Code Corner:

U.S. Foreign Corrupt Practices Act Applies to all ITT Operations

Everyone must adhere to the FCPA and related national anti-bribery laws.

ITT conducts business throughout the world in accordance with its Corporate Code of Conduct and all applicable local laws and regulations.

Sometimes, though, local customs and business practices encourage behavior that is prohibited under the Corporate Code of Conduct. For example, it is the custom in several of the countries in which we operate to pay a bribe or other form of "gratuity" to local government officials in order to curry favor or land a contract. While that behavior might be tacitly permitted under local customs, it is unethical, violates ITT's Corporate Code of Conduct and is prohibited. 

What is often overlooked is that because ITT is a U.S.-based company, the U.S. Foreign Corrupt Practices Act (FCPA) applies to all of ITT's operations worldwide and specifically prohibits bribes and other payments to government officials and imposes substantial criminal penalties for those who violate its terms.

ITT is committed to being an ethical company and adhering to its policy of "no bribes." Under ITT policy, you are prohibited from giving anything of value to foreign governments and officials. This applies to all ITT employees, consultants, marketing representatives and agents. 

The ITT Code of Conduct states:

"The U.S. and most other industrialized countries maintain laws and regulations that prohibit giving anything of value to officials of foreign governments in order to obtain or retain business. ITT, its employees, agents, consultants and marketing representatives may not directly or indirectly engage in bribery, kickbacks, payoffs, or other corrupt business practices including offering or giving government personnel incentives to secure an improper advantage. Contact your Company Legal Department before any incentive is offered or if you have questions.

Compliance with these laws and regulations requires our constant vigilance. Specifically, if you as an employee, consultant, marketing representative or agent suspect that any payment is being used for improper purposes, you must immediately report the situation to your ITT supervisor and to the Company Legal Department for investigation.

All sales agents, consultants or marketing representatives must work under an approved prior written agreement that addresses these restrictions. The Corporate Policies outline the requirements for retaining sales agents or marketing representatives."

You may access the Code on the ITT Intranet by clicking onto "Compliance" then "Ethics," and finally "Code of Conduct."

The FCPA also prohibits the payment of bribes to foreign officials. This statute applies to all of ITT’s activities throughout the world. Even if you are not a U.S. citizen, if you are an ITT employee you must comply with the FCPA. 

In addition to prohibiting the payment of bribes, the FCPA also contains important accounting and record-keeping provisions. Under these provisions: (1) books, records and accounts must be kept in reasonable detail and accurately reflect the transactions and disposition of company assets; and (2) the company must maintain a system of internal accounting controls sufficient to provide reasonable assurance that, for example, transactions are executed in accordance with managements' authorization. An intentional misrepresentation in the recording of a payment or a failure to accurately describe a transaction may violate the FCPA. 

In addition to the United States, most countries within which ITT operates have enacted similar laws prohibiting payments to a foreign public official in order to gain a business advantage. Where there are differences between these laws, it is ITT policy to apply the higher standard of ethical behavior. Strict adherence to these laws is required by all ITT employees, consultants, marketing representatives and agents. 

 

How can I learn more about the FCPA?

A. Compliance with international anti-bribery laws requires all of our cooperation and constant vigilance. If you have any questions or would like additional information regarding the FCPA, the laws of other countries or ITT's policies on this issue, please contact your legal department, or Susan Ringler, senior counsel for international compliance, for ITT headquarters at 703-336-0906 or susan.ringler@itt.com.