Transparency International relies on donations by people interested in fighting corruption. People like you make a huge difference and allow TI to continue working in the UK and Internationally.
Thank you for your support.
£
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form
£10£50£100other
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form
PUBLICATION/ May 2017

MANAGING THIRD PARTY RISK:
Only as strong as your weakest link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

share:
DOWNLOAD AS PDF150 Downloads

1. FOREWORD

Active and passive bribery

Third parties are critical to companies. The modern global enterprise is an extended enterprise - the creator and hub of a complex and symbiotic network of third parties. By using the skills and resources of third parties a company can grow its business, access new markets and harness innovation and resources. It can also leverage its influence and core strengths to energise its third parties to grow and contribute to this process.

That said, reliance on third parties brings risks. Companies are increasingly dependent on others and face a significant challenge in controlling the multiple dimensions of their businesses. While they are benefiting increasingly from concentration of the supply chain on critical third parties, this also increases vulnerability to risks such as bribery and corruption, disruption to continuity of operations, environmental or labour concerns and legal or reputational damage.

To protect against risks, companies must choose their third parties with care, ensure they operate to required standards and monitor their performance. The challenge is how to select, manage and monitor a third party population of diverse companies and to identify, understand and mitigate the truly relevant risks.

With this guidance, Transparency International UK and Transparency International USA make an important contribution to the field of third party anti-bribery management. Its purpose is to provide companies with recommendations for best practice and I am sure it will be useful for practitioners in benchmarking their own programmes.

Tamara Davies

Trustee, Transparency International UK

Head of Compliance and Corporate Secretariat, Vodafone plc

2. PRINCIPLES

Active and passive bribery

Third parties are critical to companies. The modern global enterprise is an extended enterprise - the creator and hub of a complex and symbiotic network of third parties. By using the skills and resources of third parties a company can grow its business, access new markets and harness innovation and resources. It can also leverage its influence and core strengths to energise its third parties to grow and contribute to this process.

That said, reliance on third parties brings risks. Companies are increasingly dependent on others and face a significant challenge in controlling the multiple dimensions of their businesses. While they are benefiting increasingly from concentration of the supply chain on critical third parties, this also increases vulnerability to risks such as bribery and corruption, disruption to continuity of operations, environmental or labour concerns and legal or reputational damage.

To protect against risks, companies must choose their third parties with care, ensure they operate to required standards and monitor their performance. The challenge is how to select, manage and monitor a third party population of diverse companies and to identify, understand and mitigate the truly relevant risks.

With this guidance, Transparency International UK and Transparency International USA make an important contribution to the field of third party anti-bribery management. Its purpose is to provide companies with recommendations for best practice and I am sure it will be useful for practitioners in benchmarking their own programmes.

Tamara Davies

Trustee, Transparency International UK

Head of Compliance and Corporate Secretariat, Vodafone plc

3. INTRODUCTION

Case study: passive bribery

Other pages in this portal site describes the controls to counter active and passive bribery. In summary, the components of a best practice anti-bribery programme are:

 

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus tincidunt quam venenatis tincidunt auctor. Duis non nibh vitae ligula pulvinar venenatis. Donec felis metus, tincidunt quis rhoncus quis, vestibulum at quam. Integer euismod neque purus, eu lacinia dui convallis at. Aenean at laoreet urna. Nulla sed consequat dui. Integer tristique neque lectus, id viverra mauris laoreet quis. Nulla ante eros, dictum ut enim in, suscipit venenatis tortor. Sed porttitor justo non consequat rutrum. Nullam eget sem eget quam malesuada ultrices sed id enim. Aliquam iaculis elit quis justo pretium, sed posuere ante gravida. Nullam congue rhoncus viverra. Aliquam ante nibh, sollicitudin non faucibus a, elementum blandit velit. Nulla facilisi. Morbi sollicitudin est dui, in vulputate mauris scelerisque non.

