Know your Swiss Corporate Reporting and Due Diligence Obligations

Switzerland has introduced new Corporate Reporting and Due Diligence obligations in connection with conflict minerals and child labour to improve human rights protections around the world.

Switzerland is following international trends and regulations for non-financial reporting and human rights due diligence and the reforms include new rules in the Swiss Code of Obligations related to the trade of minerals and metal ores originating from conflict-affected zones. The resources are reportedly being extracted using forced labour and are a known source of finance for armed conflict, says the EU. The EU implemented the Conflict Minerals Regulation last year as a means of restricting access to these natural resources.

Companies with registered offices or principal places of business in Switzerland have to comply with these due diligence obligations in their supply chain when dealing with the highlighted minerals and metals in Switzerland. They also need to comply with the due diligence duties if they offer goods or services that have suspected links to child labour. The import and processing of recycled materials are not subject to the new rules.

Requirements for Corporate Reporting and Due Diligence 

These corporate reporting and due diligence obligations will apply from the start of the financial year in 2023 to Swiss companies of public interest, which as a group together with their controlled companies in Switzerland and abroad meet both of the following requirements over two consecutive financial years:

• The group has at least 500 full-time employees (FTEs) on an annual average; and
• The group exceeds either total assets of 20 million Swiss francs or a minimum turnover of 40 million Swiss francs.

Companies’ annual reports should cover environmental, social, and employee aspects, human rights, and anti-corruption. It must outline risks and mitigation measures and the relevant due diligence concepts adopted. Foreign companies related to the corporation must also be covered in the report approved by management and shareholders and must remain public for 10 years.

The first reports have to be published in 2024 and failure to do so may result in a fine of up to 100,000 Swiss francs. A report need not be prepared if a written explanation for its absence is provided.

Businesses are required to have or put in place a suitable management system containing their supply chain policy, a system of supply chain traceability, risk assessments, and mitigation measures. This information must be available through on-site controls, and communications with authorities and civil society.

Companies should publish reports on due diligence obligations. These should be accessible for at least 10 years. Making false statements in a report, or failing to comply with the reporting obligation, may lead to a fine of up to 100,000 Swiss francs. Where the failures are negligent rather than intentional, a fine of up to 50,000 Swiss francs could be imposed.
LET’S TALK ABOUT CORPORATE REPORTING AND DUE DILIGENCE LAW

Exemptions to the requirements exist for businesses with fewer than 500 employees and assets of less than 20 million Swiss francs or a turnover of under 40 million Swiss francs. Large corporations can also apply for exemption provided that they demonstrate their supply chain contains a low risk of child labour or that they respect internationally recognised conventions such as the UN Guiding Principles on Business and Human Rights.

As the ecosystem of corporate responsibility for companies is developing quickly, navigating it safely in the interest of rights-holders requires monitoring corporate behaviour and ensuring that mandatory due diligence requirements can live up to the expectations and deliver results.

Due Diligence investigations: Mitigate Critical Risks

At CRI®, we provide corporate reporting and due diligence services wherever you are. Use our DueDiligence360™ reports to help you comply with anti-money laundering, anti-bribery, and anti-corruption regulations ahead of a merger, acquisition, or joint venture. You can also use them for third-party risk assessment, onboarding decision-making, and identifying beneficial ownership structures.

Due Diligence helps you Identify key risk issues clearly and concisely using accurate information in a well-structured and transparent report format. Our comprehensive range of reports includes specialised reports that support specific compliance requirements. Protect your reputation and the risk of financial damage and regulator action using our detailed reports. They enhance your knowledge and understanding of the customer, supplier, and third-party risk, helping you avoid those involved with financial crime.

The CRI Group™ invites you to schedule a quick appointment with them to discuss in more detail how conducting due diligence and compliance can help you and your organisation.

