When times are tough and markets shrink, new international joint ventures sprout up everywhere. They’re a fast and inexpensive way to expand commercial reach. JVs formed out of economic necessity often bring together companies that in good times are competitors. So their concerns about the arrangements usually focus on competitive risks, such as exposing […]
Search Results for: label/Joint Ventures
International joint ventures bring very high risks under the U.S. Foreign Corrupt Practices Act. Unreliable partners — those who might pay bribes to foreign officials to help the business — need to be spotted early and either avoided or controlled. Like any courtship and marriage, the process of finding and keeping a suitable joint […]
[…] thoughts about the Foreign Corrupt Practices Act. Lately, he told us, he’s been thinking about audit rights — the kind mentioned in our recent post about joint ventures. Compliance-minded companies, we wrote, make sure they have the right to audit any international joint venture they’re part of. It’s a basic tool for checking the […]
[…] government-owner can deal with one contractor. That contractor becomes responsible for assembling everything needed for the project, and for keeping the peace on the job site. Joint ventures with local partners can also have a legitimate business purpose. Some less developed countries want to help local companies improve and grow. So the governments require […]
[…] worked through them — probably at the risk of offending the Foreign Owner and spoiling the deal. That business risk is present in most proposed overseas joint ventures. There is, unfortunately, something at least mildly insulting about the aggressive due diligence needed under an effective compliance program. Typically, when potential foreign partners perceive an […]
Parental controls: Anti-corruption compliance programs for joint ventures, subsidiaries and franchisees (Part 8)
Over the course of the prior posts in this series, we examined various approaches to what we call “parental controls,” meaning compliance measures aimed at joint ventures and other affiliated entities that a company might employ. In this final post, we will review a few FCPA prosecutions to issue a note of caution.
Parental controls: Anti-corruption compliance programs for joint ventures, subsidiaries and franchisees (Part 2)
In this second post of an eight-part series on “parental controls” (Part 1 is here), we explore the types of harm that parent companies may suffer for the wrongdoing that occurs at joint ventures, subsidiaries and franchisees.
Parental controls: anti-corruption compliance programs for joint ventures, subsidiaries and franchisees (Part 1)
[…] lesser extent, to the “asset-light” strategies of some corporations. The issues of what and how much a parent company should do to promote compliance in its joint ventures has risen in significance with this trend, particularly with JVs in emerging markets, which often have compliance challenges. Compliance and ethics controls can be a challenge […]
Parental controls: Anti-corruption compliance programs for joint ventures, subsidiaries and franchisees (Part 5)
In this fifth of an eight-part series on “parental controls,” we turn from consideration of compliance programs in joint ventures (JVs) to exploring such programs in the context of other affiliated entities.