By Adam Turteltaub
These days compliance teams play a large role in vetting third parties, especially in high-risk countries and business areas such as sales consultants. But after the vendor is cleared and it’s time to write up the contract, compliance needs to remain involved, according to Amy McDougal, President of CLEAR Resources and Jason Meyer, President of LeadGood.
As they point out in this podcast, the legal team tends to be focused on the typical legal issues, not on how to reinforce the compliance program, including extending rights to audit.
What’s reasonable to expect from your vendors when it comes to compliance? They caution against being overly demanding, especially with smaller vendors. Set to the bar too high and the deal may no longer be worth it for the vendor, or they may sign on the dotted line with no intention of doing what they said they would. Also, expect some resistance from vendors with well-established programs, who likely won’t want to make changes just because their program differs from yours.
And, expect to include audit rights in the agreement. They’re critical if an allegation of wrongdoing is made.
Listen in to learn more about how to ensure your organization’s vendor relationships get off on the right foot and stay that way.