Why is this a risk?
The United States Foreign Corrupt Practices Act, the United Kingdom Bribery Act and many other laws around the world oblige companies to take steps to ensure their suppliers are not engaged in corrupt practices.
Examples of where this risk could affect you
- Travel agents might be used as a conduit to pay bribes to customers or offer travel incentives
- Your PR agencies in certain countries might be bribing state-owned media for special media coverage
- Your marketing providers might be engaged in commercial bribery to obtain information about your competitors or your products in a market
- Your law firm might be acting as a conduit to bribe a government department for an approval
- Your construction company might be bribing a government department to obtain a license or permit
- Your sales agents or other sales and marketing intermediaries might be bribing customers to win business for your company
What sort of suppliers could be engaged in this risk area?
Almost any supplier could be engaged in bribery and corruption. Areas where this is often seen are suppliers:
- providing you with goods or services that involve government approvals
- engaged to ship products across borders and through customs
- engaged to deal with government officials on your behalf
- that are government owned or heavily government invested.
How are these risks managed?
The risks of bribery and corruption are normally managed through:
- making sure the supplier is not known for having been involved in bribery transactions in the past and are not in the IntegraWatch® | Compliance Screening database
- making sure the supplier has a code of conduct, policies and procedures for dealing with government officials, engaging them for approvals and making sure that they stick to these policies and procedures
- auditing and conducting financial analysis of suppliers' payment systems and relationships to government officials.
Which systems and tools do we provide as part of the Supplier Ecosystem™ Initiative to manage these risks?
Screening against the IntegraWatch® | Compliance Screening database
Due diligence and background analysis of supplier risks through IntegraCheck® | Integrity Due Diligence
Assessment of suppliers' compliance programmes
On-the-ground audits and reviews.