Show:
Due Diligence
FCPA
Goverment Expenditures
Data Privacy
Competition
100
We have had a long term relationship (and have experienced no issues) with a particular Third Party who may need to interact with government officials in performing services for Colgate. Is Due Diligence required for this Third Party?
Yes, Due Diligence and a written contract are required for all “Priority Third Parties” (those who interacts with or is expected to interact with Government officials on Colgate’s behalf), regardless of the duration of the relationship.
100
Give 3 examples of Priority Third Parties:
Customs Clearance Providers, Agents and Brokers Freight Forwarders Distributors (including those selling Colgate products to Government agencies) Contractors / Construction firms (for licenses and permits) Law Firms (if lobbying or consulting) KOLs / Scientific Experts / Academics Promotional/Advertising/Media Agencies
100
Examples of Potential Expenditures Relating to Government Officials:
 Payments;  Gifts;  Charitable donations and Sponsorships;  Meals or refreshments;  Entertainment;  Travel;  Speaking or consulting fees.
100
What is Personal Data?
“Personal Data” means any data that can be used to identify an individual either on its own or when combined with other information.
100
What information can not be exchange with competitors?
1. List prices, selling prices, timing and level of price increases, or any element of pricing (e.g., discounts, rebates etc.), trade or profit margins, price trends, or any information from which prices can be computed; 2. Terms and conditions of purchase or sale (including delivery terms) whether standard or not; 3. Market planning, such as levels of production, inventory levels, production processes and methods, raw materials, ingredients and technological developments or changes, or new products; 4. Future or potential resizing of our products/packs; 5. Status of negotiations or the way you treat or plan to treat any customer or supplier; 6. Recommended resale or retail prices; 7. Promotions or promotional strategies; 8. Costs; 9. Sales territories; 10. Methods of, or practices for, dealing with the trade;
200
The Third Party refuses to complete the Due Diligence Questionnaire. How should we proceed?
If a Priority Third Party refuses to participate in the Due Diligence Process, it may be due to a lack of understanding regarding the process. You should schedule a meeting with the Third Party to understand the nature of the concern and explain that the Due Diligence process is mandatory for all of Colgate’s Third Parties who interact with government officials. If the Third Party still refuses to participate once the process has been explained, then you must promptly notify Legal. Colgate cannot do business with Priority Third Parties who refuse to participate in our Due Diligence process
200
Expenditures related to Government Officials are always prohibited if they:
 Could be reasonably perceived to affect any official decision or action by a Government or Government Official;  Could appear to be offered or provided in exchange for an official government action or inaction;  Could create the appearance of impropriety or cause embarrassment to the Company, the Government Official, or his or her employer;  Are to be made in cash, cash equivalents, or securities;  Are to be inaccurately recorded on the Company’s books;  Are to be provided to a Government Official as a reimbursement without supporting documentation (e.g., per diem); or  Are not closely related to Colgate’s legitimate business activities.
200
Examples of Personal Data
Name, date of birth, gender, and social security or other identity card number. • Mailing address, email address and phone number. • Bank account or credit card account number. • Information contained in employee files, including employment history, performance evaluations, and information collected during the application and hiring process. • Information related to employee benefits, such as the names of dependents, beneficiaries, and insurance policy information.
200
My team organizes multiple events a year with government officials (e.g. speaker programs, seminars, sampling programs, etc.). I’m concerned that requesting approvals for each of these will be too time consuming.
When your team is planning out a program for the year, it may be both reasonable and efficient to submit a single approval for the entire program listing the number of events, the total estimated spend, the expected participants (and the estimated percentage of those that are government officials), etc. Provided that the program remains in line with the information provided in the original approvals, subsequent approvals are not required. If, however, there is a significant change in overall budget, purpose, or list of participants, the approval should be resubmitted. Legal will work with you to ensure the most efficient and effective review and processing of such approvals.
300
We are part of a HUB and some of our Third Parties are located in other countries. Is an In-person interview required for these Third Parties and how can the independent background verification be performed?
In cases where an in-person (face to face) interview is not practical the interview may be performed via telephone. Any red flags identified during the interview should be brought to the attention of Legal. The IntegraWatch® screening process in Compliance Desktop® is available and can be used for the independent background verification. Please note that the Due Diligence Process is particularly important in such cases where we may have limited oversight over third parties due to distance barriers.
300
Two key parts of Antibribery Laws
Antibribery and Books and Records
300
All Discretionary Government-Related Expenditures Must Be:
 Approved in advance in writing by Legal;  Fully documented with original supporting invoices and receipts;  Accurately documented on the Company’s books;  Provided openly and transparently;  Permitted under applicable laws, rules and regulations;  Known to and permitted by the Government Official's’ employer;  Consistent with lawful local business custom;  Appropriate for, and proportionate to, the occasion;  Consistent with the Company’s Code of Conduct, Business Practices Guidelines and all other applicable Company policies;  Appropriately related to a legitimate business activity of the Company;  Reasonable in cost and value; and  Infrequent (generally limited to no more than two (2) times per calendar year to the same official).
