Embedding Compliance

Although there was a small relative decrease in Foreign Corrupt Practices Act (FCPA) cases, the head of the DOJ's Criminal Division commented that “robust FCPA enforcement has become part of the fabric of the Justice Department” and a “reality that companies know they must live with and adjust to.” To his point, consider Wal-Mart, which has been accused of civil and criminal violations of the FCPA for allegedly bribing officials in Mexico to expedite the rapid construction of new stores, including one on top of an important archeological site.

In May, Wal-Mart reported that in the first year it had already spent over $225 million merely responding to the government and conducting its own internal investigations. These facts highlight the growing importance of what has become known in most corporations simply as “Compliance.” The function's undistinguished name masks its weighty responsibility, as the government has described, “to protect a company's reputation, ensure investor value and confidence, reduce uncertainty in business transactions, and secure a company's assets.” DOJ and SEC, Resource Guide to the U.S. Foreign Corrupt Practices Act at 56 (Nov. 14, 2012).