SlideShare a Scribd company logo
1 of 114
Download to read offline
Globalization of Ethics
and Compliance
UB School of Management
21 September 2013
By Eric Pesik
Image Credit: Confident businesspeople by Victor 1558
http://www.flickr.com/photos/76029035@N02/6829325255/
Image by Eric Pesik
Starbucks Inside the Forbidden City by Satbir Singh
http://www.flickr.com/photos/satbir/224429602/
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
Apple Store - Scottsdale Road by Dru Bloomfield
http://www.flickr.com/photos/athomeinscottsdale/4780635479/
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
Image: Garment factory Jiaxing by Memn
http://www.flickr.com/photos/29027365@N03/2716435026/
The open pit of the Udachnaya Diamond Mine, Russia
http://en.wikipedia.org/wiki/File:Udachnaya_pipe.JPG
Licensed under the Creative Commons Attribution-Share Alike 3.0 Unported license.
http://office.microsoft.com/en-us/images/results.aspx?qu=pollution&ex=1#ai:MP900448679|mt:2|
http://office.microsoft.com/en-us/images/results.aspx?qu=storm&ex=1#ai:MP900401427|mt:2|
Justin Bieber performing Believe Tour in October 20, 2012 buy MyCanon
http://en.wikipedia.org/wiki/File:Believe_Tour_7,_2012.jpg
This file is licensed under the Creative Commons Attribution 2.0 Generic license.
Image: Ahmedabad Gujarat India by Emmanuel Dyan
http://www.flickr.com/photos/17616316@N00/5933944812/
Image: Greed by Liz West
http://www.flickr.com/photos/53133240@N00/2207307656/
Image Credit: Confident businesspeople by Victor 1558
http://www.flickr.com/photos/76029035@N02/6829325255/
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
Image: The Pay Off by Chris Potter (www.stockmonkeys.com)
http://www.flickr.com/photos/86530412@N02/8449175260/
http://office.microsoft.com/en-us/images/results.aspx?qu=medical&ex=1#ai:MP900390537|mt:2|
Image: Greed by Liz West
http://www.flickr.com/photos/53133240@N00/2207307656/
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
http://office.microsoft.com/en-us/images/results.aspx?qu=loop&ex=1#ai:MP900399332|mt:2|
Where did it start?
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
1970s
Image: http://en.wikipedia.org/wiki/File:Leonid_Brezhnev_and_Richard_Nixon_talks_in_1973.png
As a work of the U.S. federal government, the image is in the public domain
Image: B-52 Stratofortress with bombs
http://en.wikipedia.org/wiki/File:B-52G_with_bombs.jpg
As a work of the U.S. federal government, the image is in the public domain.
Image: Same Year Different Weather, Author Unknown, Year Unknown
Image: http://www.designer-daily.com/10-amazing-cold-war-propaganda-posters-2901
Image: http://en.wikipedia.org/wiki/File:Nixon_Mao_1972-02-29.png
As a work of the U.S. federal government, the image is in the public domain
Songs of the Italian Communists., revolutionary songs released on 7″ singles by the Italian label ‘i dischi del sole’
Image: http://waxidermy.com/canti-comunisti-italiani/
Portrait of Antonio Gramsci around 30 in the early 20s
http://en.wikipedia.org/wiki/File:Gramsci.png
This image (or other media file) is in the public domain because its copyright has expired.
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900400667&ex=2#ai:MP900400667|
A 1960 comic book cover presenting communism as the iceberg that could sink America.
Image: http://www.designer-daily.com/examples-of-american-cold-war-propaganda-2918
President Jimmy Carter signing the Foreign Corrupt Practices Act into law in December 1977 (photo courtesy of Carter archives)
See http://www.presidency.ucsb.edu/ws/?pid=7036
Wedding Gift by Project Hotsauce (Julian Wylegly)
http://www.flickr.com/photos/quattro_ftw/3424691075/
FCPA prohibits
(1) giving or
offering to give
(2) anything of value
(3) to obtain or
retain a business
advantage
Signpost by Andrea_44
http://www.flickr.com/photos/8431398@N04/2680944871/
Every Country in
the World
Prohibits Bribery
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900409031
Books and Records
Requirements
Image: The Pay Off by Chris Potter (www.stockmonkeys.com)
http://www.flickr.com/photos/86530412@N02/8449175260/
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900444309&ex=1
Extra-Territorial
Reach
Image: Risk by Bien Stephenson
http://www.flickr.com/photos/benstephenson/27298596/
The FCPA Blog http://www.fcpablog.com/blog/tag/top-ten
Image: Arms Folder by D Planet
http://www.flickr.com/photos/dplanet/94441584/
Top 10 FCPA Fines of All Time
$95 Million
$137 Million
$185 Million
$219 Million
$338 Million
$365 Million
$395 Million
$400 Million
$579 Million
$800 Million
Deutsche Telekom (Germany)
Alcatel-Lucent (France)
Daimler AG (Germany)
JGC Corporation (Japan)
Technip S.A. (France)
Snamprogetti/ENI (Holland/Italy)
Total S.A. (France)
BAE (UK)
KBR/Halliburton (USA)
Siemens (Germany)
Greed by Liz West
http://www.flickr.com/photos/53133240@N00/2207307656/
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900422830&ex=1#ai:MP900422830|
Image: Cut your Bills by Images of Money
http://www.flickr.com/photos/59937401@N07/5857660216/
Image: Chinese Flag by Philip Jägenstedt
http://www.flickr.com/photos/48982392@N00/2489526032/
The value of a dollar by rahims
http://www.flickr.com/photos/rahims/2110236034/
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
http://office.microsoft.com/en-us/images/results.aspx?qu=loop&ex=1#ai:MP900399332|mt:2|
Corporate logos are property of their respective companies, used here under the
doctrine of fair use for purposes of identification, education, and critical commentary.
Did You Say Bribe by Chris Potter (www.stockmonkeys.com)
http://www.flickr.com/photos/86530412@N02/8448086741/
Talk to the hand by John Lambert Pearson
http://www.flickr.com/photos/orphanjones/2123340817/
We accept U.S. Money by Roland Tanglao
http://www.flickr.com/photos/roland/6536340101/
Televised confession on China's central broadcaster CNTV
International Currency by epSos.de
http://www.flickr.com/photos/epsos/8453271596/
Where are we now?
Corruption costs
the equivalent of a
20% tax
Six Questions on the Cost of Corruption
With World Bank Institute Global Governance Director Daniel Kaufmann
http://go.worldbank.org/KQH743GKF1
Image: We Want You by D Planet
http://www.flickr.com/photos/dplanet/94442625/
20%
11%
11% of companies
say “firms like theirs”
bribe
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get?
Evidence from Corruption Cases Worldwide (March 30, 2012)
Image: Don by D Planet
http://www.flickr.com/photos/dplanet/94442620/
40%
40% of companies
claim to have lost
business to
competitors who
won contracts
unethically
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get?
Evidence from Corruption Cases Worldwide (March 30, 2012)
Image: Adjust Tie by Dplanet
http://www.flickr.com/photos/dplanet/94441582/
What’s next?
Is bribery worth it?
Is it worth the risk
of bribing and
getting caught?
Image: http://office.microsoft.com/en-sg/results.aspx?qu=MP900185047
Is it worth bribing and
getting away with it?
Image: Adjust Tie by D Planet
http://www.flickr.com/photos/dplanet/94441582/
How much did you pay?
What value did you get?
Image: Greed by Liz West
http://www.flickr.com/photos/53133240@N00/2207307656/
What is the ROI of bribery?
Most bribery
statistics come
from firms that
got caught
http://office.microsoft.com/en-us/images/results.aspx?qu=handcuffs&ex=2#ai:MP900402864|
Who bribed and
got away with it
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900443285&ex=1
Image: http://www.fanpop.com/clubs/marlon-brando/images/9109847/title/godfather-fanart
Don’t write if you
can talk, don’t talk
of you can nod
your head, don’t
nod your head if
you don’t have to.
The Family Corleone
Prequel to Mrio Puzo's
The Godfather
“
How much did you pay?
What value did you get?
How much did you pay?
Historical Financial Analysis
166 historical bribery
incidents
107 publically listed firms
20 stock markets
52 countries
36 year time period
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
Median bribe
amount
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do
They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
Image: http://office.microsoft.com
us/images/results.aspx?qu=MP90044
$1.06 M
$11.43 M
Low Rank Officials High Rank Officials
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do
They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900422532
$16.77 M
$13.77 M
$7.63 M
$5.32 M
$5.00 M
$0.50 M
$0.19 M
Head of State
Member of Parliament
Government Minister
Military Officer
Judge
Head of Agency
Governor/Mayor