Sed mollis tempus ante, nec viverra lectus efficitur blandit. Nam fringilla ligula a urna sollicitudin, vitae efficitur ante malesuada. Phasellus convallis lacus a nisl faucibus, sit amet efficitur dui pulvinar. Nam vitae diam quis quam ornare ultrices. Proin a massa at urna iaculis sodales et vitae augue. Fusce sed auctor velit. Morbi quis augue venenatis, tempor tortor a, fringilla lacus. Vivamus tincidunt lobortis lacinia. Donec vel ex porta nisl hendrerit tristique. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Etiam neque risus, vulputate sit amet neque quis, faucibus hendrerit ex.

Aliquam elit mauris, pellentesque et justo eu, porttitor accumsan diam. Nunc tempor porttitor erat, id volutpat quam finibus vel. Etiam volutpat leo ut velit ultricies, nec semper tortor tincidunt. Suspendisse diam leo, ultricies ut urna et, feugiat faucibus dolor. Aenean rhoncus dolor mi, a sollicitudin massa scelerisque et. Vivamus urna tortor, posuere id lacus non, volutpat hendrerit odio. Maecenas eget fringilla metus, et egestas magna. Suspendisse vitae elit non enim tristique semper ac finibus sem. Sed quam libero, tincidunt et lectus vitae, dictum rutrum sem. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Ut volutpat elit lectus, sit amet euismod nunc scelerisque eget. Mauris euismod aliquet ipsum, vel dignissim nulla aliquam eget. Vestibulum a suscipit lorem. Sed egestas vel diam a consectetur. Sed iaculis molestie mi, fringilla hendrerit nibh ultrices ut.

Ut elementum lacinia turpis vitae ultrices. Ut laoreet porttitor cursus. Cras bibendum porttitor magna, vel molestie turpis fringilla id. Nunc nunc magna, vulputate sit amet velit vitae, imperdiet facilisis magna. Praesent non tortor velit. Morbi erat erat, euismod et vehicula in, finibus sed quam.

Fusce et ligula aliquet, condimentum lectus ac, suscipit dui. Mauris orci massa, imperdiet vel hendrerit at, auctor facilisis neque. Suspendisse potenti. Cras posuere at magna ac consectetur. Aliquam erat volutpat.

Donec pharetra molestie venenatis. Phasellus felis libero, consequat finibus posuere in, condimentum ut tortor. Etiam pellentesque erat nec viverra finibus. Integer ipsum nisl, posuere ut auctor a, commodo vel enim. In magna tellus, ultrices vel pulvinar at, tristique vitae magna. Nulla egestas pulvinar rutrum. Cras at felis nisl. Vestibulum molestie justo lobortis varius rutrum. Aliquam erat volutpat. Nunc vitae ligula nec ligula finibus tincidunt.

Resources

Other pages in this portal site describes the controls to counter active and passive bribery. In summary, the components of a best practice anti-bribery programme are:

  • Commitment to a policy of no-bribes and to the implementation of an anti-bribery programme
  • Tone from the top by the leadership to show their commitment to no bribery and to carry the message throughout the company and its third parties

Active and passive bribery

Third parties are critical to companies. The modern global enterprise is an extended enterprise - the creator and hub of a complex and symbiotic network of third parties. By using the skills and resources of third parties a company can grow its business, access new markets and harness innovation and resources. It can also leverage its influence and core strengths to energise its third parties to grow and contribute to this process.

That said, reliance on third parties brings risks. Companies are increasingly dependent on others and face a significant challenge in controlling the multiple dimensions of their businesses. While they are benefiting increasingly from concentration of the supply chain on critical third parties, this also increases vulnerability to risks such as bribery and corruption, disruption to continuity of operations, environmental or labour concerns and legal or reputational damage.

To protect against risks, companies must choose their third parties with care, ensure they operate to required standards and monitor their performance. The challenge is how to select, manage and monitor a third party population of diverse companies and to identify, understand and mitigate the truly relevant risks.

With this guidance, Transparency International UK and Transparency International USA make an important contribution to the field of third party anti-bribery management. Its purpose is to provide companies with recommendations for best practice and I am sure it will be useful for practitioners in benchmarking their own programmes.

