A new report from Baker & McKenzie offers advice for companies seeking to mitigate the risks of bribery and corruption when working with third-party contractors:
- Vetting and Selecting: Pay close attention to the third party’s track record, reputation, and cost of services provided to catch any red flags. Checking references and including in-person interviews are particularly important in this early process.
- Structuring and Documenting: Create risk matrices to make risk assessment easier, and include strict compliance covenants in any contracts with third parties.
- Training and Educating: Train employees to work with third parties, and make sure to conduct substantive compliance training with the third party.
- Monitoring and Evaluating: Follow through on monitoring and evaluation clauses that the responsible company has built into the contract. Conducting annual health checks and on-site visits are key for ensuring compliance.
- Reacting and Remedying: Have contingency plans in place, and make sure not to fall victim to claims such as “This is how it’s done in Russia.”
To download the report, click here.
Working with Third Parties on Anti-Corruption Compliance
If you are looking for ways to work with third parties on anti-corruption, CREATe.org offers a three-step service –
CREATe Leading Practices for Anti-Corruption – helps companies identify potential risks and prevent corruption throughout global supply chains. The service includes an online assessment, independent evaluation and improvement program designed to help companies and supply chain partners put systems in place to reduce the potential for corruption. For more information, please email: info@CREATe.org.