International expansion often means charting unfamiliar territory and forming relationships with new business partners, suppliers and other professionals – and while these new contacts can help your business grow and thrive, they also have the potential to expose you to bribery or corruption. In fact, a 2015 survey revealed that 50% of global compliance executives believe such corruption increases with business expansion. What kind of corruption could you encounter when doing business abroad, and how can you safeguard your company? Here, Galvin International explains the best strategies for remaining corruption-free and compliant during your global growth.
Assess the Risks
When setting up your business in a new market, it’s important to thoroughly look into each of the third parties you’ll be interacting with. First, identify which aspects of their operations could pose a risk to your company. Are they based in a country with known corruption problems or political instability? Is their industry typically corruption-free? How will they be interacting with your business? Consider all of the potential risk factors ahead of time so you can thoroughly investigate them as you carry out due diligence.
Perform Due Diligence
Of course, your due diligence should involve the detailed examination of any financial records available, but it’s also important to ask the third party outright about their policies on bribery and corruption. This may seem like an obvious course of action, but an insufficient answer can help you eliminate risky third parties from the start, saving you time and money. Plus, if they already have comprehensive reporting systems and procedures for preventing corruption, you may be able to learn from their policies.
Train Your Partners
Implementing your own anti-corruption training and teaching your company’s policies to new business partners can play a large role in staying compliant. Not only is this useful for educational purposes, but it also means that you’ve taken steps to prevent corruption and are less likely to be held liable if any unethical behaviour should occur.
Avoiding corruption is an ongoing process that takes proactivity and constant vigilance. Regular audits performed by an employee with a full understanding of your business’s ethos can help ensure that operations remain aboveboard, as can on-site visits with the third party’s senior-level management. Such monitoring methods should be regularly scheduled and documented to demonstrate your company’s commitment to anti-corruption measures.
Any time you expand your business’s reach and interact with new partners, you run the risk of encountering corruption. However, armed with the right knowledge, you can find third parties who will help you achieve your goals and remain compliant. When it comes to international expansion, Galvin International are the go-to resource for keeping your global growth on track. From connecting you with trusted third parties and performing thorough due diligence checks, to ensuring that your HR and payroll are fully compliant, we provide you with the guidance and implementation you need to successfully grow your company overseas. Get in touch with us today to learn more about keeping your business aboveboard as you expand.