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They
Get? Evidence from Corruption Cases Worldwide (March 30, 2012) Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900448685
Bribe percentage of
project awarded:
1.94%
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
Image: http://www.flickr.com/photos/34728058@N08/4818131438/
4.42%1.22%
Bribe %
Low Rank
Official
Bribe %
High Rank
Official
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900401019
What value did you get?
Theatrical poster for Fight Club, Copyright © 1999 by 20th Century Fox. All Rights Reserved.
http://en.wikipedia.org/wiki/File:Fight_Club_poster.jpg
This image is of a poster, and the copyright for it is owned by either the publisher or the creator of the work depicted.
http://office.microsoft.com/en-us/images/results.aspx?qu=reading&ex=1#ai:MP900422989|mt:2|
Efficient Markets Theory
http://office.microsoft.com/en-us/images/results.aspx?qu=reading&ex=2#ai:MP900442375|mt:2|
UK Bribery Act 2010
Exogenous shock:
Newspapers did not
discuss vote
Previous legislation
was early 19th & 20th
century
All previous attempts
had failed
Included unexpectedly
severe fines
Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900422830
645 UK firms
$3.768B Average Market Cap
$429M Median Market Cap
Event Date: 25-March 2009
Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
Cumulative Abnormal Returns
-0.06%
-0.87%
-0.05%
CAR [-20;-1] CAR[0;1] CAR[2;20]
$2.43 Trillion Loss in Market Cap
Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
Foreign Corruption
Exposure
Firms that operate
in more corrupt
environments
experience a larger
drop in firm value
Image: http://www.transparency.org/cpi2012/results
0.51% more negative CAR [0;1]
$2.19M more negative loss for median-size firm
-0.87%
-0.61%
-1.12%
-0.51%
Baseline
Low Foreign
Corruption Exposure
High Foreign
CorruptionExposure
Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
Other Anti-Bribery
Regulations
Firms that are
already subject to
US anti-bribery
regulations (FCPA)
experience a
smaller drop in
firm value
Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900400667
0.37% more negative CAR [0;1]
$1.58M more negative loss for median-size firm
-0.87% -0.92%
-0.55%
-0.37%
Baseline No Cross-Listing US Cross-Listing
Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
Spillover to Foreign
Firms
Non-UK firms with
UK links and high
foreign corruption
exposure experience
higher drop in firm
value
Image: http://www.transparency.org/cpi2012/results
Foreign firms with high foreign corruption exposure and
UK links had 0.19% more negative returns
-0.87%
-0.19%
-0.31%
-0.12%
-0.19%
UK Firms Foreign Firms
Foreign Firms
with UK Link
Foreign Firms
without UK Link
Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
Median size firms with high
corruption exposure
experienced US $2.19M more
negative loss than firms with
low corruption exposure
But what about individual firms
and individual bribes...
Return on Investment
Example:
Elf Aquitaine paid $46M in bribes to acquire
German oil refinery assets in 1992
At the time the deal was originally
announced, Elf earned $327M excess returns
(7 X return) with a net benefit of $281M
after cost of bribe or an ROI of 6.1
(The bribe was later discovered later and
numerous executives received jail terms in
2002-2003)
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
Who bribed and
got away with it
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900443285&ex=1
166 actual bribery incidents
107 publically listed firms
20 stock markets
52 countries
36 year time period
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
For the 166 bribes studied,
the average return was 10.5 X
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
10.5 X
5.5 X
All Bribes
High-Rank Politicians
CAR [-1,+1] relative to initial contract announcements,
divided by amount of the bribe.
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
But that’s not the end of the
story...
Do firms that bribe
perform better?
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900443251&ex=1
http://office.microsoft.com/en-us/images/results.aspx?qu=reports&ex=1#ai:MP900422411|mt:2|
2.70%
5.10%
3.20%
0.90%
2.30%
1.40%
Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3
Sales Growth
Companies that bribe have greater
sales growth compared to control firms
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
-1.20%
-1.50%
-0.90%
-0.70% -0.70%
-0.60%
-0.30%
Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3
ROA
Companies that bribe have poorer return on assets
(ROA = EBIT divided by total assets)
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
-12.10% -11.80%
-9.70%
-14.20%
-10.60%
-6.60%
-2.40%
Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3
Asset Turnover
Companies that bribe have poorer asset turnover
(sales revenue divided by total assets)
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
-0.90% -0.90%
-0.50%
-0.40%
-0.80%
0.00%
-0.30%
Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3
Operating profit margin
Companies that bribe have poorer
operating profit margin compared to control firms
(operating profit divided by sales revenue).Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
0.00%
-0.50%
-0.10%
-0.20%
-0.40%
-1.20%
-0.60%
Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3
Net Profit Margin
Companies that bribe have poorer net profit margin
(net income divided by sales revenue)
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
Companies that bribe have poorer cumulative abnormal returns
(difference between the sum of the monthly returns
for bribing firms versus control firms)
-2.90%
0.50%
1.50% 1.60%
0.30%
-4.60%
-6.80%
Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3
CAR
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
Bribe-paying firms
underperform the market
for 3 years before and 3 years
after winning the contract
(except for sales growth)
Discussion Question: Why?
Globalization of Ethics
and Compliance
UB School of Management
21 September 2013
By Eric Pesik
Image Credit: Confident businesspeople by Victor 1558
http://www.flickr.com/photos/76029035@N02/6829325255/
Acknowledgements
Acknowledgements
How Much do Firms Pay as Bribes and What Benefits do They Get?
Evidence from Corruption Cases Worldwide
Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, (March 30, 2012).
http://ssrn.com/abstract=1772246
Bribes and Firm Value
Evidence from Anti-Bribery Regulation
Zeume, Stefan, (August 18, 2013).
http://ssrn.com/abstract=2179437
Report to the Nations
on Occupational Fraud and Abuse
Association of Certified Fraud Examiners (2012)
http://www.acfe.com/rttn.aspx
Microsoft Office Online
Images from Microsoft Office Online are used with permission from Microsoft.
http://office.microsoft.com/en-us/images/
Flickr Creative Commons
Images from Flickr Creative Commons are used under Creative Commons license.
http://www.flickr.com/creativecommons/
Other Sources
Corporate logos are property of their respective companies.
All other sources and images are acknowledged where they appear.
About the Author
Eric Pesik
Eric Pesik is a frequent speaker on legal and compliance matters and has taught law school and
business school in the USA and Singapore.
Background
Mr. Pesik is currently the Associate General Counsel and Compliance Officer for Seagate
Singapore International Headquarters Pte Ltd. He has been a lawyer since 1997 and is a
member of the State Bar of California, USA. He is also admitted to the US Court of International
Trade in New York and the US Supreme Court in Washington, DC.
Other Presentations
Many of Mr. Pesik’s presentations are available on SlideShare at:
http://www.slideshare.net/ericpesik
Disclaimer
This work represents the opinions of the author alone, and is not the opinion his employer.
Creative Commons Attribution License
You are free to share, copy, distribute, and transmit this work; to remix or adapt this work; and
to make commercial use of this work, under the condition that you must attribute this work to
me (but not in any way that suggests that I endorse you or your use of this work).
http://creativecommons.org/licenses/by/3.0/
Each slide contains source attributions and URL; you should obtain the original images from
the original sources before reusing. You must comply with any applicable license restrictions
imposed by the original source.
Thank you for helping to make my presentation “Hot on Facebook”
http://www.slideshare.net/ericpesik/globalization-of-ethics-and-compliance