300
What elements shall be included in a Privacy Notice?
• What Personal Data is being collected. • Who is collecting the Personal Data and who will keep it. • Why the Personal Data is being collected. • How the Personal Data is being collected. • With whom the Personal Data will be shared.
300
What do you say to a competitor when a prohibited subject comes up ?
“It is against Colgate’s policy to enter into these types of discussions with competitors. For this reason I must leave this meeting [end the conversation]. [If applicable] Please make a note in the minutes of this meeting that I have left and the time of my departure.”
400
What happens when a Third Party is a local affiliate or subsidiary of a parent with a Global Contract with Colgate? Who is responsible for performing Due Diligence?
Colgate requires Due Diligence to be performed at the local level even in cases of global contracts. Due Diligence should be performed by the local person who is primarily responsible for managing the third party relationship (The “Responsible Business Person”).
400
Give 3 examples of Bribes
Cash or gift cards Gifts or product samples Entertainment Meals Travel Employment Charitable donations Political contributions Overpayments Discounts Use of personal or company property
400
The expenditure in question is covered by a signed contract. Do I still need to submit an approval form?
Yes. All discretionary Government related expenditures require advance legal approval, regardless of whether or not a signed contract is in place. Discretionary expenses include any funds that are not mandated by law, rule or regulation. For example, discretionary spending would not include a tax payment, but would include donations to public charities, grants for public universities, speaking fees paid to publicly-affiliated Key Thought Leaders (KTLs), a meal provided to government officials during a business meeting, or even product samples provided to public clinics or schools. Please note that a signed contract is always required for any transaction where Colgate provides financial compensation to a KTL or other government official.
400
What personal data is considered sensitive?
• Race or ethnic origin. • Political opinions, religious or other beliefs. • Health and home life. • Trade union membership.
400
Can we ask customers about the sales structure of our competitors?
A. Yes but only in response to questions or challenges raised by a customer with respect to our level of service versus our competitors. You can then talk to the customer who has raised the question/challenge about his or her perception of our competitor(s) commercial structures and the effect it has on service levels. However, you should make it clear to the customer that we do not want them to divulge any confidential information about our competitors.
500
When you have to renew the Due Diligence?
Due Diligence must be renewed for all existing Designated Priority Third Parties at least once every three (3) years. Due Diligence must also be renewed when an Designated Priority Third Party contract is up for renewal (e.g., annually) or is changed significantly or if a material or significant change occurs with respect to the information in the Due Diligence Report.
500
Give 3 examples of Government Officials
 Officials or employees of any Government or any department, agency, or instrumentality of any Government, regardless of position, rank or status, and whether elected, appointed or otherwise employed;  Officials or employees of a public international organization (e.g., World Bank, United Nations, or World Health Organization);  Officials, employees, or candidates of any political party or office;  Persons acting in a public function or performing public duties (whether paid or unpaid);  Officials or employees of a wholly or partially state-owned or state-operated entity;  Officials or employees of a wholly or partially state-funded entity; or  Academics, professors, or dental, veterinary or health care professionals employed by state-owned, -operated or -funded universities, hospitals or other institutions.
500
Do we need to complete this process for charitable donations or sponsorships?
Yes. The process should be completed for all discretionary expenditures, regardless of type, that will be directed, at least in part, to a government-affiliated entity or organization, including charitable donations and sponsorships.
500
Can we maintain personal data indefinitely? Why?
We retain Personal Data only for the period necessary to accomplish the legitimate business purpose or compatible purpose for which it was collected. Personal Data must be erased from our systems or made anonymous when it is no longer required to accomplish the purpose for which it was collected or a compatible purpose, unless otherwise required or authorized by law. For example, Personal Data collected as part of a sweepstakes should not be retained once the sweepstakes concludes except for those participants, if any, who consented or opted in to additional uses of their Personal Data, such as inclusion in a newsletter mailing.
500
How should we treat our customers when they compete with us by selling private label goods?
A. It is quite a tricky question and as the law currently stands, retailers should be treated as customers and not as competitors. We can’t avoid telling them about forthcoming price increases, promotions and new products (although see question below as well) and therefore end up telling them information we would not share with a competitor like Unilever or Royal Canin. It is also clear that they may be able to adapt their commercial strategy on the basis of what we have told them but there is little we can do about this. To the extent possible, it is advisable to ask their buying team not to share information regarding new products with their colleagues who are responsible for procurement of their own label products and manufacturing. While it is true that their private label products compete with our products on the shelf, they do not compete with us to supply other retailers.