Globalisation has entered a new phase, posing greater challenges for Anti-Bribery and Corruption compliance than ever before.
Globalisation has entered a new phase, posing greater challenges for Anti-Bribery and Corruption compliance than ever before, according to KPMG’s 2015 global Anti-Bribery and Corruption survey.
Our report based upon a survey of 659 respondents from across the world shows that companies are rising to the challenge , but that a great deal more needs to be done to create a robust ABC compliance structure.
There is a sharp increase in the proportion of respondents who say that ABC is a highly challenging issue, compared with a KPMG survey conducted four years ago.
Two key factors are creating new issues for companies, according to our recent research. Firstly a growing number of governments around the world are tightening ABC regulations or introducing new ones.
Almost a third of companies surveyed said they found it difficult to track if they were complying with the latest ABC legislation. This was more than double the number in 2011, when only 14 percent of respondents raised it as an issue.
Secondly, as companies globalise their operations, they rely more heavily on third parties than before to do business in remote parts of the world, often in locations where there is a high risk of corruption.
Despite acknowledging the problems in managing third-party risk, more than a third of all companies surveyed said they had not identified high-risk businesses in their supply chain. Of those who hold the right to audit their suppliers, over half had not done so.
“The problem is acute in the management of third parties who can potentially pay bribes on the company’s behalf, and are out of head office’s immediate line of sight. Businesses admit it’s the biggest challenge they face, but they are not doing enough to identify these risks and develop a culture of compliance both among their employees and their third parties.” said Nigel Layton, Partner, UK Forensic.
“It is essential that companies work to identify high risk third parties, including distributors and agents, to understand and monitor them to mitigate risk,” according to Annabel Reoch, Director, KPMG’s UK ABC team.