國際商會國際仲裁院-ICC研究所中小企業(yè)合規(guī)實驗室簡編 Conclusions of the ICC Institute SME Labs 2024

ICC

InstituteofworldBusinessLaw

Conclusionsofthe

ICCInstituteSMELabs

BasicsonCompliance

Contents

1.IntroductiontoComplianceforSMEs 3

1.1.Whatiscompliance? 4

1.2.Whywouldacompanyliketohaveacompliancefunction? 4

1.3.Whatexactlydoestheterm“compliancefunction”meanandcover? 5

1.4.Whatisa“complianceprogram”? 6

1.5.Isthesizeofthebusinessrelevanttobuildacompliancefunctionandprogram? 7

1.6.Whataretheessentialelements,resources,andrelatedcostsofdevelopinga

compliancefunctionand/orprogram? 7

1.7.Whattypesofsources/guidelines/regulationsandotherresourcesexist

tohelpcompaniesthatareinterestedindevelopinganefficientcompliance

functionand/orprogram? 8

1.8.Whatistheimportanceoftone,principles,values,andcorporateculture

inthematterofcompliance? 9

1.9.WhatESGinanutshell? 10

1.10.Whataretheresponsibilitiesandrolesinvolvedinadministeringcompliance

withinacompany? 10

1.11.WhataresomefinaltakeawaysforSMEswhendevelopingtheircompliance

functionsand/orprograms? 11

2.ComplianceClauses:WhySMEsShouldConsiderUsingThem? 12

3.ExamplesofComplianceClauses 13

a.Controller-DataSubject 13

b.Controller-Processor 14

a.Controller-Processor(RegulatoryClause) 14

b.Controller-Processor(RegulatoryClause) 14

c.Controller-Processor/Controller-DataSubject(RegulatoryClause) 14

4.ComplianceasaGoodInvestment 15

5.HowtoMakeaCasetoManagementforGreaterInvestmentsinCompliance? 16

6.RiskAssociatedwithInadequateComplianceMeasures 17

7.Conclusions 19

Referenceannex 20

November2024|ConclusionsoftheICCInstituteSMELabs|BasicsonCompliance|2

1.IntroductiontoComplianceforSMEs

Designingandimplementingananti-corruptioncomplianceprogrammecanbeparticularlychallengingforsmallandmedium-sizedenterprises(SMEs).Inmanyjurisdictions,domestic

lawsandregulationseitherprovidevaguedefinitionsorfailtooutlineformalrequirements

foranti-corruptioncompliance.Asaresult,SMEsoftenfindthemselvesnavigatingacomplexlandscapewithlimitedguidance.

Tofillthisgap,internationalstandardsandguidelinesdevelopedbyvariousstakeholdershaveemergedasessentialresources.Theseframeworksnotonlyhelptofillthe

gapinlegislation,butalsosupporttheeffectiveimplementationofanti-corruption

compliancemeasures.

Thisguidebringstogetherthefindingsandconclusionsofthevaluableeffortsofthe

ComplianceTaskForceofthe

ICCInstituteofWorldBusinessLaw

in2023,aswellastheresultsofthreeonlinelabsessions1focusedoncomplianceforSMEs.OuraimistoprovideSMEswithaclearunderstandingoftheminimumprinciplesandconceptsofcompliance,bothasafunctionandasaprogramme.

ItisimportanttorecognisethatcompliancegoesbeyondthetraditionalnotionsofAnti-

BriberyandAnti-Corruption(ABAC).Asyouwillseeinthefollowingsections,compliance

encompassesabroaderrangeofissues,includingenvironmental,socialandgovernance(ESG)considerations.Inaddition,compliancecanaddressdifferentaspectsofthevalueorsupplychain,suchasimplementingKnowYourCustomerandsupplierpolicies.

ForSMEs,developingandenforcingananti-briberyandanti-corruptioncomplianceprogramcanbeverychallengingduetotheamountofexistingregulationsthatmustbeanalysed,

organizedandimplemented.

