1. International Forum on Business Ethical Conduct
and the
Global Principles
Timothy Schultz
Acting Vice President
Ethics and Business Conduct
Vice Chair, IFBEC
June 4, 2014

2. Industry collaboration on anti-corruption
The Path to IFBEC
Preliminary discussions between defense contractors, enforcement officials, other stakeholders to join in a common strategy to fight corruption as an industry and level the playing field in international defense procurements
AIA encourages initiative
Engagement with TI-UK
Creation of International Coordinating Council of Aerospace Industry Associations (ICCAIA) Round Table on Business Ethics
Europe develops Common Industry Standards (CIS)
Industry collaboration on anti-corruption
6/4/2014

3. A path forward with agreed upon principles
The Path to IFBEC
2008
Preliminary discussions held between ASD Anti-Corruption task force and AIA Ethics Task Force
2009
Drafting and signing of the Global Principles of Business Ethics for the Aerospace and Defense Industry
A path forward with agreed upon principles
6/4/2014

4. Signatory Commitments
To implement the Global Principles with comprehensive policies and integrity programs promoting awareness and compliance through communication and training
To encourage reporting of concerns by employees relating to compliance with the Principles and the integrity program
To sanction non-compliance in appropriate cases
Programs implementing the Principles have teeth
6/4/2014

5. Zero Tolerance to Corruption
Compliance with applicable anti-bribery laws
No things of value to obtain or retain business, gain improper advantage. Keep appropriate, traceable books and records
Internal controls and training to comply with integrity policies
Business partners required to comply with integrity policies
Seek to eliminate facilitation payments even where not prohibited by law
Strong stance against corrupt practices
6/4/2014

6. Signatories agree to closely govern advisors
Use of Advisors
Written policies govern use and payment of agents, consultants, intermediaries engaged in business development
Due diligence assessments required for advisors
Remuneration of advisors must be for legitimate services rendered and be properly recorded
Awareness program for advisors concerning integrity policies and anti-bribery laws
Written agreements with advisors require compliance with anti-bribery policies and laws
Regular reports from advisors on their activities should be required
Signatories agree to closely govern advisors
6/4/2014

7. Managing Conflicts of Interest and Respect for Proprietary Information
Follow applicable laws, regulations regarding employing former public officials to properly manage conflicts of interest. Maintain related policies
Safeguard proprietary information entrusted to them according to non-disclosure agreement terms
Will not solicit or accept third party’s proprietary information unless agreed upon with owner of the data
Unauthorized receipt of third party’s proprietary information will be handled by not disseminating or reviewing it, destroying or returning it, and the third party owner should be informed
Level playing field: conflicts, proprietary information
6/4/2014

8. Principles are a unifying achievement for the industry
Global Principles of Business Ethics for the Aerospace and Defense Industry
Shared executive level commitment
Multi-year, sustained effort by Working Group to achieve alignment and draft Principles
Journey toward common framework noted differing points of departure and emphasis
Process built greater trust and understanding, plus recognition that the Principles are a starting point not an endpoint
Principles are a unifying achievement for the industry
6/4/2014

9. Organizational structure to guide our progress
IFBEC is Founded
IFBEC formed in 2010
Charter developed
Governance structure established
Steering Committee
Subcommittees
Engagement with stakeholders
Organizational structure to guide our progress
6/4/2014

10. IFBEC BEST PRACTICE FORUMS
Berlin
Washington, DC
Madrid
Washington, DC
Brussels (Nov 6-7) 2014
Sharing to inspire program excellence for members
6/4/2014

11. International Forum on Business Ethical Conduct
Pedro Montoya
Senior Vice-President, Group Ethics & Compliance Officer
DII 2014 Best Practices Forum , 4-6 June 2014

12. Boosting IFBEC for the future:
Foster outreach activities to increase the number of companies, both prime and subcontractors, that act ethically and in accordance with IFBEC’s Global Principles.
Enhance governance to become more effective: New working groups and a new facilitator for IFBEC key topics.
Improve internal communication tools (newsletters, blogs, publication releases, public commitments, webinars, monitor policy development and implementation), and IFBEC milestone documents (IFBEC Charter, Global Principles, Public Accountability Report)
Create and consolidate an external communication strategy to engage key stakeholders, such as NGOs, national governments, and international organizations in coordination with the facilitator.

13. IFBEC way forward
Settle a long term Engagement Strategy: ethical business as competitive advantage, recognized by our key stakeholders
Set clear priorities to address risks:
Responsible Supply Chain
Compliance risks in Offset Programmes
Position IFBEC as the international leader forum for business ethics in aerospace and defence