The new law on corporate due diligence and corporate accountability will set the standard for responsible business conduct in Europe and beyond, are you ready?
CRI® Group Corporate Due Diligence and Corporate Accountability solution helps your business operating in the EU to comply with all EU mandates. The New legislation presented by EU Parliament requires companies operating in the EU to “identify, address and remedy their impact on human rights and the environment throughout their global value chains”. Organisations are liable for the conduct of their partners. Lack of due diligence will get organisations into trouble.
Did you know that “In 2017, nearly 25 million people categorised as victims of forced labour” (International Labour Organisation, 2017 report)?
Or that “From 2000-2012, nearly 25% of all tropical deforestation was due to illegal agro-conversion for export markets – 2019 study?”
Global economies have significantly benefited from an increase in cross-border and international business partnerships, which has led to a substantial expansion of the global value chain. Subsequently, more and more companies are being exposed to potential liability by unscrupulous third-party providers in their supply chain pipeline with little respect for business ethics, human rights, or the environment.
There is a growing concern worldwide of the many supply chain businesses linked to severe abuses, including exploitative working conditions, modern slavery and child labour, toxic pollution, rampant destruction of rainforests, and a general disregard for corporate governance. For decades, companies have voluntarily monitored supply chain partners for bad behaviour, but this self-policing has been limited.
But now, the European Union Parliament has presented mandates for EU businesses – under penalties of law – to carry out due diligence to identify, prevent, mitigate and account for actual or potential human rights violations and negative environmental impacts in their operations and supply chain.
That law requires of companies their best efforts to identify and address adverse impacts on human rights, the environment and governance, and this in their entire value chain, inside and outside the Union.
This directive would apply to all EU businesses and non-EU organisations doing business in the EU (such as selling goods or services). Regardless of where the company is headquartered, if it does business in the EU and is of any substantial size, the directive would likely apply.
The legislation would require companies operating in the EU to conduct effective due diligence to identify, address and remedy their impact on
- Human rights (including social, trade union, and labour rights),
- Environment (contributing to climate change or deforestation) and
- Good governance (such as corruption and bribery) throughout their global value chain.
At CRI® we believe that to transform supply chains in a meaningful way, due diligence should be exercised by all companies with risks in their supply chain. To find out more on how we can help you contact us today.
If a company fails to conduct due diligence on a third-party partner that engages in slave labour, pollutes the environment, manipulates the price, or violates jurisdictional regulations, that company is essentially complicit in the partnering company’s illegal behaviour. It may be held liable in a court of law.
Aside from legal and monetary penalties, the company further risks a tarnished reputation in the market and a devaluation of its brand.
Companies (big or small) that want to access the EU internal market, including those established outside the EU, would have to prove that they comply with environmental and human rights due diligence obligations.
Parliament calls for additional measures, including a ban on importing products linked to severe human rights violations such as forced or child labour. EU trade agreements should include these aims in their trade and sustainable development chapters.
In order to guarantee effective reparations for victims, companies should be held liable for their actions and be fined for causing harm or contributing to it, unless they can prove that they have acted in line with due diligence obligations and taken measures to prevent such harm. The rights of victims or stakeholders in third countries – who are especially vulnerable – would also be better protected, as they would be able to take companies to court under EU law.
Identify Unethical Behavior and Protect Your Organisation with 3PRM™, Corporate Due Diligence and Risk Management
It’s crucial for businesses utilising global supply chain partners to conduct due diligence and assess the potential risks that a third party may pose to your organisation, particularly when addressing risks associated with environmental damage and human rights violations.
CRI® 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 complies with all EU mandates.
From enhanced due diligence to identify non-compliance of the regulatory framework and negative environmental allegations to investigating company (or stakeholder) human rights violations related to labour laws, child labour or human trafficking, CRI® experts help determine the legal compliance, financial viability, and integrity levels of outside partners and suppliers affiliated with your company’s value chain.
Explore our Third-Party Risk Management and Due Diligence solutions to find out more. CRI® Corporate Due Diligence and Accountability solution helps your business operating in the EU to comply with all EU mandates.
“The global pandemic has demonstrated that resilient global supply chains that protect both the people and planet will be crucial to companies and economic recovery in the future”, Transparency International EU.