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, TPRM, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group™ also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.
CONTACT US

Filed under: All Industries, All Regions, All Solutions, Automotive, Aviation, Business Intelligence, Canada, Toronto, Compliance Solution, Due Diligence, Finance & Professional services Industry, Food & Beverage, Global, Insurance, Investigative Solution, IT & Telecommunications, Malaysia, Kuala Lumpur, Middle East, Oil, Gas & Energy, Pharmaceutical & Healthcare, Property, Singapore, Singapore, South Asia, Third-Party Risk Management, United Arab Emirates, Dubai, United Kingdom, London, United States of America, New York by Roque Fernandes
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Can Business Intelligence really empower your business?

An indispensable asset to any organisation, Business intelligence (BI) comprises the strategies and technologies that can be used to make on-the-spot decisions that increase revenue, improve productivity, and accelerate growth. This is done through data analysis and management of business information. Common functions of business intelligence technologies include reporting, online analytical processing, analytics, data mining, business performance management, benchmarking, text mining, predictive analytics, and prescriptive analytics.

This can help an organisation identify, develop, and create strategic business opportunities. Business intelligence is most effective when it combines data derived from the market in which a company operates (external data) with financial and operations data (internal data) from company sources that are internal to the business. The enriched data from business intelligence reporting can provide a complete picture so that you can make any business decision ranging from operational to strategic – such as product positioning or pricing.

Why is Business Intelligence Crucial to an Organisation?

Business Intelligence Solutions take many shapes and forms in today’s complex business environment. Budgets are stretched and the challenges facing a business and its employees can sometimes lead to issues that start small, but then lead to wider problems. These issues can affect the very fabric of your organisation and damage your credibility, reputation, and bottom-line profits.

Business Intelligence Software Trends for 2022-23

Product information portal FinancesOnline has predicted eight business intelligence software trends for 2022-23. These trends cover market growth, future developments in AI, the convergence of business intelligence and big data, and the next wave in data infrastructure and are worth taking a look at:

1. BI Integration with Other Systems may Slow Revenue Growth

The industry’s revenue growth slowdown will possibly be caused by BI’s integration with other systems like Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). We’ve seen the same happen with collaboration software, which started off as its own market before evolving into a regular feature of other software categories, such as task management and communication apps. Thus, BI may “lose revenues” to ERP and CRM products down the line.

2. Defensive Artificial Intelligence on The Rise

We are seeing a slight movement in the share of offensive and defensive developments driving artificial intelligence in general. Offensive AI points to developments that lead to transformation and innovation or anything that gives an organisation a competitive advantage. On the other hand, defensive AI developments aspire to cost-savings or compliance, among others. AI drivers were aggressively offensive at 91.7% versus 8.3% defensive in 2019. Two years hence, defensive AI developments have increased to 17.3% share, cutting offensive AI outcomes down to 82.7%.

3. Simpler but More Sophisticated Mobile BI

Mobile BI acts as an endpoint extension of BI applications. But going by the ubiquity of mobile phones and key smartphone statistics—90% of smartphone usage is on apps—BI vendors will start going the way of communication apps, which have since pursued a mobile-first strategy to keep up with user preference. However, the BI infrastructure will still be intact, a mobile or web app built on a proprietary system. What we’ll see is a more interactive mobile BI app far from what we have today, apps that push static data at best.

4. Big Data Analytics and Business Intelligence are Converging

Big data presents to BI huge volumes of diverse datasets from multiple sources and types that can be used for strategy and operations. The volume of data that’ll be created, captured, copied, and consumed worldwide in 2022: 120 zettabytes (that’s 120 trillion gigabytes) (IDC/Seagate, 2020) will nearly double by 2025. Using various tools like automation, machine learning, and predictive and prescriptive analytics, forward-looking BI solutions consolidate and analyse big data from multiple sources and derive and communicate insights to users for data-driven, real-time decisions.

5. More Businesses to Use Predictive Analytics

Allied Market Research sees a demand surge in predictive analytics, having the highest CAGR as a service at 44.3% through 2026, followed by descriptive analytics and prescriptive analytics. Fewer companies will find the need to get help for diagnostic analytics, as the ability to interpret data fits into the role of any company’s leader.

