Eric Pesik, profile picture
Uploaded byEric Pesik
PDF, PPTX2,250 views

Globalization of Ethics and Compliance by @EricPesik

The document discusses the globalization of ethics and compliance, particularly focusing on the Foreign Corrupt Practices Act (FCPA) of 1977 and its implications for international business practices. It analyzes the prevalence of bribery, the significant financial penalties imposed on corporations for FCPA violations, and the impact of corrupt practices on firms' valuations. Additionally, it highlights the varying costs associated with bribery, including statistical data on bribe amounts and the repercussions of corruption on competitive business advantage.

Embed presentation

Download as PDF, PPTX
1 / 114
2 / 114
3 / 114
4 / 114
5 / 114
6 / 114
7 / 114
8 / 114
9 / 114
10 / 114
11 / 114
12 / 114
13 / 114
14 / 114
15 / 114
16 / 114
17 / 114
18 / 114
19 / 114
20 / 114
21 / 114
22 / 114
23 / 114
24 / 114
25 / 114
26 / 114
27 / 114
28 / 114
29 / 114
30 / 114
31 / 114
32 / 114
33 / 114
34 / 114
35 / 114
36 / 114
37 / 114
38 / 114
39 / 114
40 / 114
41 / 114
42 / 114
43 / 114
44 / 114
45 / 114
46 / 114
47 / 114
48 / 114
49 / 114
50 / 114
51 / 114
52 / 114
53 / 114
54 / 114
55 / 114
56 / 114
57 / 114
58 / 114
59 / 114
60 / 114
61 / 114
62 / 114
63 / 114
64 / 114
65 / 114
66 / 114
67 / 114
68 / 114
69 / 114
70 / 114
71 / 114
72 / 114
73 / 114
74 / 114
75 / 114
76 / 114
77 / 114
78 / 114
79 / 114
80 / 114
81 / 114
82 / 114
83 / 114
84 / 114
85 / 114
86 / 114
87 / 114
88 / 114
89 / 114
90 / 114
91 / 114
92 / 114
93 / 114
94 / 114
95 / 114
96 / 114
97 / 114
98 / 114
99 / 114
100 / 114
101 / 114
102 / 114
103 / 114
104 / 114
105 / 114
106 / 114
107 / 114
108 / 114
109 / 114
110 / 114
111 / 114
112 / 114
113 / 114
114 / 114
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

PDF
US Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesik
byEric Pesik
 
PDF
Economics of Corruption
byEric Pesik
 
PDF
Economics of Bribery
byEric Pesik
 
PDF
Economics of Bribery by @EricPesik
byEric Pesik
 
PPTX
Honors Lit Africa Presentation
byblleon
 
PPTX
Issues In Africa Aids
bymichigangirl201
 
PDF
Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...
byEric Pesik
 
PDF
Managing risk from top to bottom by @ericpesik
byEric Pesik
 
US Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesik
byEric Pesik
 
Economics of Corruption
byEric Pesik
 
Economics of Bribery
byEric Pesik
 
Economics of Bribery by @EricPesik
byEric Pesik
 
Honors Lit Africa Presentation
byblleon
 
Issues In Africa Aids
bymichigangirl201
 
Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...
byEric Pesik
 
Managing risk from top to bottom by @ericpesik
byEric Pesik
 

What's hot

KEY
The future is a platform
byJason Griffey
 
PDF
New Business Etiquette in the Digital & Social Age - You're Fired or You're N...
byDr. William J. Ward
 
PDF
Hat mLearning an Universitäten Zukunft?
byMartin Ebner
 
PPT
Sport Law Ch.5 Presentation
byFrank Campo
 
PPTX
Inspiration, Innovation & Lessons Learned from Soap Bubbles
byhblowers
 
PPT
An imperfect world
byTinyTimTim77
 
PPT
An imperfect world
byTinyTimTim77
 
PPT
NextLibrary - Finding the Phoenix
byhblowers
 
PPT
Jon Worth presentation to European Movement Denmark on Social Media
byJon Worth
 
PPTX
Measuring Social Media is Easy
byMirum Africa
 
KEY
The Importance of Being Awesome: From Words and Pictures to Code and Cyborgs
byTania Kasongo
 
KEY
Yet Another Scary Back to School Presentation
byBarbara Cohen
 
PDF
Search love 2015 - Google's Predictable Content Preference - Aaron Friedman
byAaron Friedman
 
PDF
Griffey "AI Possible Futures!"
byNational Information Standards Organization (NISO)
 
PDF
Digital Civil Rights (Bits of Freedom)
byHans de Zwart
 
PDF
Test
by7lawyerjhb
 
PPTX
And what next? A case study in how to get the most out of your user research
byNeil Turner
 