ThisdocumentservesasafoundationalresourceforSMEs,toguidetheminestablishing

robustcomplianceprogrammesthatnotonlymeetlegalrequirements,butalsoalignwith

internationalbestpractices.ThisGuidecomplementstherelevantICCguides:ICCRulesonCombatingCorruption2023Edition2andthe‘’ICCAnti-CorruptionThirdPartyDueDiligence:AGuideforSmall-andMedium-SizedEnterprises’’3.

1

ICCInstituteSMELabonCompliance(1/3)

IntroductiontoCompliance;

ICCInstituteSMELabonCompliance(2/3)ComplianceClauses:WhySMEsShouldConsiderUsingThem|ICCKnowledge2Go-InternationalChamberofCommerce();

ICCInstituteSMELabonCompliance(3/3)ComplianceasaGoodInvestment|ICCKnowledge2Go-InternationalChamberofCommerce()

2

ICCRulesonCombatingCorruption-ICC-InternationalChamberofCommerce()

3

ICCAnti-corruptionThirdPartyDueDiligence:AGuideforSmall-andMedium-sizedEnterprises-ICC-International

ChamberofCommerce()

November2024|ConclusionsoftheICCInstituteSMELabs|BasicsonCompliance|3

1.1.Whatiscompliance?

Acommondefinitionof“compliance”is“theactorprocessofcomplyingtoa

desire,demand,proposal,orregimenortocoercion.[and](…)conformityinfulfillingofficialrequirements.”4

AmoretechnicaldefinitionprovidedintheICCRulesofCombatingCorruptionrefersto“…conformingtolaws,regulations,guidelines,andstandardsrelevanttoaparticularindustryorsector.Itentailsadheringtoprescribedrulesandfulfillingobligationstoensurelegalandethicalconductinbusinessoperations.Additionally,itiscrucialtoensureorganisations

operatewithintegrityandaccountability5.”“Itisofvarioustypes,suchasthefollowing:

a)RegulatoryCompliance,b)FinancialCompliance,c)DataPrivacyCompliance,d)EnvironmentalCompliance,e)InternalCompliance.”6

Moreover,compliancecoversnotonlytheapplicablelawsandregulations,butalsothe

internalcodes,policies,andpractices,asforexample,documentsgenerallycalled“CodeofConduct”or“GuidebookforBusinessSuccess”.

Typically,incompanieswhosecomplianceprogramsincludecodesofethicsandconduct,

suchdocumentsalsooutlinethecorporatevaluesoftherespectivebusiness.Thesevalues

arefundamentaltocreateandpromoteacomplianceculture,asnoteverythingiswritten

andtherefore,weall,asemployees,fromthemostseniorstothejuniors,arecalledtoknowandunderstandwhatissimplynotacceptableinyourbusiness,evenifthereisasilenceoragapinthelawsorinthepolicies.

SMEsfacedifferenttypesofcomplianceissues,suchasthoseindicatedabove.Butthe

mostimportantpointofattentionforSMEswillbetofirstevaluatetheirownbusinessesandthetypeofrisksandimpactstowhichtheymaybeexposed.Thefinalaimisensuringa

complianceculturewithintheSMEs.

1.2.Whywouldacompanyliketohaveacompliancefunction?

TheWorldEconomicForumreports:

…theworldisfacingasetofrisks[as]…“older”risks–inflation,cost-of-livingcrises,tradewars,capitaloutflowsfromemergingmarkets,widespreadsocialunrest,geopolitical

confrontation,andthespectreofnuclearwarfare–whichfewofthisgeneration’s

businessleadersandpublicpolicymakershaveexperienced.Thesearebeingamplifiedbycomparativelynewdevelopmentsintheglobalriskslandscape,includingunsustainable

levelsofdebt,aneweraoflowgrowth,lowglobalinvestmentandde-globalization,

adeclineinhumandevelopmentafterdecadesofprogress,rapidandunconstrained

developmentofdual-use(civilianandmilitary)technologies[etc.]…Together,theseareconvergingtoshapeaunique,uncertainandturbulentdecadetocome.7

4Merriam-WebsterDictionary

ComplianceDefinition&Meaning-Merriam-Webster

5ICCRulesonCombatingCorruption2023Edition.Availableat:

ICCRulesonCombatingCorruption-ICC-International

ChamberofCommerce()

6ElizaTaylor,WhatisCompliance?ACompleteOverview,27July2023.