6. Collaborative Business Intelligence

Robots will continue to focus on repetitive tasks but will do things smarter. The evolving technology framework built on the Internet of Things, AI and analytics allows companies to process business intelligence with greater clarity, depth, and precision. Thus, manufacturing is being pushed towards collaborative production, real-time decision-making, predictive and remote maintenance, and simulation and optimisation (Statista, 2021). In the meantime, humans will find themselves doing higher-level tasks such as strategy, management, and design.

7. Data Warehouse Modernisation

We shall see further integration of machine learning algorithms in BI processes. AI-powered features will be put to task to manage exhausting warehousing processes, mainly for descriptive analytics and predictive analytics. Tasks such as parsing historical data, data benchmarking, forecast modelling, and simulation of numerous scenarios will be handed over entirely to machine learning. Meanwhile, humans will focus on tasks that require context, creativity, and collaboration, mainly the processes in diagnostic analytics and prescriptive analytics.

8. More Large-Scale Data Centres

Tech giants are aggressive in expanding not just their data management capabilities, but an entire country’s, too. Microsoft has announced the multi-year investment plan Digital AmBEtion last November 2021 to scale Belgium’s digitisation. We will see similar programs by the tech giants around the globe as they aim to bump up infrastructure in other countries for faster cloud access, advanced data security, and cloud solutions to drive regional economies, says FinancesOnline.

How Does the CRI Group™ Look at Business Intelligence?

We take two approaches to Business Intelligence Services:

• Intelligence operations (via market research and analysis): we focus on researching the future and potential growth of your business. This is to determine the commercial viability and potential for success in the market, analyse consumer behaviour and business trends in that market, etc.
• Investigative operations (via commercial investigations): we focus on the status of your business. This helps business intelligence companies provide the location of assets, and financial information, identification of unmet needs of any market, and gauge brand awareness and identity in the market.

Why Partner with CRI Group™ for Your Business Intelligence needs?

• CRI™ has one of the largest, most experienced, and best-trained integrity due diligence teams globally.
• We have a flat structure which means that you will have direct access to senior members of staff throughout the due diligence process.
• Our multi-lingual teams have conducted assignments on thousands of subjects in over 80 countries, and we’re committed to maintaining and constantly evolving our global network.
• We offer flexibility, and we will tailor our scope to address your concerns and risk areas, saving you time and money.
• Our extensive solutions include due diligence, employee pre and post-background screening, anti-bribery anti-corruption compliance,  business intelligence, and compliance, facilitating any decision-making across your business, regardless of area or department.

Filed under: All Industries, All Regions, Automotive, Aviation, Brazil, São Paulo, Business Intelligence, Canada, Toronto, Finance & Professional services Industry, Food & Beverage, Insurance, Investigative Solution, IT & Telecommunications, Malaysia, Kuala Lumpur, Oil, Gas & Energy, Pakistan, Islamabad, Pakistan, Karachi, Pharmaceutical & Healthcare, Property, Qatar, Doha, Singapore, Singapore, Uncategorized, United Arab Emirates, Abu Dubai, United Arab Emirates, Dubai, United States of America, New York by Roque Fernandes
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The new Norwegian Transparency Act: Here’s what you need to know

The Norwegian Transparency Act entered into force on 1 July 2022, obliging large and mid-size companies to conduct fundamental human rights and decent working conditions due diligence throughout their supply chain and with their business partners. 

The Transparency Act covers services and products in a broad sense. Under this Act, consumers, organisations, trade unions, journalists, and the general public will be entitled to request information from companies, and the Norwegian consumer authority may issue injunctions and fines for non-compliance. 

Though it is a Norwegian initiative, we see similar initiatives such as Germany’s Supply Chain Due Diligence Act or the UK’s Modern Slavery Act in other European countries.

Who does the Act apply?

The Act applies to companies registered in Norway, and foreign companies that must pay taxes in Norway. These must meet at least two of the three criteria below:

• At least 50 full-time employees (or equivalent annual man-hours)
• An annual turnover of at least NOK 70 million (£5.9 million)
• A balance sheet sum of at least NOK 35 million (£2.95 million)

Integrating environmental aspects and granting access to justice for victims of corporate abuse are two crucial outstanding tasks for the Norwegian legislation. The European Commission is expected to address them under its Sustainable Corporate Governance initiative, as demanded by an overwhelming majority of respondents to the relevant public consultation.

