International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
5th Annual Conference Report
EUROCONTROL, Europa Room
Rue de la Fusée, 96
1130, Brussels – Belgium
The International Forum on Business Ethical Conduct for the Aerospace and Defense Industry (IFBEC)
held its fifth annual conference from November 6th – 7th at EUROCONTROL in Brussels. The 2013 IFBEC
conference took place in Alexandria, Virginia, last October. The purpose of the conference was to
promote trust and integrity within the global aerospace and defense industry; with companies
representing diverse global interests coming together to share best practices and discuss current issues
regarding business ethical conduct and compliance in the global aerospace and defense sector.
IFBEC
IFBEC was created in 2010 by member companies of the Aerospace Industries Association of America
(AIA) and the Aerospace and Defense Industries Association of Europe (ASD). IFBEC is managed by a
Steering Committee composed of global leaders in the aerospace and defense industry, including BAE
Systems Plc., BAE Systems Inc., The Boeing Company, Dassault Aviation, Airbus Group, Finnmeccanica,
General Dynamics Corporation, Lockheed Martin Corporation, Meggitt Plc., Northrop Grumman
Corporation, Raytheon Company, Thales, Safran, Rolls-Royce Plc and Saab. IFBEC currently has 31 total
members, representing companies from the U.S., Europe, Brazil, and Israel.
Participants
Over 80 individuals from industry, national governments, and non-governmental organizations (NGOs)
participated in this year’s conference. In addition to representatives from IFBEC’s member companies,
industry representatives from Japan, officers of NATO and the OECD, and officials of the U.S. Mission to
the EU and the European Commission participated in the conference.
Program
The conference took place over two days, with a closed session for industry on November 6th and an
open session for all registrants on November 7th. Topics included sharing effective compliance training
tools and fostering a speak-up culture, briefings on IFBEC’s new initiatives for 2015, the 2014
accomplishments and future objectives of the Defense Industry Initiative, and perspectives from top
European executives on business ethics and compliance. Presentations from stakeholders such as NATO,
TI-UK, the OECD Bribery Working Group, and the European Commission highlighted the work of NGOs
and international organizations in bolstering anti-corruption efforts worldwide.
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
Day One
Welcome & IFBEC Update
Philippe Merlo – Director, Air Traffic Management, EUROCONTROL
Pedro Montoya – IFBEC Chairperson, SVP, Group Ethics & Compliance Officer, Airbus Group
Tim Schultz – IFBEC Vice-Chairperson, Acting Vice President, Ethics & Business Conduct, Raytheon
The conference opened with welcoming remarks and background on EUROCONTROL’s mission from Mr.
Philippe Merlo, Director of Air Traffic Management at EUROCONTROL. He then turned the conference
over to Mr. Pedro Montoya, IFBEC Chairperson, and Tim Schultz, IFBEC Vice-Chairperson. Mr. Montoya
thanked the attendees for their participation and summarized the progress IFBEC made in 2014. The
subcommittee structure was streamlined to consist of only a Strategy & Governance Subcommittee,
membership continued to expand and further extends beyond the AIA and ASD communities, and
approved several initiatives for development in 2015. Mr. Montoya and Mr. Schultz stressed that for
IFBEC to continue to mature robust participation from IFBEC’s membership is critical, in both future
conferences and on the project teams assigned to execute IFBEC’s new offset and model supplier code
initiatives. Mr. Montoya concluded his opening remarks by introducing Covington & Burling LLP’s Steven
Shaw as the newly appointed Executive Coordinator for IFBEC. Mr. Shaw will help provide IFBEC with
strategic direction and vision by leveraging his considerable experience as a former Deputy General
Counsel for the U.S. Air Force, where he was responsible for the Department’s suspension and
debarment activities.
IFBEC Offsets Project – Basel Institute of Governance
Gretta Fenner – Managing Director, the Basel Institute of Governance
Gretta Fenner, Managing Director at the Basel Institute of Governance, presented IFBEC’s Offset Project
and gave the audience a brief history of the Basel Institute. The Institute is a non-profit, non-partisan
organization associated with the University of Basel and founded in 2003 by Professor Mark Pieth. Mr.
