Companies should manage impact of FCPA probes on key stakeholders

In 2010, U.S. enforcement agencies were responsible for a record number of enforcement actions against U.S. and non-U.S. companies, firms and individuals under the Foreign Corrupt Practices Act. Today, the U.S. Department of Justice and Securities and Exchange Commission deploy dedicated FCPA teams with specialized skills and experience in conducting anti-corruption reviews and prosecutions of individuals and companies from around the world.

Corporate compliance officers, private practitioners, compliance consultants and anti-corruption enforcement officials believe that most companies understand the nuances of FCPA compliance requirements and its specific prohibitions. However, many public and private companies lack adequate procedures to prevent, detect and punish bribery and corrupt practices by their companies, employees and third-party representatives. Moreover, many companies do not know that they must address the expanding consequences of a reported (or publicly known) FCPA investigation, particularly the consequences of failing to properly identify, address and manage the key company stakeholders in an expanding FCPA investigation.