The Norwegian Consumer Agency is the supervisory body for the Transparency Act, while the Market Council will act as the appeal body for appeals against the Norwegian Consumer Agency’s decisions. These bodies will be able to review the companies’ reports to confirm they fulfill the reporting obligation.

Filed under: All Industries, Compliance Solution, Due Diligence by Roque Fernandes
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The new Dutch Child Labour Due Diligence Law: Some FAQs

On November 13, 2019, the new Dutch Child Labour Due Diligence Law was published in the Dutch Government Gazette. It introduces a duty of care for companies to prevent the supply of goods or services which have come into existence using child labour. Companies likely to be affected must set out a plan of action on how to combat it and issue a due diligence statement on their investigation and plan of action.

Though the exact date the act comes into force is not yet known, companies will have six months from the law’s effective date to submit the required documentation demonstrating compliance with the statute. Companies, even those registered outside the Netherlands, selling goods or services to Dutch end-users are required to exercise due diligence to assess whether the services or goods being supplied have been produced using child labour.

Under the Act, firms are required to ensure due diligence through the following:

• Investigate their supply chains to identify any suspicion of child labour
• Draft and implement a plan of action to terminate child labour if identified from investigations
• Create an action plan to avoid the use of child labour
• Submit a declaration to the yet-to-be-determined regulatory body, affirming that they have exercised an appropriate level of supply chain due diligence to prevent child labour

In cases of non-compliance with the Child Labour Due Diligence Law, the supervisory authority must first issue a compliance order. It can only impose an administrative fine if the company fails to duly comply with this order.

The Consequences of Failure to Exercise Due Diligence

Non-compliance with the obligation to submit the required statement can result in an administrative fine of a maximum of EUR 4,350 or a fine of up to EUR 8,700. Failure to exercise due diligence or develop and execute a plan of action as required by the Act may result in a fine of up to EUR 870,000 or a fine of up to 10% of the company’s turnover in the preceding financial year.

Repeated non-compliance with the Act within five years of the imposition of an administrative fine is an economic offense under the Dutch Economic Offences Act. While the Act’s criminal provision is ambiguous, company directors could face up to two years in prison or a fine of up to EUR 21,750.

The Act reflects a significant new step in combating child labour in corporate supply chains, introducing mandatory requirements under an administrative and criminal penalty regime. It fits into an increasing global focus on CSR and labour trafficking in corporate supply chains.

Although several aspects of the Act need to be further clarified by subordinate legislation, companies should start assessing the possibility of any form of child labour in their supply chains. They should also consider reviewing whether existing compliance programs will be sufficient to comply with the Act’s requirements.

Several key questions remain: When will the implementation of the law begin? What should the statement include? What constitutes sufficient due diligence? and Which government body will be in charge of regulating and enforcing the law? These elements will be specified in the General Administrative Orders to be announced by the Dutch government. The law’s effectiveness will largely depend on how these administrative orders take form.

Despite its flaws, the Dutch law is a critical moment for the international movement toward mandatory due diligence.

Due Diligence investigations: Mitigate Critical Risks

At CRI®, we provide due diligence services wherever you are. Use our DueDiligence360™ reports to help you comply with anti-money laundering, anti-bribery, and anti-corruption regulations ahead of a merger, acquisition, or joint venture. You can also use them for third-party risk assessment, onboarding decision-making, and identifying beneficial ownership structures.

On November 13, 2019, the new Dutch Child Labour Due Diligence Law was published in the Dutch Government Gazette. It introduces a duty of care for companies to prevent the supply of goods or services which have come into existence using child labour. Companies likely to be affected must set out a plan of action on how to combat it and issue a due diligence statement on their investigation and plan of action.