PDF
Ted Cruz announces 2016 presidential bid
byliverpoollf
 
PPTX
Ppt finance fall 2017 1
byErin Davenport
 
KEY
Capturing and managing non-traditional information for Competitive Advantage....
byTraction Software
 
The future is a platform
byJason Griffey
 
New Business Etiquette in the Digital & Social Age - You're Fired or You're N...
byDr. William J. Ward
 
Hat mLearning an Universitäten Zukunft?
byMartin Ebner
 
Sport Law Ch.5 Presentation
byFrank Campo
 
Inspiration, Innovation & Lessons Learned from Soap Bubbles
byhblowers
 
An imperfect world
byTinyTimTim77
 
An imperfect world
byTinyTimTim77
 
NextLibrary - Finding the Phoenix
byhblowers
 
Jon Worth presentation to European Movement Denmark on Social Media
byJon Worth
 
Measuring Social Media is Easy
byMirum Africa
 
The Importance of Being Awesome: From Words and Pictures to Code and Cyborgs
byTania Kasongo
 
Yet Another Scary Back to School Presentation
byBarbara Cohen
 
Search love 2015 - Google's Predictable Content Preference - Aaron Friedman
byAaron Friedman
 
Griffey "AI Possible Futures!"
byNational Information Standards Organization (NISO)
 
Digital Civil Rights (Bits of Freedom)
byHans de Zwart
 
Test
by7lawyerjhb
 
And what next? A case study in how to get the most out of your user research
byNeil Turner
 
Ted Cruz announces 2016 presidential bid
byliverpoollf
 
Ppt finance fall 2017 1
byErin Davenport
 
Capturing and managing non-traditional information for Competitive Advantage....
byTraction Software
 

Viewers also liked

PPTX
Performance management and appraisal of Coca-cola
byLîãkàŧ LîkhõÑ বাংলাদেশী
 
PPSX
Lotus Valley International School, Gurgaon, Haryana
byengineeringwatch
 
PPT
360 degree final ppt
byAbhijeet Talapatra
 
PPT
Class xx performance appraisal
byMalavika Desai
 
PPT
Performance appraisal
byAkshay Samant
 
PPTX
Performance appraisal
byMadhuri Bind
 
PPT
Performance Appraisal – An Objective Look
bycindyandthecity
 
PPT
Performance appraisal
by Dr.Priyanka Phonde
 
PPTX
Teaching methodology adopted by International schools in India
bynewglobalschool
 
PDF
Integrating ethics into your school community
byThe Institute for Global Ethics
 
PPT
Ethics in School Leadership
byEast Central ISD
 
PPTX
School ethics
bytabithat18
 
PDF
Ace webinar key trends in the nonprofit sector
byNationalACE
 
PPT
What The Head Of School Wants You To Know
byJamie Baker
 
PPTX
What can institutional big data tell us - Mark Northover - Auckland Universit...
byBlackboard APAC
 
DOC
A Relationship Among Public School Leadership, Ethics, and Student Achievemen...
byguest3c8a16c
 
PPTX
Perceptions of Feedback: Myth & Reality
byDan Munnerley
 
PPTX
Using Feedback as a Means to Improve Employee Management
byBonnie Bucqueroux
 
KEY
Welcome Back To School (Ethics Students)
bymficara
 
PDF
Yearly plan english year 3 kssr
byNaineh Mahiri
 
Performance management and appraisal of Coca-cola
byLîãkàŧ LîkhõÑ বাংলাদেশী
 
Lotus Valley International School, Gurgaon, Haryana
byengineeringwatch
 
360 degree final ppt
byAbhijeet Talapatra
 
Class xx performance appraisal
byMalavika Desai
 
Performance appraisal
byAkshay Samant
 
Performance appraisal
byMadhuri Bind
 
Performance Appraisal – An Objective Look
bycindyandthecity
 
Performance appraisal
by Dr.Priyanka Phonde
 
Teaching methodology adopted by International schools in India
bynewglobalschool
 
Integrating ethics into your school community
byThe Institute for Global Ethics
 
Ethics in School Leadership
byEast Central ISD
 
School ethics
bytabithat18
 
Ace webinar key trends in the nonprofit sector
byNationalACE
 
What The Head Of School Wants You To Know
byJamie Baker
 
What can institutional big data tell us - Mark Northover - Auckland Universit...
byBlackboard APAC
 
A Relationship Among Public School Leadership, Ethics, and Student Achievemen...
byguest3c8a16c
 
