levick weekly - oct 12 2012
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Customer Experience - Nordstrom Sets a New Standard Cloud Computing The Meningitis Outbreak Business Gifts - Build an appropriate policy www.levick.com/insightsTRANSCRIPT
EDITION 12
WeeklyOcTObEr 12, 2012
customer ExpEriEncENordstrom sets a New staNdard
cOVEr imagE: The rotunda of the Nordstrom store on Market Street in Union Square, San Francisco.
03 contents04091016
custOmEr ExpEriEncENordSTroM SeTS a New STaNdard
clOud cOmputing SecUriTy, Privacy aNd STraTegy For The BoardrooM
2425
thE mEningitis OutbrEakwhaT caN coMPoUNdiNg PharMacieS do NexT?
businEss giftsBUild aN aPProPriaTe Policy
data sEcurityPricewaterhousecoopers’ edward giBSoN
blOgsTo Follow
26 lEVick in the News
05
richard S. Levick, Esq.Originally Published on Fastcompany.com
ExpEriEncE
Back in May, Target announced that it would
no longer be selling the Amazon Kindle. Ear-
lier this month, Wal-Mart followed suit. While
neither big box retailer explained exactly why
they’ve declared war on Amazon’s tablet, the
motive is clear. Every time Target or Wal-Mart
sells a Kindle, they put their brick and mortar
stores in jeopardy by providing Amazon even
greater reach in its digital retail power grab.
Viewed in this context, the tandem moves are
direct, sharp-shooter responses aimed directly
across the bow of a major competitor.
The real problem for big box stores is that
consumers are increasingly utilizing physical
stores such as Target, Wal-Mart, Best Buy, and
others as nothing more than showrooms. They
take potential purchases for a test drive, and
then log onto mobile devices or home comput-
ers to buy from Amazon and other e-tailers
that might be selling the same product for less
(and pick up other household staples while
they’re there—free shipping, why not?). As
BGC Financial technology analyst Collin Gillis
told the New York Times, selling Kindles
“encourages consumers to step into that
ecosystem.”
All the while, Amazon is establishing ware-
houses and kiosks that can provide customers
in major metropolitan areas with same-day
service, thereby eroding a key brick and mor-
HoW NordsTroM EVolVEd FroM BriCKs To CliCKs
Halting brick and mortar sales of the Kindle at stores like Target is nothing more than a Band-Aid on the bullet hole created by mobility’s impact on e-commerce. Here’s how one upscale retailer is doing it right.
customer
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tar selling point in the process. The digital and
physical retail worlds are colliding. With the
increased competition that accompanies the
phenomenon, at least two major big boxes are
apparently taking a “no more Mr. Nice Guy”
approach.
in truth, halting brick and mortar sales of the
Kindle is really nothing more than a Band-Aid
on the bullet hole created by mobility’s impact
on e-commerce. The number of active mo-
bile devices is expected to exceed the world’s
population by the end of this year. That means
just about anyone who walks into a brick and
mortar establishment has the ability to snap
a photo of a barcode, upload it to a mobile ap-
plication, and compare competitors’ pricing on
the spot and in real time.
Target and Wal-Mart can’t keep these devices
out of consumers’ hands by themselves, and
they can’t engage in the unending game of
whack-a-mole that is a race to the bottom on
price. As such, what’s needed is a communica-
tions and marketing approach that emphasizes
everything shoppers still love about the brick
and mortar shopping experience—and that
does so on the digital landscape consumers
have come to love just as much.
simply put, big boxes need to infuse their on-
line properties with all the service and conve-
nience advantages absent from e-tailers that
are often nothing more than glorified middle-
men. The overarching message is that Amazon
might have what you need; but we know what
“ It’s a best-of-both-worlds strategy that accepts the “bricks and clicks” reality of today’s retail marketplace.”
you need because we offer the tools, perks, and
expertise that ensure the most informed and
enjoyable purchase possible.
it’s a best-of-both-worlds strategy that accepts
the “bricks and clicks” reality of today’s retail
marketplace. Fortunately, there a number
brick and mortar retailers that are already
providing templates for how it’s done.
Nordstrom, for one, is meeting the bricks and
clicks challenge head on. The chain’s online
shoppers might not hear that live piano player
in the background as they point and click or
be able to grab a bite at the café after making
a purchase, but there’s little else about Nord-
strom’s traditional brand that is absent from
its digital presence.