WhatIsCompliance?AComprehensiveGuide

()

7WorldEconomicForum,TheGlobalRisksReport2023,InsightReport,18thEdition.

WEF_Global_Risks_Report_2023.pdf

()

November2024|ConclusionsoftheICCInstituteSMELabs|BasicsonCompliance|4

Thisisthepolitical,economic,andsocialenvironmentwhereSMEsarecurrentlyoperating.

Therefore,complianceplaysakeyroletodulyassess,preventandmitigatetherisksand

theirimpactsonSMEs’business.Asindicatedabove,compliancecanembracemultiple

facets,withoneofthemostvisiblebeinganticorruptionandantibriberymatters.SMEs,as

wellasanyothercompany,canaddresscomplianceindifferentways,asitisexplainedinthefollowingquestions.8

Complianceadministrationacrossalllevelsofacompany,evenwithinanSMEisimportant,becauseoftheexistenceof:

a.regulationssuchasenvironmental,corporateandcompany(audits),tax,employment,labor,humanrights,antibribery,anticorruption,anti-moneylaunderingandanti-terrorismlaws;

b.fiduciarydutiesofdirectors/managementforcompanyincaseofnon-compliance;iii.financialrisksassociatedtothecostofnon-compliance,e.g.,theU.S.

DepartmentofJustice(DOJ)andtheUnitedKingdomSeriousFraudOffice(SFO)hadsanctionedcompaniesforcorruptionindevelopingcountries;

c.internalcontrolssuchasmanagementsystemsandreportingsystemssetup,inscreeningandduediligence,fundraising;

d.potentialinvestors’andshareholders’interestincompanieshavingcompliancepoliciesinplace;and

e.reputationalandmarketrisks,e.g.,sociallicensetooperate,greenwashing.

1.3.Whatexactlydoestheterm“compliancefunction”meanandcover?

Compliancecanbeseenasjustasetofinternaldocumentsapprovedbythecompany,forexampleitsanti-briberyandanti-corruptionpolicies.Itcanalsobeseenasacompliance

program,wheresuchdocumentationisconsolidated.However,dependingonthesizeof

thebusiness,companiesmaycreatea“compliancefunction”,whichisassigneddedicatedemployeesexclusivelytoperformingsuchcompliancefunction.Thereareothercombinednamesortitlestorefertoacompliancefunctioninsideacompanysuchas“Ethicsand

Compliance”or“ComplianceandIntegrity”.9

Inadditiontointernalcompanypoliciesandprocedures,regulationscaninclude

internationalanddomesticsourcesoflaw,aswellastheapplicablerulesofthirdparties

suchasinternationalorganizationsandmultilateraldevelopmentbanks.Examplesofsuchregulationsarei.TheUnitedNationsConventionagainstCorruption;10ii.theInter-American

8TheUnitedNationsGlobalCompact,AGuideforAnti-CorruptionRiskAssessment(2013).

issues_doc/Anti-Corruption/

RiskAssessmentGuide.pdf()

9Someglobalcompaniesrefertocomplianceas“ComplianceandIntegrity”,anexampleisPhilipMorrisInternational.PMICEOalsoreinforcesthat“Weexpectexceptionalresultsobtainedonlyinfullcompliancewiththeletterand

spiritofapplicablelawsandregulations,ourinternalpolicies,andourvalues.”Itconfirmscompliancebeyondlegalregulations.

Complianceandintegrity|PMI-PhilipMorrisInternational

10TheUnitedNationsConventionagainstCorruptionistheonlylegallybindinguniversalanti-corruptioninstrument.ThisConventioncoversfivemainareas:preventivemeasures,criminalizationandlawenforcement,international

cooperation,assetrecovery,andtechnicalassistanceandinformationexchange.Anditalsocoversmanydifferentformsofcorruption,suchasbribery,tradingininfluence,abuseoffunctions,andvariousactsofcorruptioninthe

privatesector.TheConventionincludesaspecificchapteronassetrecovery,aimedatreturningassetstotheirrightfulowners,includingcountriesfromwhichtheyhadbeentakenillicitly.MostoftheUnitedNationsMemberStatesare

partiestothisConvention.

