13 Mar Avoiding Corruption in Your Company
Why is an attorney who knows how to keep you from a DOJ suit for corruption an asset to your company? Even if your company follows all domestic U.S. laws, if you contract for services overseas, you are now adding another several variables to the mix:
another culture, another set of laws that the foreign contractors follow– or maybe they don’t, and you have less visibility over contractors overseas. They are removed from everyday interactions.
With those variables in place, the risks of corruption in your company increase. There is less risk for noncompliance if the following are established. (Read below for what Workplace Answers Recommends)
How Can You Encourage Foreign Compliance?
Build an ethical culture
The Organization for Economic Co-operation and Development (OCED) recommends building a culture of anti-corruption within your business from the top down. Management should develop clear anti-corruption policies and ethics standards, instituting mechanisms throughout the business, such as internal auditing committees, to provide multiple levels of protection.
You should make it clear to employees that all of them are responsible for maintaining compliance with corporate ethics and process standards. By creating a clear policy, you can more easily communicate these expectations and values to foreign offices.
Know the law
According to attorney Alex Nisengolts, you should take time to familiarize yourself with the local laws and culture of any nation that hosts your offices. While most businesses are highly knowledgeable of U.S. law, many neglect to show the same level of diligence to local regulations.
Spend time learning your rights as a business in foreign countries and how those rights apply to government inspections and investigations. Some nations even maintain foreign investment councils that can serve as an invaluable source of advice and support.
Spend time on the ground
Paul Mandell, the founder and CEO of Consero Group, advises performing your due diligence in person. By actually visiting the sites of your foreign operations, you can help accelerate initial vetting processes or anti-corruption investigations.
Take advantage of these trips to conduct in-person interviews with candidates for key positions. By spending more time and money to find highly-skilled and ethical employees, you can better protect your business.
This hands-on approach also offers the opportunity to interview local third-party suppliers directly. While these organizations may be familiar with regional regulations, they may not be familiar with U.S. or international laws and unknowingly violate policies while simply conducting business as usual.” –Authored by Workplace Answers