Do You Know What Your 3rd Parties Are Up To? Compliance 2.0 Would Know.
The question is simple. Do you know whom you are doing business with? But for many the answer is not as easy to come up with. Most large companies work with 3rd parties in order to keep operations abroad on a clear running track. The methods of knowing and understanding who your 3rd parties are and whom you are conducting business with were usually taken care of internally. Now with the expansion of global markets and the increased valuation of overseas sales, the need to expand and have 3rd parties is growing. To have personnel on the ground to help support your company’s efforts in expanding into newer markets is a necessity. As the rush for newer and “greener pastures” of business is becoming increasingly urgent, some companies are disregarding how many regulations need to be reviewed and carefully followed in order to conduct business in the worlds largest markets.
Whether it is the FCPA, UK. Bribery Act, or even the Brazilian Clean Companies Act, these rules are carefully being monitored and enforced due to the high concentration of corruption and bribery in mid-sized to large companies. From boots on the ground 3rd party agents to C-level executives, these issues are being brought up much more frequently. In taking a look at the hefty $800 million that Wal-Mart will have spent by the end of the fiscal year, these probes will only be the beginning. With it’s internal probe of bribing Mexican government officials, Wal-Mart, one of the worlds largest retailers, is now being looked at by other governing bodies and seeing if any misconduct and/or bribery was happening.
So why do we concern ourselves with the penalties and fines of other companies? If you are given the opportunity to learn from the mistakes of those that are involved in misconduct and can be shown effective solutions to deter your company from going down a similar path, then you need to take notice.
Which brings us to this point; what are companies doing in order to comply with regulations? What solutions are available for those companies that don’t have the ability to have an internal structure or plan in place? If you haven’t heard the term compliance 2.0, it is about time you have. There are a multitude of solutions that allow you to keep track of all your 3rd parties, but its about having a network of information, readily available to you if bribery or corruption occurs. Increasing your visibility while maintaining your ability to receive and react to vital information is key and compliance 2.0 does that. If you are interested in learning more from industry experts and diving in to compliance 2.0-style platform, click here.