UNITEDNATIONSCONVENTIONAGAINSTCORRUPTION()

November2024|ConclusionsoftheICCInstituteSMELabs|BasicsonCompliance|5

ConventionagainstCorruption;11andiii.nationalanticorruptionregulations,whichmaybe

includedascriminalcodes’provisionsorapprovedasspecialanticorruptionlawssuchastheUnitedStatesForeignCorruptPracticesActorFCPA,12andtheUnitedKingdomAntibribery

Act.13Thesetwolawsalsohaveextraterritorialeffects,whichmeansthattheycanbe

applied,bytheirrespectivelawenforcementagencies,astheU.S.DOJortheUKSFO,outside

theterritoryoftheUnitedStatesandtheUnitedKingdomwhencertainlegalconditionsaresatisfied.

Toconcludeandinshort,nothingshallbemoreimportantthanthebusinesscommitmenttocomplianceandintegrity,nofinancialgoal,nomarketingtarget,andnoefforttooutdothecompetitioncanjustifyunethicalconducts.

1.4.Whatisa“complianceprogram”?

Anotherfrequenttermis“complianceprogram”.Acomplianceprogramisoneinwhichthedifferentcompanydocuments,policies,andpracticesonthesubjectofcomplianceare

consolidated.Butinaddition,aprogramwouldincludetheobjectivesthatthecompany

pursuesintermsofcompliance,whatitstargetsare,itskeyperformanceindicators,amongotherelementsdependingonthecompany’svisionandneedsonthismatter.Acomplianceprogramiscrucialtoacompany’ssuccessandriskmanagement,includingatbusinesses

ofSMEs’size.Therefore,itisfundamentaltoconsiderthedesign,implementation,andmonitoringofacomplianceprogram.

Effectivecomplianceprogramsshallcoveratminimumthreekeybuckets

a.Prevention,bymeans,forexampleofdraftinginternalpoliciesadjustedtotheSMEsneedsandbuildingcomplianceskillsandinternalcapacities.

b.Detection,bymeans,forexample,ofadequategrievanceandmonitoringmechanismsandensuringa“noretaliationculture”.

c.Correction,bymeans,forexample,ofcomplianceinvestigationsanddisciplinarysanctions.

ForSMEs,asanyotherbusiness,operatingincompliancemeansdoingsoinaccordancewithapplicablelawsandregulations,andcreatingacompanycultureofhonesty,integrity,and

ethicalbehaviours.

11ThisInter-AmericanConventionwasapprovedbytheOrganizationofAmericanStates(OAS).

/

en/sla/dil/docs/inter_american_treaties_B-58_against_Corruption.pdf

And,importantlytomonitorandfollowtheAnticorruptionPortaloftheAmericas–MESICIC.

/en/sla/dlc/mesicic/default.asp

12See

CriminalDivision|ForeignCorruptPracticesAct()

13See

BriberyAct2010(.uk)

November2024|ConclusionsoftheICCInstituteSMELabs|BasicsonCompliance|6

1.5.Isthesizeofthebusinessrelevanttobuildacompliancefunctionandprogram?

ThestraightforwardanswerisNO.

However,complianceneeds,risks,andresourcescanvaryfromcompanytocompany,industry,andbusinesssector.Therefore,itisrarelyaone-size-fits-allsolution.Everybusinessfrombig

transnationalcompaniestoSMEsshallconsiderestablishing,ifnotacompliancefunction,atleastacomplianceprogram.Therefore,anddependingonthesize,risks,andresourcesavailable,aSMEmayalsoconsiderputtinginplaceadedicatedcompliancefunction.