First, Nordstrom’s online shoppers have access
to any item in any retail location across the
country—a melding of online and in-store in-
ventories that remains rare in the retail world
today. Customers can see all available sizes and
colors of a particular item and can actually see
them modeled by a real person, rather than
just a screen shot of the apparel lying against
a white background. if customers have ques-
tions, they can call a “personal stylist” at the
Nordstrom call center, which isn’t outsourced,
but rather staffed by specialists with all the
expertise of those who assist customers in the
men’s department or at the cosmetics counter.
Second, Nordstrom places significant emphasis
on ease of use for online shoppers. Customers
are never more than two or three clicks away
from the content they want to access. searches
can be performed based on department, brand,
or lifestyle. With the site’s simple yet elegant
design and limited navigation options, it’s
likely easier to get lost at a brick-and-mortar
Nordstrom location than it is to end up re-
peatedly clicking the “back” tab on your Web
browser.
Third, Nordstrom’s online shoppers are pro-
vided all the same benefits they would receive
if making a purchase at a brick-and-mortar
location. returns of online purchases are just
as easy as those of items bought in person. And
for those customers who crave the convenience
of online shopping but still enjoy a trip to the
store from time to time, Nordstrom provides
the capability to make a purchase online and
pick the item up same day—and without the
wait or shipping costs to boot.
Image courtesy of nordstrom.com. All rights reserved.
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Finally, Nordstrom’s website is fully integrated
with its social media presence. its Facebook
page, which is liked by more than 1.6 million
people, and its Twitter profile, which has more
than 200,000 followers, provide forums where
customers can discuss fashion and resolve any
issues they might have. Nordstrom even shares
fashion interviews on a YouTube channel that
boasts more than 4.3 million video views and is
using mobile applications to alert its consumer
community to upcoming sales and events. The
use of video is especially advantageous, as it
provides a leg up over the competition in terms
of search engine optimization (sEo).
While none of these features represents a
groundbreaking leap forward in e-commerce,
forward-thinking retailers such as Nordstrom
L
are showing the big boxes how they can re-
main relevant in the digital age. By applying
traditional brand strengths to the digital pres-
ence, every retailer has the ability to provide
consumers with what they want most out of
their bricks, as well as their clicks—and that’s
an absolute imperative at a time when com-
petitors are bearing down from all sides.
Richard S. Levick, Esq., President and CEO of LEVICK,
represents countries and companies in the highest-stakes
global communications matters—from the Wall Street
crisis and the Gulf oil spill to Guantanamo Bay and the
Catholic Church.
This week’s edition of NACd BoardVision focuses on security and privacy concerns as they relate
to cloud computing. Join steve Kalan, associate publisher of NACd directorship, and daimon Geop-
fert, McGladrey’s national leader for iT security and privacy consulting, as they discuss the hidden
costs and boardroom strategies of the new computing future.
crisis
litigatiOnfinancial cOmmunicatiOns
cOrpOratE & rEputatiOnpublic affairs
sign up tOday
nacd bOardVisiOn clOud cOmputing: sEcurity, priVacy & stratEgy fOr thE bOardrOOm
richard S. Levick, Esq.Originally Published on Forbes.com
thE mEningitis OutbrEak:What can cOmpOunding pharmaciEs dO nExt?
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individual patients from the same require-
ments governing manufactured drugs. How-
ever, the supreme Court ruled part of that law
unconstitutional, and the lower courts are split
on whether the rest of the provisions that affect
the compounding pharmacies remain in effect.
Given this ambiguous legal picture, the FdA
does still retain a kind of murky “enforcement
discretion” that only makes it tougher for this
industry to define its long-term options and the
overriding strategic direction that will serve
its interests in the near future. in other words,
the compounders are living in limbo. “The first
thing that the industry should seek is clarity in
the law,” says Berman.
Beyond that, a good argument can certainly be
made that the compounders are well-advised to
welcome federal oversight and the confidence
in its products that the FdA stamp of approval
would engender. After all, the change may be
inevitable anyway. Why not embrace it? Why not
work with the FdA to determine the fairest and
most effective regime before something signifi-
cantly more unattractive is imposed on them?