Perceptions of Feedback: Myth & Reality
byDan Munnerley
 
Using Feedback as a Means to Improve Employee Management
byBonnie Bucqueroux
 
Welcome Back To School (Ethics Students)
bymficara
 
Yearly plan english year 3 kssr
byNaineh Mahiri
 

Similar to Globalization of Ethics and Compliance by @EricPesik

PDF
Open by Default
byDavid Wood
 
PPT
Siemens Scandel in Greece
byvivekcrus
 
PPTX
Dc fcpa tour final ho
byMayer Brown LLP
 
PPTX
Fcpa blog tour bogota v3
byMayer Brown LLP
 
PPTX
The Catch 22 of Cross Border eDiscovery
byJ. David Morris
 
PDF
Anti corruption and sustainability regulation and disclosure trends
byInnovation Forum Publishing
 
PPTX
Anti Corruption Risks In The Energy Industry
byMayer Brown LLP
 
PPTX
Mba1034 cg law ethics week 14 ethics international business 072013
byStephen Ong
 
PPT
Ethics & corruption in the global marketplace.1
byMay Farrah Detuya - Vidal
 
PDF
Open by Default
by3 Round Stones
 
PDF
Delivery strategies: Apps don't deploy themselves
byAlistair Croll
 
KEY
Corruption, corporate transparency and open data
byChris Taggart
 
PPTX
Meeting_3
byalyssa_munk
 
PPTX
Meeting_3
byalyssa_munk
 
KEY
Data for Business Journalism, NICAR 2012
byChris Taggart
 
PDF
Brooks
bycesarncruz
 
PPTX
Financial Transparency Trailblazers
byThomas Robbins
 
PPTX
Anti Corruption Risks Aml Convergence 20111025
byMayer Brown LLP
 
PPTX
Chicago And Houston Slides 20111109b
byMayer Brown LLP
 
PPTX
Recent Developments in fight against corruption
byAlphons Ranner
 
Open by Default
byDavid Wood
 
Siemens Scandel in Greece
byvivekcrus
 
Dc fcpa tour final ho
byMayer Brown LLP
 
Fcpa blog tour bogota v3
byMayer Brown LLP
 
The Catch 22 of Cross Border eDiscovery
byJ. David Morris
 
Anti corruption and sustainability regulation and disclosure trends
byInnovation Forum Publishing
 
Anti Corruption Risks In The Energy Industry
byMayer Brown LLP
 
Mba1034 cg law ethics week 14 ethics international business 072013
byStephen Ong
 
Ethics & corruption in the global marketplace.1
byMay Farrah Detuya - Vidal
 
Open by Default
by3 Round Stones
 
Delivery strategies: Apps don't deploy themselves
byAlistair Croll
 
Corruption, corporate transparency and open data
byChris Taggart
 
Meeting_3
byalyssa_munk
 
Meeting_3
byalyssa_munk
 
Data for Business Journalism, NICAR 2012
byChris Taggart
 
Brooks
bycesarncruz
 
Financial Transparency Trailblazers
byThomas Robbins
 
Anti Corruption Risks Aml Convergence 20111025
byMayer Brown LLP
 
Chicago And Houston Slides 20111109b
byMayer Brown LLP
 
Recent Developments in fight against corruption
byAlphons Ranner
 

More from Eric Pesik

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

Recently uploaded

PDF
Buy Twitter Accounts and Platforms account in 2026.,..pdf
byh3lfp4332e3gctbnm22w
 
PDF
J Hamilton - Pensions Playpen 16.12.2025 (1).pdf
byHenry Tapper
 
PPTX
CMMI Consulting & Implementation Services.pptx
bySunil Yadav
 
PDF
How to Buy Twitter Accounts in 2026 .pdf
bywc0fr9qf43i5qo5kn3
 
PDF
How to Buy a USA Facebook Accounts Safely.pdf
byyl62ghphl9tyxn3q8lv5
 
PDF
The Easiest Way to Buy Snapchat Accounts (1).pdf
byidc1w3adizw383go
 
PDF
How to Buy Twitter Accounts in 2026 (1).pdf
bywc0fr9qf43i5qo5kn3
 
PDF
Mobile and Online Banking_ Open an Account Today.pdf
bykmn4gloa39pwajpujj
 
PDF
How to Buy Instagram Accounts in 2026.pdf
byh55oga0kd25m12iaza2
 
PDF
How to Buy Snapchat Account A Step-by-Step Guide..pdf
byidc1w3adizw383go
 
PDF
Top 7 Places to Buy Aged LinkedIn Accounts and Should ....pdf
byh55oga0kd25m12iaza2
 
