Author: Maureen Shaffer
He suggests taking a two-pronged approach to compliance and anti-corruption:
1. Risk Management: Or “Compliance Cost Minimization” is what most companies are addressing.
2. Opportunity Management: Most companies are lacking here. You have to believe that Good Proactive Practices pay off because the business case is still lacking. The UN Global Compact hopes to have an investor and accounting argument in 2-3 years to demonstrate that increased compliance is tied to increased corporate valuation.
Can you imagine a real ROI for doing the right thing? And more importantly, an investor argument for spending money to build the smart, non-speed limiting infrastructure to make it happen?
Background on the UN Global Compact:
1. Currently have 24 companies in portfolio who hit a disaster which was elevated to the board room and compelled them to join.
2. 6000 total companies with 1000 new joining yearly. These are largely those who “are making a bet” that aligning themselves with forward-thinking best practices will pay off in the long-term.
3. More than 20 companies have been “expelled”. Most were expelled for gaps in annual disclosures which also require annual improvement.
What do you all think? Are opportunities in Brazil, India and China and their unique compliance challenges keeping you up at night? What do you think about Compliance Opportunity Management once it can be tied to financial opportunity?