No doubt it’s an approach that communica-
tions as well as legal strategists have readily
advocated for other industries facing various
sorts of regulatory challenges. But we shouldn’t
be quite so glib in this instance. Yes, a collab-
orative dynamic with the FdA would enhance
the industry’s credibility and legitimacy. But,
as Berman points out, the new drug approval
process is “very expensive, not feasible for any
pharmacies,” and certainly out of reach for the
smaller-scale compounding pharmacists who
make simpler, presumably safer medications
in their own drug stores.
Continued reliance on state oversight does not
seem to be a compelling alternative message as
these companies can simply shift operations to
less strict venues, while multi-state commerce
suggests need for something beyond local
oversight. it’s a point not lost on expert com-
mentators. “For states to try to regulate this is
really difficult. it has to be done nationally,”
said Boston University law professor Kevin
outterson.
Nor does self-regulation necessarily offer the
public much comfort. The Pharmacy Com-
pounding Accrediting Board (PCAB) provides
Those of us who’ve habitually watched it’s A
Wonderful life over the decades well remem-
ber how protagonist Harry Bailey intervenes to
prevent Mr. Gower, the local pharmacist, from
accidentally poisoning a child. The episode was
certainly not meant to indict the practice of on-
premise medicine mixing nor the business en-
tities we now call “compounding pharmacies,”
which create alternative versions of medicines
to meet special needs.
To the contrary, Gower’s establishment wist-
fully recalls a simpler, gentler world of wholly
personalized pharmaceutical service. Current
spokespersons for the compounding industry
still lean heavily on that nostalgia as an arrow
in their promotional quiver.
or at least they did until the current meningitis
outbreak,which, to a greater extent than other
recent industry crises, has aroused strong out-
cry for federal regulation (as well as predict-
able client-trolling by plaintiffs’ lawyers). The
medications that compounders produce do not
undergo the rigorous screening needed for FdA
approval; their business is only subject to state
board review.
The outcry, spearheaded by democrats like
rep. Edward Markey and sen. richard Blu-
menthal, may not go away too soon, especially
as each day brings reports of new meningitis
occurrences. As of this writing, the outbreak,
traced to tainted steroid injections, has caused
12 deaths and adversely affected people in at
least 10 states. The specific cause was an epidu-
ral medication for back pain produced by the
New England Compounding Center of Fram-
ingham, Mass., which suspended operations
and recalled all products, including potentially
tainted vials sold to 75 hospitals in 23 states.
The CdC expects more fungal meningitis infec-
tion among the 13,000 people injected.
The best known of the industry’s past crises
involved polo ponies when, in 2009, 21 horses
died from a vitamin mixture prepared by a
compounder in ocala, Fla. At the time the
extensive risks of such custom-made drugs,
so widely used by veterinarians, were promi-
nently noted. But this year’s meningitis deaths
are by no means the first related human fatali-
ties. in 2012, nine deaths in Alabama were
traced to nutritional supplements from con-
taminated iVs. There were fatalities in Virginia
in 2006 and oregon the following year.
if there wasn’t then quite such a clamor
for stricter laws, the warnings from federal
regulators were crystal clear. since the most
recent federal guidelines were issued in 2003,
the agency has, in fact, sent warning letters to
compounding pharmacies around the country.
Yet the regulatory picture is by no means
clear. As Jonathan Berman, a partner in the
Washington, dC office of Jones day, points out,
“the law remains very much in flux.” There is
even significant question as to whether com-
pounding is in and of itself legal, he adds.
in the Food and drug Administration Mod-
ernization Act of 1997, Congress specifically
exempted drugs compounded for identified
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quality accreditation but the New England
Compounding Center was not a member. The
actual number of accredited PCAB members
is small.
There are other alternative messages tied in to
the healthcare debate, although the positioning
here gets a mite Byzantine as even conserva-
tives are joining the pro-regulatory side, argu-
ing that President obama’s FdA has been too
preoccupied with providing cheaper drugs to
“crack down” on compounding pharmacies. in
a debate where liberals like Markey simultane-
ously deplore “the magnitude of sales” by the
New England Compounding Center, it’s hard to
know if this industry, caught in an ideological
cross-fire, has any friends left.
The best way out of any such reputational
cul-de-sac is to hit hard on the value that your
company or industry provides even as you
fully cooperate in efforts to remediate the
problems you’ve caused. if you deserve to sur-
vive, the public benefits will palpably outweigh
the liabilities in the court of public opinion.
