5 reasons why ABAC training is a must during the ongoing pandemic!
The recent times have been hard for all businesses, trying to cope with lockdowns, restrictions on movements, etc. Companies dealing with essential goods and services such as pharma and healthcare sectors and e-commerce have been working throughout the pandemic to ensure that society can sustain and live well. However, one must remember that business disruption or working for essential services does not make the organization immune from the risks of exposure to bribery and corruption. Case in point, the U.S. Department of Justice, Criminal Division, on Evaluation of Compliance Programs reiterated their stand in June 2020 that not only do companies have to have adequate compliance in place, but also have to exhibit the intention of evolving the company’s compliance program with the changing times.
Here are 5 points as to why Anti Bribery And Corruption (ABAC) Compliance is a MUST during the pandemic:
- While trying to minimize business disruptions, the organization may attempt to dilute the compliance programs to ease out business operations or restart operations. For example, companies may face a challenge to enter into short-term business arrangements/contracts/agreements with new vendors to resume operations quickly, leaving no time to vet third parties, thereby increasing the risks of violation of compliance with FCPA. It makes it all the more critical for organizations to emphasize the importance of FCPA compliance training to spread and avoid such a scenario.
- Since the pandemic, there has been a drastic change in the business protocols and conditions, leading to a sudden increase in interactions with government officials to clarify the functioning orders. An organization can find itself seeking urgent approvals or permits for the movement of materials or seeking clarification related to the permitted attendance of its workforce or regarding the new import rules for goods. Throw in the necessary Covid protocols that need to be followed along with inspection of the premises, and we have a complex situation that may threaten to dislodge a stable organization.
In such circumstances, a sound anti corruption policy comes in handy and may save the organization from any controversy.
- Despite the disruptions and changed business conditions, it is essential to remember that the management must review third parties coming onboard from an ABAC perspective. The management must remember to conduct third-party due diligence and risk management practices through the entire tenure of the third parties’ engagement. Organizations must implement it as a continuous, ongoing process instead of treating it as one-time activity during onboarding.
- The pandemic has brought about the new trend of working from home (WFH), which may have changed how organizations will conduct business in the future forever. Organizations are now looking at high breed models of working where employees may never need to attend office and continue working remotely. However, as liberating as it may be, this, too, has its set of challenges. Organizations could face changes in several procedures such as receiving approvals, payment processes, assessing funds, submitting and reviewing invoices, etc.
It becomes crucial, during such times, for organizations to send periodic reminders and conduct virtual training for all employees, refreshing their knowledge on ABAC laws and the company’s Code of Conduct and related ABAC policies.
- ABAC policies not only require compliance, but a vital part of it is to have an effective reporting mechanism in case of any discrepancy. Every organization must have a robust whistle-blowing policy to ensure that an aggrieved person or an informant can impart any information without the inconvenience and fear of retaliation. Further, organizations need to encourage their employees to report instances when they may have overlooked ABAC policy dilutions or deviations due to senior management pressure. The mission should be to create an open-door policy for all employees.
Until the pandemic lasts, it will constantly challenge the organization’s leadership and senior management on their decision-making skills related to scenarios of ethics versus profits and effective ABAC Compliance without the fear of any retaliation.
The best way forward would be for organizations to conduct virtual training on ABAC laws, CoC policies emphasizing ethics and integrity, which may boost employee morale and at the same time create a compliant, healthy, and sustainable place of work.
Author: Rakhi Mohanty
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