BulletProofBlog the blog on crisis communications

Each Monday, Bulletproof Blog now features exclusive interviews with thought leaders on issues of critical importance to companies and countries. This series provides insights on current communications challenges, how best to deal with them, and what we can expect down the road. This week - with last month' s U.S. record-breaking settlement of the Foreign Corrupt Practices Act case against Halliburton and its subsidiary KBR continuing to make headlines - we are proud to offer the insights of Richard Cassin, an experienced FCPA attorney, and founder and author of the popular FCPA Blog.

When facing the prospect of an FCPA investigation, who are the important audiences that a company needs to address?





Richard Cassin: There are several, and it's hard to rank them because they're all important. The internal audience at the company - its own employees - needs information and reassurance right away. If they lose confidence in the institution, it's finished. The U.S. government and foreign agencies need to be told what's happening in most cases. How and when that's done is always important. It sets the tone for all discussions and dealings with law enforcement authorities and regulators that will follow.

Questions about fair disclosure, privilege, legitimate trade secrecy, and others need to be considered. The company's customers are a key constituency, of course. Bribery allegations are so incendiary that some customers might want to move their business when they first hear about an investigation - without waiting to know the outcome. So how customers hear the news, and from whom, is crucially important. Stockholders, creditors, suppliers - all of them also need information since their interests are involved. It's complex and generally it all needs to be handled at once.

What are the most important messages to deliver to these audiences?





Richard Cassin: That the company doesn't tolerate bribery - or any other illegal behavior - anywhere. That its investigation will be thorough and that the company and everyone in it will cooperate with all concerned government agencies to determine the facts. And if there has been improper conduct, all necessary corrective action will be taken to make sure the violations stop and won't happen again.

All of the audiences or constituencies need to be reassured that the company is absolutely sincere; that its intention to comply with the law is a core value and non-negotiable. And that the company expects and wants to be held completely accountable for its behavior. Good corporate citizenship starts at the top, so the message has to come from the top - in language that everyone can easily understand.

What' s coming next with regard to the FCPA? Will FCPA investigations continue their upward trend in the months to come? Why or why not?

Richard Cassin: There will be many more new FCPA investigations. Sarbanes-Oxley guarantees it. Also, corporate whistleblowers are more active than ever. If their complaints about potential bribery of public officials have any credibility at all, the company is obligated to investigate them. Whistleblower activity has already produced many or most of the current investigations.

In tough financial times, when public projects in other countries become even more important, I'd expect problems with international bribery to increase. Executives at global companies need to be vigilant these days about compliance. Everyone in the field is under pressure to land business. That increases the risk of someone offering a bribe somewhere. Financial institutions and other companies receiving any government-sourced assistance should also be extremely careful. Allegations of bribery abroad could derail everything for them. Last but not least, the FCPA is still a priority at the Justice Department and the SEC - and they're now cooperating with foreign governments and law enforcement authorities more than ever before.

In short, expect this upward trend to not only continue, but intensify.