The compounding pharmacy industry knows
what those benefits are and what they’ll con-
tinue to be for quite some time to come. The
industry has duly pointed out that drug com-
panies cannot manufacture every medication
that’s needed; that the compounders are filling
a critical gap in our healthcare system; and
that compounding pharmacists are steadfastly
working with hospitals and doctors to help
meet a prescription drug shortage of near-
crisis dimension.
Courts will still need to rule, legislators vote,
regulators act. New public health crises related
to compounding pharmacies may likely occur
next year or the year after. Amid such uncer-
tainty, the industry’s only viable message in the
long run is that, whatever happens, everybody
has a stake in their success.
Richard S. Levick, Esq., President and CEO of LEVICK,
represents countries and companies in the highest-stakes
global communications matters—from the Wall Street
crisis and the Gulf oil spill to Guantanamo Bay and the
Catholic Church.
L
“ ... it’s hard to know if this industry, caught in an ideological cross-fire, has any friends left.”
aN aNti-CorruptioN poliCy that allowsfor
appropriate BusiNess Giftsby Suzanne rich Folsom & Victoria McKenney
Originally published in the FCA Report
how to build
19
As long as panettone is not paired with cash or
expensive items and is given during Christmas-
time and without any intent to obtain a specific
benefit in return, it ought not to appear as a
bribe or in any way run afoul of the antibrib-
ery provisions of the FCPA or local anti-bribery
laws. interestingly, though, it was once used as
a defense by a Brazilian official who was caught
accepting bribes from private contractors. The
official claimed he used the money to purchase
panettone for the poor.[1] This novel assertion,
which might be titled the “Marie Antoinette de-
fense,” did not prevail, at least not in the court
of public opinion.[2]
What is a multinational company to do when
there are government officials who are open to
accepting bribes, or when multinational com-
panies operate in countries where gift-giving,
even to government officials, is culturally ac-
cepted and potentially could appear as a bribe?
The FCPA absolutely prohibits companies from
paying bribes to foreign government officials
and political figures. There is no de minimis
exception. The presentation of a gift, however
small, can violate the FCPA if it is given with
a corrupt intent to obtain or retain business
or secure any other improper advantage. The
recent enforcement action initiated by the sEC
against alcohol beverage producer diageo plc
underscores this point. The sEC’s cease-and-de-
sist order in that case alleged that, among other
things, a diageo subsidiary “routinely made
hundreds of small payments to south Korean
military officers for the purpose of obtaining or
maintaining business and securing a competi-
tive business advantage.”[3]
u.s.’s lEngthy histOry With anti-bribEry laWs
The FCPA has been the law in the United
states since 1977 after Watergate investiga-
tions brought to light that U.s. companies were
paying bribes to foreign officials to obtain
business. other countries did not immediately
follow suit in enacting anti-bribery legislation.
Nearly 20 years later, in March 1996, the mem-
bers of the organization of American states ad-
opted the inter-American Convention Against
Corruption. shortly thereafter, in december
1997, the industrial countries belonging to
the organization for Economic Cooperation
and development reached an agreement on
a Convention on Combating Bribery of For-
eign Public officials. This Convention in turn
needed to be ratified by each country, which
then had to enact implementing legislation. it
was not until six years later that the world saw
the enactment of a truly global anti-corruption
initiative. in december 2003, 140 countries
signed the U.N. Convention Against Corruption,
a binding agreement that has now been accept-
ed by 161 countries and represents a global
consensus. The long and short of it is that the
United states not only has strict laws but has
been accustomed to banning bribery of foreign
officials much longer than other countries.
This presents a challenge to multinational com-
panies, whose employees and agents in other
Panettone is a delicious Italian sweet bread, originally from Milan and often given as a gift at Christmastime in Europe and South America. The bread requires 20 hours of rising and must rise four times, so most people purchase panettone from bakeries rather than make it from scratch. The bread is usually wrapped by hand and put in a gift box. It is relatively low in cost, consumable, easily shipped, and can be shared by a group, all of which make it a very good option for corporate gift giving.
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countries might not be attuned to the illegality
of such payments.
