EDITION 12

WeeklyOcTObEr 12, 2012

customer ExpEriEncENordstrom sets a New staNdard

cOVEr imagE: The rotunda of the Nordstrom store on Market Street in Union Square, San Francisco.

03 contents04091016

custOmEr ExpEriEncENordSTroM SeTS a New STaNdard

clOud cOmputing SecUriTy, Privacy aNd STraTegy For The BoardrooM

2425

thE mEningitis OutbrEakwhaT caN coMPoUNdiNg PharMacieS do NexT?

businEss giftsBUild aN aPProPriaTe Policy

data sEcurityPricewaterhousecoopers’ edward giBSoN

blOgsTo Follow

26 lEVick in the News

05

richard S. Levick, Esq.Originally Published on Fastcompany.com

ExpEriEncE

Back in May, Target announced that it would

no longer be selling the Amazon Kindle. Ear-

lier this month, Wal-Mart followed suit. While

neither big box retailer explained exactly why

they’ve declared war on Amazon’s tablet, the

motive is clear. Every time Target or Wal-Mart

sells a Kindle, they put their brick and mortar

stores in jeopardy by providing Amazon even

greater reach in its digital retail power grab.

Viewed in this context, the tandem moves are

direct, sharp-shooter responses aimed directly

across the bow of a major competitor.

The real problem for big box stores is that

consumers are increasingly utilizing physical

stores such as Target, Wal-Mart, Best Buy, and

others as nothing more than showrooms. They

take potential purchases for a test drive, and

then log onto mobile devices or home comput-

ers to buy from Amazon and other e-tailers

that might be selling the same product for less

(and pick up other household staples while

they’re there—free shipping, why not?). As

BGC Financial technology analyst Collin Gillis

told the New York Times, selling Kindles

“encourages consumers to step into that

ecosystem.”

All the while, Amazon is establishing ware-

houses and kiosks that can provide customers

in major metropolitan areas with same-day

service, thereby eroding a key brick and mor-

HoW NordsTroM EVolVEd FroM BriCKs To CliCKs

Halting brick and mortar sales of the Kindle at stores like Target is nothing more than a Band-Aid on the bullet hole created by mobility’s impact on e-commerce. Here’s how one upscale retailer is doing it right.

customer

Weekly

6 07

tar selling point in the process. The digital and

physical retail worlds are colliding. With the

increased competition that accompanies the

phenomenon, at least two major big boxes are

apparently taking a “no more Mr. Nice Guy”

approach.

in truth, halting brick and mortar sales of the

Kindle is really nothing more than a Band-Aid

on the bullet hole created by mobility’s impact

on e-commerce. The number of active mo-

bile devices is expected to exceed the world’s

population by the end of this year. That means

just about anyone who walks into a brick and

mortar establishment has the ability to snap

a photo of a barcode, upload it to a mobile ap-

plication, and compare competitors’ pricing on

the spot and in real time.

Target and Wal-Mart can’t keep these devices

out of consumers’ hands by themselves, and

they can’t engage in the unending game of

whack-a-mole that is a race to the bottom on

price. As such, what’s needed is a communica-

tions and marketing approach that emphasizes

everything shoppers still love about the brick

and mortar shopping experience—and that

does so on the digital landscape consumers

have come to love just as much.

simply put, big boxes need to infuse their on-

line properties with all the service and conve-

nience advantages absent from e-tailers that

are often nothing more than glorified middle-

men. The overarching message is that Amazon

might have what you need; but we know what

“ It’s a best-of-both-worlds strategy that accepts the “bricks and clicks” reality of today’s retail marketplace.”

you need because we offer the tools, perks, and

expertise that ensure the most informed and

enjoyable purchase possible.

it’s a best-of-both-worlds strategy that accepts

the “bricks and clicks” reality of today’s retail

marketplace. Fortunately, there a number

brick and mortar retailers that are already

providing templates for how it’s done.

Nordstrom, for one, is meeting the bricks and

clicks challenge head on. The chain’s online

shoppers might not hear that live piano player

in the background as they point and click or

be able to grab a bite at the café after making

a purchase, but there’s little else about Nord-

strom’s traditional brand that is absent from

its digital presence.

