From Bribery and anti-corruption visibility to Creation of Values and
good conduct
As we approach the fiscal year end,
companies must look into the additional disclosures and reports requirements
on environmental, social and employee-related issues, concerns regarding
respect for human rights, CSR and many other 'soft law' components, can
be under the auspices of the United Nations Global Compact, the Global
Reporting Initiative (GRI) or similar.
To maintain the current focus on accountability and transparency we suggest
steps that ensure disclosure uniformity. The compliance reporting framework
will comprise of positive results achieved by the implemented good governance,
risk management and compliance (GRC) policies related to CSR and BFC.
They will determine how the company manages these risks, associated with
all of the above components.
Zero-tolerance as a golden rule
The primary purpose of compliance is to create value if the GRC actions
are more accountable and transparent. Instead of regarding the new reporting
requirements as a single one-off, non-renewable initiative, we recommend
that companies take a more holistic GRC approach. We often see that a
controlled GRC design provides the right answer, solution and the opportunity
to achieve far greater compliance and understanding. Visibility also provides
the capability so that all corporate managers and employees understand
anti-corruption GRC agenda seriously. Thereby the established zero-tolerance
practice makes sense and does not simply act as a golden rule.
The anti- Bribery, Fraud, Corruption and CSR Assessment Value Proposition
Bribery and Corruption enforcement actions have recently been increasing,
and will likely continue to be a hot topic in 2014. BFC and CSR related
issues can potentially involve all parts of an organization, affiliates,
suppliers and other third-party associates. Organizations and individuals
found to have violated the BA/FCPA and EU mandates may be subject to a
variety of consequences; including significant fines, costly litigation,
reputational damage, destabilization of the stock price and the inability
to bid on contracts.
Companies with strong compliance programs will likely be better positioned
to prevent and identify and reduce potential BFC violations. The Copenhagen
Compliance framework and roadmap provides guidance to assess whether management
is maintaining an effective compliance program to address the GRC/BFC/CSR
risks. Each assessment results in recommendations to management and C-suite
officers on improving the components of an effective compliance program
in order to measure its effectiveness.
An effectively designed, implemented, and managed compliance program,
tailored to a company's specific risks, provides the principal key to
GRC success. We have developed a complete range of assessment tools, technique
and methodology to assess the current GRC procedures.. We will review
and evaluate key components such as:
- Anti-corruption (merger and acquisition) due diligence integration
procedures
- Disciplinary and incentive procedures for violations of policies
and procedures
- Develop a custom tailored CSR/BFC framework and roadmap
- Evidence that the compliance program is well designed, effectively
overseen, custom tailored to the needs, size, structure, and risk
profile
- How is the board/management committed to compliance (the "tone at
the top and middle")?
- Introducing regular anti-corruption risk assessments for continuity,
evaluation of the risk profile
- Monitoring and audit and evaluation processes
- Policies and procedures covering certain risky BFC/CSR activities
- Procedures and practices for third-party compliance and distributor
or similar due diligence
- Provide country-by-country BA/FCPA reinforcement training tailored
to geography- and business-specific risks
- Questions for audit/risk committees to consider
- Review of the whistleblower reporting systems Training protocols
and e-learning
- The attention to detail of the full anti-corruption risk assessment
program
- The overall assurance of the BFC/CSR compliance framework
Copenhagen Compliance® provides advisory and consultancy to upgrade
your anti-corruption and CSR efforts, policies, procedures and processes
so that they are non-compromising, relevant, material and direct. We can
improve the insights, best practice and provide you with the need to know
information, to raise awareness of bribery and corruption issues and provide
guidance on the business role and leadership by the officers in combating
and preventing bribery and corruption. The above methodology is part of
our CERP advisory. For details see:
http://www.copenhagencompliance.com/CERPComplianceBrochure.pdf
The EU directive applies to companies with more than 500 employees
and either a balance of 20 million € or net revenues of 40 million €.
A total of approx. 16,000 businesses at EU level will be affected by this
EU directive.