Pieth’s initial focus was on anti-bribery measures and industry standards, but the Institute has since
expanded its scope to work as both an initiator and facilitator of collective action through its
International Centre for Collective Action (ICCA). IFBEC will work with ICCA to execute the first phase of
the project, a comprehensive study and report on global offset practices. A working group of offset
experts from IFBEC’s member companies has been formed to work with the Basel Institute to identify
and examine offset practices and risk factors. The group will, among other things, define direct and
indirect offsets, monitoring practices, project valuation, and credit award policies. The report will also
propose risk mitigation measures that can be voluntarily implemented by IFBEC members to strengthen
their anti-corruption policies and provide further transparency to their offset programs. These policies
will be further developed in the project’s second phase, if agreed to by IFBEC’s Steering Committee.
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
Defense Industry Initiative (DII) Update
Laura Kennedy – Senior Vice President, Ethics & Compliance, SAIC
Leo Mackay –Vice President, Ethics & Sustainability, Lockheed Martin Corporation
Laura Kennedy, chair of the DII Working Group, and Leo Mackay, the former chair (2012-2014), gave a
briefing on several of DII’s 2014 accomplishments and outlook for 2015. DII’s 2014 Annual Best Practices
Forum was one of its most successful to date, with over 300 industry professionals and U.S. government
representatives gathering in Washington DC to share best practices and discuss current issues related to
ethics and compliance in the U.S. defense sector. During the forum Working Group members presented
the final version of DII’s model supplier code of conduct, an initiative begun several years ago at the
request of DII’s small and medium-sized (SME) members seeking to streamline the processes by which
they agreed to individual contractors’ codes of conduct when doing business with other DII members.
Members can either adopt the model code or modify their own existing codes to be in line with the DII
model. While the code has been written specifically with U.S. regulation in mind, DII has shared it with
IFBEC so that members of IFBEC’s Steering Committee can consider adapting it for use in the
international supply chain. Additionally, DII has rolled out a supplier toolkit that is designed to give SMEs
the necessary guidance on creating effective ethics and compliance programs.
Continued implementation of the Model Supplier Code will be a top priority for DII in 2015, but it has
several other strategic objectives that Ms. Kennedy and Mr. Mackay shared with the audience. With
strong outreach to the supply chain in 2014, DII has put together a 2015 U.S. Government Engagement
Plan. Through a series of meetings between DII’s leadership and stakeholder government agencies
earlier this year U.S. industry and the U.S. government hope to engage one another in a robust dialogue
on the current state of ethics programs in the defense sector and work together on ways to improve
programming and training. DII Working Group leaders have already met with several groups within the
U.S. DOD, with topics including the need to engage small businesses in implementing effective ethics
programs, whistleblower policy, and performing due diligence with mergers and acquisitions of SMEs.
Best Practices: Sharing Compliance Training Tools between Companies
Corinne Lagache – Senior Vice President, Chief Compliance Officer, SAFRAN
Barney Rosenberg – Vice President, Ethics & Business Conduct, Meggitt
Tim Schultz – Acting Vice President, Office of Ethics & Business Conduct, Raytheon
The first best practices panel of the conference consisted of three IFBEC member company
representatives sharing some of the most effective approaches and tools to ethics and compliance
training they have used in the past. A common theme amongst the presenters was that the presence of
regular ethics awareness training, usually at least annually, is critical in creating an ethical business
culture. However, within these programs there are variations in the tools used to achieve this. One
method shared with the audience was the use of short video clips to tell a continuous story over several
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
clips on a particular scenario. Using accredited actors from the Screen Actors Guild and using realistic
scenarios, these videos have been to be effective teaching tool for all employees. Yet the presenters
agreed that the most effective programs are varied and do not rely too heavily on one particular tool.
Organizations such as Transparency International, UN Global Compact, and the International Chamber
of Commerce have developed tools that can be used in company training programs. It was further
suggested that training should be a collaborative effort between prime contractors and suppliers, as
they work so closely together and rely on one another. Finally, in what became a common theme in all
of the panel discussions, the presenters emphasized that ethics training must be given to all employees.
Concluding the panel with a question and answer portion, one audience member suggested that
perhaps IFBEC could serve as a resource center for best practices when it comes to ethics training. A
compendium of training materials and best practices developed by IFBEC could be a value-add to its
membership and the greater aerospace and defense community.
