Volume : 6, Issue : 6, June - 2017

International outsourcing -The Impact of Corruption an Emerging Issue

Ms. Dauly

Abstract :

<p>&nbsp;<span lang="EN-IN" style="text-align: justify;">There are various emerging issues which affect &lsquo;International outsourcing&rsquo;. These are knowledge sharing among partners, impact of financial crisis, pricing structure, commercial drivers, and arms length. This paper focuses on the most important and critical issue of an international outsourcing firm is corruption in international outsourcing. The objective of the paper is to work on the measures to mitigate the risk aroused from corruption. When it comes to outsourcing and the risk of ibery and corruption. Some territories are attractive because of their low cost base, but this may also mean an environment where corruption is more prevalent. Anti- ibery legislations as well as general tightening of the screw by governments and law enforcement agencies around the globe, means that the businesses are under increased scrutiny and they are made accountable for corruption for their outsourced commercial activities. In this global environment businesses also need to be aware of sector specific regulations. Bribery is global, although it is more prevalent in certain countries. Each year, Transparency International, the world&rsquo;s leading non governmental anti corruption organisation, publishes its Corruption Perception Index. Over the past year, there have been several high profile cases of businesses facing massive for there involvement in corruption. To mitigate the risk of corruption</span><span lang="EN-IN" style="text-align: justify; font-size: 11.5pt; line-height: 150%;">, introduce a clearly articulated and communicated anti-ibery compliance (ABC) culture, visibly driven from the top. Documentation and evidencing of ABC on the board&rsquo;s agenda and the risk register. Implement policies to address conduct, ethics, hospitality and gifts, facilitation payments, commissions, monitoring and &lsquo;speak up&rsquo; mechanisms, political and other lobbying, and conflicts of interest. Demonstrate accountability and responsibility, from employees to boardroom including any non-executive directors.&nbsp; Robust processes for the appointment, due diligence and management of all third parties such as agents/advisers/distributors and flow this down to supply chain and outsourced operations.&nbsp; Conduct a company-wide health check of policies and processes. All of this may sound like a lot of extra work, but actually the fact of putting in place a clear strategy and plan for dealing with ibery and corruption can lead to better business in the longer term and a competitive differentiator and advantage. And it is much cheaper than the cost of legal defence, let alone the reputation damage to a business if it is found to be involved in corruption. </span><span lang="EN-IN" style="text-align: justify;">&nbsp;By enforcing some methods this problem of corruption can be tackled. This paper will answer all the questions of businesses about outsourcing contract, risk assessment process, vendor due diligence, and adequate procedure to prevent ibery.</span></p> <p class="MsoNormal" style="text-align:justify;line-height:150%"><span lang="EN-IN"><o:p></o:p></span></p>