First, Nordstrom’s online shoppers have access

to any item in any retail location across the

country—a melding of online and in-store in-

ventories that remains rare in the retail world

today. Customers can see all available sizes and

colors of a particular item and can actually see

them modeled by a real person, rather than

just a screen shot of the apparel lying against

a white background. if customers have ques-

tions, they can call a “personal stylist” at the

Nordstrom call center, which isn’t outsourced,

but rather staffed by specialists with all the

expertise of those who assist customers in the

men’s department or at the cosmetics counter.

Second, Nordstrom places significant emphasis

on ease of use for online shoppers. Customers

are never more than two or three clicks away

from the content they want to access. searches

can be performed based on department, brand,

or lifestyle. With the site’s simple yet elegant

design and limited navigation options, it’s

likely easier to get lost at a brick-and-mortar

Nordstrom location than it is to end up re-

peatedly clicking the “back” tab on your Web

browser.

Third, Nordstrom’s online shoppers are pro-

vided all the same benefits they would receive

if making a purchase at a brick-and-mortar

location. returns of online purchases are just

as easy as those of items bought in person. And

for those customers who crave the convenience

of online shopping but still enjoy a trip to the

store from time to time, Nordstrom provides

the capability to make a purchase online and

pick the item up same day—and without the

wait or shipping costs to boot.

Image courtesy of nordstrom.com. All rights reserved.

Weekly

0908

Finally, Nordstrom’s website is fully integrated

with its social media presence. its Facebook

page, which is liked by more than 1.6 million

people, and its Twitter profile, which has more

than 200,000 followers, provide forums where

customers can discuss fashion and resolve any

issues they might have. Nordstrom even shares

fashion interviews on a YouTube channel that

boasts more than 4.3 million video views and is

using mobile applications to alert its consumer

community to upcoming sales and events. The

use of video is especially advantageous, as it

provides a leg up over the competition in terms

of search engine optimization (sEo).

While none of these features represents a

groundbreaking leap forward in e-commerce,

forward-thinking retailers such as Nordstrom

L

are showing the big boxes how they can re-

main relevant in the digital age. By applying

traditional brand strengths to the digital pres-

ence, every retailer has the ability to provide

consumers with what they want most out of

their bricks, as well as their clicks—and that’s

an absolute imperative at a time when com-

petitors are bearing down from all sides.

Richard S. Levick, Esq., President and CEO of LEVICK,

represents countries and companies in the highest-stakes

global communications matters—from the Wall Street

crisis and the Gulf oil spill to Guantanamo Bay and the

Catholic Church.

This week’s edition of NACd BoardVision focuses on security and privacy concerns as they relate

to cloud computing. Join steve Kalan, associate publisher of NACd directorship, and daimon Geop-

fert, McGladrey’s national leader for iT security and privacy consulting, as they discuss the hidden

costs and boardroom strategies of the new computing future.

crisis

litigatiOnfinancial cOmmunicatiOns

cOrpOratE & rEputatiOnpublic affairs

sign up tOday

nacd bOardVisiOn clOud cOmputing: sEcurity, priVacy & stratEgy fOr thE bOardrOOm

richard S. Levick, Esq.Originally Published on Forbes.com

thE mEningitis OutbrEak:What can cOmpOunding pharmaciEs dO nExt?

Weekly

12 13

individual patients from the same require-

ments governing manufactured drugs. How-

ever, the supreme Court ruled part of that law

unconstitutional, and the lower courts are split

on whether the rest of the provisions that affect

the compounding pharmacies remain in effect.

Given this ambiguous legal picture, the FdA

does still retain a kind of murky “enforcement

discretion” that only makes it tougher for this

industry to define its long-term options and the

overriding strategic direction that will serve

its interests in the near future. in other words,

the compounders are living in limbo. “The first

thing that the industry should seek is clarity in

the law,” says Berman.

Beyond that, a good argument can certainly be

made that the compounders are well-advised to

welcome federal oversight and the confidence

in its products that the FdA stamp of approval

would engender. After all, the change may be

inevitable anyway. Why not embrace it? Why not

work with the FdA to determine the fairest and

most effective regime before something signifi-

cantly more unattractive is imposed on them?

No doubt it’s an approach that communica-

tions as well as legal strategists have readily

advocated for other industries facing various

sorts of regulatory challenges. But we shouldn’t

be quite so glib in this instance. Yes, a collab-

orative dynamic with the FdA would enhance

the industry’s credibility and legitimacy. But,

as Berman points out, the new drug approval

process is “very expensive, not feasible for any

pharmacies,” and certainly out of reach for the

smaller-scale compounding pharmacists who

make simpler, presumably safer medications

in their own drug stores.

