Tag Archives: compliance

Democracy that Delivers Podcast #21: After Serving Time for Violating the FCPA, Richard Bistrong Counsels Others on How to Avoid the Same Fate

Podcast hosts Julie Johnson (left) and Ken Jaques (center) with guest Richard Bistrong.

Podcast hosts Julie Johnson (left) and Ken Jaques (center) with guest Richard Bistrong.

Former FCPA violator and current anti-bribery consultant Richard Bistrong (@richardbistrong) was convicted of violating the Foreign Corrupt Practices Act, cooperated with the FBI, and served time in prison. Today he works with companies to help them deal with anti-bribery and compliance issues around the world. He discusses what led to his conviction, and what he learned about corruption risks and the incentive structures that make bribery more likely. He also shares the advice he would give his younger self before he embarked on that first international sales trip overseas that started it all.

Learn more about his work at www.RichardBistrong.com.

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How Do We Support Corporate Compliance in a Democratizing Global Marketplace?


Writing on Medium, CIPE’s acting Executive Director Andrew Wilson asks: with technological change and trade deals making it easier than ever to enter the global marketplace, how can we ensure robust compliance with anti-corruption, labor, environmental, and corporate governance standards?

Read the story on Medium and follow CIPE for more stories like this one.

Boosting Integrity in Global Trade


2016 OECD Integrity Forum

This post originally appeared on the Corporate Compliance Trends blog.

Mutually beneficial exchange of goods and services is at the heart of David Ricardo’s comparative advantage argument and Adam Smith’s The Wealth of Nations. Over the centuries, such exchange through commerce has connected countries around the globe through a web of economic links and lifted millions out of poverty. In the modern era, international agreements under the World Trade Organization (WTO) have done much to lower tariffs and increase trade. However, in many countries, non-tariff barriers continue to impede growth and development. Lack of integrity in border control and customs administration is one such key barrier.

As estimated by the World Customs Organization (WCO), the loss of revenue among its 180 member countries caused by customs-related corruption is at least USD 2 billion in customs revenue each year. India and Russia alone are losing USD 334 million and USD 223 million, respectively. Beyond monetary losses, lack of integrity in customs also presents big risks for global value chains and security concerns when it comes to criminal activity and illicit trade.

Given this global significance, combatting corruption at the border was an important topic of the 2016 OECD Integrity Forum in Paris conducted under the theme “Fighting the Hidden Tariff: Global Trade without Corruption.” Angel Gurría, Secretary-General of the OECD, made a powerful case for trade with integrity in his opening remarks:

“Integrity is not just a moral issue; it’s also about making our economies more productive, our public sectors more efficient, our societies and our economies more inclusive. It’s about restoring trust, not just trust in government, but trust in public institutions, regulators, banks, and corporations.”

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Democracy that Delivers Podcast #14: Arian Ardie on How Indonesian Companies are Coming to Grips with Anti-Corruption Compliance

Democracy that Delivers Splash-01

CIPE Indonesia Program Coordinator Arian Ardie (Twitter: @aajkt) talks about the burgeoning Indonesian economy, foreign investment opportunities, and how Indonesian companies are coming to terms with what anti-corruption compliance means for them. Ardie also discusses the challenges of meeting cultural norms while being compliant with international business practices, and the inherent “sloppiness” of implementing decentralization and democracy in one of most populous countries in the world.

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Listen to past episodes of our show here.

Like this podcast? Please review us on iTunes to help other listeners find the show!

How Kenya’s Private Sector is Addressing the “Supply Side” of Corruption

Photo: Citizen Digital

Photo: Citizen Digital

A recent report by Kenya’s Ethics and Anti-Corruption Commission (EACC) paints a rather grim picture of the extent of corruption in Kenya. In the top 10 counties by average bribe size, bribes range from KSH 80,000 (about $800 US) to about KSH 6,000 ($60 US) — in a country where the average monthly wage is just $76. Situations where bribes are most commonly solicited include obtaining basic services such as medical attention or a national identity card. Not surprisingly, Transparency International puts Kenya at 139th out of 168 countries in its latest corruption ranking.

Even a cursory review of Kenyan daily news coverage shows that corruption at all levels (from county to national) and in all its forms (from bribes to graft) is a major issue of concern for the country. Many commentators express frustration at the extent of the problem and the dearth of constructive solutions. Against that background, CIPE and its partner organization, the Kenya Association of Manufacturers (KAM), are working to help change Kenya’s corruption-tainted narrative and provide the private sector with tools to proactively build integrity into business operations.

To that end, CIPE, KAM, and Global Compact Network Kenya (GCNK), where KAM serves as the secretariat, created a joint training program for Kenyan companies on anti-corruption compliance. The training is based on CIPE’s Anti-Corruption Compliance: A Guide for Mid-Sized Companies in Emerging Markets and was adapted to the unique needs and concerns of local businesses. As KAM’s Chairman Pradeep Paunrana put it, “You cannot clap with one hand, it takes two people to make a corrupt deal.” Through this initiative, Kenya’s private sector is taking responsibility for holding itself to a higher standard and disrupting the “supply side” of corruption.

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Leave it to the Ladies: Addressing Corruption Head-on to Attract Foreign Investment in Africa

Photo: U.S. Department of State

Photo: U.S. Department of State

This post originally appeared on CIPE’s Corporate Compliance Trends blog.

Despite the thick Lagos air and long journey 60 women entered the The Moorhouse hotel on a recent Saturday morning, exchanging excited greetings and fresh ideas. Women business leaders adorned in brightly colored fabric and empowered with strong ambitions went around the room introducing themselves and their businesses.

It was the inaugural meeting of the Lagos chapter of the African Women’s Entrepreneurship Program (AWEP), launched by the U.S. Department of State in July 2010 to assist women entrepreneurs across sub-Saharan Africa. The program supports African women entrepreneurs to promote business growth, increase trade both regionally and to U.S. markets, create better business environments, and empower African women entrepreneurs to become voices of change in their communities.

Although AWEP in Nigeria initially started as a group of women’s businesses in agriculture, the members now represent a variety of sectors including fashion, textiles, professional services, cosmetics, and home decor.  Since AWEP’s inception, chapters such as the Lagos chapter have started all over Africa bringing together 1,600 women entrepreneurs and 33 business associations across the continent creating over 17,000 jobs.

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Carrots Before Sticks


This post originally appeared on the SCCE Compliance & Ethics blog.

I was truly honored to attend this year’s Compliance and Ethics Institute (CEI) in Las Vegas, and to present with my colleague Frank Brown, CIPE’s experience with motivating mid-sized businesses in emerging markets to launch compliance programs. Our session was one of the opening ones scheduled at 9am on Sunday morning (did I mention we were in Vegas?) so it was abundantly clear to us that everyone who attended was truly dedicated to the cause!

As we’ve heard throughout the event, emerging markets pose many compliance risks, especially in the area of anti-corruption. Local enforcement may be lax and bribery remains common in business transactions. What is more, under laws such as the U.S. Foreign Corrupt Practices Act or the UK Bribery Act, it is not just the behavior of a company’s own employees but also the conduct of it suppliers, agents, and other business partners that’s of concern.

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