TheICCCommissiononCorporateResponsibilityandAnti-corruptionstates,initsGuidetoSMEs,14andinreferencetoanticorruptionthirdpartyduediligencethat:

SMEscanbeoverwhelmedbytheextensiveinternationalanti-corruptionlegislation

andthecomplexethicsandcomplianceproceduresinplaceinlarger,multi-national

companies.However,ethicsandcompliancedoesnotnecessarilyneedtobeona

grandscaleandsupportedbyadedicatedlegalorcompliancedepartments.Therearemanageablewaysinwhichsmallercompanies,evenverysmallbusinesses,canprotectthemselvesbybettermanagingbriberyandcorruptionrisks.”

AsanyotherbusinessduringtheCOVID-19pandemic,theSMEswerenotimmuneto

suchglobalevents,whichseriouslyimpactedtheworldeconomy.15Inthelackofrobust

complianceprograms,theSMEstendtobemorevulnerabletosucheventsand,therefore,anappealingtargetofcriminalorganizationstoinducethemtowardnon-complianceanddoilliciteconomicpractices.Toaddresssuchpotentialimpacts,itisadvisablethatSMEs

considertoimplementpreventivecomplianceactions,likesettingtheirowncomplianceprogramsadjustedthetheirsizeandscopeofbusiness.

1.6.Whataretheessentialelements,resources,andrelatedcostsofdevelopingacompliancefunctionand/orprogram?

TherearevariousmattersandcomponentsforSMEstoconsiderwhendevelopingacompliancefunctionand/orprogram.16Keyelementscanbesummarizedasfollows:

a.Compliancedocuments:Draftandhaveapprovedyourcompliancestatement

andrelateddocumentsthatcanbecalledpolicydocuments,whereprinciples

documentswillbemoregeneralandholistic,andpracticesdocumentsthatwill

bemoreoperative.Theycanbeallincluded,forexample,inacodeofconductorinseparatebutlinked/cross-referenceddocuments.Uselaymanlanguagetohelpfacilitateunderstandingandimplementation!

b.People:Appointyourcomplianceofficerand,iffeasible,acomplianceteam.SMEscanconsideracompliancecommittee,whenneeded.

14“ICCANTI-CORRUPTIONTHIRDPARTYDUEDILIGENCE:AGUIDEFORSMALLANDMEDIUMSIZEENTERPRISES”(2015).

ICCAnti-corruptionThirdPartyDueDiligence:AGuideforSmall-andMedium-sizedEnterprises-ICC-International

ChamberofCommerce()

15TheUnitedNationsOrganization,particularlytheUnitedNationsOfficeonDrugsandCrime(UNODC)hadreportedaboutthissituation.Seeforexample,

/unodc/en/frontpage/2020/July/organized-crime-groups-

are-infiltrating-the-legal-economy-following-covid-19-crisis--says-latest-unodc-research-brief.html

16“7ElementsofALegallyEffectiveComplianceProgram”.

7ElementsofaLegallyEffectiveComplianceProgram

().

SeealsoWorldBankandMinistryofJustice,RepublicofKorea,IntegrityCompliance

ProgramsforSMEs:PracticalGuidanceandResources(2024).Link:

/curated/

en/099717003082422668/pdf/IDU1a80129c3178a91493c1b3521418d07f88f2e.pdf.

c.Education:Buildcapacities,conducttraining,andensureawarenessofyour

compliancedocuments,principles,andvalueswithrespecttoyourpeopleandthirdpartiesconnectedtoyourbusiness.

d.Monitor,report,andenforce:Ensureperiodicalchecksofyourbusinesstoavoidblindspotsandtorefreshyourcompliancecommitments.Promoteaspeak

upcultureinsideandoutsideyourcompany,assuringconfidentialityandnon-retaliation.Considerpromptresponsessuchascomplianceinvestigationsand

enforcementofremedialactionssuchasadministrativeactionsandemployment

and/orsupplieragreementtermination.

Compliancecostswilldependonyourbusinessneeds.However,complianceshallbe

consideredasan“investment”whichcanattractbusinessandhelptoavoidpotentially

costlyinvestigationsandpenaltiesifnon-complianceoccurs.Therefore,settingacomplianceprogramand/orfunctionwillbealong-terminvestment.

