Search

Editors

Richard L. Cassin Publisher and Editor

Julie DiMauro Executive Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Michael Scher
Senior Editor

Elizabeth K. Spahn Contributing Editor

Eric Carlson Contributing Editor

Michael Kuria Contributing Editor

Thomas Fox Contributing Editor

Philip Fitzgerald Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Connect

Subscribe to receive the free FCPA Blog daily

Close
FCPA Blog Daily News

« Wal-Mart's lobbying triggers India investigation | Main | Hunt is on for Africa's looted wealth »
Wednesday
Dec122012

Corporate behavior can change. Really

Only five years ago, no one talked about self disclosing potential FCPA violations.

Today, a mere blink of an eye later, self disclosure is the norm.

In our era of hyper-enforcement and Sarbanes-Oxley driven field certifications, the new pattern is set:

Hear from a whistleblower about sensitive payments somewhere, take a quick look for credible evidence, inform the board, launch an internal investigation, disclose it to the DOJ, and write it up in the next quarterly SEC filing.

But is self disclosure a help or a hindrance?

It's more traumatic than sitting on a secret. But over time it's healthier for everyone.

Instead of letting infections fester, companies now move fast to disinfect the wound. Shareholders, employees, customers, suppliers, and lenders all know what's happening. And most important, executives are forced to confront the truth and deal with it.

Reminders of the old way of doing things came this week from Siemens and Rolls Royce. Siemens execs -- some long retired -- are dealing with allegations that may be at least ten-years old. The Rolls Royce story from Indonesia dates back twenty years or more. Ancient history.

But undisclosed FCPA sins cast long shadows.

If Siemens and Roll Royce had self reported decades ago, today's news about them and their people would be different.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.