ETHICS & COMPLIANCE: STANDARDS & CONTROLS

Debnath: When developing corporate compliance policies – especially for multinational organisations – should a company strive for single, uniform global policies and standard operating procedures (SOPs)? What issues or challenges might one encounter with such an approach? When is it necessary to have local variations to policies and SOPs?

Anthony: The benefits of developing effective global corporate compliance policies that are consistent across multiple jurisdictions are often self-evident. However, it is also important to recognise that one size does not fit all and operating in certain jurisdictions brings its own unique challenges. One key area organisations need to consider when developing global operating procedures and policies is the various legal and regulatory requirements across different jurisdictions. For example, the Foreign Corrupt Practices Act (FCPA) allows for a facilitation exception, but many other anti-corruption laws, including the UK Bribery Act (UKBA), do not. Other areas for consideration are differences in cultural expectations and practices, and the dos and do nots of client entertainment is an obvious example of where caution needs to be applied. It is important for global standard operating procedures (SOPs) and polices to consider local customs and it is also essential that organisations provide proper training across all jurisdictions. Communications on global SOPs and policies could get lost in translation, so it may be difficult to ensure consistent tone at the top. Some cultures may also be less accepting of certain policies or procedures. For example, a culture that is more deferential to hierarchies may be less receptive to ‘speak up’ policies. Organisations need to find the balance between ensuring global SOPs and policies reflect the local legal, regulatory and cultural environment they are operating in while ensuring they are not varied to the extent that the organisation is exposed to a potential risk.

Jan-Mar 2020 Issue

Nokia Corporation

FTI Consulting

Mayer Brown