But they need to be. This is where an effec-
tive compliance program pays for itself. Above
all, multinational companies should have an
effective compliance program, with strong
internal controls and procedures for complying
with the FCPA. All company officers, directors,
employees and agents must receive training
concerning what conduct is prohibited by the
FCPA. A company policy regarding hospitality
expenses and gift giving, facilitation payments,
and compliance with the FCPA must be estab-
lished and adhered to. A member of the legal or
compliance department should be designated
to address FCPA compliance questions. An
anonymous incident reporting hotline should
be established so that employees and even
third parties can report possible non-compli-
ance with the FCPA without fear of reprisal.
From many directions, but especially from the
top, companies must send the message that
bribery is unacceptable, and this message must
be reinforced not just in words, but in the ac-
tions and conduct of the senior management.
cOrruptiOn is Why WE Win?
one often hears the argument that bribes
are the only way to conduct business in some
countries. We even hear it at the movies. The
2005 oscar winner syriana featured a fictitious
oil company director mouthing off, “Corruption
charges! Corruption? Corruption is government
intrusion into market efficiencies in the form of
regulations. . . .We have laws against it precise-
ly so we can get away with it. . . . Corruption is
why we win.” This stirring speech, excerpted
here, made for good box office receipts but
hardly presents an enlightened view. Corrup-
tion breeds inefficiency and stagnates growth.
it can lead to a contract being awarded to the
unethical company that slipped money into a
foreign official’s pocket but whose product is
second-rate. Moreover, a company that pays
bribes may also be the same company that
turns the other cheek when it comes to strin-
gent compliance with health or safety stan-
dards. Ultimately, it is the consumer and public
who suffer when corruption is unabated. of
course, there is another argument in favor of
strict adherence to the strictures of the FCPA
by companies who do business in the United
states: it is the law, and it is heavily enforced.
Prosecutions under the FCPA are on the rise.
As The New York Times recently reported,
there are at least 78 companies now under
investigation for violations of the FCPA.[4] These
include big name American companies like
Avon, Alcoa, Goldman sachs, Pfizer and Wal-
Mart. When a door-to-door cosmetics company
enters into settlement talks with the doJ and
the sEC concerning alleged bribes to officials
in China and elsewhere, this should give any
company pause.[5] Already Avon has reportedly
racked up almost $280 million in legal costs
alone.[6] This recent trend of heightened en-
forcement activity is unlikely to subside in the
near future. The sEC’s whistleblower bounty
program, which was created as a result of the
dodd-Frank Wall street reform and Consumer
Protection Act of 2010, provides a financial
incentive for individuals to disclose to the sEC
original information that leads to successful
enforcement of the FCPA or other U.s. securi-
ties laws. in the first seven weeks of the pro-
gram’s existence, the sEC received 334 tips,[7]
and the first bounty of nearly $50,000 was
awarded to a whistleblower in August 2012.[8]
Ways tO build an anti-cOrruptiOn pOlicy that allOWs fOr apprOpriatE businEss gifts
does all of this mean that a U.s.-headquartered
company must prohibit all corporate token
gifts of hospitality that, depending on the
country in which the company is operating,
would be viewed as customary? Not necessar-
ily. The FCPA prohibits gifts given with a “cor-
rupt intent” to influence a corporate official to
obtain or retain business, or otherwise secure
an improper business advantage. small, token,
and infrequent gifts of nominal value that are
not provided with any expectation of return
favor would likely fall outside the crosshairs of
the FCPA. in addition, a nominal gift related to
the promotion or demonstration of a product
may be permissible as a “business promotion”
expense under certain circumstances. The doJ
has issued several opinions suggesting that
such gifts would not be viewed as FCPA viola-
tions.[9] These opinions were issued pursuant to
the doJ’s established FCPA opinion Procedure,
through which any U.s. company or national
may request a written statement of the Justice
department’s present enforcement intentions
under the anti-bribery provisions of the FCPA
regarding any proposed business conduct. Al-
though the doJ’s formal opinions may be relied
on authoritatively only by the party that seeks
the opinion, they offer useful guidance
to others.
Every formal opinion and every case brought
by both the doJ and sEC should be taken into
account in shaping your corporation’s anti-
“ The New York Times recently reported, there are at least 78 companies now under investigation for violations of the FCPA.[4] These include big name American companies like Avon, Alcoa, Goldman Sachs, Pfizer and Wal-Mart.”