More Related Content

What's hot

Inspiration, Innovation & Lessons Learned from Soap Bubbles
Inspiration, Innovation & Lessons Learned from Soap BubblesInspiration, Innovation & Lessons Learned from Soap Bubbles
Inspiration, Innovation & Lessons Learned from Soap Bubbles
hblowers
 
Sport Law Ch.5 Presentation
Sport Law Ch.5 PresentationSport Law Ch.5 Presentation
Sport Law Ch.5 Presentation
Frank Campo
 
Jon Worth presentation to European Movement Denmark on Social Media
Jon Worth presentation to European Movement Denmark on Social MediaJon Worth presentation to European Movement Denmark on Social Media
Jon Worth presentation to European Movement Denmark on Social Media
Jon Worth
 
An imperfect world
An imperfect worldAn imperfect world
An imperfect world
TinyTimTim77
 
An imperfect world
An imperfect worldAn imperfect world
An imperfect world
TinyTimTim77
 

What's hot (20)

Inspiration, Innovation & Lessons Learned from Soap Bubbles
Inspiration, Innovation & Lessons Learned from Soap BubblesInspiration, Innovation & Lessons Learned from Soap Bubbles
Inspiration, Innovation & Lessons Learned from Soap Bubbles
 
Search love 2015 - Google's Predictable Content Preference - Aaron Friedman
Search love 2015 - Google's Predictable Content Preference - Aaron FriedmanSearch love 2015 - Google's Predictable Content Preference - Aaron Friedman
Search love 2015 - Google's Predictable Content Preference - Aaron Friedman
 
Sport Law Ch.5 Presentation
Sport Law Ch.5 PresentationSport Law Ch.5 Presentation
Sport Law Ch.5 Presentation
 
And what next? A case study in how to get the most out of your user research
And what next? A case study in how to get the most out of your user researchAnd what next? A case study in how to get the most out of your user research
And what next? A case study in how to get the most out of your user research
 
Griffey "AI Possible Futures!"
Griffey "AI Possible Futures!"Griffey "AI Possible Futures!"
Griffey "AI Possible Futures!"
 
