1. 1< >MTB SRM Compliance Review Board Q4 2012 06,11.2012
Implementing a Fraud, Corruption &
Ethics Programme in Local Regions
Dr. Patricia M. Bailey – 11 May 2015

2. 2< >Dr. Patricia M. Bailey 13.05.2014
Revenue 2014:
€ 0.5 bn
Power EngineeringCommercial Vehicles
MAN
Truck & Bus
Revenue 2014: € 8.4 bn
MAN
Latin America
Revenue 2014: € 2.3 bn
MAN SE
MAN
Diesel & Turbo
Revenue 2014: € 3.3 bn
Renk
• Since 16 July 2013, part of the Volkswagen Group
• MAN Group: 2014 Revenues: approx. €14,5 bn; approx. 53,500 employees in over 150
countries
• Nearly 50 colleagues in Compliance Organisation (local and central)
• Languages used at Compliance Organisation: German, English, French, Portuguese,
Spanish, Italian, Danish, Russian, Polish, Chinese, Turkish
MAN Facts
MAN Business Overview
Business Area
Company

3. 3< >Dr. Patricia M. Bailey 11.05.2015
Compliance Champions
Regions / Legal Entities
Compliance Manager
Sales Region / BU
Compliance Officer
Division
Compliance Awareness
& Prevention
Compliance Project
Management & Programs
Compliance Legal Data Protection
Chief Compliance Officer
CEO
MAN SE
Corporate Compliance Office
MAN Compliance Department

4. 4< >Dr. Patricia M. Bailey 11.05.2015
General overview of this presentation
Compliance Policies
Handling Regulatory Risk & the
Changing Regulatory
Landscape
Adequate Controls

5. 5< >Dr. Patricia M. Bailey 11.05.2015
General overview of this presentation
Compliance Trainings
Policies on Gifts & Hospitality

6. 6< >Dr. Patricia M. Bailey 11.05.2015
Compliance Policies
Global vs. Local policies
Overall: you do not want the policies changed: they are the overview
of the entire company / group on the subjects
Optional: allow local business to create an annex that clarifies and
expands on the policies, but does not change them
Policy Languages: policies must be translated into local languages by
native speakers of that language
FCPA Guidelines (14 November 2012): “Compliance policies cannot
work unless effectively communicated throughout a
company. [...] Information should be presented in a manner
appropriate for the targeted audience, including providing training and
training materials in the local language.”

7. 7< >Dr. Patricia M. Bailey 11.05.2015
Handling the Regulatory Risk &
the Changing Regulatory Landscape
You need to have an overview of national legislation, but it is not possible
to know all the details
Sources: websites, blogs (such as on Linked In), law firm newsletters and
guides
You should have local counsel lined up in each country – to put you on
their mailing lists for newsletters, webinars, seminars, etc.
You need to have a local person in each country who is also tracking
changes in local legislation (particularly if you don’t speak the local
language)
The parent company Compliance department may want to set up a
database where local Compliance people can upload articles about their
national legislation

8. 8< >Dr. Patricia M. Bailey 11.05.2015
Adequate Controls at the local level
As commercial bribery enforcement increases, it becomes imperative to
have a strong Compliance programme in order to defend the company
In the past: a strong Compliance programme was sufficient
Today: you must have a strong Compliance programme which is
verified by an Internal Control System (ICS) and Audits
Internal Control Systems:
Regular checks of policies, procedures and compliance therewith,
auditing (testing) specific controls for defined compliance risks.
Done at the local level and reported to HQ
Audits:
Enquiries and review of documentation to verify that the personnel are
complying with policies and procedures
Managed at a worldwide level, with auditors being sent to the
subsidiaries on a regular basis

9. 9< >Dr. Patricia M. Bailey 11.05.2015
Compliance Trainings
Best scenario: both e-Learning and face-to-face trainings
Must be in the local languages, with slides translated (or verified) by
native speakers
Case studies: you should have more liberty to deviate from the parent
company case studies, as long as you keep the concept
Make the trainings relate to the daily life of the audience
Always have a slide devoted to the national legislation
Be careful with the signature lists, especially if you will send them across
international borders to the parent company!

10. 10< >Dr. Patricia M. Bailey 11.05.2015
Policies on Gifts & Hospitality
One set of Reporting Limits worldwide vs. local Reporting Limits
Try to respect local traditions and cultures
Should have a “business connection” to the event: the more business-
related, the lower the risk
Always be careful regarding Gifts & Hospitality for public officials!

11. 11< >Dr. Patricia M. Bailey 11.05.2015
Take-aways
Compliance Policies
One set of worldwide policies is easiest to manage, but you could allow the
local business to create an annex. Translation into local languages is critical.
Handling the Regulatory Risk & the Changing Regulatory Landscape
You cannot manage this on your own: you need help from local counsel and
local personnel
Adequate Controls
A robust Compliance programme is not enough these days: you need to have
ICS controls and Audits (usually managed by the parent)
Compliance Trainings
Make them available in the local languages with real life case studies that
relate to their business
Policies on Gifts & Hospitality
Respect local cultures & traditions; be careful with public officials

12. 12< >MTB SRM Compliance Review Board Q4 2012 06,11.2012
Implementing a Fraud, Corruption &
Ethics Programme in Local Regions
Thank you for your attention!