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:
• Enhances protection for workers
• Improves access to justice for victims
• Safeguards the environment
• Ensures fair products for consumers
Further, apart from general compliance with EU mandates, such organisations enjoy a wealth of intangible benefits, including:
• Reduced overall liability risks
• Improved stakeholder protection
• Lower costs resulting from conflicts
• Improved company transparency
• Deeper knowledge of the value chain
• Enhanced reputation in the market
• Improved social standards for workers
Are you prepared to conduct a due diligence assessment on your global partners and stay one step ahead of the pending EU mandates? Join the ethical and responsible businesses around the world.
RISK MANAGEMENT MADE EASY
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.
IT (Internet technology) and telecommunications industry providers are the engines that help power commerce on a global scale. This massive industry includes companies that provide the infrastructure for communication across multiple countries and continents, including...Read More
Fraud is of the utmost concern for finance and professional services organisations. These include banks & financial institutions, real estate lenders, business credit and finance companies, commercial investment corporations, asset-based lenders, debt financing firms, acquisition...Read More
Fraud involving pharmaceutical companies and healthcare providers constitutes a major source of economic waste affecting countries around the world. In spite of increased awareness of the problem and the application of sophisticated anti-fraud mechanisms, individual actors and...Read More
Risk management is a full-time, ongoing endeavour for organisations in today's business world, and it poses constant challenges. Unfortunately, fraud, bribery and corruption are major factors affecting businesses and agencies of all sizes and industries....Read More
Inadequate due diligence hit SPAC Momentus $8 million SEC fine Inadequate due diligence hit SPAC Momentus $8 million SEC fine after misleading investors. The Securities and Exchange Commission (SEC) has charged the Momentus particular purpose...Read More
The global pandemic is rattling economies worldwide, disrupting supply chains, interrupting production, wreaking havoc on industry sectors and shuttering businesses; this is ultimately having an impact on the third-party relationships businesses have. It's highly probable...Read More
UK solicitor, Andrew Davies defrauding his firm £2.3m jailed A former senior partner, the UK solicitor, has been jailed for four years after defrauding his firm out of a total of £2.3m. Andrew Davies, 59,...Read More
Corporate due diligence and corporate accountability, ending an era of voluntary policing. A new EU mandate places liability on companies unable to assess and mitigate unethical third-party behaviour. New legislation requires companies operating in the EU...Read More
John Wood Group bribery probe trace back to its merger with Amec Foster Wheeler Plc. John Wood Group Plc has agreed to pay $177 million to settle the UK led bribery and corruption probe into a...Read More
There are many risks implicit in doing business, and CEO's and risk management officers face many internal and external threats. Most organisations face preventable risks; however, the burden of identifying risks can be too much,...Read More
Procurement risks: your lack of due diligence can lead to harm Procurement risks: lack of due diligence can lead to harm. Procurement is one of the most critical areas of any organisation, large or small....Read More
BS 7858:2019 Standard: A new way to mitigate employee risk during COVID-19 BS 7858:2019 Standard is the revised standard for screening individuals working in secure environments. The far-reaching impact of the COVID-19 outbreak has affected...Read More
Running worldwide businesses requires effectively recognising, analysing and managing risks and ensuring compliance. We have identified that many organisations having third-party relationships conduct inadequate due diligence that might posses significant risks. In this article, we...Read More
The recent update of the BS7858 standard, “Screening of Individuals Working in a Secure Environment – Code of Practice,” places emphasis on the risk assessment of secure environment workers. The code focuses on the need for tighter...Read More
CRI Group is launching a third-party compliance verification and certification program - 3PRM-Certified™ - across the Middle East, Europe and Asian region. This Third-Party Risk Management (TPRM) program can help organisations establish the legal compliance, financial viability,...Read More
SEC’s Office of Compliance Inspections and Examinations Issues COVID-19 Risk Alert Lexology reported that “On August 12, 2020, the SEC’s Office of Compliance Inspections and Examinations (OCIE), issued a risk alert highlighting COVID-19 compliance risks and...Read More
International Chamber of Commerce (ICC) has launched an Anti-corruption Third Party Due Diligence guide for small and medium size entities. SMEs are often on the receiving end of burdensome due diligence procedures of large multi-national companies....Read More
Third party risk management, how to survive in a brave new world? Third party risk management. The Current Business Climate Requires a Review and Reassessment of Your Organisation's Third-Party Relationships. We won't soon forget the...Read More
Middle east corruption is a threat to the world. The United Arab Emirates (UAE) is a land of complex extremes where fabulous wealth and supercars live right next to staggering poverty. This is generally a recipe for fraud and...Read More