Tamara Davies

Trustee, Transparency International UK

Head of Compliance and Corporate Secretariat, Vodafone plc

4. THE ENABLING ENVIRONMENT

Case study: active bribery

Other pages in this portal site describes the controls to counter active and passive bribery. In summary, the components of a best practice anti-bribery programme are:

Sed mollis tempus ante, nec viverra lectus efficitur blandit. Nam fringilla ligula a urna sollicitudin, vitae efficitur ante malesuada. Phasellus convallis lacus a nisl faucibus, sit amet efficitur dui pulvinar. Nam vitae diam quis quam ornare ultrices. Proin a massa at urna iaculis sodales et vitae augue. Fusce sed auctor velit. Morbi quis augue venenatis, tempor tortor a, fringilla lacus. Vivamus tincidunt lobortis lacinia. Donec vel ex porta nisl hendrerit tristique. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Etiam neque risus, vulputate sit amet neque quis, faucibus hendrerit ex.

Aliquam elit mauris, pellentesque et justo eu, porttitor accumsan diam. Nunc tempor porttitor erat, id volutpat quam finibus vel. Etiam volutpat leo ut velit ultricies, nec semper tortor tincidunt. Suspendisse diam leo, ultricies ut urna et, feugiat faucibus dolor. Aenean rhoncus dolor mi, a sollicitudin massa scelerisque et. Vivamus urna tortor, posuere id lacus non, volutpat hendrerit odio. Maecenas eget fringilla metus, et egestas magna. Suspendisse vitae elit non enim tristique semper ac finibus sem. Sed quam libero, tincidunt et lectus vitae, dictum rutrum sem. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Ut volutpat elit lectus, sit amet euismod nunc scelerisque eget. Mauris euismod aliquet ipsum, vel dignissim nulla aliquam eget. Vestibulum a suscipit lorem. Sed egestas vel diam a consectetur. Sed iaculis molestie mi, fringilla hendrerit nibh ultrices ut.

Ut elementum lacinia turpis vitae ultrices. Ut laoreet porttitor cursus. Cras bibendum porttitor magna, vel molestie turpis fringilla id. Nunc nunc magna, vulputate sit amet velit vitae, imperdiet facilisis magna. Praesent non tortor velit. Morbi erat erat, euismod et vehicula in, finibus sed quam. Fusce et ligula aliquet, condimentum lectus ac, suscipit dui. Mauris orci massa, imperdiet vel hendrerit at, auctor facilisis neque. Suspendisse potenti. Cras posuere at magna ac consectetur. Aliquam erat volutpat.

Donec pharetra molestie venenatis. Phasellus felis libero, consequat finibus posuere in, condimentum ut tortor. Etiam pellentesque erat nec viverra finibus. Integer ipsum nisl, posuere ut auctor a, commodo vel enim. In magna tellus, ultrices vel pulvinar at, tristique vitae magna. Nulla egestas pulvinar rutrum. Cras at felis nisl. Vestibulum molestie justo lobortis varius rutrum. Aliquam erat volutpat. Nunc vitae ligula nec ligula finibus tincidunt.

Active and passive bribery

Third parties are critical to companies. The modern global enterprise is an extended enterprise - the creator and hub of a complex and symbiotic network of third parties. By using the skills and resources of third parties a company can grow its business, access new markets and harness innovation and resources. It can also leverage its influence and core strengths to energise its third parties to grow and contribute to this process.

That said, reliance on third parties brings risks. Companies are increasingly dependent on others and face a significant challenge in controlling the multiple dimensions of their businesses. While they are benefiting increasingly from concentration of the supply chain on critical third parties, this also increases vulnerability to risks such as bribery and corruption, disruption to continuity of operations, environmental or labour concerns and legal or reputational damage.

To protect against risks, companies must choose their third parties with care, ensure they operate to required standards and monitor their performance. The challenge is how to select, manage and monitor a third party population of diverse companies and to identify, understand and mitigate the truly relevant risks.

With this guidance, Transparency International UK and Transparency International USA make an important contribution to the field of third party anti-bribery management. Its purpose is to provide companies with recommendations for best practice and I am sure it will be useful for practitioners in benchmarking their own programmes.