Continued reliance on state oversight does not

seem to be a compelling alternative message as

these companies can simply shift operations to

less strict venues, while multi-state commerce

suggests need for something beyond local

oversight. it’s a point not lost on expert com-

mentators. “For states to try to regulate this is

really difficult. it has to be done nationally,”

said Boston University law professor Kevin

outterson.

Nor does self-regulation necessarily offer the

public much comfort. The Pharmacy Com-

pounding Accrediting Board (PCAB) provides

Those of us who’ve habitually watched it’s A

Wonderful life over the decades well remem-

ber how protagonist Harry Bailey intervenes to

prevent Mr. Gower, the local pharmacist, from

accidentally poisoning a child. The episode was

certainly not meant to indict the practice of on-

premise medicine mixing nor the business en-

tities we now call “compounding pharmacies,”

which create alternative versions of medicines

to meet special needs.

To the contrary, Gower’s establishment wist-

fully recalls a simpler, gentler world of wholly

personalized pharmaceutical service. Current

spokespersons for the compounding industry

still lean heavily on that nostalgia as an arrow

in their promotional quiver.

or at least they did until the current meningitis

outbreak,which, to a greater extent than other

recent industry crises, has aroused strong out-

cry for federal regulation (as well as predict-

able client-trolling by plaintiffs’ lawyers). The

medications that compounders produce do not

undergo the rigorous screening needed for FdA

approval; their business is only subject to state

board review.

The outcry, spearheaded by democrats like

rep. Edward Markey and sen. richard Blu-

menthal, may not go away too soon, especially

as each day brings reports of new meningitis

occurrences. As of this writing, the outbreak,

traced to tainted steroid injections, has caused

12 deaths and adversely affected people in at

least 10 states. The specific cause was an epidu-

ral medication for back pain produced by the

New England Compounding Center of Fram-

ingham, Mass., which suspended operations

and recalled all products, including potentially

tainted vials sold to 75 hospitals in 23 states.

The CdC expects more fungal meningitis infec-

tion among the 13,000 people injected.

The best known of the industry’s past crises

involved polo ponies when, in 2009, 21 horses

died from a vitamin mixture prepared by a

compounder in ocala, Fla. At the time the

extensive risks of such custom-made drugs,

so widely used by veterinarians, were promi-

nently noted. But this year’s meningitis deaths

are by no means the first related human fatali-

ties. in 2012, nine deaths in Alabama were

traced to nutritional supplements from con-

taminated iVs. There were fatalities in Virginia

in 2006 and oregon the following year.

if there wasn’t then quite such a clamor

for stricter laws, the warnings from federal

regulators were crystal clear. since the most

recent federal guidelines were issued in 2003,

the agency has, in fact, sent warning letters to

compounding pharmacies around the country.

Yet the regulatory picture is by no means

clear. As Jonathan Berman, a partner in the

Washington, dC office of Jones day, points out,

“the law remains very much in flux.” There is

even significant question as to whether com-

pounding is in and of itself legal, he adds.

in the Food and drug Administration Mod-

ernization Act of 1997, Congress specifically

exempted drugs compounded for identified

Weekly

14 15

quality accreditation but the New England

Compounding Center was not a member. The

actual number of accredited PCAB members

is small.

There are other alternative messages tied in to

the healthcare debate, although the positioning

here gets a mite Byzantine as even conserva-

tives are joining the pro-regulatory side, argu-

ing that President obama’s FdA has been too

preoccupied with providing cheaper drugs to

“crack down” on compounding pharmacies. in

a debate where liberals like Markey simultane-

ously deplore “the magnitude of sales” by the

New England Compounding Center, it’s hard to

know if this industry, caught in an ideological

cross-fire, has any friends left.

The best way out of any such reputational

cul-de-sac is to hit hard on the value that your

company or industry provides even as you

fully cooperate in efforts to remediate the

problems you’ve caused. if you deserve to sur-

vive, the public benefits will palpably outweigh

the liabilities in the court of public opinion.

