Introduction

In an increasingly interconnected, global economy, more companies are being judged by their strategic business partner alliances.  The reputational liabilities of affiliated individuals and entities quickly can become your own and have a significant impact on your bottom line.  Moreover, the dramatic increase in US and international regulatory enforcement actions has added to the challenge that executives face in their global business operations.

The federal sentencing guidelines for FCPA violations, and related US Government commentary, make clear that US-based companies bear the same legal responsibility for the actions of foreign business partners as they do for the actions of their own employees. The US Department of Justice Fraud Section has doubled its Foreign Corruption Practice Act (FCPA) enforcement actions in the past two years, and more is expected.  In Europe, with governments no longer feeling that they can be indifferent to the plague of corruption, a series of regulatory fronts has opened. The investigation and multimillion Euro fine of a large German firm sent shock waves through the European business community in 2007, in a resulting sentiment that things no longer will be "business as usual."

Effective due diligence of third parties requires a thorough analysis of both the regulatory and reputational risks inherent in any business transaction or strategic relationship.  The experts on the panel will provide perspective from in-house counsel, outside counsel, and consultants regarding issues companies face with third parties and practical solutions to reduce the exposure from third party business relationships.