World Economic Forum Report: Good Practice Guidelines on Conducting Third-Party Due Diligence
[GBP NOTE: This is a free report from the World Economic Forum posted April 2013. Highlights include extensive Internal and External DD questionnaires and a sample Red Flag Checklist.]
From the forward:
Companies conducting business overseas face growing legal and reputational risks. These risks have become even more important because of increasingly complex business regulations worldwide, mounting pressure from regulators, enforcement agencies and civil society, and a dramatic increase in levels of business carried out in higher risk jurisdictions.
In the field of anti-corruption in particular, due diligence obligations on third parties have recently expanded in the wake of various laws such as the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act. Under most of these laws, corporate criminal liability can be triggered when the bribe is paid by or through a third party. Companies are therefore incentivized to look into the details of transactions and their related third parties to identify and avoid the risk that third parties could bribe on their behalf.
In 2011, the World Economic Forum’s Partnering Against Corruption Initiative (PACI) launched a working group charged with developing Good Practice Guidelines on Conducting Third Party Due Diligence. The guidelines are aimed at helping organizations mitigate the risk of becoming involved in corruption through third parties (e.g. agents, suppliers, joint venture partners).
Download the full report here:
Good Practice Guidelines on Conducting Third-Party Due Diligence