Every successful leader has encountered a challenging scenario at some point in their career. The unprecedented COVID-19 pandemic, however, has forced leaders to face unforeseen new challenges. With the pandemic’s colossal impact on operations, workforces,...Read More
On 30 January 2017, following a four-month trial, former HBOS employees Scourfield and Mark Dobson involved in HBOS scandal were convicted of fraud and corruption involving a scheme that cost the bank £245m. Scourfield pleaded guilty to...Read More
What does an embezzler spend their money on? In the case of a New York man’s alleged fraud, just about everything, apparently. According to IDentutyUSA identity theft is on the rise during COVID-19 pandemic. Experts predict...Read More
When to conduct third-party screening? Why do organisations screen their employees but not the companies they work with? Failing to screen third-party screening to the same level as permanent staff will increase your risks on...Read More
Fraud poses a major threat to the UK and the world. The slow progress in fighting fraud in 2019 was evident to all of us with the never-ending stream of news stories documenting bribery and corruption cases around the...Read More
The Fraud Advisory Panel have set up a COVID-19 fraud watch group. A cross-sector and cross-industry coalition of trusted partners (including the Cabinet Office and City of London Police) who meet weekly to share information...Read More
When you download an app and it asks to access your contacts, location, and other information, it seems harmless enough, right? Surely the app will only use your data for its stated purpose, and only...Read More
Fraud and corruption are always evolving. Changes in methods, technology and other factors make it critically important those trying to prevent and detect it to evolve, as well. Part of that process is to analyse...Read More
Third Party Risk Management Strategy Third party risk management strategy. A business owner knows that one cannot produce a complete set of products and services to offer to their customers. Still, the need exists for...Read More
Gender-based violence is constantly on the rise - research by the UN Women, “The economic costs of violence against women” suggests that the cost of violence against women is 2% of global GDP, equivalent to US$1.5 trillion - incorporating gender-based violence...Read More
In 2016, responding to the need for a global standard to help organisations prevent and detect bribery and corruption, the International Organization for Standardization (ISO) introduced ISO 37001: Anti-Bribery Management Systems. This certification provides the...Read More
Your company's security begins at the hiring process It's an exciting time for a company when business is growing and there is a need add more employees and start a hiring process. One organisation that was...Read More
CRI Group has been approved by the HRO Today Association as a Certified Provider to the human resources services industry. CRI Group completed a rigorous audit process and “demonstrated a high level of accountability of...Read More
In a time of crisis, we often see the best in people. Even before COVID-19 was officially classified by the World Health Organisation (WHO) as a global pandemic, citizens and government leaders alike were praising...Read More
Third-Party Risk Management Compliance Program: Does your business have a Third-Party Risk Management (TPRM) Compliance Program? Are you establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to...Read More
These are challenging and complex times. COVID-19 is forcing organisations to adapt quickly and change their business model in the process. In an era of compliance, with many regulations and regional "interpretations", leaders and organisations...Read More
According to the International Monetary Fund (IMF) public sector corruption siphons $1.5 trillion to $2 trillion annually from the global economy in bribes and costs far more in stunted economic growth, lost tax revenues and...Read More
It's a well-known World Bank statistic, but one that bears continual repeating: More than US$1.5 trillion – or 2% of world gross domestic product – is paid in bribes each and every year, contributing to...Read More
Risk management requires continuous improvement. Without a company culture strongly aligned with principles of continuous improvement, organisations will struggle to implement, let alone maintain successful risk management programs. This can be challenging in practice, as cultivating...Read More
Anti-bribery and anti-corruption efforts are a huge priority in the South Asia Region, with many governments trying to strengthen laws and enhance enforcement in both their private and public sectors. As recent high-profile corruption cases...Read More
In one case, an enforcement agent for a Malaysian government department pleaded guilty for receiving a bribe from a business owner. In another, a U.S. district attorney from Philadelphia was accused of taking cash in...Read More
Managing the third party risk Managing the third party risk. It's highly probable that, at some point, organisations that affiliate with outside providers will eventually have to deal with an operational interruption resulting from a...Read More
Bribery and corruption are serious concerns to businesses, government agencies and non-profit organisations. In fact, the risk of being associated with the negative impacts of this type of fraud extends to third party partners and...Read More
Economic crime (also known as financial crime) principal catalysts is monetary gain. However economic crime not only has a devasting effect on individuals and communities but when associated with organised crime and terrorist financing it...Read More
GET INDUSTRY NEWS DELIVERED TO YOUR INBOX
Sign up for risk management, compliance, corporate and background investigations, business intelligence and due diligence related news, solutions, events, and publications.