BAE and Google

Chapter 5: Lessons Learned from Companies Caught in the Act

Posted by Dawn Lomer in on March 3rd, 2015

Chapter 1: Xerox and Ford

Chapter 2: Siemens and Satyam

Chapter 3: Tyco and Hewlett-Packard

Chapter 4: Johnson & Johnson and Mattel

Chapter 5: BAE and Google

BAE

Fine/Settlement: $450 million

BAE faced fines in both theUSand theUKfor different crimes. Both settlements were finalized on the same day.

In theUS, BAE pleaded guilty to one count of conspiring to make false statements to theUSgovernment. It was reported that BAE gained approximately $200 million from business received from the false statements.

In theUK, BAE pleaded guilty to one charge of breach of duty in relation to records of payments made inTanzania. It was alleged that BAE paid a Saudi official to influence purchase/contract decisions.

Lesson Learned

  • Tighten anti-corruption/anti-bribery procedures
    • With both the US and the UK cracking down on bribery and corruption and increasingly hefty penalties, it’s more important than ever for companies to conduct due diligence and research common business practices in other countries before embarking on business relationships there.

The Google Street View cars around the world were collecting (inadvertently) private information from Wi-Fi networks that had been left unprotected.

Google

Issue: Loss of reputation over privacy violations on two fronts

The Google Street View cars around the world were collecting (inadvertently) private information from Wi-Fi networks that had been left unprotected. It was reported that the information had been gathered over the past few years.

Google Buzz automatically opted users into the feature that showed others their contact lists.

Lesson Learned

  • Privacy controls
    • Private information should be collected only when necessary and permitted. Before launching a service, test it to make sure that other information isn’t exposed in the process. Users should have to opt-in to features before any of their information (contact lists included) is displayed.

Chapter 6: International Monetary Fund and Verizon

Chapter 7: Happy Days Children’s Wear


Dawn Lomer
Dawn Lomer

Managing Editor

Dawn Lomer is the managing editor at i-Sight Software and a Certified Fraud Examiner (CFE). She writes about topics related to workplace investigations, ethics and compliance, data security and e-discovery, and hosts i-Sight webinars.