Day Two
Keynote Speaker
John Sammis – Deputy Chief of Mission, U.S. Embassy to the EU
Mr. John Sammis, Deputy Chief of Mission, U.S. Embassy to the EU, delivered the first of two keynote
speeches to the conference. He opened by praising IFBEC’s Global Principles, applauding the global
aerospace and defense industry for developing this voluntary document that builds towards sustainable
success through a commitment to ethics and integrity. Mr. Sammis followed this by offering a few
thoughts on the current state of U.S. cooperation with the European Union (EU), more specifically the
EU Commission. Events over the past year have required a high level of cooperation between the U.S.
and EU to address a number of issues, including sanctions over the crisis in Ukraine, the fight against
ISIL, and negotiations on the Transatlantic Trade and Investment Partnership (T-TIP) being the most
critical of many issues addressed in 2014.
Turning the focus back to the global fight against corruption, Mr. Sammis outlined concurrent efforts
undertaken by the U.S. and EU, such as requiring public disclosure of government payments in the
extractives industry. The U.S. and EU also continue to remain committed to ensure their aid and
technical assistance packages emphasize transparency, public accountability, and responsiveness. Mr.
Sammis also praised the EU for publishing its first Anti-Corruption Report earlier in 2014, which outlined
the nature, scope, and cost of corruption within its member states (£120bn/year). Going forward, Mr.
Sammis expressed his hope that adoption of the Open Government Partnership the Extractive Industries
Transparency Initiative (EITI) will continue to grow.
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
Mr. Sammis concluded his speech with a discussion of President Obama’s U.S. Global Anti-Corruption
Agenda. Announced in October 2014, its principle objective is to stem the tide of corruption worldwide
and hold those who engage in corrupt practices accountable. The U.S. will not only continue to work
with its partners and allies to address corruption, but also recognizes the important work in this field of
NGOs, an independent media, and a strong private sector. Working with U.S. businesses is a key aspect
of President Obama’s Anti-Corruption Agenda. The U.S. government is developing a National Action Plan
that will incentivize business to act responsibly and conduct business ethically consistent with the UN
Guiding Principles on Business and Human Rights and the OECD Guidelines on Multinational Enterprises.
Through these and other efforts the U.S. will remain a leader in the global fight against corruption and
will continue its partnership with EU to adhere to and promote the strongest integrity principles.
Keynote Speaker
Sylvia Kainz-Huber, Deputy Head of Aeronautics, Defence, Maritime Industries Unit, DG Enterprise,
European Commission
Following Mr. Sammis’ speech, Ms. Sylvia Kainz-Huber of the European Commission gave her keynote,
highlighting several directives enacted by the EU to promote fair and transparent competition in
procurement and the supply chain. A challenge for the European defense industry is that while it is
critical to maintaining the EU industrial base, popular opinion of the defense industry suffers due to the
perception of corruption. Ms. Kainz-Huber praised IFBEC’s offset project for addressing a pressing issue
within the defense community. In her view the EU’s recently enacted defense procurement directive
encourages an open procurement policy that will phase out offset requirements imposed by EU member
states over time. This will allow European companies to compete on a level playing field with one
another and encourage further development of the European industrial base. Ms. Kainz-Huber
highlighted the EU’s new transfer directive as well, which addresses a further concern amongst
European defense companies; the concern that contracts with suppliers located in other EU member
states will not be honored. A new general licensing system has been designed to provide assurances that
these contracts will be fulfilled. The new system requires all member states that have adopted the
directive to apply equally high measures and requirements to ensure company compliance with license.
However, while Ms. Kainz-Huber praised the creation and passage of these new directives, she also
highlighted the challenges in implementing them. An EU directive must first become national law in a
member state before its provisions can be applied, and the time it takes to accomplish this varies based
on each national government. Not all EU member states have finished adopting the procurement and
transfer directives, preventing full, European-wide implementation. Further, there must be better
communication surrounding the potential benefits of the general licensing program. Re-export
challenges, double licensing issues, and the variety of licenses (19) makes the process in its current form
unattractive to companies. Going forward Ms. Kainz-Huber relayed that a top priority for her group is to
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
improve the license mechanism and communicate the potential benefits of the general licensing system
more effectively.