The future is a platform
The future is a platformThe future is a platform
The future is a platform
 
New Business Etiquette in the Digital & Social Age - You're Fired or You're N...
New Business Etiquette in the Digital & Social Age - You're Fired or You're N...New Business Etiquette in the Digital & Social Age - You're Fired or You're N...
New Business Etiquette in the Digital & Social Age - You're Fired or You're N...
 
Measuring Social Media is Easy
Measuring Social Media is Easy Measuring Social Media is Easy
Measuring Social Media is Easy
 
NextLibrary - Finding the Phoenix
NextLibrary - Finding the PhoenixNextLibrary - Finding the Phoenix
NextLibrary - Finding the Phoenix
 
Jon Worth presentation to European Movement Denmark on Social Media
Jon Worth presentation to European Movement Denmark on Social MediaJon Worth presentation to European Movement Denmark on Social Media
Jon Worth presentation to European Movement Denmark on Social Media
 
Test
TestTest
Test
 
Capturing and managing non-traditional information for Competitive Advantage....
Capturing and managing non-traditional information for Competitive Advantage....Capturing and managing non-traditional information for Competitive Advantage....
Capturing and managing non-traditional information for Competitive Advantage....
 
The Importance of Being Awesome: From Words and Pictures to Code and Cyborgs
The Importance of Being Awesome: From Words and Pictures to Code and CyborgsThe Importance of Being Awesome: From Words and Pictures to Code and Cyborgs
The Importance of Being Awesome: From Words and Pictures to Code and Cyborgs
 
Hat mLearning an Universitäten Zukunft?
Hat mLearning an Universitäten Zukunft?Hat mLearning an Universitäten Zukunft?
Hat mLearning an Universitäten Zukunft?
 
Ted Cruz announces 2016 presidential bid
Ted Cruz announces 2016 presidential bidTed Cruz announces 2016 presidential bid
Ted Cruz announces 2016 presidential bid
 
An imperfect world
An imperfect worldAn imperfect world
An imperfect world
 
An imperfect world
An imperfect worldAn imperfect world
An imperfect world
 
Ppt finance fall 2017 1
Ppt finance fall 2017 1Ppt finance fall 2017 1
Ppt finance fall 2017 1
 
Yet Another Scary Back to School Presentation
Yet Another Scary Back to School PresentationYet Another Scary Back to School Presentation
Yet Another Scary Back to School Presentation
 
Digital Civil Rights (Bits of Freedom)
Digital Civil Rights (Bits of Freedom)Digital Civil Rights (Bits of Freedom)
Digital Civil Rights (Bits of Freedom)
 

Viewers also liked

Ace webinar key trends in the nonprofit sector
Ace webinar   key trends in the nonprofit sectorAce webinar   key trends in the nonprofit sector
Ace webinar key trends in the nonprofit sector
NationalACE
 
Class xx performance appraisal
Class xx performance appraisalClass xx performance appraisal
Class xx performance appraisal
Malavika Desai
 
Ethics in School Leadership
Ethics in School LeadershipEthics in School Leadership
Ethics in School Leadership
East Central ISD
 
Performance Appraisal – An Objective Look
Performance Appraisal – An Objective LookPerformance Appraisal – An Objective Look
Performance Appraisal – An Objective Look
cindyandthecity
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
Akshay Samant
 
Yearly plan english year 3 kssr
Yearly plan english year 3 kssrYearly plan english year 3 kssr
Yearly plan english year 3 kssr
Naineh Mahiri
 

Viewers also liked (20)

Ace webinar key trends in the nonprofit sector
Ace webinar   key trends in the nonprofit sectorAce webinar   key trends in the nonprofit sector
Ace webinar key trends in the nonprofit sector
 
Welcome Back To School (Ethics Students)
Welcome Back To School (Ethics Students)Welcome Back To School (Ethics Students)
Welcome Back To School (Ethics Students)
 
Using Feedback as a Means to Improve Employee Management
Using Feedback as a Means to Improve Employee ManagementUsing Feedback as a Means to Improve Employee Management
Using Feedback as a Means to Improve Employee Management
 
School ethics
School ethicsSchool ethics
School ethics
 
Perceptions of Feedback: Myth & Reality
Perceptions of Feedback: Myth & RealityPerceptions of Feedback: Myth & Reality
Perceptions of Feedback: Myth & Reality
 
What can institutional big data tell us - Mark Northover - Auckland Universit...
What can institutional big data tell us - Mark Northover - Auckland Universit...What can institutional big data tell us - Mark Northover - Auckland Universit...
What can institutional big data tell us - Mark Northover - Auckland Universit...
 
What The Head Of School Wants You To Know
What The Head Of School Wants You To KnowWhat The Head Of School Wants You To Know
What The Head Of School Wants You To Know
 
Class xx performance appraisal
Class xx performance appraisalClass xx performance appraisal
Class xx performance appraisal
 
Integrating ethics into your school community
Integrating ethics into your school communityIntegrating ethics into your school community
Integrating ethics into your school community
 
A Relationship Among Public School Leadership, Ethics, and Student Achievemen...
A Relationship Among Public School Leadership, Ethics, and Student Achievemen...A Relationship Among Public School Leadership, Ethics, and Student Achievemen...
A Relationship Among Public School Leadership, Ethics, and Student Achievemen...
 