Complianceshallbenefitpositivelythereputationofyourbusinessandcreatearesponsiblecultureandenvironment,bothinternalandexternally.Complianceshouldnotbeseenmerelyasanoptionalorcommendablepractice;rather,itisafundamentalethicalimperativethat

organisationsmustembraceinordertomaintainintegrityandpromoteaccountability.

1.7.Whattypesofsources/guidelines/regulationsandother

resourcesexisttohelpcompaniesthatareinterestedin

developinganefficientcompliancefunctionand/orprogram?

SMEscanbenefitandlearnaboutcompliancefromvariousinternationalanddomesticsources,guidelines,andregulations,17suchas:

a.Internationaltreaties,standards,andguidelines:Forexample,documentsadoptedbytheUnitedNationssuchastheUNODCAnti-CorruptionEthicsandComplianceProgrammeforBusiness:APracticalGuide;andtheUNGlobalCompactReportingGuidanceonthe10thPrincipleAgainstCorruption[Principle10:Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery–Basisfor

the17SDGs].

b.Regionalanddomesticregulations:Forexample,GuidanceonAnticorruptionfromtheEU18;Anti-corruptionLaw(France)19,Anti-briberyAct(UK),andFCPA(US).

c.Otherstandardsandguidelines:Forexample,thoseadoptedbydifferent

stakeholders,NGOs,andintergovernmentalbodiessuchastheworkdoneby

ICCandmorespecificallyitsCommissiononCorporateResponsibilityandAnti-

Corruption20,OECD,WorldBankGroup,FinancialActionTaskForce,TransparencyInternational,WorldEconomicForum(WEF),andISO.21

17Prof.EduardIvanov,OverviewofAnti-CorruptionComplianceStandardsandGuidelines.PracticalTool,InternationalAnti-CorruptionAcademy(IACA).

overview_of_compliance_standards_and_guidelines.pdf()

18

EUlegislationonanti-corruption-EuropeanCommission(europa.eu)

19ComprehensivenoteonFrenchlawagainstcorruption:

Anti-Bribery&Corruption:ComprehensiveAnalysisinFrance

(2023)-globalregulatoryinsights

20ICCComplianceAnti-Corruptiontools.Link:

Anti-corruption-ICC-InternationalChamberofCommerce()

21AnexamplefromtheOECDistheConventiononCombatingBriberyofForeignPublicOfficialsinInternationalBusinessTransactions.

ConventiononCombatingBriberyofForeignPublicOfficialsinInternationalBusinessTransactions-

OECD

And,afreesummaryexplanationabouttheISO37001:2016-Anti-BriberyManagementSystems(Requirementswithguidanceforuse)at

PECB-ISO37001:2016-Anti-BriberyManagementSystems(Requirementswithguidance

foruse)

FullISO37001text(withcost)at

ISO37001:2016-Anti-briberymanagementsystems—Requirementswith

guidanceforuse

November2024|ConclusionsoftheICCInstituteSMELabs|BasicsonCompliance|8

SMEscanalsobenefitfromthematerialsandworkdonebyorganizationssuchasthe

InternationalChamberofCommerce(ICC),theAgenceFran?aiseAnti-corruption(AFA)22,theWolfsbergGroup23andNAVEXGlobal(IT/Software).24Forexample,andofparticularinterest

forSMEsandinspecificregions,i.theUnitedNationsOfficeonDrugsandCrime(UNODC)“Anti-CorruptionEthicsandComplianceProgrammeforBusiness:APractical”(2013)25;ii.theOrganizationforEconomicCo-operationandDevelopment(OECD)“GuidanceforAfrican

Companies”(2016)26;andiii.theInternationalChamberofCommerce(ICC)“Anti-corruptionThirdPartyDueDiligence:AGuideforSmall-andMedium-sizedEnterprises”(2015).27

SMEscanlearnaboutdifferentmarketaspects,wheretheyoperateorplantodoso,fromvariousindexesandreports,publishedannually,suchastheTransparencyInternational

(PerceptionIndexofCorruption)28,GlobalFinancialIntegritypublications29,theRuleofLawIndex30andtheDemocracyIndex.31

SMEscanalsobenefitfrommultiplefreeandonlineresourcesavailable.SeeReferenceAnnexofthisdocumentformoreinformation.