Though exact date the act comes into force is not yet known, companies will have six months from the law’s effective date to submit the required documentation demonstrating compliance with the statute. Companies, even those registered outside the Netherlands, selling goods or services to Dutch end-users are required to exercise due diligence to assess whether the services or goods being supplied have been produced using child labour.

Under the Act, firms are required to ensure due diligence through the following:

• Investigate their supply chains to identify any suspicion of child labour
• Draft and implement a plan of action to terminate child labour if identified from investigations
• Create an action plan to avoid the use of child labour
• Submit a declaration to the yet-to-be-determined regulatory body, affirming that they have exercised an appropriate level of supply chain due diligence in order to prevent child labour

In cases of non-compliance of the Child Labour Due Diligence Law, the supervisory authority must first issue a compliance order. It can only impose an administrative fine if the company fails to duly comply with this order.

LET’S TALK ABOUT CHILD LABOUR DUE DILIGENCE LAW

The Consequences of Failure to Exercise Due Diligence

Non-compliance with the obligation to submit the required statement can result in an administrative fine of maximum EUR 4,350 or a fine of up to EUR 8,700. Failure to exercise due diligence or develop and execute a plan of action as required by the Act, may result in a fine of up to EUR 870,000 or a fine of up to 10% of the company’s turnover in the preceding financial year.

Repeated non-compliance with the Act within five years as of the imposition of an administrative fine is an economic offense under the Dutch Economic Offences Act. While the Act’s criminal provision is ambiguous, company directors could face up to two years in prison or a fine of up to EUR 21,750.

The Act reflects a significant new step in combating child labour in corporate supply chains, introducing mandatory requirements under an administrative and criminal penalty regime. It fits into an increasing global focus on CSR and labour trafficking in corporate supply chains.

Although several aspects of the Act need to be further clarified by subordinate legislation, companies should start assessing the possibility of any form of child labor in their supply chains. They should also consider reviewing whether existing compliance programs will be sufficient to comply with the Act’s requirements.

A number of key questions – such as when the implementation of the law will begin, what the statement should include, what exactly constitutes sufficient due diligence, and which government body will actually be in charge of regulating and enforcing the law – remain unanswered for now. These elements will be specified in the General Administrative Orders to be announced by the Dutch government. The law’s effectiveness will largely depend on how these administrative orders take form.

Despite its flaws, the Dutch law is a critical moment for the international movement toward mandatory due diligence.

LET’S TALK ABOUT CHILD LABOUR DUE DILIGENCE LAW

Due Diligence Investigations: Mitigate Critical Risks

At CRI™, we provide due diligence services wherever you are. Use our DueDiligence360™ reports to help you comply with anti-money laundering, anti-bribery, and anti-corruption regulations ahead of a merger, acquisition, or joint venture. You can also use them for third-party risk assessment, onboarding decision-making, and identifying beneficial ownership structures.

Due Diligence helps you Identify key risk issues clearly and concisely using accurate information in a well-structured and transparent report format. Our comprehensive range of reports includes specialised reports that support specific compliance requirements. Protect your reputation and the risk of financial damage and regulator action using our detailed reports. They enhance your knowledge and understanding of the customer, supplier, and third-party risk, helping you avoid those involved with financial crime.

The CRI Group™ invites you to schedule a quick appointment with them to discuss in more detail how conducting due diligence and compliance can help you and your organisation.

Based in London, CRI Group™ works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, TPRM, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group™ also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

CONTACT US

Filed under: All Industries, Compliance Solution, Due Diligence by Roque Fernandes
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How does Human Rights Due Diligence Legislation in EU affect Asia

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Case Study: Lessons Learned from Employee Fraud

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What’s Your Plan of Action for Mandatory Due Diligence?

There is growing momentum among governments all over the world that calls for Mandatory Due Diligence. This requires companies to undertake human rights and environmental due diligence. We now have the French Duty of Vigilance Law and the adoption in 2021 of new laws in Germany and Norway to the publication of a proposal for an EU-wide law in 2022, all moving in this direction. Major investors and companies are also speaking out in favour of such legislation, according to business-humanrights.org

Corporates will not be allowed anymore to focus on short-term benefits at the expense of long-term sustainable value creation. Environmental and social interests will also need to be fully woven into business strategies of the corporates.

