Corruption in a global trade can be a complex issue and is often intertwined with both company and country culture. In certain areas of the world, corruption can be a common practice that is endorsed – bribery, intimidation and mark ups may exist in all levels of society. For US corporations, non-compliance with the FCPA practices can result in steep fines, government compliance monitoring as well as loss of reputation and goodwill. Training of staff has never been more critical, but comprehensive programs can be daunting to design, customize, deliver and monitor across global regions. This webcast will address some of the key challenges and offer helpful tips for designing comprehensive web-based training.

1. Welcome
FCPA Training for a Global Workforce
Avoiding Penalties Associated with Non‐Compliance
Presented by viaLanguage and CPA Global

2. Today’s Agenda ‐ Scott
• Trends in global corruption & enforcement
• Key issues to address in training
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• Developing a web‐based training program
• Low cost tips for maintaining compliance content
• Wrapping up & questions
Wrapping up & questions

3. Your Presenters ‐ Scott
• Juliet Hanna
Senior Counsel, Client Engagement
Management, CPA Global
• Julie Brink
Director of eLearning, viaLanguage
Director of eLearning viaLanguage
• Scott Herber
(moderator), EVP Sales, viaLanguage

4. Trends in Global Corruption & Enforcement

5. Foreign Corrupt Practices Act JH
Two parts:
1. Anti‐bribery
2. Accounting, books and records
2. Accounting, books and records

6. FCPA Anti‐bribery provisions ‐ JH
Prohibit:
‐Any issuer, domestic concern or person acting within the United States from
‐Corruptly making any offer, payment, promise to pay, or authorizing the
payment of
‐Anything of value
‐To a foreign official (including officials of international organizations, political
To a foreign official (including officials of international organizations political
parties, party officials or candidates for public office) or
‐To any other person while knowing that something of value will be offered,
given or promised, directly or indirectly, to a foreign government official
‐For the purpose of influencing official action or securing any improper
business advantage
‐To obtain or retain business, or to direct business to any person.

7. FCPA Accounting Provisions ‐ JH
Books & Records
Requires issuers to “make and keep books, records and accounts,
R i i “ k dk b k d d
which, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of assets.”
Internal accounting controls
Requires issuers to devise and maintain accounting controls sufficient
to provide reasonable assurances that transactions are executed in
to provide reasonable assurances that transactions are executed in
accordance with management’s instructions, recorded as necessary to
permit preparation of financial statements in accordance with GAAP,
that access to assets is controlled according to management’s
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instructions, and that records are reconciled with existing assets at
reasonable intervals.
‐NOTE: No materiality requirement

8. FCPA Enforcement Trends ‐ JH
U.S. Department of Justice & U.S. Securities and Exchange
Commission – overlapping jurisdiction to enforce the FCPA
60
6 year change – enforcement counts
new specialized units
50 Increasing enforcement
activity
40
30
DOJ
20
SEC
10
0
2004 2010

9. FCPA Monetary Penalties ‐ JH
Significant monetary penalties for
Significant monetary penalties for
violations of the FCPA
•KBR/Halliburton (2009) ‐ $579 million
•BAE Systems (2010) ‐ $400 million
•Technip (2010) ‐ $238 million
p( ) $
•Daimler (2010) ‐ $185 million

10. Siemens Example, 2008 ‐ JH
Pleaded guilty to criminal internal controls
and books and records violations. Three
subsidiaries pleaded guilty to conspiracy to
violate the FCPA + penalties to German
authorities.
authorities.
Penalties paid
•DOJ :
DOJ : $450 million
$450 million
•SEC settlement: $350 million
(disgorgement)
•German authorities:
•German authorities: €395 million
€395 million
•Munich District Court: €201 million
•German tax authorities: €179 million

11. Important elements for an Anti‐Corruption
Compliance Program
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12. JH
Multiple Components ‐ JH

13. JH
FCPA Compliance ‐ JH
Important elements for an Anti‐Corruption Compliance Program
I t t l t f A ti C ti C li P
1. Tone from the top
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2. Compliance officer
3. Clear policy
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Account for other anti‐corruption laws
in addition to FCPA (e.g., UK Bribery Act)
4. Internal controls, monitoring and review
4 Internal controls monitoring and review
5. Due diligence
6. Reporting system
7. Training with multiple
i i ih li l
touch points

