Corporate risk 'show-stoppers' outlined by Thales Group

18 August 2011

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18 August 2011 | Adam Leach

Global defence, aerospace and security company Thales Group has stepped up efforts to eradicate corruption from its supply chain by identifying certain risks as ‘deal-breakers’.

he company’s Corporate Responsibility Report2010, published yesterday, revealed that the identification of certain risk factors, such as a lack of transparency or a potential conflict of interest on the part of a business partner will automatically terminate a contract.

The so-called ‘show-stoppers’ are outlined in the group’s Instruction for Qualifying, Selecting and Managing Key Industrial Partners manual, which provides guidance to employees on how to assess the suitability of potential third part partners.

The document covers due diligence, operational and technical assessments and recommended management procedures. Risks that fall short of automatically ending a contract are referred to a senior manager who will decide whether to break off the deal or try to resolve the issue.

Chairman and CEO Luc Vigneron, said: “Thales’s long-term performance and reputation are my responsibility, and assuring that we act on these beliefs in everything we do is a top priority for me.”

The company also worked with OECD on developing an addendum to its Best Practices Guidance on Internal Controls, Ethics and Compliance, which is intended to help companies, particularly SMEs establish anti bribery and corruption controls, this has become particularly important since the UK Bribery Act came into force. Under the Act, the conduct of a third party can lead to the contractor being prosecuted.

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