Ethisphere Magazine

magazine cover

Ethisphere Magazine Features

features

2008 Government Contractor Ethics Rankings

// read more...

Hey Bill, What Were You Waiting For?

// read more...

Ethics & Compliance Makeover: Can a Bad Code of Conduct be Saved?

// read more...

Global Compliance: South Africa

// read more...

If Ethics Isn’t Everywhere, It’s Nowhere

// read more...

How Nike is Changing The World, One Factory At a Time

// read more...

Bribery’s Broken Windows

// read more...

Big Shot CEO’s EthiGear Selection Q1 - 2008

// read more...

Speak Now Or…

// read more...

50 Codes of Conduct Benchmarked Q1 - 2008

// read more...

Strictly Business: Marks & Spencer’s 100-Point Plan A

// read more...

Q4 Corrections

  • Page 22: Influential Person #28, Mark Parker, was unintentionally referenced as "Knight"
  • Page 25: Under #84, Leslie Gaines-Ross' name was incorrectly spelled Lesley Gaines-Ross
Want to become Ethics Inside Certified?

Subscribe to Ethisphere Magazine

Surprise! Another Company is Being Investigated for FCPA violations. This Time it’s Shell.

March 18, 2008

Shell Oil

Either investigative techniques used to uncover FCPA violations are improving, more companies are doing it or it’s just getting more attention from the DOJ. But whatever the reason, FCPA cases are a dime a dozen these days. The most recent alleged violator: Shell Oil. The company is being looked into by the Department of Justice and has also announced its own internal investigation. The company says it is cooperating fully and acknowledged that it may have to pay “fines and additional costs,” according to its most recent annual report.

Generally violations come from smaller company subsidiaries and, of course, this instance is no different. Shell’s “basel-based logistics firm” Panalpina is the culprit this time. Panalpina has allegedly bribed officials in Nigeria, Kazakhstan and Saudi Arabia, however since the investigation began the firm has ended operations in Nigeria.

The take-home message? Yes, your subsidiaries can get you in a heap of trouble. Don’t limit your compliance and code of conduct training to your primary business. It’s just as important to make sure that all the small little offices working for you in the most obscure parts of the world are following protocol as well. If not, your company name could very quickly be next to the words “FCPA” and “Violations” in next week’s headlines (and judging by the rate FCPA violations are being investigated, there will likely be another one next week, if not sooner).

Print This Post Print This Post

One Response to “Surprise! Another Company is Being Investigated for FCPA violations. This Time it’s Shell.”

  1. Comment by Spooner on March 28, 2008 8:35 pm
     Add karma Subtract karma  +0

    It’s an open secret that the price of doing business in Saudi is 10% payable to one of the 5,000 princes of the ruling family. Whether they pay it themselves, or through intermediaries and regardless of the form these payments take (such as “consulting” fees or sales “commission”), the U.S. companies doing business there know very well that it’s a bribe. Even if they pretend that it’s not or pretend that they dont know anything about it. DOJ should investigate every US company in Saudi.

    Kazakhstan is as thoroughly corrupt as Saudi, only the number of bribe beneficiaries is much smaller.

Let us know what you think (Privacy Policy):

*
To prove you're a person (not a spam script), type the security word shown in the picture.
Anti-Spam Image