In almost every part of the world, governments have passed antitrust legislation to foster healthy competition and maintain a stable economy. These laws need to be taken seriously and the penalties for breaking them are heavy: if a corporation, whether a large multinational conglomerate or one business operating in one industry within one country's borders, violates antitrust rules, that company, its executives, and its employees run the risk of fines, penalties, and potential jail time. Ignorance is no defence under the law so it is each company's responsibility to educate all of its employees about the legal rules they are subject to, including antitrust laws.
Antitrust, anti-bribery, or anti-money laundering compliance programmes within companies are often developed reactively, subsequent to investigations, inspections or external audits. However, as I explain in my Practical Guide, it is much better to develop them proactively and as part of a general culture of compliance. That culture must run throughout your company, from boardroom to mailroom.
A good programme needs to instil a strong commitment to compliance throughout the entire company. If it is being developed in reaction to unexpected actions by regulators and agencies, an urgency to show compliance can reduce effectiveness through a lack of thorough preparation. To avoid this ineffective and inefficient situation, your business leaders should actively foster compliance from the top down.
Your company's overall risk management strategy should work with, not against or in competition with, your compliance processes. Dialogue between the compliance team and any (external) legal team can help in this respect.
A general Company Code of Conduct, Statement of Mission, or Statement of Vision is a perfect tool for explaining your company's standards, and can provide an avenue for opening discussions on ethical behaviour. It can also be a public statement of your mission and values.
A Code of Conduct typically covers a number of compliance programmes including antitrust, corruption and money laundering - but it could cover other topics including corporate social responsibility, data protection or even sexual harassment. Such an overall code should also inform your staff of the possible penalties for non-compliance, both internal (such as employment termination) and external (financial and legal).
Clearly, a company with a public image of integrity attracts better recruits, just as a full benefits package, socially conscious agenda, or family-friendly schedule can. Also, a good reputation gives investors and customers confidence in the business and generates both new and repeat business.
An effective antitrust compliance programme prevents your company from entering into illegal contracts, which can't be enforced in court. Another benefit of your staff understanding antitrust rules is that they can assist with the reporting of other companies' violations to the appropriate authorities. This will help maintain a level playing field for you and all of the other companies in your market.
Feel free to download my eBook here:
A Practical Guide to Antitrust Compliance
In almost every part of the world, governments have passed antitrust legislation to foster healthy competition and maintain a stable economy. These laws need to be taken seriously and the penalties for breaking them are heavy: if a corporation, whether a large multinational conglomerate or one business operating in one industry within one country's borders, violates antitrust rules, that company, its executives, and its employees run the risk of fines, penalties, and potential jail time. Ignorance is no defence under the law so it is each company's responsibility to educate all of its employees about the legal rules they are subject to, including antitrust laws.
Antitrust, anti-bribery, or anti-money laundering compliance programmes within companies are often developed reactively, subsequent to investigations, inspections or external audits. However, as I explain in my Practical Guide, it is much better to develop them proactively and as part of a general culture of compliance. That culture must run throughout your company, from boardroom to mailroom.
A good programme needs to instil a strong commitment to compliance throughout the entire company. If it is being developed in reaction to unexpected actions by regulators and agencies, an urgency to show compliance can reduce effectiveness through a lack of thorough preparation. To avoid this ineffective and inefficient situation, your business leaders should actively foster compliance from the top down.
Your company's overall risk management strategy should work with, not against or in competition with, your compliance processes. Dialogue between the compliance team and any (external) legal team can help in this respect.
A general Company Code of Conduct, Statement of Mission, or Statement of Vision is a perfect tool for explaining your company's standards, and can provide an avenue for opening discussions on ethical behaviour. It can also be a public statement of your mission and values.
A Code of Conduct typically covers a number of compliance programmes including antitrust, corruption and money laundering - but it could cover other topics including corporate social responsibility, data protection or even sexual harassment. Such an overall code should also inform your staff of the possible penalties for non-compliance, both internal (such as employment termination) and external (financial and legal).
Clearly, a company with a public image of integrity attracts better recruits, just as a full benefits package, socially conscious agenda, or family-friendly schedule can. Also, a good reputation gives investors and customers confidence in the business and generates both new and repeat business.
An effective antitrust compliance programme prevents your company from entering into illegal contracts, which can't be enforced in court. Another benefit of your staff understanding antitrust rules is that they can assist with the reporting of other companies' violations to the appropriate authorities. This will help maintain a level playing field for you and all of the other companies in your market.
Feel free to download my eBook here:
A Practical Guide to Antitrust Compliance