More than ever, Business Ethics is a priority for international companies which can be severely damaged if they don’t take care of this important topic. Corruption of a public servant is a crime and penalized as such. In this respect, the corruption risk exists for companies as soon as they use the services of Third Party Partners to act on their behalf. It is very difficult to be fully sure that the money or a part of it, paid by the companies to these Third Party Partners is not badly utilized for corruption purposes. In any case and even if the company is not aware of the destination of the funds, its liability is engaged in case of a corruption act by the third parties involved. To put the head in the sand is then a quite dangerous option.
Third Party Partners to avoid corruption risks: monitoring of a thorough Due Diligence, visit of the third parties in their own offices, right of audit and clawback clauses included in the contrat etc….
Generally speaking, international companies cannot avoid to use Third Party Partners as they cannot only rely on themselves in each business context.
Third Party Partners are then quite common : sales agents, consultants, joint venture and consortium partners, suppliers…. Sales agents are probably the most risky partners : an additional reason to be more vigilant.
Through jdl.ethiconsult, Jean-Daniel Lainé can provide international companies with adequate and customised support to help them navigate in safer conditions. Adopting appropriate integrity and compliance measures can significantly limits the risks and the company’s exposure. Preventigation (prevention to avoid investigation) is a way to be safe in the long term.