Eliminating Bribery and Corruption in Supply Chains

In 2014, Brazilian authorities initiated Operation Lavo Jato (Car Wash), a covert investigation into corruption at the state-owned oil company Petrobras.

But it soon unearthed what was deemed “perhaps the farthest-reaching, most efficient corruption machine in modern business.” The Petrobras scandal implicated government and business officials across political spectrums and borders.

It pulled corporates and conglomerates into its gravitational pull, including Brazil’s foremost construction giant. Over time it was revealed that up to USD 788 million had been paid out in bribes between 2001 and 2016, often through shell companies to conceal the source of the funds.

For many businesses worldwide, bribes are “just the cost of doing business” – a sacrifice to the cause of receiving lucrative kickbacks and contracts. However the impact of bribery-tainted supply chains on global commerce is immense. There are certain measures that can be undertaken to minimize instances of corruption.

In this whitepaper you will learn:

• How and why corruption occurs in supply chains
• The profit versus penalty of receiving kickbacks within an organization
• How prequalifying suppliers can minimize risk of supply chain corruption