Improving Commitment to Mandatory Due Diligence

Corporates are bound to get in line with human rights due diligence guidelines, as prescribed by the UN Guiding Principles on Business and Human Rights. Yet very few actually comply with the standards and nearly half of the biggest companies in the world analysed in the latest Corporate Human Rights Benchmark could not produce any proof of mitigating human rights issues in their supply chains.

The KnowTheChain benchmarks showed companies scoring a poor 29% for their human rights due diligence efforts — something that mandatory human rights and environmental due diligence laws seek to address.

For these laws should to be effective, a few important factors need to be factored in, such as a due diligence obligation for businesses across their global value chains; an effective and safe stakeholder engagement; mandatory requirements that go beyond routine check and audits, a thorough look at irresponsible business models and purchasing practices, and strong civil liability enforcement.

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We can help with Mandatory Due Diligence

The CRI Group™ has developed a highly specialised assessment solution for Corporate Due Diligence and Third-Party Risk Management to assist organisations in accurately identifying, preventing, mitigating and addressing actual and potential adverse impacts of affiliating with global partners and complies with all EU mandates.

From enhanced due diligence to identify non-compliance of the regulatory framework and damaging environmental allegations to investigating company (or stakeholder) human rights violations related to labour laws, child labour or human trafficking, CRI Group experts help determine the legal compliance, financial viability, and integrity levels of outside partners and suppliers affiliated with your company’s value chain.

The Benefits of Compliance

Recent studies have demonstrated a positive correlation between the extent to which companies implement environmental, social and good governance policies, and their overall economic performance, all while contributing to a more stable global marketplace. Such responsible business conduct will:

• Enhance protection for workers
• Improve access to justice for victims
• Safeguard the environment
• Ensure fair products for consumers

Further, apart from general compliance with EU mandates, such organisations will benefit from:

• Reduced overall liability risks
• Improved stakeholder protection
• Lower costs resulting from conflicts
• Improved company transparency
• More profound knowledge of the value chain
• Enhanced reputation in the market &
• Improved social standards for workers

CRI Group’s corporate due diligence and accountability solutions can help your organisation comply with a growing list of global regulations and mandates related to human rights and the environment while acting as an integral part of your business decision-making and risk management systems. 

Contact the CRI Group to learn more about our Corporate Due Diligence and Accountability solutions and stay one step ahead of the pending EU mandates. We look forward to assisting you.

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About CRI Group™

Based in London, CRI Group™ works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC™) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. Contact ABAC™ for more on ISO Certification and training.

Filed under: All Industries, All Regions, Compliance Solution, Due Diligence, Leadership Insights by Roque Fernandes
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EU: Can IP Infringements Cost You Your Life?

The Intellectual Property Commission estimates that IP infringements in the form of counterfeit goods, trade secret theft, and pirated software costs the US economy $225 billion to $600 billion.

Following the outbreak of the COVID-19 pandemic in late 2019 and its subsequent spread around the world, counterfeiters have turned their attention to producing fake testing kits, counterfeit personal protection equipment and, even before the authorities have approved treatments, fake medicines purporting to cure the disease, according to the 2020 status report by the European Union Intellectual Property Office (EUIPO) and the Organisation for Economic Co-operation and Development (OECD).

The joint report on counterfeit medicines showed that not only ‘lifestyle’ medicines but also medicines to treat serious diseases, including antibiotics, cancer therapies or heart disease medications, are subject to being counterfeited, with potentially deadly consequences for the patients who consume those medicines.

This report underlines the importance of IP rights to the EU economy and, therefore, to any recovery from the Covid-19 crisis, which has dominated the first half of 2020 and threatens to have long-lasting effects. It brings together the findings of the research carried out in recent years by the EUIPO, through the European Observatory on the infringement of Intellectual Property Rights, on the extent, scope and economic consequences of Intellectual Property Right (IPR) infringement in the EU.

