© 2011 Dow Jones & Company, Inc. All rights reserved. More Companies Have Anti-Corruption Programs;...

© 2011 Dow Jones & Company, Inc. All rights reserved.

More Companies Have Anti-Corruption Programs; Asia-Pac Trails Other Regions

2009 2011 20120%

20%

40%

60%

80%

100%

71%74%

83%

Anti-Corruption Program In Place

Adoption by Region

North America 93%

Western Europe 88%

Asia-Pacific 70%

Source: Dow Jones 2012 State of Anti-Corruption Compliance Survey


Majority of Anti-Corruption Programs Have Been in Place More Than 3 Years

2011 20120%

20%

40%

60%

80%

100%

8% 11%

18%19%

31%28%

19% 21%

24% 21%

Time Program Has Been In Place

Over 10 years

6-10 years

3-5 years

1-2 years

Less than a year



Negative Media Coverage Most Likely To Trigger Partner Review

Negative media coverage

Government sanctions

Reputation issues

Discovery of regulatory issues*

Financial stability/performance

Ownership changes

Discovery of gov't connections

Management changes

86%

84%

83%

75%

70%

65%

55%

54%

80%

87%

88%

69%

54%

57%

Factors Triggering Review

2011 2012



Only 22% Monitor Business Partners Quarterly or More

20120%

20%

40%

60%

80%

100%

6%

2%5%

9%

38%

27%

14%

Frequency Of Monitoring

Never

Other

Annually

Quarterly

Monthly

Weekly

Daily

“Other” mentions:•Risk-based approach; depends on partner risk•Event/trigger/alert-based•Based on contract/audit cycle•No systematic schedule



2012 – Stopped Or Delayed

Working with partner

Entering markets

Expanding in markets

N. America 73% 56% 56%W. Europe 60% 45% 50%Asia-Pac 55% 44% 35%Finance 41% 36% 37%Others 73% 55% 54%

0%

20%

40%

60%

80%

100%

52%42%

37%

56%

39% 40%

60%

48% 47%

Business Partner and Entering/Expanding in Markets Delayed/Stopped

(NA Omitted)200920112012

Impact Of Concern About Breaking Regulations

2012 Only*S=StoppedD=Delayed

S=37%D=23%

S=17%D=31%

S=14%D=33%



Countries/Markets/Partners Affected By Concerns

Word cloud analysis represents thematic patterns in verbatim comments. Larger font indicates higher frequency of mentions.

Affected markets/partners mentioned most often:

2012 only

Affected countries mentioned most often:

2012 only



2012 Lost business

N. America 52%W. Europe 48%Asia-Pac 37%Finance 27%Others 58%

2009 2011 20120%

20%

40%

60%

80%

100%

34%41% 44%

Lost Business To Unethical Competitor

Business Lost To Unethical Competitors Continues to Trend Upward



Positive Aspects of Anti-Corruption Regulation

More level playing field (more fairness)

Money saved (reduction in fraud/corruption)

Improved relationships with business partners due to increased scrutiny

Improved operational efficiency

Other

66%

62%

57%

48%

9%

Positive Aspects Of Anti-Corruption Regulation

2012

2012 – Level Playing FieldN. America 65%W. Europe 66%Asia-Pac 73%Finance 60%Others 71%



2012 Information Service Access

Linguistic Expertise

N. America 12% 10%W. Europe 17% 17%Asia-Pac 24% 11%Finance 23% 9%Others 17% 16%

Cost and Time are Main Factors Limiting Due Diligence

0%

10%

20%

30%

40%

50%

21% 20%14% 12% 10%

25% 23%18%

13% 11%

26% 24% 21%16% 14%

Factors Limiting Due Diligence (% Extremely/Very Limiting)

2009 2011 2012



2012 – Always M&A targets Sales agents Customers/

clientsN. America 74% 61% 41%W. Europe 58% 52% 47%Asia-Pac 66% 37% 53%Finance 55% 49% 69%Others 68% 49% 29%

M&A targets Third party agents or

consultants

Sales agents Senior level execs/ board members*

Customers/ clients*

Suppliers0%

20%

40%

60%

80%

100%

69%

46% 47%

61%53%

31%

64%

42% 42%52%

40%

25%

63%

50% 49% 48% 47%

33%

Populations Always Requiring Due Diligence

2009 2011 2012

Populations Requiring Due Diligence

Base: Excludes ‘not applicable’, 2009 (n=182), 2011 (n=216-301), 2012 (n=260-335)



2012 – AnnuallyN. America 23%W. Europe 28%Asia-Pac 31%Finance 40%Others 20%

20120%

20%

40%

60%

80%

100%

29%

13%

43%

3%13%

Frequency Update Due Diligence

Other

Never

Event-driven

Every two years

Annually

Due Diligence Frequency



2012 Central compliance

Partially outsourced

N. America 67% 33%W. Europe 69% 26%Asia-Pac 71% 26%Finance 78% 16%Others 62% 35%

0%

20%

40%

60%

80%

100%

58%

35% 31%20%

68%

23%

42%

15%

69%

30% 30%

14%

How Due Diligence Is Conducted

2009 2011 2012

Internal Central Compliance Teams Continue to Handle Due Diligence

2012 onlyCompletely: 6%Partially: 27%



Specific countries or world regions

Components requiring fast turnaround

Specific languages

Overflow/capacity restrictions

Specific industries

Other

41%

34%

23%

20%

15%

35%

Due Diligence Components Partially Outsourced

2012

Base: Partially outsource due diligence, 2012 (n=92)

2012 – Specific industriesN. America 7%W. Europe 9%Asia-Pac 19%Finance 29%Others 10%

Due Diligence Outsourcing


© 2011 Dow Jones & Company, Inc. All rights reserved. More Companies Have Anti-Corruption Programs;...

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