The many (dis)guises of corruption: battling bribery in your global business practices? Incorporate technology and automation to bolster your risk management.

• Author: Lea, Melissa
• Position: CORPORATE ACCOUNTABILITY AGENDA

THERE'S NO QUESTION today's global economy provides great opportunity. But it also presents a myriad of new risks as multinational businesses expand into new and emerging markets. One of the most significant risks is the potential for bribery or corruption.

Understanding and addressing this risk is more complicated than it may first appear, especially when cultural differences and varying legal requirements in new markets come into play.

Businesses must take reasonable steps to establish policies, improve controls, and ensure senior-level oversight of global operations. The right people must be given authority to drive anticorruption efforts and be made accountable. The board needs to understand what constitutes corruption in different countries. And the company must be prepared to walk away from potentially corrupt transactions--all of which requires advance identification of potential corruption.

One essential element to protecting your business and brand, and to ensuring ethical standards are followed across the globe, is adopting technology that keeps everyone apprised of what's being done in the company's name.

The predominant missteps

What's legal and illegal? The types of corrupt practices possible are limited only by the imaginations of those intent on corrupting. However, missteps generally fall into three categories:

* An employee offers an outright bribe to influence a business decision. This is the most obvious type of misconduct and must be prohibited by clear and well-publicized policies.

* Gifts and entertainment are so excessive that they appear designed to influence decisions. Clear policies and consistent enforcement can help employees distinguish between a small business courtesy and something resembling a bribe.

* Independent third parties retained by a company engage in some seemingly illegal activity on the company's behalf.

The first two scenarios are within your control, because they involve employees. The third scenario, however, presents unique challenges, because third-party sales agents, suppliers, distributors, and consultants aren't directly employed by the company. In this situation, communicating and enforcing company expectations is a priority, because you can be held accountable for third-party conduct. The challenge, however, is getting a clear view of all third-party relationships and their status (which can change frequently).

The right data gives you a holistic view of third-party practices, enabling...