Lotus Valley International School, Gurgaon, Haryana
Lotus Valley International School, Gurgaon, HaryanaLotus Valley International School, Gurgaon, Haryana
Lotus Valley International School, Gurgaon, Haryana
 
Ethics in School Leadership
Ethics in School LeadershipEthics in School Leadership
Ethics in School Leadership
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Teaching methodology adopted by International schools in India
Teaching methodology adopted by International schools in IndiaTeaching methodology adopted by International schools in India
Teaching methodology adopted by International schools in India
 
Performance Appraisal – An Objective Look
Performance Appraisal – An Objective LookPerformance Appraisal – An Objective Look
Performance Appraisal – An Objective Look
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
360 degree final ppt
360 degree final ppt360 degree final ppt
360 degree final ppt
 
Performance management and appraisal of Coca-cola
Performance management and appraisal of Coca-colaPerformance management and appraisal of Coca-cola
Performance management and appraisal of Coca-cola
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Yearly plan english year 3 kssr
Yearly plan english year 3 kssrYearly plan english year 3 kssr
Yearly plan english year 3 kssr
 

Similar to Globalization of Ethics and Compliance by @EricPesik

I-pods by LaTonya Simmons
I-pods by LaTonya SimmonsI-pods by LaTonya Simmons
I-pods by LaTonya Simmons
LATONYA SIMMONS
 
TLC Manchester - Dimitar Stanimiroff, Stack Overflow
TLC Manchester - Dimitar Stanimiroff, Stack OverflowTLC Manchester - Dimitar Stanimiroff, Stack Overflow
TLC Manchester - Dimitar Stanimiroff, Stack Overflow
TALiNT Partners
 
Kick that addiction
Kick that addictionKick that addiction
Kick that addiction
Derek Simms
 
iPods -Walden University EDUC 7101
iPods -Walden University EDUC 7101 iPods -Walden University EDUC 7101
iPods -Walden University EDUC 7101
LATONYA SIMMONS
 

Similar to Globalization of Ethics and Compliance by @EricPesik (20)

The Hard Truth About Social Media
The Hard Truth About Social MediaThe Hard Truth About Social Media
The Hard Truth About Social Media
 
We are a team! & the Red Fez Playbook, August 2009
We are a team! & the Red Fez Playbook, August 2009We are a team! & the Red Fez Playbook, August 2009
We are a team! & the Red Fez Playbook, August 2009
 
Public Sector Learning
Public Sector LearningPublic Sector Learning
Public Sector Learning
 
E0 d4umap15
E0 d4umap15E0 d4umap15
E0 d4umap15
 
Ecological Intelligence for Designers
Ecological Intelligence for DesignersEcological Intelligence for Designers
Ecological Intelligence for Designers
 
DevOps is Not Enough
DevOps is Not EnoughDevOps is Not Enough
DevOps is Not Enough
 
Ux day2018 jorge arango living in information
Ux day2018   jorge arango living in informationUx day2018   jorge arango living in information
Ux day2018 jorge arango living in information
 
Hiring Developer "Rock Stars", "Ninjas" & "Jedis"
Hiring Developer "Rock Stars", "Ninjas" & "Jedis"Hiring Developer "Rock Stars", "Ninjas" & "Jedis"
Hiring Developer "Rock Stars", "Ninjas" & "Jedis"
 
I-pods by LaTonya Simmons
I-pods by LaTonya SimmonsI-pods by LaTonya Simmons
I-pods by LaTonya Simmons
 
TLC Manchester - Dimitar Stanimiroff, Stack Overflow
TLC Manchester - Dimitar Stanimiroff, Stack OverflowTLC Manchester - Dimitar Stanimiroff, Stack Overflow
TLC Manchester - Dimitar Stanimiroff, Stack Overflow
 
Personal brand maintenance
Personal brand maintenance Personal brand maintenance
Personal brand maintenance
 
Kick that addiction
Kick that addictionKick that addiction
Kick that addiction
 
Living in Information (Short Version)
Living in Information (Short Version)Living in Information (Short Version)
Living in Information (Short Version)
 
iPods -Walden University EDUC 7101
iPods -Walden University EDUC 7101 iPods -Walden University EDUC 7101
iPods -Walden University EDUC 7101
 
Like Minds February 2010 Keynote
Like Minds February 2010 KeynoteLike Minds February 2010 Keynote
Like Minds February 2010 Keynote
 
Likemindsjj
LikemindsjjLikemindsjj
Likemindsjj
 
Consider the Avocado
Consider the AvocadoConsider the Avocado
Consider the Avocado
 
Gameful Design: Creating Passionate Customers and Coworkers
Gameful Design: Creating Passionate Customers and CoworkersGameful Design: Creating Passionate Customers and Coworkers
Gameful Design: Creating Passionate Customers and Coworkers
 
Continuous Integration
Continuous IntegrationContinuous Integration
Continuous Integration
 
Why Use Technology in the Classroom
Why Use Technology in the ClassroomWhy Use Technology in the Classroom
Why Use Technology in the Classroom
 

More from Eric Pesik

25 things NOT to do during Hungry Ghost Festival by @EricPesik
25 things NOT to do during Hungry Ghost Festival by @EricPesik25 things NOT to do during Hungry Ghost Festival by @EricPesik
25 things NOT to do during Hungry Ghost Festival by @EricPesik
Eric Pesik
 

More from Eric Pesik (13)

Reviewing Contract Key Terms and Conditions
Reviewing Contract Key Terms and ConditionsReviewing Contract Key Terms and Conditions
Reviewing Contract Key Terms and Conditions
 
Why fonts matter in 2 slides by @EricPesik
Why fonts matter in 2 slides by @EricPesikWhy fonts matter in 2 slides by @EricPesik
Why fonts matter in 2 slides by @EricPesik
 
The Truth about Tone from the Top by @EricPesik
The Truth about Tone from the Top by @EricPesikThe Truth about Tone from the Top by @EricPesik
The Truth about Tone from the Top by @EricPesik
 
Zombie PowerPoint by @ericpesik
Zombie PowerPoint by @ericpesikZombie PowerPoint by @ericpesik
Zombie PowerPoint by @ericpesik
 
J.P. Morgan and the Princelings of China by @ericpesik
J.P. Morgan and the Princelings of China by @ericpesikJ.P. Morgan and the Princelings of China by @ericpesik
J.P. Morgan and the Princelings of China by @ericpesik
 
Do you want to be a billionaire by @EricPesik
Do you want to be a billionaire by @EricPesikDo you want to be a billionaire by @EricPesik
Do you want to be a billionaire by @EricPesik
 
Top 10 Things People Admit Doing on Conference Calls by @EricPesik
Top 10 Things People Admit Doing on Conference Calls by @EricPesikTop 10 Things People Admit Doing on Conference Calls by @EricPesik
Top 10 Things People Admit Doing on Conference Calls by @EricPesik
 
