Avon Fires Four Executives Suspected of Bribery Scheme in China Unit
Just over a year ago, Avon Products suspended four executives as the company investigated questionable payments to officials in various international markets. Last week, Avon disclosed in a Securities and Exchange Commission filing that it had fired four executives accused of paying bribes to Chinese government employees and was continuing to investigate possible corruptions in other countries.
The fired executives were the former general manager for China; the former head of corporate affairs for China; the former head of finance for China; and the former head of global internal audit and security, who was previously head of finance for the Asia Pacific region.
According to Avon’s May 3, 2011, 10-Q filing, the internal investigation reviewed various expenses and books and records processes, including, “travel, entertainment, gifts, use of third party vendors and consultants and related due diligence, joint ventures and acquisitions, and payments to third-party agents and others, in connection with our business dealings, directly or indirectly, with foreign governments and their employees.”
The filing said the internal investigation is continuing and could result in additional “personnel actions.” In addition, Avon said that continues to develop and enhance its U.S. Foreign Corrupt Practices Act compliance-related training, FCPA third party due diligence program and other compliance-related resources.