Companies are looking for ways to reach customers in every corner of the globe. And as they expand, diversify, and build cross-border engagements, compliance frameworks must keep pace.
The legislative environment demands it. Today, bribery and corruption are behind thespate of laws, such as the US Foreign Corrupt Practices Act (FCPA), UK Bribery Act (UKBA), Sapin II, and other country-specific guidelines. To avoid stiff fines, prison sentences, and brand damage, companies need anti-bribery and anti-corruption (ABAC) programs that reflect local and international laws.
Firms with expanding footprints in emerging markets face increased scrutiny of their day-to-day activities as lawmakers clamp down on bribery and corruption. Staying on top of anti-corruption issues is hard work as is understanding the different laws in countries. For example, a charge that's legitimate in one country, such as a fee to fast track a service, may be illegal in another.
On top of that, there's the pressure to compete, which can induce people to cut corners. Throw in decentralization, unstable operations, unvetted third parties, unfamiliar cultures, and unusual business conditions to the mix, and the risk of corruption increases dramatically.
What's needed? A robust ABAC program.