The compounding pharmacy industry knows

what those benefits are and what they’ll con-

tinue to be for quite some time to come. The

industry has duly pointed out that drug com-

panies cannot manufacture every medication

that’s needed; that the compounders are filling

a critical gap in our healthcare system; and

that compounding pharmacists are steadfastly

working with hospitals and doctors to help

meet a prescription drug shortage of near-

crisis dimension.

Courts will still need to rule, legislators vote,

regulators act. New public health crises related

to compounding pharmacies may likely occur

next year or the year after. Amid such uncer-

tainty, the industry’s only viable message in the

long run is that, whatever happens, everybody

has a stake in their success.

Richard S. Levick, Esq., President and CEO of LEVICK,

represents countries and companies in the highest-stakes

global communications matters—from the Wall Street

crisis and the Gulf oil spill to Guantanamo Bay and the

Catholic Church.

L

“ ... it’s hard to know if this industry, caught in an ideological cross-fire, has any friends left.”

aN aNti-CorruptioN poliCy that allowsfor

appropriate BusiNess Giftsby Suzanne rich Folsom & Victoria McKenney

Originally published in the FCA Report

how to build

19

As long as panettone is not paired with cash or

expensive items and is given during Christmas-

time and without any intent to obtain a specific

benefit in return, it ought not to appear as a

bribe or in any way run afoul of the antibrib-

ery provisions of the FCPA or local anti-bribery

laws. interestingly, though, it was once used as

a defense by a Brazilian official who was caught

accepting bribes from private contractors. The

official claimed he used the money to purchase

panettone for the poor.[1] This novel assertion,

which might be titled the “Marie Antoinette de-

fense,” did not prevail, at least not in the court

of public opinion.[2]

What is a multinational company to do when

there are government officials who are open to

accepting bribes, or when multinational com-

panies operate in countries where gift-giving,

even to government officials, is culturally ac-

cepted and potentially could appear as a bribe?

The FCPA absolutely prohibits companies from

paying bribes to foreign government officials

and political figures. There is no de minimis

exception. The presentation of a gift, however

small, can violate the FCPA if it is given with

a corrupt intent to obtain or retain business

or secure any other improper advantage. The

recent enforcement action initiated by the sEC

against alcohol beverage producer diageo plc

underscores this point. The sEC’s cease-and-de-

sist order in that case alleged that, among other

things, a diageo subsidiary “routinely made

hundreds of small payments to south Korean

military officers for the purpose of obtaining or

maintaining business and securing a competi-

tive business advantage.”[3]

u.s.’s lEngthy histOry With anti-bribEry laWs

The FCPA has been the law in the United

states since 1977 after Watergate investiga-

tions brought to light that U.s. companies were

paying bribes to foreign officials to obtain

business. other countries did not immediately

follow suit in enacting anti-bribery legislation.

Nearly 20 years later, in March 1996, the mem-

bers of the organization of American states ad-

opted the inter-American Convention Against

Corruption. shortly thereafter, in december

1997, the industrial countries belonging to

the organization for Economic Cooperation

and development reached an agreement on

a Convention on Combating Bribery of For-

eign Public officials. This Convention in turn

needed to be ratified by each country, which

then had to enact implementing legislation. it

was not until six years later that the world saw

the enactment of a truly global anti-corruption

initiative. in december 2003, 140 countries

signed the U.N. Convention Against Corruption,

a binding agreement that has now been accept-

ed by 161 countries and represents a global

consensus. The long and short of it is that the

United states not only has strict laws but has

been accustomed to banning bribery of foreign

officials much longer than other countries.

This presents a challenge to multinational com-

panies, whose employees and agents in other

Panettone is a delicious Italian sweet bread, originally from Milan and often given as a gift at Christmastime in Europe and South America. The bread requires 20 hours of rising and must rise four times, so most people purchase panettone from bakeries rather than make it from scratch. The bread is usually wrapped by hand and put in a gift box. It is relatively low in cost, consumable, easily shipped, and can be shared by a group, all of which make it a very good option for corporate gift giving.

Weekly

20 21

countries might not be attuned to the illegality

of such payments.

But they need to be. This is where an effec-

tive compliance program pays for itself. Above

all, multinational companies should have an

effective compliance program, with strong

internal controls and procedures for complying

with the FCPA. All company officers, directors,

employees and agents must receive training

concerning what conduct is prohibited by the

FCPA. A company policy regarding hospitality

expenses and gift giving, facilitation payments,

and compliance with the FCPA must be estab-

lished and adhered to. A member of the legal or

compliance department should be designated

to address FCPA compliance questions. An

anonymous incident reporting hotline should

be established so that employees and even

third parties can report possible non-compli-

ance with the FCPA without fear of reprisal.

