Question

1. How can companies handle corrupt practices in foreign practices? Can they find ways to compete there without engaging in these practices? Please explain.

Answer 1

Measures to handle corrupt practices

1 ) companies should have a internal and external assesment of corruption risk in operating countryr (corporate risk mappingor simpler tools such as Transparency International’s Corruption Perceptions Index).

2) setting a strict standard of behaviour applied globally ; to send a strong message to international management .

3)Apply a proper anti-corruption policy adapted to the industry or sector (Code of Business Ethics), through benchmarking and risk assessment and previous sanctions analysis (a proper review of past FCPA sanctions).

4) closely verifying the tract record of outsourcing providers, intermediaries, local agent distributors for any conviction of corruption offences , so as to aid in excluding them from providers list.

5) train the local management and employees on anti corruption policies according to company and global standard, having session once a year.

6)Provide a follow-up system and mechanism to verify that the policies are being properly followed, including third-party contracts.

7)Conduct periodic performance tests (audits) as well as public industry reports to be delivered to public authorities and other relevant parties.

Thus to have constant independent monitoring of all involved parties, there is always a risk that some element of the chain might fail. A proper anti-corruption culture must be the credo of the corporation, providing recurring due diligence exercises, internal audits and the realization that the constant upkeep of these policies is the only way to reduce any negative outcome.