25 things NOT to do during Hungry Ghost Festival by @EricPesik
25 things NOT to do during Hungry Ghost Festival by @EricPesik25 things NOT to do during Hungry Ghost Festival by @EricPesik
25 things NOT to do during Hungry Ghost Festival by @EricPesik
 
Drafting Game Rules to Minimize Litigation
Drafting Game Rules to Minimize LitigationDrafting Game Rules to Minimize Litigation
Drafting Game Rules to Minimize Litigation
 
Effective Internal Controls by @EricPesik
Effective Internal Controls by @EricPesikEffective Internal Controls by @EricPesik
Effective Internal Controls by @EricPesik
 
Effective Internal Controls (Annotated) by @EricPesik
Effective Internal Controls (Annotated) by @EricPesikEffective Internal Controls (Annotated) by @EricPesik
Effective Internal Controls (Annotated) by @EricPesik
 
Fighting Global Corruption by @EricPesik
Fighting Global Corruption by @EricPesikFighting Global Corruption by @EricPesik
Fighting Global Corruption by @EricPesik
 
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...
 

Recently uploaded

Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
LR1709MUSIC
 
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
ogawka
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di SurabayaObat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Jakarta Wa 085176963835 Apotek Jual Obat Cytotec Di Jakarta
 
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
Khaled Al Awadi
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metrics
CaitlinCummins3
 

Recently uploaded (20)

Presentation on cross cultural negotiations.
Presentation on cross cultural negotiations.Presentation on cross cultural negotiations.
Presentation on cross cultural negotiations.
 
What are the differences between an international company, a global company, ...
What are the differences between an international company, a global company, ...What are the differences between an international company, a global company, ...
What are the differences between an international company, a global company, ...
 
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptxThompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
WAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdfWAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdf
 
Beyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingBeyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic Accounting
 
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(SUT毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
 
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfProgress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
 
Chapter 2 Organization Structure of a Treasury
Chapter 2 Organization Structure of a TreasuryChapter 2 Organization Structure of a Treasury
Chapter 2 Organization Structure of a Treasury
 
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjt
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjtSCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjt
SCI9-Q4-MOD9.pdfetiwtitw3i3uu45w5wtitwjt
 
Mastering The Art Of 'Closing The Sale'.
Mastering The Art Of 'Closing The Sale'.Mastering The Art Of 'Closing The Sale'.
Mastering The Art Of 'Closing The Sale'.
 
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di SurabayaObat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
 
The Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and UncertaintyThe Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and Uncertainty
 
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
 
Navigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA FirmsNavigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA Firms
 
Moradia Isolada com Logradouro; Detached house with patio in Penacova
Moradia Isolada com Logradouro; Detached house with patio in PenacovaMoradia Isolada com Logradouro; Detached house with patio in Penacova
Moradia Isolada com Logradouro; Detached house with patio in Penacova
 
Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024
 
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
Most Visionary Leaders in Cloud Revolution, Shaping Tech’s Next Era - 2024 (2...
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metrics
 

