Business World Discussed Third Party Ethics and Compliance Risks


The “Third Party Integrity and Compliance Risks of International Companies & Their Management Conference”, organized in cooperation with YASED and TEID, focused on how to mitigate integrity and compliance risks arising from relations with third parties as well as relevant best practices.

 

International Investors Association – YASED and the Ethics and Reputation Society (TEID) organized the Conference on the Third-Party Ethics and Compliance Risks of International Companies and Their Management on October 18 in Istanbul. The conference highlighted international best practices for managing relations with third parties in a manner which mitigates integrity and compliance risks.

The conference began with opening speeches delivered by YASED Deputy Chairman Steven Young and TEID Chairman Asım Barlın. Presentations given by TEID Board Members Fikret Sebilcioğlu and Altuğ Özgün provided information on basic concepts.

 

YASED Deputy Chairman Steven Young said: “YASED, representing 75 percent of international direct investments in Turkey, has been engaged in many activities for many years to improve the investment environment in Turkey. We work to ensure that international best practices are implemented in Turkey and lead the way in sharing these with the business world. One of these practices is regarding integrity and compliance risks, a major problem in the business world, especially in terms of value and supply chain.” He continued:

 

“International research has revealed that the root cause of many things which could be experienced by the companies include the integrity, compliance or misconduct related to “third parties”. Regulations for the prevention of misconduct and third-party risks as the companies' own risks and the companies are expected to take measures against misconduct. I believe that as private sector representatives, any progress and achievement in this domain will help the country to minimize such risks.”

TEID Chairman Asım Barlın said: "Internal and third-party misconduct accounted for 5% of the companies' revenues. World Bank data reveal that the amount is USD 2 trillion, roughly 2% of the global economy.

Effective management of business integrity and compliance risks is the founding stone of not only the commercial efficiency in the relevant country, but also the global commerce. The Ethics and Reputation Society was proudly founded by Siemens, Bosch, Sabancı Holding and Microsoft, among other YASED members. The Society continues to offer methods and tools for management of integrity risks for leading companies in Turkey and the world from a perspective of global citizenship. The Society aims at functioning as the foundation stone of a shared ethical identity."

 

Representatives from the industry at the panel

 

During the panel moderated by Fikret Sebilcioğlu and Altuğ Özgün, the participants were General Electric (GE) CEO and General Manager Canan Özsoy, GSK Turkey Vice Chairman and General Manager Emin Fadıllıoğlu, Pepsico General Manager Ahmet Levent Yüksel and Oyak Renault General Manager Tunç Başeğmez.

 

The CEOs attending the panel discussed the global and local issues experienced by members regarding integrity and compliance as well as the solutions, lessons learned, and international best practices. The participants spoke about the importance of the Third-Party risks for private sector and their effects on the investments.

 

 

Knowing third parties

 

Subject matter experts focused on the number of subjects including; “Who are in the third party’s universe”, “Why are third-party risks company's own risks”, “How should third-party risks be assessed”, and “The importance of the Third-Party risks for private sector and their effects on the investments”.


With contributions of Vodafone