3M chanced on certain funding and marketing related efforts in business groups in China, in its own internal investigation. It is cooperating with the U.S. Department of Justice and the Securities and Exchange Commission.

In a significant development, 3M Co disclosed, it was investigating potential violations of the U.S. Foreign Corrupt Practices Act or other anti-corruption laws related to certain business groups in China.

“The company, through its internal processes, discovered certain travel activities and related funding and record keeping issues raising concerns, arising from marketing efforts by certain business groups based in China,” said 3M in a regulatory filing.

3M stated, it had disclosed its own internal the investigation to the U.S. Department of Justice and the Securities and Exchange Commission and is cooperating with both agencies.

The Post-It maker went on to add, it had retained outside counsel as well as the services of a forensic accounting firm to assist with the investigation.

3M’s disclosure comes in the wake of its posting a posting a quarterly profit that beat analysts’ estimates.

With the news reaching the market, its shares fell by 2.6% to $173.42.

Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

Tags: 3M Co, anti-corruption, business groups, China, Department of Justice, Foreign Corrupt Practices Act, funding, internal processes, investigating, Justice Department, laws, marketing, record keeping, regulations, regulatory filing, SEC, Securities and Exchange Commission, travel activities, U.S, violations