The current regulatory environment demands that companies understand who is conducting business on their behalf and proactively manage the risks associated with such relationships.
The commercial organization applies due diligence procedures, taking a proportionate and risk based approach, in respect of persons who perform or will perform services for or on behalf of the organization, in order to mitigate identified bribery risks.
Source: The Bribery Act 2010, Guidance, Principle 4
As a result the company and its affiliates may be held liable for improper acts of third parties acting on its behalf (“Business Partners“) under certain circumstances, regardless of whether it authorized such improper acts or payments.
In conclusion this means a careful selection of a business partner and appropriate monitoring and management of the business partner during the whole duration of the relationship.
The Business Partner Compliance Due Diligence Process creates best possible risk mitigation and meets the strict standards of US FCPA 1977 and UK Bribery Act 2010 as well as the corporate organizational duties under German law (OwiG).
The Business Partner Compliance Due Diligence Tool supports the execution of a risk-oriented compliance due diligence process.
We originally developed the BPC software for Siemens and now support other clients in adapting and implementing the process and tool according to their specific requirements.
Consequently, in its Sentencing Memorandum the United States Department of Justice (DOJ) highlighted the Siemens due diligence process and tool as “the new state-of-the-art system”. Further the new processes „have set a high standard for multi-national companies to follow“ (Source: Press Conference: Siemens AG reaches a resolution with German and U.S. authorities – DOJ Sentencing Memorandum, page 24).