Tamara Davies

Trustee, Transparency International UK

Head of Compliance and Corporate Secretariat, Vodafone plc

5. THIRD PARTY ANTI-BRIBERY FRAMEWORK

Best practice

Other pages in this portal site describes the controls to counter active and passive bribery. In summary, the components of a best practice anti-bribery programme are:

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus tincidunt quam venenatis tincidunt auctor. Duis non nibh vitae ligula pulvinar venenatis. Donec felis metus, tincidunt quis rhoncus quis, vestibulum at quam. Integer euismod neque purus, eu lacinia dui convallis at. Aenean at laoreet urna. Nulla sed consequat dui. Integer tristique neque lectus, id viverra mauris laoreet quis. Nulla ante eros, dictum ut enim in, suscipit venenatis tortor. Sed porttitor justo non consequat rutrum. Nullam eget sem eget quam malesuada ultrices sed id enim. Aliquam iaculis elit quis justo pretium, sed posuere ante gravida. Nullam congue rhoncus viverra. Aliquam ante nibh, sollicitudin non faucibus a, elementum blandit velit. Nulla facilisi. Morbi sollicitudin est dui, in vulputate mauris scelerisque non.

Sed mollis tempus ante, nec viverra lectus efficitur blandit. Nam fringilla ligula a urna sollicitudin, vitae efficitur ante malesuada. Phasellus convallis lacus a nisl faucibus, sit amet efficitur dui pulvinar. Nam vitae diam quis quam ornare ultrices. Proin a massa at urna iaculis sodales et vitae augue. Fusce sed auctor velit. Morbi quis augue venenatis, tempor tortor a, fringilla lacus. Vivamus tincidunt lobortis lacinia. Donec vel ex porta nisl hendrerit tristique. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Etiam neque risus, vulputate sit amet neque quis, faucibus hendrerit ex.

Aliquam elit mauris, pellentesque et justo eu, porttitor accumsan diam. Nunc tempor porttitor erat, id volutpat quam finibus vel. Etiam volutpat leo ut velit ultricies, nec semper tortor tincidunt. Suspendisse diam leo, ultricies ut urna et, feugiat faucibus dolor. Aenean rhoncus dolor mi, a sollicitudin massa scelerisque et. Vivamus urna tortor, posuere id lacus non, volutpat hendrerit odio. Maecenas eget fringilla metus, et egestas magna. Suspendisse vitae elit non enim tristique semper ac finibus sem. Sed quam libero, tincidunt et lectus vitae, dictum rutrum sem. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Ut volutpat elit lectus, sit amet euismod nunc scelerisque eget. Mauris euismod aliquet ipsum, vel dignissim nulla aliquam eget. Vestibulum a suscipit lorem. Sed egestas vel diam a consectetur. Sed iaculis molestie mi, fringilla hendrerit nibh ultrices ut.

Ut elementum lacinia turpis vitae ultrices. Ut laoreet porttitor cursus. Cras bibendum porttitor magna, vel molestie turpis fringilla id. Nunc nunc magna, vulputate sit amet velit vitae, imperdiet facilisis magna. Praesent non tortor velit. Morbi erat erat, euismod et vehicula in, finibus sed quam. Fusce et ligula aliquet, condimentum lectus ac, suscipit dui. Mauris orci massa, imperdiet vel hendrerit at, auctor facilisis neque. Suspendisse potenti. Cras posuere at magna ac consectetur. Aliquam erat volutpat.

Donec pharetra molestie venenatis. Phasellus felis libero, consequat finibus posuere in, condimentum ut tortor. Etiam pellentesque erat nec viverra finibus. Integer ipsum nisl, posuere ut auctor a, commodo vel enim. In magna tellus, ultrices vel pulvinar at, tristique vitae magna. Nulla egestas pulvinar rutrum. Cras at felis nisl. Vestibulum molestie justo lobortis varius rutrum. Aliquam erat volutpat. Nunc vitae ligula nec ligula finibus tincidunt.

Active and passive bribery

Third parties are critical to companies. The modern global enterprise is an extended enterprise - the creator and hub of a complex and symbiotic network of third parties. By using the skills and resources of third parties a company can grow its business, access new markets and harness innovation and resources. It can also leverage its influence and core strengths to energise its third parties to grow and contribute to this process.

