Experience shows that many companies do not include their business partners in their compliance program. An omission with high risks.
Legal provisions such as the German Commercial Code or the German Stock Corporation Act stipulate that companies, but also individual executive bodies and employees, can be held liable for the unlawful conduct of business or contractual partners.
A practical example illustrates the fundamental problem: a company uses external sales partners who are remunerated on a commission basis. Their earnings therefore depend on the sales they broker. If a sales partner now commits fraudulent acts in order to successfully broker business - such as bribing a potential client - the conduct of the business partner falls back on the company, even if the company itself has not acted unlawfully. The company faces financial and criminal consequences as well as a serious loss of reputation.
Business partners are often not involved
Many companies are inadequately prepared for this risk. The study "Compliance Management - the entrepreneurial challenge" by AGAMON Consulting GmbH(www.agamon-consulting.de) shows the deficits of medium-sized companies in this area. In the majority of the companies surveyed, 100% of their compliance programs are aimed at both managers and employees. Suppliers and subcontractors are included at around 75%, while business partners are only included at around 25%. It is known that external parties are at least involved in around half of white-collar crimes.
An often underestimated risk
"The risks that can emanate from business partners such as intermediaries, negotiators and consultants should not be underestimated. Their compliance violations can lead to fines and claims for damages. Further consequences can include exclusion from public contracts and even criminal prosecution. Companies jeopardize their image and reputation if they do not select their partners carefully.
Every company's compliance program should therefore also include business partner compliance management as part of a holistic approach.
Eckart Achauer
Studied law and business administration, postgraduate Master of Business Administration (MBA). In-service training as European Quality Manager (DGQ), mediator specializing in business mediation and Certified Compliance Manager (TÜV).
Eckart Achauer worked for around 10 years in the international insurance industry in the management of a Swiss insurance group in various functions (claims department, sales, assistance) before switching to management and business consulting in 1997.
As a consultant and managing director of various consulting companies, Mr. Achauer has specialized in organizational and process optimization as well as in the development and implementation of management systems - quality management, risk and compliance management.
Mr. Achauer is responsible for compliance management at the HR Consult Group. As part of compliance audits, he analyses their organizational "compliance fitness", raises awareness and trains management, executives and employees and supports companies in setting up and implementing individual compliance management systems. In doing so, he always takes into account the specific risk situation of the company. Thanks to his many years of experience as a manager and consultant, he is very familiar with the business challenges faced in practice.
About the author
Eckart Achauer, studied law and business administration, postgraduate Master of Business Administration (MBA). In-service training as European Quality Manager (DGQ), mediator specializing in business mediation and Certified Compliance Manager (TÜV).
He worked for around 10 years in the international insurance industry in the management of a Swiss insurance group in various functions (claims department, sales, assistance) before moving into management and business consulting in 1997.
As a consultant and managing director of various consulting companies, Mr. Achauer has specialized in organizational and process optimization as well as in the development and implementation of management systems - quality management, risk and compliance management.
At Senator Executive Search Partners, Mr. Achauer is responsible for compliance management. As part of compliance audits, he analyses their organizational "compliance fitness", raises awareness and trains management, executives and employees and supports companies in setting up and implementing individual compliance management systems. In doing so, he always takes into account the specific risk situation of the company. Thanks to his many years of experience as a manager and consultant, he is very familiar with the business challenges faced in practice.
