How can I ensure global regulatory compliance across my company's supplier relationships?
Unsafe cars, toys contaminated by lead, pet food containing dangerous fillers, and medications formulated with treacherous levels of poor ingredients are all tragic stories. What’s common to them is that the brands of the companies affected were not damaged by their own overt acts, but by those of suppliers … suppliers that did not adhere to regulations, standards, and codes of conduct. And it isn't just about product safety. The US Foreign Corrupt Practices Act (FCPA) implements rules and penalties regarding the use of bribes in the conduct of business, even on the part of trading partners, and other countries aren't far behind. In fact, the list of regulated/mandated activities and standards continues to grow.
How do you ensure regulatory compliance across international markets while managing compliance costs? By implementing systems and controls to gather trading partner credentials (some as simple as COI, W8's, selfcert affidavits, etc.), monitor internal and external trading activities for compliance, and proactively identify partners and suppliers that are non-compliant. The costs may seem considerable, but the penalties in terms of brand erosion, fines, and prison sentences are much worse.
Aravo can help
Aravo has helped many Chief Compliance Officers and Chief Counsels ensure global regulatory compliance for their trading partners thus reducing supply and demand chain risk, all while significantly lowering the cost of compliance. Whether you are concerned with FCPA, Conflict Minerals, sustainability programs or general compliance issues, Aravo can help.
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"The types of risk to which companies are exposed, as well as their severity, are growing. Companies are increasingly concerned about the spectrum of risksfrom supply chain to operations to regulation to reputation and financial fraud and failure."
Report on the Accenture 2011 Global Risk Management Study