IICJ Paper Use of Six Sigma for Continuous Improvement of Compliance Programs Patricia Eastwood, Senior Corporate Counsel, Caterpillar USA, USA
Wes Blumenshine, General Counsel and Secretary of Caterpillar Financial Services Corporation and Deputy General Counsel of Caterpillar Inc.

Having a compliance program deemed “effective” has many potential benefits for a multinational company. Under some country laws, such a designation stands as an affirmative defense in an enforcement action. In other countries, recognition of effectiveness means improved chances of avoiding prosecution or favored treatment in the sentencing phase. All of these benefits are valuable and encourage in-house counsel to explore what it takes for the programs with which they assist to achieve the “effective” description wherever they are scrutinized. In the absence of definitive precedent regarding what constitutes an effective compliance program addressing any particular risk area, businesses worldwide must look towards guidance from a government agency or supervisor. Whereas, the Federal Sentencing Guidelines promulgated in the United States speak primarily in terms of the rigors that must be met to qualify for reduced sentences, other similar guidelines, such as those set forth by the United Kingdom Office of Fair Trading, speak more directly to the indicia of what constitutes an effective compliance program. Whether an in-house counsel spends time studying the Thompson Memorandum (and later the McNulty Memorandum) clarifying the US Federal Sentencing Guidelines or the growing recognition of the emerging global standard for effective anti-corruption programs, it quickly becomes clear that continuous improvement of compliance programs and the processes that serve as the core of such programs is an important element in convincing regulators that a program is “effective”.
Patricia Eastwood
Patricia Eastwood is a Senior Corporate Counsel of Caterpillar Financial Services Corporation and an experienced Six Sigma Green Belt. Since arriving at Caterpillar in 1996, Patricia has supported the Financial Products Division in documenting secured transactions and more recently, as the managing attorney for the Treasury, Securities and Compliance practice group. Her responsibilities include developing and assisting with compliance processes for Cat Financial businesses worldwide including those addressing employee relations, consumer protection, financial industry regulations, Foreign Corrupt Practices Act and other improper payment laws, anti-money laundering, export controls and data privacy policies and laws.
Wes Blumenshine
Wes Blumenshine
Wes Blumenshine is General Counsel and Secretary of Caterpillar Financial Services Corporation and Deputy General Counsel of Caterpillar Inc. Wes is also the Chairman-elect of the Tennessee Chamber of Commerce and Industry, a member of the Board of Directors of the Nashville based Martha O’Bryan Center, a member of the Bradley University College of Civil Engineering & Construction Advisory Board, a member of the Caterpillar Political Action Committee Steering Committee, the Executive Sponsor of Caterpillar Financial’s Military Support Network, and has served for ten years as the Caterpillar Law and Public Policy 6 Sigma Champion. Wes has been an attorney for Caterpillar for 25 years in the areas of finance, international, capital markets, litigation, employment, benefits, logistics, patents, and trademarks.
Caterpillar USA
Caterpillar Financial Services Corporation
USA More
Area of Law
Compliance More
Business Sector
Industry More
Month Published
November 2013 More
Vol. 7, No. 25, Autumn 2013 More
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