FCPA Training Effectiveness Questioned

In a response to an article in The New York Times Magazine “The Ethicist” column, Aaaron Murphy comments that stories like that should “keep corporate legal and compliance departments awake at night,” especially the “update” section of the article. On the one hand, the employee in question was wrong for merely assuming that the FCPA did not apply to him. Murphy contends that where an employee does not have direct contact with foreign officials, the FCPA could nevertheless apply to that employee in some way. The even greater concern expressed in this article is the apparent inadequacy of the company’s compliance and ethics program. Given that the employee was able to pass the FCPA training test without reviewing any materials, the training could clearly be seen as ineffective. If the company is not actually training its employees and later becomes the subject of an FCPA-related investigation, Murphy contends that it will not receive credit for having an “effective” program”.FCPA Blog: Fool Me Once, Shame on … who? (24 January 2011)
(Source: FCPA Blog)