From many directions, but especially from the

top, companies must send the message that

bribery is unacceptable, and this message must

be reinforced not just in words, but in the ac-

tions and conduct of the senior management.

cOrruptiOn is Why WE Win?

one often hears the argument that bribes

are the only way to conduct business in some

countries. We even hear it at the movies. The

2005 oscar winner syriana featured a fictitious

oil company director mouthing off, “Corruption

charges! Corruption? Corruption is government

intrusion into market efficiencies in the form of

regulations. . . .We have laws against it precise-

ly so we can get away with it. . . . Corruption is

why we win.” This stirring speech, excerpted

here, made for good box office receipts but

hardly presents an enlightened view. Corrup-

tion breeds inefficiency and stagnates growth.

it can lead to a contract being awarded to the

unethical company that slipped money into a

foreign official’s pocket but whose product is

second-rate. Moreover, a company that pays

bribes may also be the same company that

turns the other cheek when it comes to strin-

gent compliance with health or safety stan-

dards. Ultimately, it is the consumer and public

who suffer when corruption is unabated. of

course, there is another argument in favor of

strict adherence to the strictures of the FCPA

by companies who do business in the United

states: it is the law, and it is heavily enforced.

Prosecutions under the FCPA are on the rise.

As The New York Times recently reported,

there are at least 78 companies now under

investigation for violations of the FCPA.[4] These

include big name American companies like

Avon, Alcoa, Goldman sachs, Pfizer and Wal-

Mart. When a door-to-door cosmetics company

enters into settlement talks with the doJ and

the sEC concerning alleged bribes to officials

in China and elsewhere, this should give any

company pause.[5] Already Avon has reportedly

racked up almost $280 million in legal costs

alone.[6] This recent trend of heightened en-

forcement activity is unlikely to subside in the

near future. The sEC’s whistleblower bounty

program, which was created as a result of the

dodd-Frank Wall street reform and Consumer

Protection Act of 2010, provides a financial

incentive for individuals to disclose to the sEC

original information that leads to successful

enforcement of the FCPA or other U.s. securi-

ties laws. in the first seven weeks of the pro-

gram’s existence, the sEC received 334 tips,[7]

and the first bounty of nearly $50,000 was

awarded to a whistleblower in August 2012.[8]

Ways tO build an anti-cOrruptiOn pOlicy that allOWs fOr apprOpriatE businEss gifts

does all of this mean that a U.s.-headquartered

company must prohibit all corporate token

gifts of hospitality that, depending on the

country in which the company is operating,

would be viewed as customary? Not necessar-

ily. The FCPA prohibits gifts given with a “cor-

rupt intent” to influence a corporate official to

obtain or retain business, or otherwise secure

an improper business advantage. small, token,

and infrequent gifts of nominal value that are

not provided with any expectation of return

favor would likely fall outside the crosshairs of

the FCPA. in addition, a nominal gift related to

the promotion or demonstration of a product

may be permissible as a “business promotion”

expense under certain circumstances. The doJ

has issued several opinions suggesting that

such gifts would not be viewed as FCPA viola-

tions.[9] These opinions were issued pursuant to

the doJ’s established FCPA opinion Procedure,

through which any U.s. company or national

may request a written statement of the Justice

department’s present enforcement intentions

under the anti-bribery provisions of the FCPA

regarding any proposed business conduct. Al-

though the doJ’s formal opinions may be relied

on authoritatively only by the party that seeks

the opinion, they offer useful guidance

to others.

Every formal opinion and every case brought

by both the doJ and sEC should be taken into

account in shaping your corporation’s anti-

“ The New York Times recently reported, there are at least 78 companies now under investigation for violations of the FCPA.[4] These include big name American companies like Avon, Alcoa, Goldman Sachs, Pfizer and Wal-Mart.”

