This document summarizes a webcast on mitigating corruption risks from third parties. It discusses how corruption from third parties can harm businesses through extortion, disrupted operations, and reputational and legal risks. It outlines anti-bribery laws in countries like the US, UK, and Brazil that prohibit bribery through third parties. It provides tips for assessing third party risks, such as checking backgrounds, behaviors, due diligence, and contracts. Resources on anti-corruption guidelines and compliance programs are also listed.

1. GOOD. SMART. BUSINESS. PROFIT.
TM

2. Anti-Corruption and Third Parties:
Mitigating the Risks
June 9, 2015

3. Chelsie Chmela
Global Events Manager
Chelsie.chmela@ethisphere.com
847.293.8806
We encourage you to engage during the Q&A portion of today’s
webcast by using the chat function located within your viewing
experience.
HOST
QUESTIONS
RECORDING The event recording and PowerPoint presentation
will be provided post event.
3

4. 4
SPEAKING TODAY
Craig Moss
Chief Operating Officer, CREATe.org
Leslie Benton
Vice President, CREATe.org

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Craig Moss
COO
CREATe.org
Leslie Benton
Vice President
CREATe.org

7. Mission Global NGO dedicated to making leading practices in
intellectual property (IP) protection and anti-corruption
achievable for all companies
Services CREATe Leading Practices: online assessments,
evaluations, e-Learning, advisory – available in
Chinese, English, Portuguese and Spanish
Global Reach Working with companies in a range of industries in
China, Brazil, India, Europe, Mexico, Japan, Singapore
and the US

10. • Opens company to continued
extortion
• Disrupts business operations
• Demands extensive
management time
• Reputational harm
Business Financial & Legal
• Cost and time of investigation
• Exclusion from bidding on
gov’t & IFI contracts & export
credit
• Insurance premium increases
• Money damages and
financial loss
• Legal proceedings
• Insufficient third party
resources for adequate
indemnification

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• Most countries have anti-bribery laws on the books
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Brazil U.S.
U.K.

13. • Extra-territoriality
• Criminal and civil offenses
• Payment through third parties
prohibited
• Corporate liability
• Individual liability
• Covers bribery to foreign
government officials (and may
cover domestic/commercial
bribery)

15. Who is a Third Party?
Third parties can include:
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16. Risk Assessment
Communicate to
Third Parties
Consult Local or In-
House Counsel
regarding Local Law
Collect Data Validate Information Identify Red Flags
Assess & Resolve
Red Flags
Perform Necessary
Follow Up
Monitor

17. • Reputation for
unethical conduct
• Terminated by other
companies
• History of civil or
criminal actions
• Lack of experience
in field
• Recommended by
an official
• Refuses to identify
owner
• Refuses to sign a
contract
• Refuses to make
compliance
representations and
warranties
• Refuses to agree to
audit rights
• Refuses to provide
invoices and
document expenses
Due diligence/contracts Background Behaviors
• Major political
contributor
• Unusually high
commissions
• Substantial upfront
payments
• Insists on cash
payments
• Insists on payment in
unrelated country or
to a third party

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22. • A Resource Guide to the U.S. Foreign Corrupt
Practices Act
• U.K. Bribery Act 2010 Guidance
• Good Practice Guidance on Internal Controls, Ethics,
and Compliance
• Partnering Against Corruption – Principles for
Countering Bribery
• Fighting Corruption in the Supply Chain: A guide for
Customers and Suppliers
• and others
Anti-Corruption Compliance Guidelines

24. 5 Mature system covering all anti-corruption issues and focused on
continual improvement
4 Systems are well developed and implemented
3 Systems approach; inconsistent implementation and monitoring
2 Limited, reactive systems
1 Little or no awareness or repeatable processes

25. Measure Improve

27. Craig Moss
cmoss@CREATe.org
Leslie Benton
lbenton@CREATe.org

28. www.latinamericaethicssummit.com
15% off Discount Code: WEBCAST15

29. This webcast and all future Ethisphere webcasts are
available complimentary and on demand for BELA
members. BELA members are also offered
complimentary registration to Ethisphere’s Global
Ethics Summit and other Summits around the world.
For more information on BELA contact:
Laara van Loben Sels
Senior Director, Engagement Services
laara.vanlobensels@ethisphere.com
480.397.2663
Business Ethics Leadership
Alliance (BELA)

30. Thursday, June 11 at 1:00 p.m. ET
How Better Reporting Changes the Game for Compliance
All upcoming Ethisphere events can be found at:
http://ethisphere.com/events/
PLEASE JOIN US FOR

31. THANK YOU