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IFBEC: A Self-Governance initiative of the Aerospace and Defence Industry

IFBEC: A Self-Governance initiative of the Aerospace and Defence Industry . International Forum for Business Ethical Conduct (IFBEC). The IFBEC is an international organization focused on the promotion of business ethical conduct worldwide in the aerospace and defense industry.

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IFBEC: A Self-Governance initiative of the Aerospace and Defence Industry

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  1. IFBEC: A Self-Governance initiative of the Aerospace and Defence Industry
  2. International Forum for Business Ethical Conduct (IFBEC) The IFBEC is an international organization focused on the promotion of business ethical conduct worldwide in the aerospace and defense industry. IFBEC members have developed and published a set of Global Principles of Business Ethics for the Aerospace and Defense Industry Endorsed by the Aerospace Industries Association of America (AIA) and the Aerospace and Defense Industries Association of Europe (ASD) in October 2009. IFBEC membership provides an opportunity to exchange information on best practices in the area of ethical business practices and global trends among industry participants.
  3. Global Principles: Zero Tolerance to Corruption Companies will comply fully with all antibribery laws applicable to the conduct of their business…. Companies will not offer, promise, or provide any undue pecuniary or other advantage …to public officials, political parties or political candidates, or to any private party, in order to obtain or retain business or gain any other improper advantage in the conduct of their business Companies shall duly account for payments, gifts, hospitality, political contributions or charitable donations in their books and records in compliance with applicable regulations and in a manner which permits reasonable traceability. Companies will establish and enforce policies and internal control procedures … and will conduct training on such policies and procedures. Companies will make their business partners… aware of the integrity policies of the company, and require them to refrain from offering, promising or providing (directly or indirectly) any Improper Advantage. …companies will seek to eliminate facilitation payments
  4. Global Principles: Use of Advisors Companies will have written policies governing the appointment, management and payment of Advisors. Companies will use capable personnel trained in anti-corruption and compliance issues for the vetting of Advisors. Companies will perform appropriate due diligence using mechanisms which may include independent supplemental investigation/ third party due diligence. Such assessments shall be periodically reviewed. Companies will pay an appropriate remuneration to their Advisors. Remuneration shall reflect legitimate services effectively rendered and No payments shall be made in cash. Payments shall only be made.. in the country where the Advisor is active or registered. These payments shall be properly recorded in the Company’s books and records.
  5. Global Principles: Use of Advisors Companies shall make Advisors aware of (i) the integrity policies of the Company which shall be consistent with the Global Principles, and (ii) the legal provisions containing the incrimination of bribery of foreign public officials…. Companies shall have an agreement concluded in a written form between the Company and all of its Advisors, which shall contain a provision whereby the latter commits to comply at all times with the provisions mentioned above and more specifically that no part of any payment originating from the Company will be passed on as a bribe. Companies should require that Advisors will inform the Company regularly and on an ongoing basis on the accomplishment of … tasks and duties.
  6. Global Principles: Conflicts of Interest & Proprietary Information Managing Conflicts of Interest Companies shall follow all applicable laws, regulations and directives concerning the employment or engagement of public officials including those dealing with conflicts of interest. Companies will maintain policies to address or mitigate the risk of undue or improper conflicts of interest. Respect for Proprietary Information Companies shall keep proprietary information of third parties to which they have gained access in accordance with the terms of its disclosure and in strict compliance with all applicable laws and regulations. Companies will not solicit or accept a third party’s proprietary information … such as bid and proposal information, or technical or price data, unless the owner of the data has agreed to its release. Companies who receive a third party’s proprietary information without authorization… shall promptly cease dissemination and review of such information… shall promptly destroy or return such information; and… should inform the third party of the incident and their response.
  7. Membership In order to participate in IFBEC, interested companies must execute an annual company statement about their corporate ethics policies and practices, their participation in industry‐wide ethics activities and their commitment to bolstering adherence to the Global Principles complete a questionnaire that supports the annual public accountability report and agree to be bound by the conditions of the IFBEC charter. IFBEC began with 13 charter members from Europe and the U.S. 7 companies joined in 2012 2 companies have already joined in 2013 with a third application in process
  8. Accomplishments: Sharing Best Practice IFBEC’s third annual conference was held on September 13th and 14th in Madrid, Spain at the Centro Superior de Estudios de la DefensaNacional (CESEDEN), the primary educational center for the Spanish Armed Forces. The 2011 IFBEC conference took place in Lansdowne, Virginia, in October. The 2010 inaugural conference was held in Berlin, Germany The 2013 conference will be held in the fall in the U.S. Over 80 individuals from the aerospace and defense industry participated in the Madrid conference. In addition to representatives from major American and European companies, industry representatives from China, representatives from NATO and the OECD, and former members of the U.S. Department of Justice and UK Serious Fraud Office were speakers.
  9. Accomplishments: Public AccountabilityReport The IFBEC Steering Committee authorized a Subcommittee on Accountability and Transparency in December 2011 The subcommittee ran a pilot for a Public Accountability Questionnaire in April 2012 with nine companies Based on the pilot program report, the Steering Committee authorized a report for the full membership. The survey was conducted between 9 April 2012 and 30 July 2012. Each IFBEC member was asked to complete a detailed questionnaire regarding company demographics, company policy and governance, communication and training, implementation and monitoring, and best practices. Results announced at the Madrid conference and published on 1 October 2012.
  10. Accomplishments: Public Accountability Report A first draft of the questionnaire was developed using the DII Public Accountability Questionnaire and the Transparency International Defense Index Questionnaire as source documents Final version agreed and approved by the Task Force in March 2012, includes 36 questions plus demographics Summary level report (similar to DII Public Accountability Report) statistical picture of IFBEC members compliance posture Includes narrative description of best practices Copies went to stakeholders and interested parties
  11. Accomplishments: Global Principles & Supply Chain The Global Principles subcommittee has presented a Human Rights principle as a “first reading” Work is continuing to refine language Other topics being considered: Offset, Export Control Supply Chain is seen as a significant risk as well as an outreach opportunity A working group is being constituted to develop a toolkit for smaller companies/suppliers to allow for risk mitigation in the use of advisors A second initiative is being considered in which IFBEC members agree that adherence to the Global Principles will be considered an acceptable minimum standard for compliance by suppliers
  12. Accomplishments: Outreach Current membership has focused exclusively on Europe and the U.S. Recruiting efforts have been largely passive as IFBEC attempts to establish a working infrastructure 2013 will see a more assertive recruiting effort within these areas Certain companies will be targeted for recruitment Discussion is ongoing to expand beyond the initial focus areas First non European/U.S. applicant expected soon IFBEC recognizes that membership must become broader or its mission will not be successful
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