Addressing Anti-Corruption Risks From the Coronavirus
Though the immediate concerns of the coronavirus relate to employee health and safety, the outbreak—and its business disruption—may increase the risk of bribery and corruption.
March 04, 2020 at 12:23 PM
5 minute read
As companies address the coronavirus outbreak, compliance officers would be wise to consider how the coronavirus raises anti-corruption risks. Though the immediate concerns of the coronavirus relate to employee health and safety, the outbreak—and its business disruption—may increase the risk of bribery and corruption.
Due to the coronavirus, companies are experiencing greater business pressure. Many companies have salespeople who cannot travel due to precautions taken, canceled flights, or worse, quarantines. They cannot visit customers or partners, leading to slower sales. Global supply chains are disrupted, with shortages of parts and products. Company events and conferences are being canceled, resulting in fewer opportunities to build relationships with customers and market products. Customer demand for company products may be falling and companies may be declining to make revenue projections during this time of uncertainty about the spread and effects of the coronavirus.
These disruptions can increase the pressure on salespeople to meet their sales targets. Salespeople may feel additional pressure now, when sales may be sluggish, and again when business gets back to normal, and they want to make up for the time lost. That pressure can lead some people to act inappropriately—to engage in bribery or other misconduct—in order to generate business. In addition, the heightened emphasis on business priorities due to the losses from the coronavirus can push anti-corruption compliance further down on the priority list.
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