{"id":82478,"date":"2020-09-01T03:44:00","date_gmt":"2020-09-01T01:44:00","guid":{"rendered":"https:\/\/legrandcontinent.eu\/fr\/?p=82478"},"modified":"2020-11-14T13:00:42","modified_gmt":"2020-11-14T12:00:42","slug":"compliance-and-cultural-diversity","status":"publish","type":"post","link":"https:\/\/legrandcontinent.eu\/fr\/2020\/09\/01\/compliance-and-cultural-diversity\/","title":{"rendered":"Compliance and cultural diversity"},"content":{"rendered":"\n

Faced with the growing legal and reputational risks, expectations of stakeholders as well as the emergence of obligations, in a number of jurisdictions to set up compliance rules, companies are now required to have programs of ethics and compliance aimed at preventing the major risks to which they may be exposed (anti-corruption, sanctions, business & human rights, etc.) <\/span>1<\/sup><\/a><\/span><\/span>.<\/p>\n\n\n\n

\"\"<\/a>T\u00e9l\u00e9charger<\/a><\/div>\n\n\n\n

All the rules constituting the ethics and compliance program should enable the company\u2019s employees to adopt a course of action in conformance with its requirements.However, multinational companies bring together within their structures a wide variety of cultures, languages, traditions and legal specificities. There are also differences in business cultures between the different functions (e.g. management, operational, commercial, support, etc.) operating within the same entity and in the same country. <\/p>\n\n\n\n

Ensuring the respect, and therefore, the effectiveness of an ethics and compliance program in the presence of multiple cultures is a real challenge for multinational companies. This is all the more so since compliance is a concept that was first developed in the United States to meet the expectations of the US authorities. As a result, compliance rules are generally marked by Anglo-Saxon culture (although other jurisdictions such as France have upgraded their laws in this area), which can be misunderstood in other legal systems <\/span>2<\/sup><\/a><\/span><\/span>.<\/p>\n\n\n\n

Ensuring the respect, and therefore, the effectiveness of an ethics and compliance program in the presence of multiple cultures is a real challenge for multinational companies. This is all the more so since compliance is a concept that was first developed in the United States to meet the expectations of the US authorities.<\/p>christian dargham and marion marhuenda<\/cite><\/blockquote><\/figure>\n\n\n\n

For example, in Japan, unlike the United States, it can be difficult to implement a whistleblowing system. The values of courtesy and respect for hierarchy and experience are particularly strong and may constitute an obstacle when it comes to denouncing the reprehensible behaviour of a colleague or, worse, a hierarchical superior. Similarly, if for developed countries defeating child labour is an important fight, it may not necessarily be a priority in certain emerging countries where children work to provide additional income for their families.<\/p>\n\n\n\n

Therefore, in order to ensure understanding, assimilation and respect for the rules laid down in its ethics and compliance program, the company must ensure that it is adapted to the different systems of thought and to the cultural specificities that exist within it.<\/p>\n\n\n\n

However, accounting for this cultural diversity may not be limited to simply translating the company\u2019s commitments, rules and procedures into local languages. Indeed, the company must also ensure that its program complies with the laws and regulations applicable locally, and that the rules set out are understood from a cultural point of view.<\/p>\n\n\n\n

This cannot be achieved by setting up an ethics and compliance program with variable geometry depending on the place where the company\u2019s activities are carried out. Such an approach would not only be very difficult to implement in practice, but most importantly, it would also be contrary to the principle of the uniformity of the program, and would entail significant legal risk in view of the extraterritorial scope of certain legislations, in particular as regards anti-corruption.<\/p>\n\n\n\n

An effective ethics and compliance program must be based on a set of fundamental values which will constitute a culture of integrity common to the whole company and transcending cultural differences (1). This culture of common integrity can then be adapted to local cultural specificities (2).<\/p>\n\n\n\n

1. Developing a culture of common integrity            <\/h2>\n\n\n\n

Identify the fundamental values of the company<\/em><\/h3>\n\n\n\n

The first step in developing a culture of common integrity consists in identifying and recognizing, at the highest level of the hierarchy, the existence of not one, but several cultures within the company.<\/p>\n\n\n\n

From this plurality, it is necessary to establish a common base of fundamental values to which all employees will adhere, because they constitute points of convergence between the different existing cultures. These common fundamental values will define the line between what is acceptable, and what is not <\/span>3<\/sup><\/a><\/span><\/span>.<\/p>\n\n\n\n

From this plurality, it is necessary to establish a common base of fundamental values to which all employees will adhere, because they constitute points of convergence between the different existing cultures. These common fundamental values will define the line between what is acceptable, and what is not.<\/p>christian darhgham and marion marhuenda<\/cite><\/blockquote><\/figure>\n\n\n\n

It is on the basis of these fundamental values that the company\u2019s ethics and compliance program will be based. However, these must be sufficiently clear, general, and above all, limited in number so as to allow the adhesion of all employees. Moreover, these values must be identified in light of the specificities of the company itself, its activity, its mode of operation, or even its history.<\/p>\n\n\n\n

The objective of the culture of integrity is also to provide a reading grid of the company\u2019s commitments, which will allow employees to understand the ethics and compliance program. In fact, by tying the themes of its program back to the fundamental values it has identified, the company strengthens the legitimacy of its program, and therefore the adhesion by its employees. For example, civic engagement, trust or respect are universally recognized values that can serve as the basis for the implementation of an ethics and compliance program. Only the practical implementation of specific rules in which they result will significantly differ from one country to another, or rather from one culture to another.<\/p>\n\n\n\n

Create a culture of strong common integrity<\/em><\/h3>\n\n\n\n

The mere display of the fundamental values constituting this culture of common integrity is not sufficient. These values must be systematically enforced and reaffirmed within the company by means of clear, regular and varied communication initiatives.<\/p>\n\n\n\n

The company must reaffirm its commitments through traditional communication tools such as training, drafting of ethical charters, but also by adopting, itself, the behaviour which is consistent with the values it intends to defend.<\/p>\n\n\n\n

Thus, if the company singles out trust as a fundamental value, it will, for example, have to adopt a transparent governance policy, guarantee protection against retaliation when employees report misconduct or refuse to pay bribes even if that means losing a contract.<\/p>\n\n\n\n

Finally, putting in place a mechanism to reward the behaviour of employees participating in promoting the culture of corporate integrity, but also disciplinary sanctions for actions that do not comply with these values, will ensure the solidity of the company\u2019s culture of common integrity, and therefore of its ethics and compliance program.<\/p>\n\n\n\n

The choice of values common to all cultures remains a delicate task, yet this approach helps to :<\/p>\n\n\n\n