How to Achieve Disclosure Consistency in Bribery, Fraud, Corruption
(BFC) and CSR Reporting.
Corruption continues to be prevalent in many countries.
This is a serious problem because in the long term it hinders the corporate
and business development. Corruption is a complex social, political and
financial situation that affects many countries. Corruption undermines democratic
institutions slows economic growth and contributes to corporate and governmental
instability.
With increased demand for accountability
and transparency combined with greater corporate social responsibility,
the non-financial reporting requires that companies report on exactly
what policies, processes, and procedures they have in place that prevents
bribery and corruption.
Structured methodology to benchmark your anti- corruption program
Compliance with the FCPA and UK Bribery Act often mean different things
to different people. However non-compliance to FCPA and UK Bribery Act
and related international mandates mean that dreadful things happen even
to right companies the results can often look depressingly similar, with
large fines, damaging press coverage and an awful hit to the company brand.
The list of highly reputed businesses that have got themselves in this
mess is increasing.
Previously, disclosures were often prepared by the marketing department,
with platitudes and expensive idealistic wishful thinking programs. This
time, such disclosures are a thing of the past because both the U.S. FCPA
(1977) and the English Bribery Act has global jurisdiction and is fairly
comprehensive in its scope. Therefore, corporate entities must allow for
a proper and structured introduction to building an effective compliance
program to fight corruption, both within their organisation and among
business partners and third parties.
From Visibility to Creation of Values
To support the new trend of accountability and transparency, we recommend
that there is a disclosure uniformity that includes those concrete results
achieved by the implemented/related real governance, risk management,
and compliance (GRC) policies and demonstrate how the company manages
these risks, associated with all of the above components. The reporting
structure will also ensure that the GRC process, that later on, can be
automated.
Material anti - corruption activities introduced by global companies.
The primary purpose of compliance is to create value if the GRC actions
are made more 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
method 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 take anti-corruption
GRC agenda seriously. Thereby the established zero -tolerance practice
makes sense and does not directly act as a golden rule.
For more information see: http://www.riskability.org/2016/csr-anticorr/