14. Communication & Training ‐ JH
Reinforce with multiple touch points
Reinforce with multiple touch points
1. Clearly written guidelines, policy and
Code of Conduct
2. Ongoing training – emails, ipods, newsletters, in
2 O i t i i il i d l tt i
person sessions, web and mobile training
**Key issues: agents/consultants, commissions, gifts &
entertainment, charitable contributions

15. FCPA Compliance Training
FCPA Compliance Training
a web‐based approach

16. Needs Assessment ‐ JB
• Compliance measurements in place?
• Is testing done? Tracked? What happens to the
Is testing done? Tracked? What happens to the
results?
• How are updates issued? Frequency? Local or
How are updates issued? Frequency? Local or
organizational compliance regulation updates?
• What is being done now that is effective?
http://www.netdimensions.com/downloads/whitepapers/NetD_wp_Compliance_enUS.pdf

17. Anti‐bribery & Code of Conduct ‐ JB
Training should address compliance risk and be tailored to:
• Company culture
• Company standards
•R l i k f db
Real risks faced by recipients and business climate
i i t db i li t
Also include:
Also include:
• Scenario‐based and interaction components
• Tracking and reporting

18. Who’s the Recipient?
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Design the e‐learning course with role/training variations ‐ JB
• New employees
New employees
• Seasoned employees for refresher or
recurring required training
• Vendors/contractors/third parties
• Different roles and risk scenarios

19. Benefits to Web and Mobile Training ‐ JB
• Easy access for recipients
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• Delivered quickly and with less cost than live training
• Customizable to each region or recipient
• Easy to update and maintain
• Online testing and tracking
• More control
More control

20. Global Challenges for Compliance Training
Global Challenges for Compliance Training ‐ JB
Customize course elements for the
Customize course elements for the
location
• Local relevant content
Local, relevant content
• Policy and law differences
• Images and branding
Images and branding
• Workflow systems and process

21. Tips for developing web‐based training
and minimizing cost
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22. Rapid vs. Custom Training Programs
Rapid vs Custom Training Programs ‐ JB
Rapid In‐between Custom
$$ $$$
$ Articulate, Captivate Flash built
Articulate, Captivate w/custom Flash
elements
Low interactivity Interactive elements High interactivity +
Level 1-2 interactivity Level 1-3 interactivity simulation
Level 2-4 interactivity

23. 5 FACTORS to Consider Rapid Development Semi‐custom Custom Development
Development
Time to develop 2‐3 weeks 3‐6 weeks 6‐12+ weeks
Budget Less than $5K per hour $5‐$ 20K per hour $ 20k + per hour
Rapid development works well for lower
Audience size learning levels – f
l
Any, but best with i Any l facts, information and
l i f Any i d
smaller audiences under knowledge sharing.
200
Learning goals Informative, Simple orientation/induction training
Application, Analysis, Evaluation, synthesis
Comprehension and Procedural training
Evaluation (Process (Process and Behavior
Application (Skill change) change)
Improvement, facts,
Product knowledge updates
Product knowledge updates
information and Compliance training
knowledge sharing)
Course complexity
Course complexity Low – no to light
Low no to light Medium – light version of High–animations,
Medium light version of High animations
branching, animations, interactivity and simulations and social
video customization interactivity

24. Plan with Internationalization in mind ‐ JB
Internationalize code
Design or modularize for culture
Design or “modularize” for culture
and region
Apply translation memory
pp y y
 Audio recording per
character and language

25. Mobile
Pros
•Reduces training costs
Reduces training costs
•Broad reach
•Technology is available
M bil d li t d
•Mobile delivery expected
•Continual access
Cons
•Multiple device types
•Anticipate poor adoption
Anticipate poor adoption
•Less screen space; shorten content

26. Deployment and tracking ‐ JB
• Learning Management System (LMS) & Content
management (CMS) considerations
management (CMS) considerations
• Benefits
• Ease of updates and maintenance
Ease of updates and maintenance
• Reporting and tracking needs
• How
• Custom portals
• Company LMS
•OOpen Source/Moodle
S /M dl

27. Summary ‐ Scott
• Trends in global corruption & enforcement
• Key issues to address in training
y g
• Developing a web‐based training program
• Low cost tips for maintaining compliance content

28. Thank You! ‐ Scott
Contact us at:
viaLanguage
503.243.2007
www.viaLanguage.com
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Facebook.com/viaLanguage
Twitter.com/viaLanguage
CPA Global
703.739.2234
www.cpaglobal.com