The Status Report also contains research on the volume of counterfeit and pirated goods in international trade and the economic contribution of intellectual property-rights intensive industries to economic growth and jobs.

IP Rights and your employees

Depending on the type of business you are involved in, it is likely that your employees will create certain types of intellectual property in the course of their employment with you. This is especially true if they are involved in compiling databases, creating marketing material and training brochures. Since the IP rights here belong to the company they work for, an employee contract will serve to protect you here. 

It is also vital here to run background checks on employees before you hire them.

Employee Background Checks

Simply investing in sufficient employment screening services can save you time, money and heartbreak. The CRI Group is a leading worldwide provider, specialising in local and international employee background check, including pre employment background check.

Our employee background checks services, also known as EmploySmart™, is a robust new pre employment screening service certified for BS7858 to avoid negligent hiring liabilities and prevent horror stories and taboo tales within HR, your business, or your brand. 

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How the CRI Group™ can help you tackle IP infringement

CRI Group’s Intellectual Property Investigations team helps companies identify threats to IP and confidential information internally and throughout their supply chain, develop the appropriate mitigation strategies and investigate suspected infringements.

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For further information on IPR infringement or to book a meeting with our experts, click here.

Filed under: All Industries, Background Investigation, Business Intelligence, Compliance Solution, Due Diligence, Employee Background Check, Investigative Solution by Roque Fernandes
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The mandatory Corporate Sustainability Due Diligence: How to comply?

The European Commission on 23 February 2022 adopted a long-awaited proposal for a Directive on mandatory corporate sustainability due diligence for widely-defined specified “companies”. The proposals cover obligations throughout the value chain and also attach to non-EU companies which meet specific criteria.

Companies need to prepare now both across their own business operations and their value chain to comply with the proposed Directive. While 2024 is the earliest the Directive will come into effect, the lead time will be needed to put compliant measures in place, or to face civil liabilities and significant fines based on turnover.

How does the mandatory corporate sustainability due diligence directive work?

The proposed Directive establishes a corporate sustainability due diligence duty requiring specific companies to identify and, where necessary, prevent, end or mitigate the potential or actual adverse impacts of their activities on human rights and the environment. Companies will have to publicly communicate their findings in an annual report and there are express directors’ duties.  A European Network of Supervisory Authorities will be created to ensure coordination and alignment between Member States, as per a report on cms-lawnow.com 

The proposal recognises the important role that directors will play in this process, such that new directors’ duties are proposed to set up and oversee the implementation and integration of sustainable due diligence into the corporate strategy, and a remunerative incentivisation used to ensure climate change is incorporated within the scope of the corporate plan. A director’s duty to act in the best interest of a company will now include expressly taking into account the human rights, climate change and environmental consequences of their decisions in the near, medium and long term.

Accompanying Measures

Although SMEs are not directly in scope of the proposal, the Commission proposes accompanying measures to support all companies that may be indirectly affected by the broad application of the draft Directive.

Member States are required to ensure that natural and legal persons are entitled to submit substantiated concerns to any supervisory authority when they have reasons to believe, on the basis of objective circumstances, that a company is failing to comply with the national provisions adopted pursuant to the Directive. They are also obliged to establish civil liability regimes where companies are liable for damages if they fail to comply with the due diligence rules and as a result of this failure an adverse impact that should have been identified, prevented, mitigated, brought to an end or its extent minimised through appropriate measures occurs and leads to damage.

Implications of the corporate sustainability due diligence directive

Once the final version of the Directive is transposed, procedures and training will be required to ensure that companies have the requisite systems in place to be able to comply with the obligations and provide such reports. This will involve dialogue throughout the value chain and changes to existing contractual arrangements. Those not directly in scope should also consider their position and potential new requests for information to assist in the due diligence process by others. Once legislation is implemented, non-compliance can result in fines or orders issued requiring the company to comply with the due diligence obligation. Victims could also obtain compensation for damage due to non-compliance with this legislation, says cms-lawnow.com 

The way forward

The proposal will be presented to the European Parliament and the Council for debate. Once a text is agreed, approved, and then adopted, Member States will have two years to transpose it into national law. This initiative is part of a wider corporate sustainability package intended to advance the European Green Deal which also announced an agreed Council position on the Commission’s proposal for a Corporate Sustainability Reporting Directive. 

