The German software giant, SAP (NYSE: SAP), has agreed to pay around $220 million in fines and settlements to the U.S. Justice Department and the Securities and Exchange Commission (SEC) to resolve investigations into reported bribery schemes. This stems from SAP’s alleged involvement in securing foreign government contracts through illicit means.
These events occurred from 2013 to 2022, and authorities said involved making illegal payments and providing luxury goods to government officials in over seven countries.
Why it matters: The SAP case highlights the growing international focus on corporate accountability and the enforcement of anti-bribery laws. This settlement serves as a reminder to multinational corporations about the importance of their compliance programs and highlights the increasing expectations for corporate transparency and accountability, not just in the immediate aftermath of legal issues, but as an ongoing business requirement.
- SAP has been involved in similar legal issues before, including a non-prosecution agreement in 2021 and a resolution with the SEC in 2016 concerning FCPA violations in Panama. The fact that SAP has faced similar legal challenges in the past may raise concerns among stakeholders about the company’s commitment to ethical business practices.
- In response to the investigations, SAP has overhauled its compliance measures, including enhancing its code of conduct and policies, especially concerning the use of third parties.
- As part of the deferred prosecution agreement, SAP has pledged ongoing cooperation with the U.S. Justice Department. This means that SAP is required to assist in any future investigations related to this case or similar criminal activities. This commitment sets a precedent for how multinational companies might handle similar legal issues in the future.
Go Deeper –> SAP to pay $222 million to settle US bribery charges – Reuters
SAP to Pay Over $220M to Resolve Foreign Bribery Investigations – United States Attorney’s Office
