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BETTER Ethics. BETTER Business: January - 2010
Turning 2009 Headlines into 2010 Compliance Intelligence
Last year limped across the finish line, dragging a string of headlines that will fuel economic, legal and regulatory analysis for years to come. Over the course of the year, news stories pointed to an ever-expanding list of ethics and compliance challenges, resulting in new regulations and guidance documents, sharpened responsibilities as outlined in settlements and corporate integrity agreements, and growing mistrust from "Main Street." The steady onslaught of news often overshadowed events and actions that redefine "business as usual." For ethics and corporate compliance officers in particular, 2009 created a compliance environment with new risks and responsibilities.
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The Five Elements of an Effective Supplier Code
To develop an effective Supplier Code of Conduct, many ethics and compliance officers are able to leverage the established principles and standards in the UN Global Compact, or specific industry guidance such as the Electronic Industry Code of Conduct (EICC) and the Pharmaceutical Industry Principles for Responsible Supply Chain Management. In addition, guidance is available in the Universal Declaration of Human Rights and the Organization for Economic Co-Operation and Development (OECD) Guidelines for Multinational Enterprises.Based on these documents, here are the five essential elements of an effective Supplier Code of Conduct: labor, health and safety, environment, business ethics, and the framework of an acceptable program to comply with the Code.
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Fraud Jumps in the UK
Accounting firm BDO reports that white collar fraud in the UK jumped 78% in 2009 over the previous year. According to a January 11 report on the Guardian.co.uk website, the average cost to business and the public sector from each instance of fraud in 2009 reached 5 million compared to 1.8 million in 2003. The full article provides more details about the BDO survey and what those numbers signal for the future.
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