Notice
Newsletter
Article
HOME > News > Article

Writer
fpclub [Date : 2018-03-28 00:00:00 ]   
Subject Law Times – Civil and Criminal Incentives Should Be Provided for Compliance and Business Ethics to Take Their Roots in Corporate Management

 

The opinion was brought up that substantive civil and criminal incentives should be provided for compliance and business ethics can take their roots in corporate management and nurture active implementation and self expansion by companies. The advice from the expert of Department of Justice of U.S. also supports the opinion, as he mentioned if companies endeavor for compliance, penalties are reduced according to the FCPA (Foreign Corrupt Practices Act).

UN Global Compact Network Korea (President, Mr. Lee Dong-kurn) and Global Competitiveness Empowerment Forum (Founder and Executive President, Ms. Angela Joo-Hyun Kang) hosted ‘2018 Fair Player Club Summit Pledge Ceremony’ including ‘Session Ⅲ: Compliance & Ethics Management System for Anti-Corruption Risk Management’ to discuss these issues on March 7, 2018, at Grand Ballroom, Grand Hyatt Seoul, Seoul, Republic of Korea. These two organizations hosted and organized this event of ‘Fair Player Club’, which both organizations have implemented as the public-private sector platform to promote collective action for anti-corruption during the last three years, funded by Ministry of Trade, Industry & Energy (MOTIE), Anti-Corruption & Civil Rights Commission (ACRC), and Ministry of Foreign Affairs (MOFA). UN Global Compact Network Korea, a specialized agency of UN, was launched in 2007 emphasizing corporate social responsibility, has been encouraging companies to operate responsibly and report annually according to the ten universally accepted principles in the areas of human rights, labour, environment, and anti-corruption.

Mr. Lee Cheon-hyun, Director, Senior Research Fellow, Special Crime Research Division, Korean Institute of Criminology (KIC) said that “The policy and legal incentive structures are not sufficient enough for companies to be interested in and support compliance control systems. Therefore, civil, criminal, and administrative incentives, which are substantive and have a ripple effect, should be provided to companies, so that they can adopt and expand their internal control systems.” on his presentation at his 'Speech Ⅱ. Current Status and Prospects of Compliance & Ethics Management System in Korea'. He added that “Some of major companies established ethical standards and ethics charters internally and declared compliance management externally in order to appeal to the public. However, some critics say that their compliance is not internalized as a corporate culture because emphasis on short-term sales performances and achievements in reality.” He pointed out that “That’s why many companies regard the operation expense of Compliance Support Officer as unnecessary costs and evaluation of international organizations for compliance and business ethics of Republic of Korea is recorded as a low-level”.

Furthermore, he emphasized that “The internal control system has to be strengthened to prevent corporate frauds and corruption. However, legal enforcement has much limitation. Companies operating the Compliance Control Standards in Commercial Law, the Compliance Support Officer System, and the Fair Trade Compliance Program (CP), which all are existing internal control measures, should be supported with incentives like exemption”.

Mr. Lee said especially regarding incentives in pursuing criminal justice that “The principles of Compliance Control Standards of Listed Companies by Ministry of Justice mainly aim to prevent corporate illegal activities and respond towards various legal risks systematically. The Clause 3 of the Article 634 of the Commercial Act includes the exemption measure ‘if a company faithfully fulfills its compliance control obligations. Specific and binding criteria like the U.S. Federal Sentencing Guidelines should be needed in order to use the Compliance Support Officer System as the sentencing guidelines.

Also, he pointed out regarding civil incentives that “The Supreme Court cases and U.S. Case Laws acknowledge the Caremark Duty (A system to grant incentives for indemnity depending on the implementation of a risk management system). When deciding whether to reduce corporate or director liability or director or not in a civil suit, it tends to consider whether the control system is functioning effectively, regardless of presence of an internal control system. Through case accumulation and legislative supplementation, the criteria for judging 'effectiveness of CP' should gradually become more concrete”.

FCPA is the comprehensive anti-corruption law to punish bribing acts to foreign public officials. According this law, U.S. even restricts entry or investment of the companies involved in corruption.

