Corporate monitors are independent third parties, appointed by a company to review compliance and internal controls within the terms of a legal settlement. Monitors provide an additional layer of oversight, make recommendations for improvements to corporate compliance programs, and report back to US authorities on progress. The scope and time period of monitorships vary from case to case.
The monitor selection process is rigorous and generally requires the company to choose a shortlist from which the US authorities make a selection. In order for the monitorship to achieve its objectives and be successful, the monitor should have relevant experience, detailed industry expertise, knowledge of the geographies in which the company operates, and Foreign Corrupt Practices Act (FCPA) expertise.
An extension on the time period of a monitorship has a number of benefits. First, it provides the company with extra time to ensure they can not only implement the necessary enhancements to their compliance and ethics programs, but also ensure these are ingrained throughout the whole global organisation. Second, it gives the monitor sufficient time to complete the review. Third, and most importantly for all parties, it allows sufficient time to test how adequately the day-to-day reality of business processes match up to the agreed vision and mission outlined between company and monitor.
In Ericsson’s case, and even though the work with the monitor has advanced meaningfully, Ericsson welcomed an extension, which allows more time to implement and thoroughly test the new framework and ensure it is fully embedded across all its markets.