Integrity within a corporate set-up is a holistic approach that makes prudent and ethical decisions in finance and other areas, including operations, marketing, human resources and manufacturing.
The media attention given to ethical lapses means that companies are increasingly being held responsible for unethical behavior including corruption, labor issues, and the poor working conditions in their own operations, in those of their subsidiaries, as well as for the actions of subcontractors acting on their behalf.
Reported issues for this sector included environmental matters and allegations of human rights abuses in emerging markets, as well as accusations that oil companies were dumping toxic material in West Africa.
Numerous stories exposed unethical practices, such as exploiting sweatshop labour, and accused some retailers of posing a danger to indigenous communities in Africa.
Stricter legal frameworks have made it easier to prosecute transgressors and new international initiatives are helping countries to work in collaboration to deter poor business ethics.
A well-known example of a company prosecuted under the FCPA is German car maker, Daimler, which agreed to pay US$185 million in fines to the US government over alleged bribes paid to secure contracts abroad.
In existence for around 40 years now, the FCPA is a very powerful tool in the hands of US DOJ and SEC which they use as a weapon for the recovery of billions of dollars from foreign corporations worldwide over which US authorities have little jurisdiction.
Most recently, the Dodd-Frank Wall Street Reform and Consumer Protection Act (also known as the Financial Reform Act) signed into U.S. law by President Barack Obama on July 21, 2010 contains a clause that specifically requires companies with products containing cassiterite (tin ore), columbite-tantalite (coltan), wolframite, and gold to disclose to the Securities and Exchange Commission (SEC) whether the minerals are sourced from the Democratic Republic of Congo or adjoining countries.
Many business leaders have realized that early adopters of strong corporate ethics will thrive, as did those quick to embrace the environmental agenda in recent years.
The practice of integrity management consultancy combines numerous disciplines including established Knowledge Acquisition Methodologies, Public Relations Practices, Business Risk Management techniques, Corporate Social Responsibility (CSR), Compliance functions, Insider Threat detection and Financial expertise to help clients make responsible and ethical business decisions.