By Adam Turteltaub
Compliance is never easy, and it is especially difficult for mid-sized companies in emerging markets. Many of them operate in countries where there is not even a word in the native language for compliance.
Frank Brown and Anna Kompanek of the Center for International Private Enterprise (CIPE) help companies meet this challenge. Fortunately, they report in this podcast recorded at the 2019 Compliance and Ethics Institute in Berlin, help is coming. Large, international businesses that they partner with are encouraging, and often requiring, compliance programs from firms in their supply chain. This has helped midsized firms see the benefits of investing in compliance, not just as a means to prevent corruption but also as a way to have a more complete risk management system.
At the same time, though, challenges remain. Some tools offered by risk management vendors are causing confusion. ISO37001 is sometimes presented as a panacea but can be a trap because of its one size fits all approach, they argue, and many midsized companies don’t have the resources to comply with the standard.
In sum, it’s a challenge, but by listening in to the podcast compliance professionals in large companies will gain a better appreciation of the struggles of their midsized suppliers in developing markets.