 

Mr. Seo Young-sang, Reporter, the Editorial Bureau, the Law Times who participated in the Session as one of panelists, said that “The unsound ties between business and politics were backgrounds of the unprecedented situation of impeachment of the President. There are strong voices in corporate and legal community requesting for legal risk management of companies and importance and necessity of compliance and business ethics in Republic of Korea. It is the right time that needs carrots and sticks for expanding implementation of the Compliance Support Officer System”.

H.E. Ban Ki-moon, Former Secretary-General of UN gave his congratulatory remarks at the 2018 Fair Player Club Summit & Pledge Ceremony that “According to Transparency International, Republic of Korea gets only 53 points in 2017 CPI (Corruption Perceptions Index), just a level of overcoming severe corruption. We must drive out the corruption problems that break down an order of fair competition and undermine national image and global competitiveness”. In addition, he urged that “Companies need the righteous and rule based corporate compliance that prevents corruption in their global business conducts. Let's create a world of fair, honest, transparent, peaceful, and prosperous society”.

https://www.lawtimes.co.kr/Legal-News/Legal-News-View?serial=140994

[ Write | Reply | Modify | Delete ] [ List ]
[ Total : 347 | page : 18 ]
[ Sort : Date | Read  ]
No Subject Read File Date Writer
347   Maeil Economy - [Cover Story] A large Increase of the Number of Prosecutors in the FCPA Department 1811 18/04/02 Admin  
346   Hankyoreh – [Interview] OECD is “Reviewing the 'Lee Jae-yong Case' by South Korean Court” 1254 18/03/28 Admin  
345   Law Times – [Interview] “The Government Has to Build its Internal Self-cleansing System and 1294 18/03/28 Admin  
344   Maeil Economy – [Cover Story] “Corruption Punishment Is Generous in Republic of Korea... Com 1597 18/03/28 Admin  
343   Law Times – Civil and Criminal Incentives Should Be Provided for Compliance and Business Ethi 1376 18/03/28 Admin  
342   Maeil Economy - [Biz Times] Wasn’t Corporate Foreign Corruption Caught up? The Era That Everything 2244 18/03/28 Admin  
341   Yonhap News - Mr. Lee In-ho, Vice Minister of the MOTIE giving a congratulatory remarks. 987 18/03/28 Admin  
340   News1 - Ms. Pak Un-jong, Chairperson of the ACRC presenting keynote address. 715 18/03/28 Admin  
339   News1 - Ms. Pak Un-jong, Chairperson of the ACRC presenting keynote address. 865 18/03/28 Admin  
338   Yonhap News - Ms. Pak Un-jong, Chairperson of the ACRC presenting keynote address. 756 18/03/28 Admin  
337   Yonhap News - Ms. Pak Un-jong, Chairperson of the ACRC presenting keynote address. 869 18/03/28 Admin  
336   News Town - Anyang City Facilities Management Corporation Compliance - Ethical Management Pledge 925 18/03/28 Admin  
335   Cheonji ilbo - Anyang City Facilities Management Corporation fair competition anti-corruption pledg 723 18/03/28 Admin  
334   CEO Score Daily - Korea East-West Power Co., Ltd. 'anti-corruption pledge' 1013 18/03/28 Admin  
333   Today Energy - Korea East-West Power Co., Ltd. 'anti-corruption pledge' 802 18/03/28 Admin  
332   CC Times - The Korea Gas Safety Corporation participated in the Fair Player Club 1055 18/03/28 Admin  
331   SME Daily - Korea East-West Power Co., Ltd. 'anti-corruption pledge' 688 18/03/28 Admin  
330   A Ju News - Korea East-West Power Co., Ltd. 'anti-corruption pledge' 766 18/03/28 Admin  
329   Today Energy - The Korea Gas Safety Corporation participated in the Fair Player Club 1010 18/03/28 Admin  
328   Korea News System - Korea East-West Power Co., Ltd. 'anti-corruption pledge' 771 18/03/28 Admin  

1 2 3 4 5 6 ... 다음 6 개 [ Write | List | List]  
Hosted by Global Compact Network Korea (GCNK)
Organized by Global Competitiveness Empowerment Forum (GCEF)
Sponsored by Siemens Integrity Initiative
Fair Player Club Secretariat TEL : +82-2-749-2149~2150 / +82-2-714-5964 FAX : +82-2-749-2148
Email: gckorea@globalcompact.kr / infogcef@gmail.com
Copyrightⓒ by Fair Player Club Secretariat All right reserved. webmaster