Reducing risks, streamlining operations, and cutting costs are goals that all companies, public and private alike, have in common. But today, rather than seeing procurement solely as a transactional business function, more companies are realizing the inherent value in procurement serving as a versatile and dependent ally to the compliance department.
Yesterday the Nordic chambers jointly hosted a breakfast seminar with Sami Lindström and Alexander Ocieczek from Asia Perspective to share key considerations of an efficient corporate compliance program, and what should be borne in mind when procuring from Chinese companies.
When doing business in China, Foreign companies encounter local perspectives and assumptions that make adherence to corporate compliance programs an ever evolving and challenging effort. Because of a highly competitive and culturally different operating environment, ensuring adherence to corporate ethics and compliance policies remains a key concern and challenge for European companies purchasing from China.
“Continuous monitoring is key” – said Sami Lindström during the seminar, and stressed the importance of establishing relations to suppliers, subcontractors. before the purchase. “It is important to know who they are, their location and what it is that they do for their remuneration, so that you are aware of each of the elements of their supply chain“.
Sami also pointed out the need to review suppliers’ processes to make sure that each supplier can ensure product or service quality and safety and ensure that appropriate policies, procedures and whistleblowing processes are in place and, suggested that if these processes was not yet in place, one should collaborate with suppliers to develop them.