That said, reliance on third parties brings risks. Companies are increasingly dependent on others and face a significant challenge in controlling the multiple dimensions of their businesses. While they are benefiting increasingly from concentration of the supply chain on critical third parties, this also increases vulnerability to risks such as bribery and corruption, disruption to continuity of operations, environmental or labour concerns and legal or reputational damage.

To protect against risks, companies must choose their third parties with care, ensure they operate to required standards and monitor their performance. The challenge is how to select, manage and monitor a third party population of diverse companies and to identify, understand and mitigate the truly relevant risks.

With this guidance, Transparency International UK and Transparency International USA make an important contribution to the field of third party anti-bribery management. Its purpose is to provide companies with recommendations for best practice and I am sure it will be useful for practitioners in benchmarking their own programmes.

Tamara Davies

Trustee, Transparency International UK

Head of Compliance and Corporate Secretariat, Vodafone plc

6. PUBLIC REPORTING

Examples

Other pages in this portal site describes the controls to counter active and passive bribery. In summary, the components of a best practice anti-bribery programme are:

 
  • Commitment to a policy of no-bribes and to the implementation of an anti-bribery programme
  • Tone from the top by the leadership to show their commitment to no bribery and to carry the message throughout the company and its third parties
  • Governance and oversight by the board
  • Risk assessment to understand and prioritise the risks from bribery
  • A central role for human resources
  • Design of anti-bribery controls to address the highest risks
  • Communication and training of all employees and selected third parties
  • Tailored communication and training for high risk functions
  • Channels for seeking advice and raising issues
  • Management of third parties including due diligence
  • Internal financial controls and internal audit

Active and passive bribery

Third parties are critical to companies. The modern global enterprise is an extended enterprise - the creator and hub of a complex and symbiotic network of third parties. By using the skills and resources of third parties a company can grow its business, access new markets and harness innovation and resources. It can also leverage its influence and core strengths to energise its third parties to grow and contribute to this process.

That said, reliance on third parties brings risks. Companies are increasingly dependent on others and face a significant challenge in controlling the multiple dimensions of their businesses. While they are benefiting increasingly from concentration of the supply chain on critical third parties, this also increases vulnerability to risks such as bribery and corruption, disruption to continuity of operations, environmental or labour concerns and legal or reputational damage.

To protect against risks, companies must choose their third parties with care, ensure they operate to required standards and monitor their performance. The challenge is how to select, manage and monitor a third party population of diverse companies and to identify, understand and mitigate the truly relevant risks.

With this guidance, Transparency International UK and Transparency International USA make an important contribution to the field of third party anti-bribery management. Its purpose is to provide companies with recommendations for best practice and I am sure it will be useful for practitioners in benchmarking their own programmes.

Tamara Davies

Trustee, Transparency International UK

Head of Compliance and Corporate Secretariat, Vodafone plc

7. INFORMATION MANAGEMENT AND TECHNOLOGY

Active and passive bribery

Third parties are critical to companies. The modern global enterprise is an extended enterprise - the creator and hub of a complex and symbiotic network of third parties. By using the skills and resources of third parties a company can grow its business, access new markets and harness innovation and resources. It can also leverage its influence and core strengths to energise its third parties to grow and contribute to this process.

That said, reliance on third parties brings risks. Companies are increasingly dependent on others and face a significant challenge in controlling the multiple dimensions of their businesses. While they are benefiting increasingly from concentration of the supply chain on critical third parties, this also increases vulnerability to risks such as bribery and corruption, disruption to continuity of operations, environmental or labour concerns and legal or reputational damage.

To protect against risks, companies must choose their third parties with care, ensure they operate to required standards and monitor their performance. The challenge is how to select, manage and monitor a third party population of diverse companies and to identify, understand and mitigate the truly relevant risks.

With this guidance, Transparency International UK and Transparency International USA make an important contribution to the field of third party anti-bribery management. Its purpose is to provide companies with recommendations for best practice and I am sure it will be useful for practitioners in benchmarking their own programmes.

Tamara Davies

Trustee, Transparency International UK

Head of Compliance and Corporate Secretariat, Vodafone plc

Resources

STAY INFORMED
Sign up for updates on TI-UK's work and
corruption news from around the globe:
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form
RELATED PUBLICATIONS