Hitachi Data Systems General Counsel Chris Leslie tackles FCPA compliance
This article was originally published in the Corporate Counsel.
When Chris Leslie took the general counsel job at Hitachi Data Systems in 2004, he was coming off of an 11-year stint in various senior legal positions with Sun Microsystems. The global compliance program at that company had been top-notch, Leslie said, "particularly around anti-bribery."
He quickly found, though, that his new company´s training in that realm was "spotty" at best. On a trip t...
Making the judgement call
Who is a government official? To laymen this question may seem like a joke, but it is deadly serious for foreign companies operating in China, where there is an established custom of giving lavish gifts and fine-wining and dining in the pursuit of customers’ good will.
The US Foreign Corrupt Practices Act (FCPA) forbids American companies, as well as non-US firms with securities trading on US exchanges, from bribing foreign officials to gain an advantage in business dealings. What...
Deal or no deal
It is common for companies to sign deals and then announce them to the market. However, sometimes these are not deals at all but rather non-binding memoranda of understanding (MoU). Issuing press statements on the basis of a signed MoU can be a dangerous practice because they can “tip the market” when the underlying agreement may be changed or even revoked. Parties may suffer particular embarrassment when things fall through, whilst such announcements can also get a company into trou...
Corporate Ethics 101 – Be wary when using agents abroad
Firms expanding into a new market often employ local agents or consultants to help them navigate through unfamiliar terrain.
These appointees are expected to offer advice and insight into how things are done locally, provide access to key decision makers and help to secure initial deals.
However, the practices commonly used by such agents may not meet international standards of business ethics. What passes for “normal” in countries such as China, India and Russia may seem l...
Agents and consultants (2)
In my last article, I discussed what are some of the red flags to look out for when a company chooses a local agent or consultant who could help smooth entry into a foreign market. I would like to conclude that discussion by highlighting a few more issues that firms could understand.
Agreement A key statement that should feature prominently in the agreement signed is that the appointed agent or consultant understands and agrees to abide by the appointing firm’s anti-corruption rul...
|