Globalization of Ethics and Compliance by @EricPesik

  • 1. Globalization of Ethics and Compliance UB School of Management 21 September 2013 By Eric Pesik Image Credit: Confident businesspeople by Victor 1558 http://www.flickr.com/photos/76029035@N02/6829325255/
  • 3. Starbucks Inside the Forbidden City by Satbir Singh http://www.flickr.com/photos/satbir/224429602/ Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 4. Apple Store - Scottsdale Road by Dru Bloomfield http://www.flickr.com/photos/athomeinscottsdale/4780635479/ Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 5. Image: Garment factory Jiaxing by Memn http://www.flickr.com/photos/29027365@N03/2716435026/
  • 6. The open pit of the Udachnaya Diamond Mine, Russia http://en.wikipedia.org/wiki/File:Udachnaya_pipe.JPG Licensed under the Creative Commons Attribution-Share Alike 3.0 Unported license.
  • 9. Justin Bieber performing Believe Tour in October 20, 2012 buy MyCanon http://en.wikipedia.org/wiki/File:Believe_Tour_7,_2012.jpg This file is licensed under the Creative Commons Attribution 2.0 Generic license.
  • 10. Image: Ahmedabad Gujarat India by Emmanuel Dyan http://www.flickr.com/photos/17616316@N00/5933944812/
  • 11. Image: Greed by Liz West http://www.flickr.com/photos/53133240@N00/2207307656/
  • 12. Image Credit: Confident businesspeople by Victor 1558 http://www.flickr.com/photos/76029035@N02/6829325255/
  • 13. Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 14. Image: The Pay Off by Chris Potter (www.stockmonkeys.com) http://www.flickr.com/photos/86530412@N02/8449175260/
  • 16. Image: Greed by Liz West http://www.flickr.com/photos/53133240@N00/2207307656/
  • 17. Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 19. Where did it start?
  • 20. Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 21. Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 22. 1970s
  • 23. Image: http://en.wikipedia.org/wiki/File:Leonid_Brezhnev_and_Richard_Nixon_talks_in_1973.png As a work of the U.S. federal government, the image is in the public domain
  • 24. Image: B-52 Stratofortress with bombs http://en.wikipedia.org/wiki/File:B-52G_with_bombs.jpg As a work of the U.S. federal government, the image is in the public domain.
  • 25. Image: Same Year Different Weather, Author Unknown, Year Unknown Image: http://www.designer-daily.com/10-amazing-cold-war-propaganda-posters-2901
  • 26. Image: http://en.wikipedia.org/wiki/File:Nixon_Mao_1972-02-29.png As a work of the U.S. federal government, the image is in the public domain
  • 27. Songs of the Italian Communists., revolutionary songs released on 7″ singles by the Italian label ‘i dischi del sole’ Image: http://waxidermy.com/canti-comunisti-italiani/
  • 28. Portrait of Antonio Gramsci around 30 in the early 20s http://en.wikipedia.org/wiki/File:Gramsci.png This image (or other media file) is in the public domain because its copyright has expired.
  • 29. Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 31. A 1960 comic book cover presenting communism as the iceberg that could sink America. Image: http://www.designer-daily.com/examples-of-american-cold-war-propaganda-2918
  • 32. President Jimmy Carter signing the Foreign Corrupt Practices Act into law in December 1977 (photo courtesy of Carter archives) See http://www.presidency.ucsb.edu/ws/?pid=7036
  • 33. Wedding Gift by Project Hotsauce (Julian Wylegly) http://www.flickr.com/photos/quattro_ftw/3424691075/ FCPA prohibits (1) giving or offering to give (2) anything of value (3) to obtain or retain a business advantage
  • 36. Image: The Pay Off by Chris Potter (www.stockmonkeys.com) http://www.flickr.com/photos/86530412@N02/8449175260/
  • 38. Image: Risk by Bien Stephenson http://www.flickr.com/photos/benstephenson/27298596/
  • 39. The FCPA Blog http://www.fcpablog.com/blog/tag/top-ten Image: Arms Folder by D Planet http://www.flickr.com/photos/dplanet/94441584/ Top 10 FCPA Fines of All Time $95 Million $137 Million $185 Million $219 Million $338 Million $365 Million $395 Million $400 Million $579 Million $800 Million Deutsche Telekom (Germany) Alcatel-Lucent (France) Daimler AG (Germany) JGC Corporation (Japan) Technip S.A. (France) Snamprogetti/ENI (Holland/Italy) Total S.A. (France) BAE (UK) KBR/Halliburton (USA) Siemens (Germany)
  • 40. Greed by Liz West http://www.flickr.com/photos/53133240@N00/2207307656/
  • 42. Image: Cut your Bills by Images of Money http://www.flickr.com/photos/59937401@N07/5857660216/
  • 43. Image: Chinese Flag by Philip Jägenstedt http://www.flickr.com/photos/48982392@N00/2489526032/
  • 44. The value of a dollar by rahims http://www.flickr.com/photos/rahims/2110236034/
  • 45. Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 47. Corporate logos are property of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 48. Did You Say Bribe by Chris Potter (www.stockmonkeys.com) http://www.flickr.com/photos/86530412@N02/8448086741/
  • 49. Talk to the hand by John Lambert Pearson http://www.flickr.com/photos/orphanjones/2123340817/
  • 50. We accept U.S. Money by Roland Tanglao http://www.flickr.com/photos/roland/6536340101/
  • 51. Televised confession on China's central broadcaster CNTV
  • 52. International Currency by epSos.de http://www.flickr.com/photos/epsos/8453271596/
  • 53. Where are we now?
  • 54. Corruption costs the equivalent of a 20% tax Six Questions on the Cost of Corruption With World Bank Institute Global Governance Director Daniel Kaufmann http://go.worldbank.org/KQH743GKF1 Image: We Want You by D Planet http://www.flickr.com/photos/dplanet/94442625/ 20%
  • 55. 11% 11% of companies say “firms like theirs” bribe Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012) Image: Don by D Planet http://www.flickr.com/photos/dplanet/94442620/
  • 56. 40% 40% of companies claim to have lost business to competitors who won contracts unethically Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012) Image: Adjust Tie by Dplanet http://www.flickr.com/photos/dplanet/94441582/
  • 59. Is it worth the risk of bribing and getting caught? Image: http://office.microsoft.com/en-sg/results.aspx?qu=MP900185047
  • 60. Is it worth bribing and getting away with it? Image: Adjust Tie by D Planet http://www.flickr.com/photos/dplanet/94441582/
  • 61. How much did you pay? What value did you get?
  • 62. Image: Greed by Liz West http://www.flickr.com/photos/53133240@N00/2207307656/
  • 63. What is the ROI of bribery?
  • 64. Most bribery statistics come from firms that got caught http://office.microsoft.com/en-us/images/results.aspx?qu=handcuffs&ex=2#ai:MP900402864|
  • 65. Who bribed and got away with it http://office.microsoft.com/en-us/images/results.aspx?qu=MP900443285&ex=1
  • 66. Image: http://www.fanpop.com/clubs/marlon-brando/images/9109847/title/godfather-fanart Don’t write if you can talk, don’t talk of you can nod your head, don’t nod your head if you don’t have to. The Family Corleone Prequel to Mrio Puzo's The Godfather “
  • 67. How much did you pay? What value did you get?
  • 68. How much did you pay?
  • 70. 166 historical bribery incidents 107 publically listed firms 20 stock markets 52 countries 36 year time period Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 71. Median bribe amount Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012) Image: http://office.microsoft.com us/images/results.aspx?qu=MP90044
  • 72. $1.06 M $11.43 M Low Rank Officials High Rank Officials Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900422532
  • 73. $16.77 M $13.77 M $7.63 M $5.32 M $5.00 M $0.50 M $0.19 M Head of State Member of Parliament Government Minister Military Officer Judge Head of Agency Governor/Mayor Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012) Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900448685
  • 74. Bribe percentage of project awarded: 1.94% Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012) Image: http://www.flickr.com/photos/34728058@N08/4818131438/
  • 75. 4.42%1.22% Bribe % Low Rank Official Bribe % High Rank Official Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012) Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900401019