PDF
Step-by-Step Guide to Buying LinkedIn Accounts in 2026.pdf
byasikurrhmanxyzit
 
DOCX
Guide to Safely Buy a Verified Binance Account Today.docx
byh55oga0kd25m12iaza2
 
PPTX
Seize Your Story! - The Startup Secrets of STORYtelling
byMichael Skok
 
PDF
Best 11 Places to Purchase Mature Twitter Accounts for Marketing.pdf
byjaksontinder24
 
PDF
LCP-Pension-Submisson-CDC-Superfund-December-2025.pdf
byHenry Tapper
 
PDF
Christopher Elwell Woburn, MA - An Experienced IT Executive
byChristopher Elwell Woburn, MA
 
PDF
Best Platforms to Buy Verified Wise Accounts in the USA.pdf
by#SEO, #usaallhub, #socialmedia, #USAaccounts, #seoservice, #Digitalmarketer
 
PDF
Pengelolaan SDM Terintegrasi Berbasis Manajemen Risiko 2025
bySeta Wicaksana
 
PDF
Olga Grom: Presale та комерційні моделі (UA)
byLviv Startup Club
 
Buy Twitter Accounts and Platforms account in 2026.,..pdf
byh3lfp4332e3gctbnm22w
 
J Hamilton - Pensions Playpen 16.12.2025 (1).pdf
byHenry Tapper
 
CMMI Consulting & Implementation Services.pptx
bySunil Yadav
 
How to Buy Twitter Accounts in 2026 .pdf
bywc0fr9qf43i5qo5kn3
 
How to Buy a USA Facebook Accounts Safely.pdf
byyl62ghphl9tyxn3q8lv5
 
The Easiest Way to Buy Snapchat Accounts (1).pdf
byidc1w3adizw383go
 
How to Buy Twitter Accounts in 2026 (1).pdf
bywc0fr9qf43i5qo5kn3
 
Mobile and Online Banking_ Open an Account Today.pdf
bykmn4gloa39pwajpujj
 
How to Buy Instagram Accounts in 2026.pdf
byh55oga0kd25m12iaza2
 
How to Buy Snapchat Account A Step-by-Step Guide..pdf
byidc1w3adizw383go
 
Top 7 Places to Buy Aged LinkedIn Accounts and Should ....pdf
byh55oga0kd25m12iaza2
 
Step-by-Step Guide to Buying LinkedIn Accounts in 2026.pdf
byasikurrhmanxyzit
 
Guide to Safely Buy a Verified Binance Account Today.docx
byh55oga0kd25m12iaza2
 
Seize Your Story! - The Startup Secrets of STORYtelling
byMichael Skok
 
Best 11 Places to Purchase Mature Twitter Accounts for Marketing.pdf
byjaksontinder24
 
LCP-Pension-Submisson-CDC-Superfund-December-2025.pdf
byHenry Tapper
 
Christopher Elwell Woburn, MA - An Experienced IT Executive
byChristopher Elwell Woburn, MA
 
Best Platforms to Buy Verified Wise Accounts in the USA.pdf
by#SEO, #usaallhub, #socialmedia, #USAaccounts, #seoservice, #Digitalmarketer
 
