Bribery in pretended not to know the Agency can escape it? Avon tells the story of people, "ostrich policy" had expired after a nearly three-year internal investigation, the world's largest direct sales company Avon cosmetics company (NYSE:AVON), finally decided the four men arrested for bribery in China recently executives of dismissal.
Four executives: former s.k. Kao in China, the former Chief Financial Officer, Math State in China (Jimmy Beh), the former head of China Sun Changqing, as well as global head of internal audit and security sector Yien·luosaite (Ian Rossetter). The four executives last April were "administrative break level", but did not lift the employment relationship. Statement published under the headquarters of the Avon, Avon internal investigation has not ended. "The investigation is based on the Chinese and foreign corrupt practices Act and other relevant laws of the State, carried out under the supervision of the Audit Committee and external consultants, mainly for its business in China, also on the verification of compliance of other States. "To date, United States Department of Justice and the United States Securities and Futures Commission has yet to Avon was arrested for violating the foreign corrupt practices Act (FCPA) zombies action details bribes did not open. However, Avon on May 3 to the United States said in a written statement to the Commission, "does not rule out further punishment of personnel actions in the future. " cost of hundreds of millions of dollars of internal investigation Avon internal investigation began in June 2008. At that time, Avon CEO Andrea Jung received a letter from an employee in the world, reporting company in China had "improper expenditure on official travel in China." Avon then started an internal investigation, employ a third party law firm Arnold&
Porter LLP, at the same time voluntarily notify the United States Department of Justice and the United States securities.
Avon in the United States judiciary said in a disclosure of information, companies in China suspected of acts of unfair pay including "travel, entertainment and other expenses", but did not refer to investigating Avon is involved to get China direct sales licence possible public relations fees. Chinese media have generally linking Avon self-inspection and direct sales licence. Avon aeration self-less than a few months after, the original Division Inspector of Commerce Deputy Director Deng Zhan Guo Jingyi, former Foreign Secretary, and foreign-invested enterprises registered in the State administration for industry and Commerce Bureau Deputy Director Liu Wei Lok Ma. Media quoted industry insiders said, Avon directly related to the case of bribery and Deng Zhan. On February 9, 2004, former Foreign Secretary of Commerce Deputy Director Deng Zhan publicly disclosed that China will develop direct selling laws during the year.
Two years later, on February 22, Avon first obtained the first direct sales licence in other enterprises. However, Avon did not clearly indicate whether internal investigations involving reaches public relations in the direct sales licence fees.
Avon said that "we will not make comments to the ongoing investigation, would not respond to rumors and speculation, whether or not exactly." Avon for the construction of internal investigations and compliance, has invested hundreds of millions of dollars.
Avon to the United States Securities and Futures Commission submitted documents show that Avon 2009 paid a US $ 59 million; 2010 increased to us $ 95 million. Investigation is not restricted in China.
In February this year, Avon and one responsible for Western Europe, the Middle East, Africa, Senior Vice President, Asia Pacific and China's "administrative break level". Gao Shoukang, President of China in April last year before being "administrative break level" post, his successor was originally responsible for Southern Latin America regional General Manager of Ernesto m. Ordonez (Rene Ordonez). Gao Shoukang from Taiwan promotion executives who came all the way in 1986 and joined the Avon company. In 1995, became Avon Taiwan 13 years in the first General Manager of the local community. In 1998, Gao Shoukang Avon under the leadership of Taiwan area turnover of NT $ 3 billion of achievements.
The following year, he was promoted to President, Avon greater China and Singapore, and Korea President. Newly appointed Gao Shoukang, President of greater China, facing challenges for China's comprehensive pyramid schemes.
He will Taiwan mainland practices introduced pathways of retail sales, reversing a sharp drop in the performance of the grim situation, expansion to 6,000 stores in 2004, sales in 2003 reached 2.4 billion yuan. Avon in the subsequent opening of the direct sales market in China comes top. At the time of experience of recalling them to acquire a licence, Gao Shoukang has indicated to the media that "regardless of the enterprise have any direct experience, according to state regulations, not too greedy".
However, a few years later, Gao Shoukang was arrested for bribes to government officials in China, had to leave sadly for nearly 15 years of service the employer.
And persons who have business with Avon to finance new in the new century [19.46 unit] reporters, since construction of Avon started internal investigations and compliance, participate in the activities of Avon journalists unable to get "red packets". don't pretend to not know inspection of Avon and the disposal of the Executive, again showing the United States the power of the foreign corrupt practices Act. It has become a hanging in the United States head of transnational corporations on the sword. Past ten years, the United States Government has significantly strengthened the implementation of the law. Obama took office, United States Department of Justice is to combat commercial corruption and bribery as one of its priorities.
United States Securities and have sync strengthened law enforcement efforts and resources invested, in new established a group specific to the foreign corrupt practices Act, to enhance law enforcement. Held in Shanghai in June last year on the third session of the China Summit Forum on corruption, United States Department of Justice Criminal Department Assistant to the Chief of the fraud section of aidemenzi (Nathaniel Edmonds) disclosed to participants, United States Department of Justice in strengthening the enforcement of the foreign corrupt practices Act, is showing a few trends. For example, law enforcement will be tighter; there will be more companies and individuals (executives and personnel involved) faced criminal proceedings; United States Justice Department will put in more resources for the implementation of the law; there will be more international cooperation and cross-border investigations, encourage more countries to intensify efforts against corruption and criminal procedure.
