Ethical Corporation Institute: New Research Reveals Global Economic Downturn is Forcing Multinational Corporations to Revise Their Anti-Corruption Strategies in Their Supply Chains Through China

A New Report by the Ethical Corporation Institute Has Found That in the Downturn
All Business Supply Chains Are at Increased Risk
LONDON--(Business Wire)--
Many companies are finding that they must act now to mitigate the increase of
corruption as the recession bites.

Operations in emerging markets are at even more risk. Away from the governing
arm of the corporate HQ, companies operating in emerging markets such as China,
need to be extra careful in protecting their brand.

It is the pace and scale of growth in emerging markets such as China that has
increased opportunity for corruption to rear its head in business supply chains.

Corporate inexperience in compliance regulations make the task of implementing
anti-corruption programmes in China even more difficult for companies operating
there.

The new research by Ethical Corporation Institute, 'Counter Supply Chain
Corruption in China' reveals that the best way to prevent corruption-related
risk in supply chains is to set up and maintain effective in-house programmes.
These should aim to implement compliance codes and evaluate supply chain
partners based on ethical and compliance criteria.

The report finds that the Chinese government is making a concerted effort to
reduce corruption by introducing new legislation. However, statistics from 2003
which state that 73% of companies surveyed reported they expected to pay
``facilitation payments`` still hold true.

'Counter Supply Chain Corruption in China' continues to offer examples of how
specific companies are acting to prevent damage to their supply chain in China.
But it is made clear in this report that the Chinese government holds the
operating company ultimately responsible for securing their business supply
chains. There are tough penalties for those who let corruption into their
operation.

The new research report is now on general sale. Click here now to purchase the
report or find out more.

About the Ethical Corporation Institute:

Ethical Corporation Institute (ECI) is the research arm of Ethical Corporation.
ECI produces in-depth commercial research on sale in report format, and hosts
training workshops on ethical business.

Ethical Corporation Institute
Pamela Muckosy
Telephone: +44 (0) 207 375 7554
Email: pam.muckosy@ethicalcorp.com
www.ethicalcorpinstitute.com

Copyright Business Wire 2009