Pengelolaan SDM Terintegrasi Berbasis Manajemen Risiko 2025
bySeta Wicaksana
 
Olga Grom: Presale та комерційні моделі (UA)
byLviv Startup Club
 

Globalization of Ethics and Compliance by @EricPesik

  • 1.
    Globalization of Ethics andCompliance 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/
  • 2.
  • 3.
    Starbucks Inside theForbidden 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 factoryJiaxing by Memn http://www.flickr.com/photos/29027365@N03/2716435026/
  • 6.
    The open pitof 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.
  • 7.
  • 8.
  • 9.
    Justin Bieber performingBelieve 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 GujaratIndia by Emmanuel Dyan http://www.flickr.com/photos/17616316@N00/5933944812/
  • 11.
    Image: Greed byLiz West http://www.flickr.com/photos/53133240@N00/2207307656/
  • 12.
    Image Credit: Confidentbusinesspeople by Victor 1558 http://www.flickr.com/photos/76029035@N02/6829325255/
  • 13.
    Corporate logos areproperty of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 14.
    Image: The PayOff by Chris Potter (www.stockmonkeys.com) http://www.flickr.com/photos/86530412@N02/8449175260/
  • 15.
  • 16.
    Image: Greed byLiz West http://www.flickr.com/photos/53133240@N00/2207307656/
  • 17.
    Corporate logos areproperty of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 18.
  • 19.
  • 20.
    Corporate logos areproperty of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 21.
    Corporate logos areproperty of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 22.
  • 23.
    Image: http://en.wikipedia.org/wiki/File:Leonid_Brezhnev_and_Richard_Nixon_talks_in_1973.png As awork of the U.S. federal government, the image is in the public domain
  • 24.
    Image: B-52 Stratofortresswith 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 YearDifferent 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 awork of the U.S. federal government, the image is in the public domain
  • 27.
    Songs of theItalian 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 AntonioGramsci 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 areproperty of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 30.
  • 31.
    A 1960 comicbook 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 Cartersigning 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 byProject 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
  • 34.
  • 35.
  • 36.
    Image: The PayOff by Chris Potter (www.stockmonkeys.com) http://www.flickr.com/photos/86530412@N02/8449175260/
  • 37.
  • 38.
    Image: Risk byBien Stephenson http://www.flickr.com/photos/benstephenson/27298596/
  • 39.
    The FCPA Bloghttp://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 LizWest http://www.flickr.com/photos/53133240@N00/2207307656/
  • 41.
  • 42.
    Image: Cut yourBills by Images of Money http://www.flickr.com/photos/59937401@N07/5857660216/
  • 43.
    Image: Chinese Flagby Philip Jägenstedt http://www.flickr.com/photos/48982392@N00/2489526032/
  • 44.
    The value ofa dollar by rahims http://www.flickr.com/photos/rahims/2110236034/
  • 45.
    Corporate logos areproperty of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 46.
  • 47.
    Corporate logos areproperty of their respective companies, used here under the doctrine of fair use for purposes of identification, education, and critical commentary.
  • 48.
    Did You SayBribe by Chris Potter (www.stockmonkeys.com) http://www.flickr.com/photos/86530412@N02/8448086741/
  • 49.
    Talk to thehand 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 onChina's central broadcaster CNTV
  • 52.
    International Currency byepSos.de http://www.flickr.com/photos/epsos/8453271596/
  • 53.
  • 54.
    Corruption costs the equivalentof 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 claimto 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/
  • 57.
  • 58.
  • 59.
    Is it worththe risk of bribing and getting caught? Image: http://office.microsoft.com/en-sg/results.aspx?qu=MP900185047
  • 60.
    Is it worthbribing and getting away with it? Image: Adjust Tie by D Planet http://www.flickr.com/photos/dplanet/94441582/
  • 61.
    How much didyou pay? What value did you get?
  • 62.
    Image: Greed byLiz West http://www.flickr.com/photos/53133240@N00/2207307656/
  • 63.
    What is theROI of bribery?
  • 64.
    Most bribery statistics come fromfirms that got caught http://office.microsoft.com/en-us/images/results.aspx?qu=handcuffs&ex=2#ai:MP900402864|
  • 65.
    Who bribed and gotaway 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 writeif 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 didyou pay? What value did you get?
  • 68.
    How much didyou pay?
  • 69.
  • 70.
    166 historical bribery incidents 107publically 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, StephenYan-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 LowRank 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 $7.63M $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 projectawarded: 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.
  • 77.
    Theatrical poster forFight 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.
  • 78.
  • 79.
  • 80.
  • 81.
    UK Bribery Act2010 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 $3.768BAverage 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).
  • 83.
  • 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 thatoperate in more corrupt environments experience a larger drop in firm value Image: http://www.transparency.org/cpi2012/results
  • 86.
    0.51% more negativeCAR [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 thatare 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 negativeCAR [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-UKfirms with UK links and high foreign corruption exposure experience higher drop in firm value Image: http://www.transparency.org/cpi2012/results
  • 90.
    Foreign firms withhigh 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 firmswith high corruption exposure experienced US $2.19M more negative loss than firms with low corruption exposure
  • 92.
    But what aboutindividual firms and individual bribes...
  • 93.
  • 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 gotaway with it http://office.microsoft.com/en-us/images/results.aspx?qu=MP900443285&ex=1
  • 96.
    166 actual briberyincidents 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 166bribes 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 AllBribes 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 notthe end of the story...
  • 100.
    Do firms thatbribe perform better? http://office.microsoft.com/en-us/images/results.aspx?qu=MP900443251&ex=1
  • 101.
  • 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 -3Year -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 -3Year -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 -3Year -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 bribehave 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 themarket for 3 years before and 3 years after winning the contract (except for sales growth)
  • 109.
  • 110.
    Globalization of Ethics andCompliance 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/
  • 111.
  • 112.
    Acknowledgements How Much doFirms 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 EricPesik 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 forhelping to make my presentation “Hot on Facebook” http://www.slideshare.net/ericpesik/globalization-of-ethics-and-compliance