Responsible Companies and Security Risks – NATO’s Perspective
Ernest J. Herold III – Deputy Assistant Secretary General for Defense Investment Division, NATO
Steven Hill – Legal Advisor and Director, Office of Legal Affairs, NATO
Susan Pond – Senior Officer, Building Integrity Programme, Political Affairs and Security Policy
Division, NATO
NATO has been a regular participant and contributor at IFBEC’s Annual Conference dating back to the
first in 2010. The 2014 Annual Conference featured the most robust panel yet. The panel opened with a
broad overview of NATO’s industry engagement and future priorities. The alliance’s leadership
recognizes that the strength of NATO is reliant on the success of industry, and in the past the NATOindustry partnership has suffered from a communications gap and confusion surrounding the nature and
scope of the relationship. In an effort to bridge these gaps the framework for NATO-industry
engagement was approved at the 2013 NATO-Industry Forum, with the implementation plan to be
unveiled at the 2015 Forum in Croatia. NATO has also developed seven defense planning priorities after
conducting an analysis on each member state’s current capabilities. These priorities will allow industry
to make informed investment decisions to meet future Request for Proposal (RFP) requirements and
help NATO accomplish its strategic objectives. There is also a need to educate the NATO consumer on
industry capabilities, so that both sides can agree on a mutually satisfactory price and delivery timeline
for procurements.
The increased emphasis on the NATO-industry partnership will be mutually beneficial, but transparency
and ethical conduct will always remain a priority for NATO in any interaction with a contractor. An open
and transparent bid process may extend timelines, but will ensure fair and fully vetted contracts. The
panel discussed NATO’s Building Integrity Programme, begun in 2007 to promote good governance
practices within NATO’s member states. Corruption allows societal ailments such as poverty to thrive,
erodes the public trust, and can directly put lives at risk. Thus, NATO’s approach through the Building
Integrity Programme is to provide training to both top-level leaders and middle managers so that there
is complete organizational support for anti-corruption practices. While NATO’s program is voluntary,
support from NATO’s leadership and key member states has made it effective. The Centre for Building
Integrity in the Defense Sector, opened in 2012 and located in Oslo, is an example of NATO’s
commitment to the program’s success.
NATO also recognizes industry’s wealth of experience in building effective ethics programs, and must
continue to remain engaged with the private sector in order to build a more transparent and effective
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
partnership. The NATO panelists praised IFBEC’s Global Principles, and found several areas of
commonality with the NATO Code of Conduct. In order to build an effective partnership NATO is in the
process of identifying appropriate methods of interacting with industry, and organizations such as IFBEC
can help create the appropriate government framework for the NATO-industry partnership. It is critical
to develop this framework together, rather than have NATO unilaterally impose rules. The NATO
panelists were optimistic about the future of the NATO-industry relationship, and felt that by working
with organizations such as IFBEC and NATO the defense industry can build a strong and lasting
partnership.
Public-Private Cooperation to Fight Corruption at the OECD Bribery Working
Group
Drago Kos – Chairman, OECD Bribery Working Group
The next panel featured an important ally in the fight against corrutpion, the OECD Bribery Working
Group’s Chairman, Drago Kos. Mr. Kos and the Working Group work to enforce the OECD Anti-Bribery
Convention and related OECD policies amongst the OECD’s member states. It is the only international
anti-corruption monitoring group with enforcement powers, and works with the governments of OECD
member states on corruption investigations and any resulting sanctions. A significant challenge for the
working group has been that the enforcement mechanisms used by OECD member states vary in their
level of sophistication. The Working Group must partner with those member states whose mechanisms
are not mature to develop effective anti-corruption enforcement mechanisms. The audience next heard
some statistics from the OECD’s Bribery Report. One such statistic showed that a significant majority of
bribery cases are resolved through settlements. Settlements can be seen as a failure of enforcement by
the public rather than an admission of guilt, and to combat this perception the Working Group is
pushing for full transparency of these settlements from member states.
Going forward, Mr. Kos hopes to continue engagement with the business community, as the Working
Group cannot be successful without its support. Businesses must be active in developing and promoting
effective compliance programs globally. However, in addition to industry engagement it is critical that all
the major world economies join the OECD Anti-Bribery Convention, as those that have not done so
attempt to use that fact to create an unfair competitive advantage. The OECD is attempting to address
this issue through the G20, but in the short-term the Bribery Working Group has focused on those
companies and governments that do business with the countries not currently members. Such efforts
highlight the OECD’s commitment to fair and open business competition that follows ethical practices.
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
Tone from Executives
Steven Shaw – Senior of Counsel, Covington & Burling LLP (Moderator)
Stephen Ball – Chief Executive Officer, Lockheed Martin UK
Nathalie Errard – Senior Vice President, Head of EU and NATO Affairs, Airbus Group
Jan Pie – Secretary-General, Aerospace and Defence Industry Association of Europe (ASD)
This year’s executive panel consisted of major leaders in ASD and the European aerospace and defense
marketplace.