Weekly

22 23

corruption compliance policy, as well as the

long-awaited FCPA guidance that the doJ and

sEC are expected to issue this fall. And, if there

is ever any doubt about a proposed course of

action, it is always possible to ask the doJ for

a formal opinion. in the final analysis, it is

always better to lose a contract than violate a

law or risk a government investigation.

one final thought: The intent behind the gift is

often the most important factor in the analysis

of whether the gift-giving was permissible. in

a celebrated case, mooncakes, a traditional

and relatively inexpensive food gift given in

Asia during the Mid-Autumn Festival, be-

came a bribe when they were presented to

the police officers investigating the donor for

corruption. While the officers returned the

mooncakes, the irony was delicious.

Suzanne Rich Folsom is the SVP, Chief Regulatory & Com-

plianceOfficer and Deputy General Counsel of ACADEMI

LLC, a leading provider of training and security solutions.

Previously, she joined AIG in the same role during the 2008

financial crisis and established a bestin-class regulatory

and compliance program, including a robust anticorruption

policy, for that company.

Victoria McKenney is the Director, Regulatory & Compliance

and Associate General Counsel of ACADEMI LLC. Previ-

ously, she was an attorney with Hogan Lovells and was

seconded to AIG during the 2008 financial crisis and played

an integral role in helping the company’s regulatory and

compliance team establish a leading practices compliance

program, including a strong anti-corruption policy.

©2012 The FCPA Report. All rights reserved.

www.fcpareport.com Volume 1, Number 8 September 19, 2012

The FCPA Report

[1] Governor of Brazil’s Capital City Surrenders to Police, BBC News (Feb. 12, 2010).

[2] See id.

[3] In the Matter of Diageo plc, SEC Admin. Proc. 3-14490 (Jul. 27, 2011).

[4] Leslie Wayne, Foreign Firms Most Affected by a U.S. Law Barring Bribes, N.Y. Times (Sep. 3, 2012).

[5] Samuel Rubenfeld, Avon Begins FCPA Settlement Talks, Wall St. J. (Aug. 1, 2012).

[6] See id.

[7] U.S. Securities and Exchange Commission, Annual Report on the Dodd-Frank Whistleblower

Program Fiscal Year 2011, at 5 (Nov. 2011).

[8] Press Release, SEC Issues First Whistleblower Program Award, Securities and Exchange Commis-

sion (Aug. 21, 2012).

[9] The DOJ issued three opinions in the 1980s concerning gifts: Opinion Release 81-01 which acknowl-

edged that SVG Group, while acting as an agent or representative of Bechtel, could seek reimbursement

from Bechtel for certain nominal gifts of less than $500 per person that it might provide; Opinion

Release 81-02 which did not prohibit beef samples totaling less than $2,000 in value to be provided

by Iowa Beef Packers, Inc. to officials from the Soviet Union Ministry of Foreign Trade; and Opinion

Release 82-01 which did not prohibit cheese samples to be provided to Mexican officials by Missouri’s

Department of Agriculture. See U.S. Dep’t of Justice Op. Proc. Release 81-01 (Nov. 25, 1981); U.S. Dep’t

of Justice Op. Proc. Release 81-02 (Dec. 11, 1981); U.S. Dep’t of Justice Op. Proc. Release 82-01 (Jan.

27, 1982). See generally Thomas R. Fox, “Gifts and Business Entertainment Under the FCPA,” FCPA

Compliance and Ethics Blog (Jun.18, 2010). In addition, in recent opinions in which the DOJ indicated

that it did not intend to initiate enforcement actions with regard to travel-related expenditures and

related payments for foreign officials, the analysis indicated, among other things, that souvenirs given

to foreign officials which would “reflect Requestor’s [name or] business and/or logo and would be of

nominal value” were acceptable. See U.S. Dep’t of Justice Op. Proc. Release 07-01 (Jul. 24, 2007); U.S.

Dep’t of Justice Op. Proc. Release 07-02 (Sep. 11, 2007); U.S. Dep’t of Justice, Op. Proc. Release 11-01

(Jun. 30, 2011).

L

aftEr rEViEWing fcpa casEs, OpiniOns issuEd by thE dOJ, and numErOus “hOW tO” articlEs in this arEa, WE OffEr thE fOllOWing gift-giVing suggEstiOns (Which arE by nO mEans ExhaustiVE) tO cOnsidEr incOrpOrating in yOur cOmpany’s anticOrruptiOn pOlicy:

1. give gifts of nominal value.

2. do not give gifts frequently to the same individual or group.

