--- title: Zero Tolerance to Corruption in Your Supply Chain description: Stop any increasing unethical conduct in your Supply Chain... image: https://blog.prophetic-technology.com/hubfs/markus-spiske-11655641-unsplash.jpg --- [hello@psdtohubspot.com](mailTo:hello@psdtohubspot.com) [+91 8874569874](tel:+91%208874569874) Hours : Opens 10:00 AM To 07:00 PM [![logoHD](https://blog.prophetic-technology.com/hs-fs/hubfs/logoHD.jpg?width=2500&name=logoHD.jpg "logoHD")](https://www.prophetic-technology.com/) - [Home](https://www.prophetic-technology.com/home) - [Subscribe](https://www.prophetic-technology.com/pt-blog-subscribe-opt-in-consent?hsCtaTracking=174cc371-9cdc-4b94-a32e-9007f0ac4dea%7C0776642c-2604-4695-8e3f-f7a74f10031a) - [Contact Us](https://www.prophetic-technology.com/contact-us-old) - [supply chain](https://blog.prophetic-technology.com/topic/supply-chain) - [risk](https://blog.prophetic-technology.com/topic/risk) # [Zero Tolerance to Corruption in Your Supply Chain](https://blog.prophetic-technology.com/zero-tolerance-to-corruption-in-your-supply-chain) When was the last time your firm embarked on a corruption-risk evaluation? [Read More →](https://blog.prophetic-technology.com/zero-tolerance-to-corruption-in-your-supply-chain) - [supply chain (286)](https://blog.prophetic-technology.com/topic/supply-chain) - [technology (138)](https://blog.prophetic-technology.com/topic/technology) - [logistics (81)](https://blog.prophetic-technology.com/topic/logistics) - [procurement (69)](https://blog.prophetic-technology.com/topic/procurement) - [optimisation (65)](https://blog.prophetic-technology.com/topic/optimisation) Posted by [Dave Food](https://blog.prophetic-technology.com/author/dave-food) on May 28, 2019 4:56:44 PM ![Dave Food](https://app.hubspot.com/settings/avatar/9fa060d35f0f962fafafe972c24035ae) Find me on: [Facebook](https://www.facebook.com/davefood) [LinkedIn](https://www.linkedin.com/in/davefood) [Twitter](https://www.twitter.com/davefood) When was the last time your firm *embarked on a corruption-risk evaluation*? The latest research shows that only 4% of companies in North America and Europe have implemented a periodic assessment, and only 2% in Latin America, EMEA and China. *A blue-low percentage, by the way!* Therefore, several governments and companies are considering a reactive-*line of attack to eradicate corruptions, punishing with jail* workers involved in **bribery**. The continued efforts of most countries to *control corruption seems to be failing*, causing a *crisis of democracy* around the world; *undemocratic* and *populist politicians* use it to their advantage, according to **Transparency International 2018 Corruption Perception Index**. Lots of surveys and experts’ assessment reveal a *link between corruption* and *the health of democracies*, finding that *autocratic regimes* perform worst. Corruption *has penetrated all part of different governments*, affecting t*he security* for its citizens and *deliver public services*. It is also *embedded in social practices* becoming an *acceptable part of daily life*. Widespread corruption in *public Procurement sector* and the *oil industry* are among the most affected, whilst *favouritism* in all industries and companies reflects an unfair competition from *state-owned businesses* *dominating the local market*. Mismanagement of *public funds* make *high-level corruption persists*; abuses including *torture*, *arbitrary detention* or *unfair trials continue*. Government cloudiness and lack of public accountability are first problems, plus drug trafficking, organised-criminal networks involved in *illicit trade* have *permeated all levels* of the state apparatus. For instance, the North Korea government severely inhibits fundamental liberties, including *freedom of expression, religion,* and *association*. It prohibits political opposition, independent media, civil society, or trade unions; the *judicial system* is inefficient and disturbed by corruption and a culture of impunity. What governments and society need to do? - Close the gap between *anti-corruption legal code*, and putting it *into practice*. - Enhance the institutes in charge *of inspections* and *balance* over *political power*. - Make sure those organisations have the capacity *to work without coercion*. - Reinforce a free-independent media, and ensure the safety of journalists and their facility to *work without threats* or *persecution*. - Advocate *civil society organisations* which improve political engagement and public management over *government consuming*, particularly at the *district level*. How about the *increasing-unethical conduct in our Supply Chain* (SC)? Corruption in the **SC** is still an *obscured concern* for enterprises, which, in need of the *cheapest workforce* and *low-cost operations*, *offer bribes* to global networks of suppliers, especially to *trade with questionable regimes* and marketplaces with *low-ethics practices*, demanding *extra payments to facilitate* the deal. The permanency of these unethical practices *promotes law-breaking*, *restrains fair competition* and *sustain corrupt politicians.* However, this tendency is *beginning to change*. For instance, top leaders in FIFA were *dismissed* from the football organisation, whilst they were *investigated for corruption crimes*. New regulations will soon be available to control a *variety of dis-honourable commerce risks*. How do they measure it? Due to particular regulatory environments which bring *better inspection*, *expose obligations* and *penalties*, the implementation of *internal control assessments becomes vital***!** Make efforts to *discover the kind of fraud* or *corrupt practices* that might exist within your company, such as *bid-splitting, fraudulent payments* done through “shell companies”, *modifications done* in purchase orders or contracts. To accomplish it, you will need: - Executive’ leadership support. - Transparent systems and reporting, - Clear training for staff with high-*code of conduct policy*. - Investigate and *audit regular*ly. - Count on a precise segmentation of your SC base. - Support transparent partnering, training and reporting. - Carry out random auditing. - A*chieve thoroughgoing checks as* to the *credibility* of the accusations. - Create an independent commission to *improve systems* and *procedures* and *prevent* future chances for corruption. - Build up management programmers reporting to executives, along with training suppliers in anti-fraud and corruption. - A penalty should be enforced if orders vary from standard procedure. Procurement corruption can be more *complex inspections* to undertake. The lack of trust caused by corruption has a *significant impact on everyone*; so, Procurement managers should be *accountable for the reputation* of the enterprise; therefore, they have *to be open* and *honest when keeping both their personal and his company integrity*. **FINAL COMMENTS:** *Disfunctional institutions* facilitate conditions of noncompliance of a regulatory framework that hinders economic competitiveness. *Bribery, deviation* of public/business *funds* and *conflicts of interest* are still present in best-performing countries; the *favouring of results* or intentionally *not documenting meeting outcomes,* or *being obligated* to perform duties out of the code of conduct, are all criminal fraud. Don’t take chances and *deploy well-structured-risk programs* supporting *Transparency*, holds all parties *accountable* and encourages *collaboration* on performance. “**If you find it, report it**."   **Dave Food** [Prophetic Technology](https://www.prophetic-technology.com/) **Subscribe to our emails & exclusive free content.** **[![I want to subscribe](https://no-cache.hubspot.com/cta/default/2979069/174cc371-9cdc-4b94-a32e-9007f0ac4dea.png)](https://cta-redirect.hubspot.com/cta/redirect/2979069/174cc371-9cdc-4b94-a32e-9007f0ac4dea)** - [supply chain](https://blog.prophetic-technology.com/topic/supply-chain) - [risk](https://blog.prophetic-technology.com/topic/risk) - - - ## Post Your Comments Here #### About Us Prophetic Technology is a team of dedicated people that combine their expertise in business domains with a passion to release potential.s every page it appears on. 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