sample situations that are an integral part of management’s everyday concern.
similar to the situations they might encounter. In Beyond financial incentives, some companies have
addition to the existence and scope of a company’s highlighted compliance within their organizations
training program, a company should develop by recognizing compliance professionals and

appropriate measures, depending on the size internal audit staff. Others have made working in
and sophistication of the particular company, to the company’s compliance organization a way to
provide guidance and advice on complying with advance an employee’s career.
the company’s ethics and compliance program, SEC, for instance, has encouraged companies
including when such advice is needed urgently. to embrace methods to incentivize ethical and

Such measures will help ensure that the compliance lawful behavior:
program is understood and followed appropriately
[M]ake integrity, ethics and compliance
at all levels of the company. part of the promotion, compensation and
evaluation processes as well. For at the
end of the day, the most effective way to
Incentives and Disciplinary Measures
communicate that “doing the right thing”
In addition to evaluating the design and is a priority, is to reward it. Conversely, if
implementation of a compliance program throughout employees are led to believe that, when
it comes to compensation and career
an organization, enforcement of that program is advancement, all that counts is short-
fundamental to its effectiveness. 336 A compliance term profitability, and that cutting ethical
corners is an acceptable way of getting
program should apply from the board room to the there, they’ll perform to that measure.
supply room—no one should be beyond its reach. To cite an example from a different
walk of life: a college football coach can
DOJ and SEC will thus consider whether, when be told that the graduation rates of his
enforcing a compliance program, a company has players are what matters, but he’ll know
differently if the sole focus of his contract
appropriate and clear disciplinary procedures, extension talks or the decision to fire him

whether those procedures are applied reliably and is his win-loss record. 338
promptly, and whether they are commensurate

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