The German Supply Chain Due Diligence Act

In January 2023 a new German law, known as the Supply Chain Due Diligence Act, becomes effective and applies to companies operating or trading in Germany. The law introduces a legal requirement for businesses to manage social and environmental issues in their supply chains, through more responsible business practices.

The Act requires businesses to undergo significant efforts in order to achieve compliance. In this eBook, we will provide a first outline of the Act’s material contents and an in-depth analysis of the applicability of the Act to various corporate structures.

This eBook is the collection of a series of articles in which we will take a closer look at key issues, especially addressing the question of what you can do to adequately prepare yourself at this early stage. We would be happy to provide you with individual advice, as well. Please do not hesitate to contact us. If you cannot find what you are looking for, please feel free to get in touch with the team! Let’s talk

 

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Filed under: All Industries, Background Investigation, Due Diligence by Roque Fernandes
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Employee Background Screening: Fake CV Lands a Top NHS Job… Are Your Employees Telling the Truth?

Is Employee Background Screening as critical as they make it out to be?

A former builder who faked his CV to land a series of top NHS jobs has finally been forced to pay the full price for his ‘staggering lies’, says a shocking report on timesnewsuk.com/

After Andrewes was exposed he was convicted of fraud, jailed for two years and ordered to hand over all his remaining assets of £96,737. But the confiscation order was overturned by the Court of Appeal two years ago when judges ruled he had given ‘full value’ for his salary in the jobs he did. Now, more than five years after pleading guilty to fraud charges, Andrewes has had the financial penalty reinstated by the Supreme Court and must pay back nearly £100,000. 

Under his fake persona, Andrewes insisted on staff calling him ‘Dr’ and claimed to have degrees from three universities. But his only genuine higher education qualification was a certificate in social work. After starting as a builder he spent much of his career as a probation officer, customs officer or youth worker before inventing a new life for himself as an NHS manager.

However, an investigation at the hospice uncovered discrepancies in his CV and led to police being called in. ‘He came across as very knowledgeable and competent,’ recalled David Shepperd, former head of legal services at Plymouth City Council, who liaised closely with Andrewes on a council-funded green project. ‘He was an affable, nice guy to deal with.’

‘It beggars belief that no due diligence was carried out when he was appointed to these roles in the NHS,’ says an NHS source, quoted in the timesnewsuk.com report.

LOOKING FOR UK SCREENING?

The UK Screening Module covers:

• Identity Check: An independent check to authenticate an individual’s identity using various sources of stated data.
• Regulated Employment History & References: Regulated employment references to confirm previous employment details.
• Academic Qualifications: Confirmation of highest academic qualification, including details of institution and dates attended.
• Professional Qualifications: Confirmation of latest or most relevant Professional or Trade Memberships.
• FSA Register Search against the UK Financial Services Authority Individual Register and Prohibited Persons Register
• UK Credit Check Check to determine the general credit worthiness of the candidate.
• Directorship Search: Search for UK Directorships and any disqualifications.
• Negative Media Search: Search of press and other media focusing on derogatory information only.
• Compliance Database Check: Search for inclusion in governmental sanctions, enforcements, watchlists, blacklists and criminality.
• Criminal Record Checks — Standard Disclosure: A check of all convictions held on the PNC.

More details on the UK Screening Module can be had here.

A business must understand its exposure when hiring and type of insurance coverage and limits – does your policy cover a negligent hiring lawsuit? The checks are critical to any company’s success – hiring qualified, honest, and hard-working employees is an integral part of thriving in the business community.

DOWNLOAD THE EMPLOYEE BACKGROUND SCREENING FAQs HERE

Filed under: All Industries, Due Diligence, Employee Background Check, United Kingdom, London by Roque Fernandes
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