1.8.Whatistheimportanceoftone,principles,values,and

corporatecultureinthematterofcompliance?

ComplianceshallbeintheDNAofanybusiness,includingSMEs.Itshouldmatterto

allemployeesandrelevantthirdbusinesspartiesandpartners.Theseniorandmiddle

managementofthecompanyshall“walkthetalk”andsettherighttoneandcascadeitdownintheorganizationbymatteroftheirexamples,language,andbehaviors.

ItiskeyforSMEstohaveastrongcommitmenttoethics,integrity,andcompliancefromthedifferentlevelsoftheirorganization.AssaidunderQuestion5,regardlessofthesizeofyourbusiness,SMEownersandmanagersshallsettherighttone!

Compliancefunctionshallknowthebusinesscolleaguesoftheircompanies,andwork

handbyhandwiththem.Notwithstandingofit,thecompliancefunctionshallpreserveitsautonomyandobjectivity,toavoidconflictofinterestswiththebusinesspartners.

SMEleadersshallaskthemselves:Doesitfeelright(eventhoughitmeetseveryletteroftheregulations)?Canwedoitbetter?“Peoplewanttodealwithpeopleandcompanieswhoareethicallysound.Itshouldnotjustbepreachedbutpracticed.”32

22AgenceFran?aiseAnti-corruption(AFA)

23

PublicationoftheWolfsbergABCGuidance-WolfsbergGroup()

24

GRCSoftware|GovernanceRisk&ComplianceSoftware|NAVEX

25

/documents/corruption/Publications/2013/13-84498_Ebook.pdf

26

Anti-Bribery-Policy-and-Compliance-Guidance-for-African-Companies-EN.pdf()

27

/news-publications/policies-reports/icc-anti-corruption-third-party-due-diligence/

28

Home-T

29

GlobalFinancialIntegrity()

30

WJPRuleofLawIndex()

31

Democracyindex,2022()

32StevenBock,ManagingDirector,KrollCompliance,

anti-bribery-and-corruption-report-2016.pdf()

November2024|ConclusionsoftheICCInstituteSMELabs|BasicsonCompliance|9

1.9.WhatESGinanutshell?

Ingeneral,andinacomprehensiveviewofcompliance,itmayincludemattersrelatedtoESG,whichmeansEnvironmental,SocialandGovernanceand,inanutshell,itcanbedescribedasfollows:

a.The“E”:Environmentalincludesi.EnvironmentalManagement(emissions,

hazardousmaterials,naturalresources,andwaste);ii.SourcingofMaterials;andiii.EnergyConsumption.

b.The“S”:Socialincludesi.HealthandSafety;ii.Labour;iii.HumanRights;iv.CommunitySafeguarding;andv.CorporateSocialResponsibility.

c.The“G”:(Corporate)Governanceincludesi.ManagementStructure;andii.

BusinessEthics(integritycompliance,CodeofConduct,anti-briberyandanti-

corruptionPolicies,anti-moneylaundering,dataprivacy,generallegalcompliance).

SMEs,asanyotherbusiness,shallassesstheongoingadaptationandevolutionoftheirpoliciesandprocedurestoi.tailorESGtotheircompany’sriskprofile,operations,and

circumstances;ii.developtheirfunctionsandprocessesrelatedtoESG;andiii.adapttochangedrisks,etc.

SMEsmustunderstandandconsiderasstatedintheprecedingsectionsandinorderto

complywithcurrentregulationsandmonitoringbythecompetentauthorities,theirrespectiveregulatoryframeworksandapplicablelaws,regulations,andrules,includingforexample

thosesetbymultilateraldevelopmentbanks,financialorganizations,andindustrystandards(so-called“softlaw”).

Finally,SMEsshallhavesolidknowledgeoftheirsupplychainmanagement,includingdue

diligenceprocessesandknow-your-customerprocedures,vendors,mandatoryflow-downoftheircomplian