Companies Are Beginning To Understand More About Anti-Corruption Compliance, But Is It Enough?
Compliance officers from all companies are stepping into an emerging problem with corruption and bribery risks on the rise. This of course has become a major issue for companies needing to make sure that they follow, not only the Foreign Corrupt Practices Act (FCPA), but also new legislation out of Brazil, China, UK, and Canada. Companies are taking note that doing business with corrupt entities can hurt them from a legal standpoint but most of all from a business perspective as well. In an article written by Rebekah Mintzer, of the Corporate Counsel website, she writes how companies are aware of the problem and are taking an initiative in solving it, both internally and externally. Those companies that were surveyed, 85 percent said, “their industries are exposed to corruption risk” which means companies are recognizing the risk and addressing that there is a problem. The importance is to know that more business can and will be lost of these issues are not addressed. As Rebekah writes those that have discontinued business with corrupt 3rd parties, 22 percent have lost business to competitors because of the wrong doing within the organization. It’s how the old saying goes, “take the lesser of two evils.”
The need to balance their competitiveness with regulatory requirements has become a craft within the compliance world. Some of the main focus is having an established internal policy that reflects company wide while maintaining and managing those parties externally. But it is crucial to revising and updating these internal policies so that everyone, from internal to external parties, are on the same playing field.
“Of course, a large part of staying corruption-free regardless of where the company is operating is having effective internal policies and procedures. Some 81 percent of respondents have an anti-corruption program or have created written anti-bribery and anti-corruption policies. However, some may be letting their policies gather dust—22 percent had not reviewed their anti-corruption program for more than a year; another 48 percent said that they had not subjected their program to a third-party risk assessment in the previous 12 months.”
As companies get larger and expand into other markets, having an established internal structure for anti-corruption policy is the bases for compliance. As regulations change, so must the policies that reflect it. Companies that allow for this to happen need to be aware of any changes. What this requires is an up-to-date method of live data that can update your levels of risk, while keeping you informed of any regulatory or legislation changes. Platforms, that enable you to do this can reduce your risk and keep your compliance departments in the know. To learn more on how you can stay informed, keep your policies updated and active, and include your 3rd parties on your internal policy requirements, click here
