Code Red

“The Issues Management Institute signals a Code Red to indicate an emergency situation or threat of a dangerous situation that might possibly deteriorate the political, legal or social license in society for the company in question.”

In Code Red we quote news releases from different media on a diversity of issues in different categories. We don’t comment per se, but the question is always the same: does the organization concerned move to the danger zone? Is the social license in danger? Is the reputation under threat of being damaged? Does the press pay attention to the recognition of the company of the  possible danger or damage and what it undertakes to solve the problem and keep a trustworthy reputation.

Read 'Hospitals in decline' 2 January 2016

Category: Technological developments

Companies/branche: Hospitals

Location: Europe

Date: January 2, 2016

“The expected mass migration in diagnosis will have tremendous consequences for hospitals. The clinics are full of equipment for measuring and diagnosis that won’t be necessary anymore in a short while. How many hospitals will be empty in about ten years? The banks also wonder. It is one of the reasons why hospitals have so much trouble getting their new real estate financed. Credit and financial institutions have doubts about the phenomenon of a hospital, an organization housing all kinds of  ventures conducting medical operations. How well are these buildings equipped against the trend that the patient wants and gets his care close to home? Consultants predict that within 25 years 40% of the hospitals remain empty. In the hospital of the future, only complex operations will be conducted. Many of the treatments move to the GP and diagnosis and simple curements can take place at home.”

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Read SBM Offshore 18 December 2015

Category: Corruption

Company: SBM Offshore

Location: Brazil

Date: December 18, 2015/April 17, 2015

FCPA Professor: “In November 2014, Dutch-based SBM Offshore resolved an enforcement action in the Netherlands.  With a settlement amount of $240 million, the SBM Offshore enforcement action was one of the largest bribery-related enforcement actions of 2014 – regardless of country. This recent article titled “The Cover-Up at Dutch Multinational SBM” in Vrij Nederland (a Dutch magazine) goes in-depth as to SBM’s scrutiny: (https://www.vn.nl/the-cover-up-at-dutch-multinational-sbm/) The article has largely escaped the attention of Western media and the FCPA-related blogosphere, but is worth the time to read.  The article begins as follows:

“The corruption scandal at Dutch multinational SBM Offshore, which in November reached a $240 million out-of-court settlement with the Dutch Public Prosecutor (OM), is much larger than thought, as testimony of a former employee now shows. The company has actively pursued a strategy of “containment” and has consistently misled the market. So why did the OM settle?”

Among other things, the article highlights the role of U.S. lawyers and law firms involved in the SBM representation.”

Repetitive corruption scandals, whistle blowers and law suits generate continuous flows of negative publicity. Neither the scandals, no the publicity are beneficial to the company.

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Read Arcadis 15 December 2015

Category: Fraud

Company: Arcadis

Location: Brazilië

Brazil, December 14, 2015 (Times). “Dutch engineering firm Arcadis is involved in an investigation by the Brazilian authorities into corruption at a large water management project in norther Brazil, the company confirmed on Monday. According to the press release, Arcadis is “providing information” and “fully cooperating” with the Brazilian authorities in the investigation.

Some documents were seized when authorities searched the Brazilian offices of Arcadis subsidiary Arcadis Logos and the homes of one of its project managers on Friday. Arcadis Logos and Brazilian company Concremat are working together on a large water management project called Sao Francisco in northern Brazil. According to the firm, Arcadis Logos does not perform construction activities on this project, but does provide management and technical support.

Four people were arrested in this investigation on Friday, Reuters reports. The Brazilian authorities believe that the consortium of companies working on the project embezzled 200 million real – about 47 million euros – Dutch engineering firm Arcadis is involved in an investigation by the Brazilian authorities into corruption at a large water management project in norther Brazil, the company confirmed on Monday. According to the press release, Arcadis is “providing information” and “fully cooperating” with the Brazilian authorities in the investigation.”

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