3. Set aggregate gift limits per group or individual.

4. give gifts that are perishable, such as plants, or consumable, such as panettone, and that an entire office can share instead of just one individual.

5. give gifts with a corporate logo that promote your company but do not have retail value.

6. Build business relationships through recreational activities instead of lavish private dinners.

7. Provide sample products (of nominal value) from your company.

8. give something unique from your region, such as crab cakes from Maryland or blue bonnets from Texas.

9. give something proverbially useless, like a coffee table book.

10. Never give cash or cash equivalents, such as gift cards.

11. Present gifts openly and in front of a group of people.

12. give gifts for official, rather than personal, use.

13. Make sure that any gift would comply with both local law and the internal policies at the official’s company.

14. Clear gifts through your compliance department.

Weekly

24

At a time when companies are working to mitigate the cyber-security risks arising from criminals,

competitors, and other external sources, Mr. Gibson spoke about what is perhaps the most over-

looked threat today—a company’s own employees. With the rapid increase of internal breaches,

employee policies and controls that can limit intentional or accidental data breaches are an abso-

lute necessity for any company seeking to protect sensitive information.

As a former special agent with the Federal Bureau of investigation (FBi) who most recently served

as the Chief Cyber security officer for Microsoft lTd in the United Kingdom, Mr. Gibson shared

these insights and many more with Bulletproof™.

data sEcuritypricewaterhousecoopers’ EdWard gibsOn

blOgs to followThoUghT lEadErs iNdUSTry blOgs

BUSiNeSS rElatEd

Amber NaslundBraSSTackThiNkiNg.coMAmber Naslund is a coauthor of The Now revolution. The book discusses the impact of the social web and how businesses need to “adapt to the new era of instantaneous business.

Brian HalliganhUBSPoT.coM/coMPaNy/MaNageMeNT/BriaN-halligaN

Hubspot CEo and Founder.

Chris BroganchriSBrogaN.coMChris Brogan is an American author, journalist, marketing consultant, and frequent speaker about

social media marketing.

David Meerman ScottdavidMeerMaNScoTT.coM david Meerman scott is an American online marketing strategist, and author of several books on marketing, most notably The New rules of Marketing and Pr with over 250,000 copies in print in more than 25 languages.

Guy KawasakigUykawaSaki.coMGuy Kawasaki is a silicon Valley venture capitalist, bestselling author, and Apple Fellow. He was one of the Apple employees originally responsible for marketing the Macintosh in 1984.

Jay BaerjayBaer.coMJay Baer is coauthor of, “The Now revolution: 7 shifts to Make Your Business Faster, smarter and

More social.

Rachel BotsmanrachelBoTSMaN.coMrachel Botsman is a social innovator who writes, consults and speaks on the power of collaboration

and sharing through network technologies.

Seth GodinSeThgodiN.TyPePad.coM seth Godin is an American entrepreneur, author and public speaker. Godin popularized the topic of permission marketing.

Holmes ReportholMeSrePorT.coMA source of news, knowledge, and career information for public relations professionals.

NACD BlogBlog.NacdoNliNe.orgThe National Association of Corporate directors (NACd) blog provides insight on corporate governanceand leading board practices.

PR WeekPrweekUS.coMPrWeek is a vital part of the Pr and communications industries in the Us, providing timely news, reviews, profiles, techniques, and ground-breaking research. PR Daily NewsPrdaily.coMPr daily provides public relations professionals, social media specialists and marketing communicators with a daily news feed.

FastCompanyFaSTcoMPaNy.coMFast Company is the world’s leading progressive business media brand, with a unique editorial focus on business, design, and technology

ForbesForBeS.coMForbes is a leading source for reliable business news and financial information for the Worlds business leaders.

MashableMaShaBle.coMsocial Media news blog covering cool new web-sites and social networks.

27

articlEs

VidEO

LA TImes | october 11, 2012USada rePorT deTailS caSe agaiNST laNce arMSTroNg

PR Week | october 9, 2012levick exPaNdS wiTh NoN-criSiS BUSiNeSS PracTiceS

USA TODAY | october 5, 2012‘NoBody iS goiNg To wiN while PlayerS are oFF The ice’

The Washington Post | october 5, 2012aPPle, a year aFTer STeve joBS

in thE nEWs

O’DwyersgraBowSki oN aMericaN airliNeS’ woeS

thE urgEncyOf nOW.