Tag: gifts and business entertainment

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Compliance Tip of the Day

Compliance Tip of the Day – Policy Week: Gifts and Entertainment

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements. Whether you’re a seasoned compliance professional or just starting your journey, we aim to provide you with bite-sized, actionable tips to help you stay on top of your compliance game. Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law. Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

Today, we begin a week-long series on key anti-corruption policies. In this episode, we review gifts and entertainment.

For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

Check out the full 3-book series, The Compliance Kids, on Amazon.com.

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FCPA Compliance Report

FCPA Compliance Report – Frank Orlowski on Navigating Challenges in Operating in Emerging Markets

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom Fox welcomes Frank Orlowski.

Frank Orlowski is a seasoned professional with a wealth of experience in managing emerging markets in the pharmaceutical industry, having spent over 25 years at Pfizer Pharmaceuticals. His extensive knowledge, particularly in South America, Middle East Asia, and Eastern Europe, where he faced difficulties in compliance, controls, and adhering to US accounting regulations, has shaped his perspective on managing emerging markets. Orlowski emphasizes the importance of understanding different cultures, regulations, and geopolitical issues when working in these markets. After retiring from Pfizer, he founded the Ation Advisory Group, where he leverages his expertise to assist companies in commercializing products in the life science industry. Join Tom Fox and Frank Orlowski on this episode of the FCPA Compliance Report podcast to gain more insights into managing emerging markets in the pharmaceutical industry.

Key Highlight:

  • Frank Orlowski’s Global Financial Expertise
  • Navigating Unique Obstacles in Emerging Markets
  • Navigating Cultural Differences in Emerging Market Compliance
  • Creative Employee Rewards and Engagement Strategies
  • Enhancing Healthcare Through Medtech Innovations
  • The Integrated Legal Division at Pfizer

Resources:

Frank Orlowski on LinkedIn

Tom Fox

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31 Days to More Effective Compliance Programs

One Month to a More Effective Written Standards: Day 10 – Policies and Procedures on Gifts and Business Entertainment

If one were to reflect upon the providing of gifts and business entertainment to foreign governmental officials, one might reasonably conclude that after 40 years of the FCPA, companies might follow its prescriptions regarding gifts and business entertainment. However, there have been some notable FCPA enforcement actions in this area.
The 2012 FCPA Guidance clearly stated the FCPA does not ban gifts and entertainment. Indeed, it specified, “A small gift or token of esteem or gratitude is often an appropriate way for business people to display respect for each other. Some hallmarks of appropriate gift-giving are when the gift is given openly and transparently, properly recorded in the giver’s books and records, provided only to reflect esteem or gratitude, and permitted under local law. Items of nominal value, such as cab fare, reasonable meals and entertainment expenses, or company promotional items, are unlikely to improperly influence an official, and, as a result, are not, without more, items that have resulted in enforcement action by DOJ or SEC.”
These guidelines must be coupled with active training of all personnel, not only on a company’s compliance policy, but also on the corporate and individual consequences that may arise if the FCPA is violated regarding gifts and business entertainment. Lastly, it is imperative that all such gifts and business entertainment be properly recorded, as required by the books and records component of the FCPA.
And, as always, do not forget the gut check test.

Three key takeaways:

  1. Gifts and business entertainment continue to plague companies for compliance violations.
  2. The key is not the amount but of having a policy and procedure and following it.
  3. Always remember to record gifts and business entertainment expenses correctly.

For more information, check out The Compliance Handbook, 4th edition, here.