By Pascale BESSES-BOURNARD, Wansquare
Companies face the disastrous consequences of accusations of corruption or collusion. They are beginning to organise themselves to implement hard-hitting compliance measures. It's a welcome development, and one that the non-financial rating agencies are taking a very positive view of.
The fight against corruption has never been so active in the world. Not a day goes by without a company, a state, a political leader or a business being implicated. They are systematically prosecuted for such offences. It has to be said that the regulatory, competition and judicial authorities are taking a very close look at all forms of corruption. They are also looking into illegal cartels and human rights abuses. And the consequences can be disastrous for the image of companies and public figures caught red-handed. This is also the case for the financial health of the offending entities, not to mention the possible criminal consequences for the directors.
That's why Blandine Cordier-Palasse, co-founder and vice-president of the Cercle de la Compliance, has taken up her pilgrim's staff. Her aim is to convince companies to take this subject very seriously and to organise their compliance. In the United States, for example, the principle of whistle-blowing is almost commonplace. The good reason for this is that whistleblowers are virtually guaranteed immunity from prosecution... Hence the temptation for some to be the first to blow the whistle. And as the saying goes: slander, slander, there will always be something left.
"It's absolutely vital to raise awareness of this issue among senior managers. To implement effective compliance, the decision has to come from the top and all employees have to take ownership of the issue. To prevent all possible dangers, everyone has to get involved", says Blandine Cordier-Palasse. She is also managing partner of the recruitment firm BCP Executive Search. For her, this approach is more than a programme. It's a way of behaving, a mode of governance that is highly prized by specialists in non-financial analysis.
Some groups don't really play the game, contenting themselves with implementing "cosm'éthique" systems. Others have taken the full measure of what is at stake. They have introduced various processes based on employee training, monitoring, regular up dates and on-site audits.
What remains to be done is to manage the unfair competition from those who continue to practise these quasi-criminal methods. And it is in the public sphere that bad habits are hardest to break. In the private sector, certain sectors cannot afford to go beyond the rules and maintain common corrupt practices.
"But as long as the envelopes are official and recorded as such in the accounts, the company limits the risk of active corruption", says Blandine Cordier-Palasse. Others have also realised that by relying so heavily on contracts obtained via bribes, they no longer question themselves. They abandon their research and development and end up with outdated products. This puts them in a critical position when the "corrupt" no longer has the power to sign contracts.
"Compliance is a real competitive advantage. It's a virtuous circle in which everyone wins, from shareholders to employees. They are all proud to contribute to the company's performance, image and reputation", adds the lawyer. We should mention the case of certain companies that have made the bonus paid at the end of the year conditional. This bonus relates to the participation of the people concerned in compliance training!
But as with many other issues, the fight against corruption, illegal cartels or any other criminal behaviour cannot be fully effective. It will be when everyone is on the same footing and abides by the same rules. Which is still far from being the case. "The vocation of our Circle is to promote compliance and business ethics, with a view to strengthening governance and risk management". "Now is the time to raise awareness and bring people together. We have a long way to go. But the momentum is undeniably building internationally", says Blandine Cordier-Palasse with satisfaction.
