A recent Deloitte survey that included over 1,200 respondents from a wide range of industries brought to light the growing attention of multinational corporations (MNCs) on conducting due diligence on third-party business partners. This survey is especially timely given the increased role third-parties have played in recent Foreign Corrupt Practices Act (FCPA) enforcements by the U.S. Justice Department and the Securities and Exchange Commission.
Here are some of the most revealing statistics from the poll:
- About two-fifths of the respondents said their companies use between 100 and 999 partners, potentially exposing them to a foreign bribery risk.
- Nearly 25% of respondents perform due diligence and risk assessments on less than a quarter of their organization’s third-party business partners.
- 5% said their company doesn’t do any third-party due diligence.
- More than 30% of respondents cited the cost of implementation as the main challenge they face in implementing companywide programs, while 13.6% said there’s a lack of pressure to do extended due diligence and a small minority of about 6% said they didn’t want to alienate the sales channel.
As MNCs continue to grow and expand into emerging markets, compliance and due diligence on third-party providers will become a priority. CREATe.org is helping MNC’s lessen the risk of operating in emerging markets and utilizing third-parties by collaborating with companies to develop and share practical tools and best practices, provide education, and advocate for the use of supply chains to strengthen a rules-based global system of commerce. At CREATe.org, we want to help MNCs build on the management systems already in place to extend them to better protect IP and prevent corruption in the global supply chain.
Access the complete results of the survey here.