Video 6: Sales structures – Commercial, Government, Quasi-Government / Through Distributor, Agent or Direct?

||Video 6: Sales structures – Commercial, Government, Quasi-Government / Through Distributor, Agent or Direct?

Video 6: Sales structures – Commercial, Government, Quasi-Government / Through Distributor, Agent or Direct?

$525.00

If your global sales organization relies on third parties (as many do), Tom Fox explains how these intermediaries pose the greatest risk under the FCPA.

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Product Description

If your global sales organization relies on third parties (as many do), Tom Fox explains how these intermediaries pose the greatest risk under the FCPA. The FCPA only applies to winning business from foreign government officials and state owned enterprises. 95% of all FCPA cases involve a company’s use of third parties. The best way for a company to attempt to protect itself from FCPA exposure from its third party representatives is through a process called “due diligence”.

Foreign Governments v. Private Citizens (Commercial Sales)

The FCPA only applies to business with foreign government officials and state owned enterprises. It is does not apply to sales to private individuals or companies which are owned by private citizens. This means that sales to a Ministry of Defense, armed forces or police forces would be covered by the FCPA. However individual sales to private citizens are not covered by the FCPA.

FCPA Enforcement can be for direct or indirect sales

The FCPA prevents a US company from engaging in bribery and corruption directly or indirectly of a foreign governmental official. This means that company’s subject to the FCPA responsible for not only the conduct of their own employees but also any person or company which represents them in the sales chain. 95% of all FCPA cases involve a company’s use of third parties. If you only use your own employees to sell to foreign governments or foreign police forces, you must train them on the FCPA and monitor their conduct.

Use of Third Parties-What Can A Company Do to Protect Itself?

The best way for a company to attempt to protect itself from FCPA exposure from its third party representatives is through a process called “due diligence”. This process has five recognized steps that a company needs to go through to engage any third party representative to help assist in sales.

Third Parties are Your Greatest Risk Under the FCPA

The use of third parties is recognized the greatest risk under the FCPA. If your company uses any third parties in the sales chain you must manage that risk appropriately or you could join a long line of companies which have found themselves in FCPA hot water for the actions of others.