Source of Influencers
Internal Internal procedures need to be able to detect corrupt employees sourcing suppliers for personal gain. You should also be able to identify any non-legally compliant requirements that have been specified - remember, what is legal in one country is not necessarily legal in another; think about the countries your goods pass through en-route to their destination.
External Breach of regulations, laws and statutes may be widespread in the countries in which you operate, so diligence is required to ensure that your contractors or associated countries remain compliant.
Organisational Consequences
Operational Customs delays, confiscation or seizure of goods, and the onerous remedial action required thereafter.
Financial Fines and financial penalties could be levied for non-compliance; delayed shipments could result in cancelled orders; there may be additional costs that have to be absorbed if an alternative supply has to be sourced.
Reputational Laws are generally made for good reason, and a company that finds itself on the wrong side of laws concerned with working conditions, human rights, the environment, corruption, or even those companies who are complicit in avoiding taxes, will find consumers quick to judge.
Sustainability Consequences
Social There are ten principles held by the United Nations Global Compact (UNGC) under the headings of Human Rights, Labour, the Environment and Anti-Corruption - if your organisation isn't vigilant, it could easily find itself failing some, or all, of these.
Environmental Domestic and international environmental law-makers find themselves under increasing pressure to act quickly, so it is imperative that environmental legislation is monitored and adhered to, especially as governments have been enforcing massive fines as a disincentive to non-compliance.
Economic Legislative compliance is seen as very much a basic requirement of an organisation so any non-compliance is likely to be viewed dimly by investors or consumers, with a corresponding drop in sales and/or funding.
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