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corruption compliance policy, as well as the
long-awaited FCPA guidance that the doJ and
sEC are expected to issue this fall. And, if there
is ever any doubt about a proposed course of
action, it is always possible to ask the doJ for
a formal opinion. in the final analysis, it is
always better to lose a contract than violate a
law or risk a government investigation.
one final thought: The intent behind the gift is
often the most important factor in the analysis
of whether the gift-giving was permissible. in
a celebrated case, mooncakes, a traditional
and relatively inexpensive food gift given in
Asia during the Mid-Autumn Festival, be-
came a bribe when they were presented to
the police officers investigating the donor for
corruption. While the officers returned the
mooncakes, the irony was delicious.
Suzanne Rich Folsom is the SVP, Chief Regulatory & Com-
plianceOfficer and Deputy General Counsel of ACADEMI
LLC, a leading provider of training and security solutions.
Previously, she joined AIG in the same role during the 2008
financial crisis and established a bestin-class regulatory
and compliance program, including a robust anticorruption
policy, for that company.
Victoria McKenney is the Director, Regulatory & Compliance
and Associate General Counsel of ACADEMI LLC. Previ-
ously, she was an attorney with Hogan Lovells and was
seconded to AIG during the 2008 financial crisis and played
an integral role in helping the company’s regulatory and
compliance team establish a leading practices compliance
program, including a strong anti-corruption policy.
©2012 The FCPA Report. All rights reserved.
www.fcpareport.com Volume 1, Number 8 September 19, 2012
The FCPA Report
[1] Governor of Brazil’s Capital City Surrenders to Police, BBC News (Feb. 12, 2010).
[2] See id.
[3] In the Matter of Diageo plc, SEC Admin. Proc. 3-14490 (Jul. 27, 2011).
[4] Leslie Wayne, Foreign Firms Most Affected by a U.S. Law Barring Bribes, N.Y. Times (Sep. 3, 2012).
[5] Samuel Rubenfeld, Avon Begins FCPA Settlement Talks, Wall St. J. (Aug. 1, 2012).
[6] See id.
[7] U.S. Securities and Exchange Commission, Annual Report on the Dodd-Frank Whistleblower
Program Fiscal Year 2011, at 5 (Nov. 2011).
[8] Press Release, SEC Issues First Whistleblower Program Award, Securities and Exchange Commis-
sion (Aug. 21, 2012).
[9] The DOJ issued three opinions in the 1980s concerning gifts: Opinion Release 81-01 which acknowl-
edged that SVG Group, while acting as an agent or representative of Bechtel, could seek reimbursement
from Bechtel for certain nominal gifts of less than $500 per person that it might provide; Opinion
Release 81-02 which did not prohibit beef samples totaling less than $2,000 in value to be provided
by Iowa Beef Packers, Inc. to officials from the Soviet Union Ministry of Foreign Trade; and Opinion
Release 82-01 which did not prohibit cheese samples to be provided to Mexican officials by Missouri’s
Department of Agriculture. See U.S. Dep’t of Justice Op. Proc. Release 81-01 (Nov. 25, 1981); U.S. Dep’t
of Justice Op. Proc. Release 81-02 (Dec. 11, 1981); U.S. Dep’t of Justice Op. Proc. Release 82-01 (Jan.
27, 1982). See generally Thomas R. Fox, “Gifts and Business Entertainment Under the FCPA,” FCPA
Compliance and Ethics Blog (Jun.18, 2010). In addition, in recent opinions in which the DOJ indicated
that it did not intend to initiate enforcement actions with regard to travel-related expenditures and
related payments for foreign officials, the analysis indicated, among other things, that souvenirs given
to foreign officials which would “reflect Requestor’s [name or] business and/or logo and would be of
nominal value” were acceptable. See U.S. Dep’t of Justice Op. Proc. Release 07-01 (Jul. 24, 2007); U.S.
Dep’t of Justice Op. Proc. Release 07-02 (Sep. 11, 2007); U.S. Dep’t of Justice, Op. Proc. Release 11-01
(Jun. 30, 2011).
L
aftEr rEViEWing fcpa casEs, OpiniOns issuEd by thE dOJ, and numErOus “hOW tO” articlEs in this arEa, WE OffEr thE fOllOWing gift-giVing suggEstiOns (Which arE by nO mEans ExhaustiVE) tO cOnsidEr incOrpOrating in yOur cOmpany’s anticOrruptiOn pOlicy:
1. give gifts of nominal value.
2. do not give gifts frequently to the same individual or group.
