With research showing that the Asia Pacific experiences the worlds highest levels of global corporate fraud, two compliance companies have formed a new partnership to provide comprehensive compliance management solutions, including critical whistle-blowing hotline services.
The partnership is between integrated ethics and compliance solutions provider Global Compliance and Q2 Consulting, a Singapore-based company that specializes in compliance and background screening.
MIS Asia editor Ross O. Storey asked Global Compliance CEO, Jim Burke, how CEO how important is was for Asia enterprises to have compliance management solutions in place and what risks they faced if they dont.
Compliance management solutions are extremely important for all organizations - regardless of industry and geographic location. Compliance solutions are part of an overall program to identify risk areas within a business and mitigate those risks as quickly and efficiently as possible.
The reputational and financial risks to a business increase when misconduct is not detected or resolved when it starts. And we know that comprehensive compliance programs work - whether implemented in the US, Europe or Asia. Comprehensive programs significantly improve compliance, reduce misconduct and increase awareness of potential violations for management and the Board. For example, according to the Ethics Resource Center National Business Ethics Survey, 96 per cent of employees observe misconduct at companies with a weak or non-existent compliance program. However, that number improves to 35 per cent of employees at companies with comprehensive compliance programs.
The bottom line: Ethics and compliance knows no boundaries especially in our interconnected business environment. The rules in the US apply to US companies doing business around the world, including Asia and apply to those non-US based companies with operations in the US, who are on US-based exchanges and increasingly for those businesses that are part of a global supply chain. If a company wants to be a credible business partner, they must have a credible compliance program.
How would you describe the current corporate compliance, ethics and governance environment in the Asia Pacific and which industry sectors are most vulnerable to corporate fraud?
The US and Europe have traditionally been more advanced in the implementation of compliance programs than the Asia Pacific market. However, the demand in Asia is increasing due to overall awareness surrounding bribery, corruption and fraud and the pressures arising from the global marketplace. There is no one industry that is most vulnerable. Fraud and other areas of misconduct are prevalent across industries.
While low awareness of effective compliance programs adds to the challenge in APAC, the good news is that companies do not need to reinvent the wheel Global Compliance has developed best practices over the past 30 years driven by practical experience and by US legislation such as Sarbanes-Oxley. APAC based organizations can jump start their compliance programs by partnering with a company like Global Compliance.
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