Following introductions by the Moderator, Jan Pie began the discussion with his view that ASD
recognizes the importance of being at the forefront of initiatives that increases “collective intelligence”
regarding business ethics and compliance. Examples of ASD’s leadership include the creation of the
Common Industry Standard in 2007, adopted by over 400 European companies to date, and the creation
of IFBEC with the Aerospace Industries Association of America (AIA) in 2010. However, despite these
successes progress is slow, with pressure from the demand side and bad actors on the supply side
continuing to hamper anti-corruption efforts. ASD therefore will look to engage organizations such as
the G20 to promote a cultural shift amongst global industry towards more ethical business practices. In
keeping with the declaration at the last G20 Summit in support of actions on the global fight against
corruption, ASD has developed several recommendations to be shared at the upcoming Australia G20
Summit. It will advocate for the creation of a fair trade environment through an industry-wide adoption
of strong anti-corrutpion compliance programs, the promotion of a “virtuous circle” of companies that
should be publicly recognized and receive incentives for their strong ethics and compliance programs,
and the development of the “collective intelligence” through a suitable framework of reasonable and
economically viable industry standards governing business ethics and compliance.
Stephen Ball, CEO of Lockheed Martin UK (LMUK), next shared his thoughts as a chief executive on how
to promote and maintain a culture of ethical business conduct within a company. LMUK represents
Lockheed Martin Corporation’s biggest footprint outside of the U.S., and with recent cuts to the UK
defense budget LMUK recognizes that its employees will now likely have to operate in cultures they are
not necessarily familiar with. A strong ethics training program is crucial for all employees to succeed,
and in order to run an ethical business an environment must be created where employees feel safe
learning and using their ethics training. As other panelists also emphasized, an ethical culture comes
from all levels of a company, especially from the top executives and middle managers. Parts of this
ethical culture are senior executives that take personal responsibility for the success of the employees
they hire. This will create a values-led organization, where each employee must do what is right, respect
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
others, and perform with excellence. These values form the basis for a company’s Code of Conduct,
which provides the framework within which employees can operate responsibly and ethically.
Concluding the panel, Nathalie Errard, Senior Vice President and Head of EU and NATO Affairs at the
Airbus Group, discussed how Airbus works to create an ethical culture Group-wide. A recent European
Commission report demonstrated that the aerospace and defense sector is an area of risk for
corruption. Airbus Group recognizes this risk, and has taken certain concrete steps to mitigate it. Ethics
and compliance officers are now distributed amongst the other Airbus business units, and ethics training
is conducted annually for all employees. Local ethics managers who understand and can respond to local
issues are critical, and setting up a strong induction program for employees can emphasize an ethical
culture for new hires right away. Ms. Errard ended her speech with a more European perspective,
observing that the follow-up mechanism to Europe’s Common Industry Standard must be improved, and
this is at the top of ASD’s strategic agenda. Furthermore, in an increasingly global industry Europe and
the U.S. must continue to work together to streamline their approach to promoting business ethics.
Best Practices: Fostering Speak-Up Culture – Angles and Perspectives
David Block Temin – Executive Vice President, Chief Compliance Officer, Elbit Systems Ltd.
Pyter Stradioto – Chief Compliance Officer – Embraer S.A
Kunio Hosoi – Senior Staff Officer, Sales Administration Department, Kawaski Heavy Industries
Representatives from companies outside of the U.S. and Europe gave their unique perspectives on
fostering a speak-up culture. Regardless of culture employees always respond favorably to thorough but
fair investigations followed by punishments applied equally throughout a company. Equal treatment will
encourage a speak-up culture where employees feel their concerns will not go unheard. Tools such as an
ethics hotline can encourage reporting of possible violations. Confidentiality must be protected, and
anonymous reporting allowed where and when possible. Only when employees are free of the fear of
retaliation will a speak-up culture be possible. All the panelists agreed that a commitment to speak-up
culture is one of the most important aspects of an ethical business.
The panelists also discussed the challenges of creating effective ethics programs in countries that have
differing values from Western standards. In Japan employees sometimes do not feel comfortable
speaking up, and therefore a company must create a reporting and consultation system that encourages
employees to do so. Language differences cans sometimes prevent the translation of Western words
and can present challenges, such as translating the term “whistleblower” into Hebrew. Despite these
differences and challenges, however, these companies and others worldwide are committed to
contributing towards a fair and open global market through the promotion of ethical conduct and anticorrutpion practices.