3. Set aggregate gift limits per group or individual.
4. give gifts that are perishable, such as plants, or consumable, such as panettone, and that an entire office can share instead of just one individual.
5. give gifts with a corporate logo that promote your company but do not have retail value.
6. Build business relationships through recreational activities instead of lavish private dinners.
7. Provide sample products (of nominal value) from your company.
8. give something unique from your region, such as crab cakes from Maryland or blue bonnets from Texas.
9. give something proverbially useless, like a coffee table book.
10. Never give cash or cash equivalents, such as gift cards.
11. Present gifts openly and in front of a group of people.
12. give gifts for official, rather than personal, use.
13. Make sure that any gift would comply with both local law and the internal policies at the official’s company.
14. Clear gifts through your compliance department.
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At a time when companies are working to mitigate the cyber-security risks arising from criminals,
competitors, and other external sources, Mr. Gibson spoke about what is perhaps the most over-
looked threat today—a company’s own employees. With the rapid increase of internal breaches,
employee policies and controls that can limit intentional or accidental data breaches are an abso-
lute necessity for any company seeking to protect sensitive information.
As a former special agent with the Federal Bureau of investigation (FBi) who most recently served
as the Chief Cyber security officer for Microsoft lTd in the United Kingdom, Mr. Gibson shared
these insights and many more with Bulletproof™.
data sEcuritypricewaterhousecoopers’ EdWard gibsOn
blOgs to followThoUghT lEadErs iNdUSTry blOgs
BUSiNeSS rElatEd
Amber NaslundBraSSTackThiNkiNg.coMAmber Naslund is a coauthor of The Now revolution. The book discusses the impact of the social web and how businesses need to “adapt to the new era of instantaneous business.
Brian HalliganhUBSPoT.coM/coMPaNy/MaNageMeNT/BriaN-halligaN
Hubspot CEo and Founder.
Chris BroganchriSBrogaN.coMChris Brogan is an American author, journalist, marketing consultant, and frequent speaker about
social media marketing.
David Meerman ScottdavidMeerMaNScoTT.coM david Meerman scott is an American online marketing strategist, and author of several books on marketing, most notably The New rules of Marketing and Pr with over 250,000 copies in print in more than 25 languages.
Guy KawasakigUykawaSaki.coMGuy Kawasaki is a silicon Valley venture capitalist, bestselling author, and Apple Fellow. He was one of the Apple employees originally responsible for marketing the Macintosh in 1984.
Jay BaerjayBaer.coMJay Baer is coauthor of, “The Now revolution: 7 shifts to Make Your Business Faster, smarter and
More social.
Rachel BotsmanrachelBoTSMaN.coMrachel Botsman is a social innovator who writes, consults and speaks on the power of collaboration
and sharing through network technologies.
Seth GodinSeThgodiN.TyPePad.coM seth Godin is an American entrepreneur, author and public speaker. Godin popularized the topic of permission marketing.
Holmes ReportholMeSrePorT.coMA source of news, knowledge, and career information for public relations professionals.
NACD BlogBlog.NacdoNliNe.orgThe National Association of Corporate directors (NACd) blog provides insight on corporate governanceand leading board practices.
PR WeekPrweekUS.coMPrWeek is a vital part of the Pr and communications industries in the Us, providing timely news, reviews, profiles, techniques, and ground-breaking research. PR Daily NewsPrdaily.coMPr daily provides public relations professionals, social media specialists and marketing communicators with a daily news feed.
FastCompanyFaSTcoMPaNy.coMFast Company is the world’s leading progressive business media brand, with a unique editorial focus on business, design, and technology
ForbesForBeS.coMForbes is a leading source for reliable business news and financial information for the Worlds business leaders.
MashableMaShaBle.coMsocial Media news blog covering cool new web-sites and social networks.
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VidEO
LA TImes | october 11, 2012USada rePorT deTailS caSe agaiNST laNce arMSTroNg
PR Week | october 9, 2012levick exPaNdS wiTh NoN-criSiS BUSiNeSS PracTiceS
USA TODAY | october 5, 2012‘NoBody iS goiNg To wiN while PlayerS are oFF The ice’
The Washington Post | october 5, 2012aPPle, a year aFTer STeve joBS
in thE nEWs
O’DwyersgraBowSki oN aMericaN airliNeS’ woeS
thE urgEncyOf nOW.