  • 76. What value did you get?
  • 77. Theatrical poster for Fight Club, Copyright © 1999 by 20th Century Fox. All Rights Reserved. http://en.wikipedia.org/wiki/File:Fight_Club_poster.jpg This image is of a poster, and the copyright for it is owned by either the publisher or the creator of the work depicted.
  • 81. UK Bribery Act 2010 Exogenous shock: Newspapers did not discuss vote Previous legislation was early 19th & 20th century All previous attempts had failed Included unexpectedly severe fines Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900422830
  • 82. 645 UK firms $3.768B Average Market Cap $429M Median Market Cap Event Date: 25-March 2009 Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
  • 84. -0.06% -0.87% -0.05% CAR [-20;-1] CAR[0;1] CAR[2;20] $2.43 Trillion Loss in Market Cap Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
  • 85. Foreign Corruption Exposure Firms that operate in more corrupt environments experience a larger drop in firm value Image: http://www.transparency.org/cpi2012/results
  • 86. 0.51% more negative CAR [0;1] $2.19M more negative loss for median-size firm -0.87% -0.61% -1.12% -0.51% Baseline Low Foreign Corruption Exposure High Foreign CorruptionExposure Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
  • 87. Other Anti-Bribery Regulations Firms that are already subject to US anti-bribery regulations (FCPA) experience a smaller drop in firm value Image: http://office.microsoft.com/en-us/images/results.aspx?qu=MP900400667
  • 88. 0.37% more negative CAR [0;1] $1.58M more negative loss for median-size firm -0.87% -0.92% -0.55% -0.37% Baseline No Cross-Listing US Cross-Listing Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
  • 89. Spillover to Foreign Firms Non-UK firms with UK links and high foreign corruption exposure experience higher drop in firm value Image: http://www.transparency.org/cpi2012/results
  • 90. Foreign firms with high foreign corruption exposure and UK links had 0.19% more negative returns -0.87% -0.19% -0.31% -0.12% -0.19% UK Firms Foreign Firms Foreign Firms with UK Link Foreign Firms without UK Link Zeume, Stefan, Bribes and Firm Value - Evidence from Anti-Bribery Regulation (August 18, 2013).
  • 91. Median size firms with high corruption exposure experienced US $2.19M more negative loss than firms with low corruption exposure
  • 92. But what about individual firms and individual bribes...
  • 94. Example: Elf Aquitaine paid $46M in bribes to acquire German oil refinery assets in 1992 At the time the deal was originally announced, Elf earned $327M excess returns (7 X return) with a net benefit of $281M after cost of bribe or an ROI of 6.1 (The bribe was later discovered later and numerous executives received jail terms in 2002-2003) Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 95. Who bribed and got away with it http://office.microsoft.com/en-us/images/results.aspx?qu=MP900443285&ex=1
  • 96. 166 actual bribery incidents 107 publically listed firms 20 stock markets 52 countries 36 year time period Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 97. For the 166 bribes studied, the average return was 10.5 X Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 98. 10.5 X 5.5 X All Bribes High-Rank Politicians CAR [-1,+1] relative to initial contract announcements, divided by amount of the bribe. Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 99. But that’s not the end of the story...
  • 100. Do firms that bribe perform better? http://office.microsoft.com/en-us/images/results.aspx?qu=MP900443251&ex=1
  • 102. 2.70% 5.10% 3.20% 0.90% 2.30% 1.40% Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3 Sales Growth Companies that bribe have greater sales growth compared to control firms Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 103. -1.20% -1.50% -0.90% -0.70% -0.70% -0.60% -0.30% Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3 ROA Companies that bribe have poorer return on assets (ROA = EBIT divided by total assets) Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 104. -12.10% -11.80% -9.70% -14.20% -10.60% -6.60% -2.40% Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3 Asset Turnover Companies that bribe have poorer asset turnover (sales revenue divided by total assets) Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 105. -0.90% -0.90% -0.50% -0.40% -0.80% 0.00% -0.30% Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3 Operating profit margin Companies that bribe have poorer operating profit margin compared to control firms (operating profit divided by sales revenue).Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 106. 0.00% -0.50% -0.10% -0.20% -0.40% -1.20% -0.60% Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3 Net Profit Margin Companies that bribe have poorer net profit margin (net income divided by sales revenue) Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 107. Companies that bribe have poorer cumulative abnormal returns (difference between the sum of the monthly returns for bribing firms versus control firms) -2.90% 0.50% 1.50% 1.60% 0.30% -4.60% -6.80% Year -3 Year -2 Year -1 Year 0 Year +1 Year +2 Year +3 CAR Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide (March 30, 2012)
  • 108. Bribe-paying firms underperform the market for 3 years before and 3 years after winning the contract (except for sales growth)
  • 110. Globalization of Ethics and Compliance UB School of Management 21 September 2013 By Eric Pesik Image Credit: Confident businesspeople by Victor 1558 http://www.flickr.com/photos/76029035@N02/6829325255/
  • 112. Acknowledgements How Much do Firms Pay as Bribes and What Benefits do They Get? Evidence from Corruption Cases Worldwide Cheung, Stephen Yan-Leung, Rau, Raghavendra and Stouraitis, Aris, (March 30, 2012). http://ssrn.com/abstract=1772246 Bribes and Firm Value Evidence from Anti-Bribery Regulation Zeume, Stefan, (August 18, 2013). http://ssrn.com/abstract=2179437 Report to the Nations on Occupational Fraud and Abuse Association of Certified Fraud Examiners (2012) http://www.acfe.com/rttn.aspx Microsoft Office Online Images from Microsoft Office Online are used with permission from Microsoft. http://office.microsoft.com/en-us/images/ Flickr Creative Commons Images from Flickr Creative Commons are used under Creative Commons license. http://www.flickr.com/creativecommons/ Other Sources Corporate logos are property of their respective companies. All other sources and images are acknowledged where they appear.
  • 113. About the Author Eric Pesik Eric Pesik is a frequent speaker on legal and compliance matters and has taught law school and business school in the USA and Singapore. Background Mr. Pesik is currently the Associate General Counsel and Compliance Officer for Seagate Singapore International Headquarters Pte Ltd. He has been a lawyer since 1997 and is a member of the State Bar of California, USA. He is also admitted to the US Court of International Trade in New York and the US Supreme Court in Washington, DC. Other Presentations Many of Mr. Pesik’s presentations are available on SlideShare at: http://www.slideshare.net/ericpesik Disclaimer This work represents the opinions of the author alone, and is not the opinion his employer. Creative Commons Attribution License You are free to share, copy, distribute, and transmit this work; to remix or adapt this work; and to make commercial use of this work, under the condition that you must attribute this work to me (but not in any way that suggests that I endorse you or your use of this work). http://creativecommons.org/licenses/by/3.0/ Each slide contains source attributions and URL; you should obtain the original images from the original sources before reusing. You must comply with any applicable license restrictions imposed by the original source.
  • 114. Thank you for helping to make my presentation “Hot on Facebook” http://www.slideshare.net/ericpesik/globalization-of-ethics-and-compliance