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
Stakeholder Dialogue: Integrity Collective Actions
William Nero – Programme Officer, International Centre for Collective Action, The Basel Institute of
Governance
Mark Pyman – Programme Director, Transparency International – U.K.
Francois Vincke – Head, Anti-Corruption Commission, International Chamber of Commerce (ICC)
A signature panel of IFBEC’s Annual Conference dating back to 2010, this year’s Stakeholder Dialogue
featured speakers from key European organizations and allies of industry. William Nero, representing
the Basel Institute of Governance, gave a presentation on the Institute’s International Centre for
Collective Action (ICCA) and the B20 Collective Action Hub. The Collective Action Hub aims to develop
global or transaction-specific collective action initiatives, and act as a repository for best practices across
industries. Examples of successful collective action initiatives that were discussed included the
Wolfsberg Principles, consisting of eleven banks working together to address money laundering of
corrupt proceeds, and the Maritime Anti-Corruption Network, with members of the shipping industry to
collectively raise standards against bribery and facilitation payments. IFBEC’s offset project with the
Basel Institute can be another example of a successful industry collective action initiative, in this case
with the aerospace and defense sector.
Mark Pyman, Programme Director of the Defence and Security Programme at TI-UK, discussed TI-UK’s
work with governments and NGOs to combat corruption, and also outlined TI-UK’s engagement with the
defense sector. TI-UK works with many national governments and international organizations to address
issues stemming from armed conflict or systemic instability, Examples include TI-UK’s work with the
Afghan National Security Forces and its corruption threat and mission training with NATO. TI-UK’s
engagement with the defense industry dates back to 2001 and the Cambridge Conference and before
IFBEC’s formation it sought to build a consensus approach to anti-corruption issues for the global
defense industry. With the publication of the Common Industry Standard (CIS) in 2008 and formation of
IFBEC in 2010 TI-UK’s focus shifted to addressing offset corruption risks and the creation of a Defence
Anti-Corruption Index. Mr. Pyman then shifted his focus to highlight successful collective actions, such as
EITI in the extractives industry. As a nascent collective action, IFBEC must continue to remain ambitious,
and its offset project is a good starting example of IFBEC’s potential.
The final presentation of the conference was given by Professor Francois Vincke, Head of the
International Chamber of Commerce’s (ICC) Anti-Corruption Commission. Mr. Vincke played an
International Forum on Business Ethical Conduct
for the Aerospace and Defence Industry
5th Annual Conference
November 6 – 7, 2014
important role in the creation of CIS by the ASD, acting as an “independent lawyer” in consultation with
the ASD Task Force. Key provisions of CIS include a ban on facilitation payments, a strong commitment
to the OECD Convention, a focus on agents and intermediaries, and recognition of the critical role of
ethics and compliance officers within defense companies. In Mr. Vincke’s estimation CIS has made a
significant impact on anti-corruption efforts, and was a major influence on IFBEC’s Global Principles. CIS
has taught proponents of collective action anti-corrutpion efforts several lessons, highlighting the
importance of an atmosphere of trust and shared values within a company. Before collective action can
be effective individual action must take place, with companies that wish to engage in collective action
ensuring their own practices are sound. Finally, collective action can only be effective if it is fully
embraced by all members of an industry sector.
Conclusion
Following Professor Vincke’s remarks to end the “Stakeholder Dialogue,” Mr. Montoya and Mr. Schultz
thanked the presenters and attendees for their participation and recapped the high points of the
conference. This year’s event marked one of IFBEC’s most successful conferences to date, gathering
industry and stakeholders together for strategic discussions on the importance and evolution of
business ethics in the global marketplace. European executives from Airbus, Lockheed Martin UK, and
ASD emphasized the importance of values-based training and business ethics in running a business with
integrity. NGOs such as the Basel Institute of Governance and TI-UK gave presentations on their
extensive work with the defense industry in promoting ethical conduct through collective action. NATO
and the OECD were given opportunities to present their own views on ethical conduct, and on the
methods and activities of both organizations to support integrity and transparency in the defense
marketplace.
IFBEC would like to thank the distinguished presenters and attendees of this year’s Annual Conference.
The 2015 Annual Conference will be held Boston, Massachusetts, where updates will be provided on the
progress of IFBEC’s new initiatives. We hope to see robust participation from global industry, NGOs, and
national governments and details will be released soon.