Secure your "third-party integrity" compliance system

The importance of assessing the integrity of third parties

The company's commercial activity is based on a multitude of contracts with third parties (customers, distributors, suppliers, intermediaries, consultants, etc.).

The decision to enter into a business relationship or to continue such a relationship is usually subject to a verification of the competence and creditworthiness of the third party.

However, it is not always possible to determine whether the entity with which you are contracting, its managers, its shareholders, or even its ultimate beneficiaries, respect the same ethical standards as the company.

However, such an assessment is essential to prevent the risk of contracting with an unscrupulous third party.

In addition, the compagnies themselves, whether subcontractors or business partners of large groups are themselves generally subject to such integrity assessments.

Which third parties should be evaluated, and how?

It is not a question of evaluating all third parties but only those who correspond to medium and high risk categories, according to criteria defined by the company, inspired in particular by the recommendations of the French Anti-Corruption Agency (AFA).

In this regard, the company will have to identify the third parties presenting the most risks in terms of corruption, money laundering, international sanctions or non-compliance with social and environmental rules.

Graduated due diligence measures may be implemented throughout the business relationship, depending on the risk profile of the third party concerned.

What conclusions can be drawn from these evaluations?

In rare cases, the company will decide not to enter into or continue a relationship with a third party based on these assessments.

On the other hand, it may ask a third party (e.g. supplier, consultant, distributor) to implement or strengthen a particular compliance system within it, for example in terms of the fight against corruption, concealed work or CSR commitments.

In addition, the company will be able to insert ethics clauses (or even audit clauses) in its contracts adapted to the risks identified.