Study: Bribery Tops Risk Concern… Again
Insurance Networking News, December 23, 2008
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The results of the 2009 version of its annual study on the Top 12 corporate compliance concerns expressed by global companies revealed an international shift from inward-facing compliance concerns such as financial integrity to outward-focused concerns such as anti-bribery requirements, the leading concern on this year’s list for the second year running. Greater focus on outward-facing compliance concerns is occurring as companies address how their actions impact the world in addition to focusing on preventing harm to themselves, says the company’s report. This changing focus resulted in conflicts of interests & gifts and product safety & liability jumping towards the top of this year’s list.
Integrity Interactive noted an interesting geographical trend revealed in the 2009 study. The company observed a different global emphasis on two of the most important concerns, conflicts of interest & gifts and product safety & liability. North America showed greater emphasis on conflicts of interest & gifts (number four), while
Recent headline-grabbing bribery cases involving politicians in
Increased demand for supply chain integrity also shaped this year’s Top 12 and drove business awareness of the potential ethics, compliance, and corporate social responsibility risks faced from misconduct in a supply chain. Concern over new supply chain regulations, negative media exposure from potential supply chain scandals and conduct of business partners played a role in pushing anti-bribery requirements (number one), conflicts of interest & gifts (number two) and product safety & liability (number six) to the top half of this year’s list.
“The spate of recent bribery and corruption cases involving prominent government officials shows that this same level of rigor is missing in the public sector. Ethics and compliance efforts in government remain weak,” said Integrity CEO David Curran. “Drastic changes in our global economy and recognition of the importance of supply chain integrity have companies demonstrating a renewed commitment to the basic principles of corporate ethics and compliance. Integrity’s new Top 12 research shows that companies across industry sectors and global regions are taking steps to ensure transparency, ethical behavior and quality controls.”
The Leading Corporate Ethics and Compliance Concerns for 2009:
* Anti-bribery requirements: The top compliance concern of major corporations today, understanding Anti-Bribery requirements helps companies avoid the difficulties of organizations under investigation for charges relating to official corruption.
* Conflicts of interests & gifts: Employers are concerned their employees know how to avoid conflicts of interest with suppliers, vendors, and customers.
* Antitrust contact with competitors: Global companies recognize the importance of educating executives, frequently those in sales and marketing, about not engaging in practices that could reduce competition or consumer choice.
Healthcare and consumer discretionary markets were among the leading industries addressing outward-focused ethics and compliance risks through organized compliance & ethics risk reduction programs. Product safety & liability was the greatest concern of consumer discretionary companies, while conflicts of interest & gifts was most important in the healthcare industry.
Inward-focused compliance concerns addressing the protection of corporate assets and reputation dropped to the bottom of this year’s list. These concerns include: Careful Communications, Information Security and Financial Integrity which rank 10th, 11th, and 12th, respectively on the 2009 list. Financial Integrity experienced the most significant drop, falling from 7th place in 2008 to 12th in 2009. This is likely the result of an increased focus on the potential damage to outside stakeholders, for instance, vendors in the supply chain.
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