Introduction
Have you considered the corruption risks associated with working with third parties? Think about this situation Wei, an Operations VP, is currently facing.
The Health Ministry has just denied his permit application for a new production line. His organisation is desperate to add the line because they are barely meeting current demand. A few days after Wei received the rejection, he receives a phone call from a consultant who says he can help Wei get the decision reversed. The consultant says he has strong contacts in the Health Ministry and his services will cost ¥50,000. Wei calculates that he could recoup the consultant's fee within three months once the new production line is operational.
Should Wei engage the consultant?
At times, it's critical to get help from a consultant, but it's also critical to ensure that any third parties our organisation works with do not put us at risk of violating international anti-corruption laws. Wei and his organisation need to perform due diligence before engaging the consultant.