This chapter provides a step-by-step guide as to how the Compliance Without Borders programme works. It provides interested SOEs or private sector compliance experts with information needed to assess whether they too can benefit, and how to make the most of it with tips for engagement. The chapter may be instructive for entities in other sectors or organisations that are either high risk or simply committed to strengthening their integrity.
The Compliance Without Borders Handbook
Strengthening Integrity in State-Owned Enterprises Through Peer Learning
3. How to engage with Compliance Without Borders
Abstract
Compliance Without Borders brings experienced compliance experts (the “private sector peer”) via short-term, virtual secondments to SOEs (the “host SOE”) to help them build their anti-corruption compliance capacity and address related risks. The peer-learning programme facilitates the transfer of subject-matter expertise and skills using a practical, “learning by doing” approach. It is a hands-on tool for the implementation and promotion of the ACI Guidelines and related international standards.
Each peer exchange aims primarily to enhance the host SOEs’ anti-corruption compliance capacity. At the same time the exchange provides both the host SOE and the private sector peer with a deeper understanding of global and regional risks as well as international best practices on anti-corruption and integrity. More information on the tangible benefits of the programme is detailed in Chapter 2.
3.1. Forms and areas of support
The host SOE and private sector peer establish at the outset the specific goals and outputs for the peer exchange, falling under the broad areas of support of the programme: risk management and arrangements, internal control and ethical culture in SOEs. Specific risks that can be addressed could be related but not limited to the SOE’s business partners and third parties, bribery, conflict of interest and procurement or contracting processes.
While every exchange is different, they will typically last three to six months and be conducted on a virtual basis. In-person secondments, during which the private sector peer is physically placed in the host SOE’s office, are possible subject to more extensive preparation and legal formalities between the participating entities.
Figure 3.1. Examples of specific risk areas covered by Compliance Without Borders
3.2. Participants in the Compliance Without Borders programme
Compliance Without Borders involves three main parties: the host SOE, the private sector peer and the Compliance Without Borders co‑ordinators within the OECD. Although the role of the participants will vary according to the specific context and goals of each peer-exchange, the typical conditions and responsibilities appear in Figure 3.2.
Figure 3.2. Participants in the Compliance Without Borders Programme
3.2.1. The host SOE
The host SOE is the enterprise that will receive the private sector peer’s support in practical capacity building. In the initial stages, the host SOE is responsible for setting up the initial framework of the peer exchange. First, they identify the areas for improvement, then provide the private sector peer with sufficient background information needed for them to support those improvements to the best of their ability. In some cases, the peer may suggest other areas for improvement to focus upon. The host SOE will moreover be responsible for creating an environment conducive to a beneficial exchange, providing contact points, an introduction to the relevant team members and access to certain documents or even systems where necessary.
The Compliance Without Borders co‑ordinators ask the host SOE to appoint a designated representative within the company to serve as a primary contact point with both the co‑ordinators and the private sector peer in all meetings and interactions. Although there is no specific position this person must hold to represent the SOE in the programme, it is highly recommended that they are engaged in compliance or associated departments. Securing support and backing from upper management or members of the board to participate is critical to the success of the exchange, the attention it receives and the longevity of the progress made therein.
3.2.2. The private sector peer
The private sector peer typically works (or worked) in a compliance or similar function relating to anti-corruption in a multinational firm from the private sector. Under certain circumstances, large SOEs that have advanced anti-corruption compliance or risk management systems may request to second one of their anti-corruption compliance experts to another SOE. Currently, the programme does not onboard compliance experts working in professional services firms such as law, accounting or consultancy firms.
Experts participating in the programme have at least five years of experience in an anti-corruption compliance function or, alternatively, substantial experience gained from carrying out compliance or corruption-related tasks with demonstrable experience and transferable skills (such as HR, legal, audit or risk management). Whether a private sector peer is suited for a particular host SOE will be determined on a case‑by-case basis taking into consideration their professional background, their expertise and language skills. Non-technical skills will also be considered to ensure a co‑operative environment between the private sector peer and the workforce of the host SOE.
The private sector peers are willing to provide their expertise and time on a voluntary and pro-bono basis and will work alongside their counterparts in the SOE. They provide “hands on” support on the identified and agreed-upon issues concerning anti-corruption and integrity. They demonstrate their skills and share knowledge on general compliance practices.
“It was great to talk about the subject with a passionate “colleague” in a different perspective and learn about the challenges of the SOE. It gave insight also to where we as a private company are on the compliance journey”- Senior Compliance Officer at a parts manufacturing firm based in Denmark“For personal development, it has been a rewarding and fulfilling experience allowing me to gain a deeper understanding of compliance challenges outside the private sector, and positively expanded my professional network with other like‑minded ERC experts at SOEs” – the Global Head of Corporate Compliance for a multinational pharmaceutical based in Switzerland
Compliance Without Borders is a peer learning experience and is not a consulting assignment. The private sector peer does not have any official responsibilities within the host SOE. The private sector peer can in no way be a ‘first responder’ or ‘problem solver’ in relation to any active investigations – internal or otherwise – or to any allegations of fraud or corruption. The conditions agreed upon should enable the relationship between the private sector peer and the host SOE to be terminated unilaterally in the event they are put in a situation that makes them uncomfortable, unable or unwilling to initiative or continue an exchange.
3.2.3. The Compliance Without Borders co‑ordinators
The Compliance Without Borders co‑ordinators refer to the dedicated individuals within the OECD, with the support of experts at the Basel Institute on Governance. The co‑ordinators facilitate the matchmaking between the host SOE and peer expert and support the needs assessment and deployment of the private sector peers. Specifically, support can be given to the peer and SOE in preparing the organisational documents, and in helping to establish a fruitful basis for the communication between them, acting as a clearing house and interface for any issues.
The co‑ordinators also monitor progress, serving as a contact point for the participants in case of non-technical questions or any organisational issues that arise during the secondment. They do not however provide technical or thematic assistance and are not responsible for the achievement of the peers’ goals. They could however point the peers to certain sources that can be of use in achieving the objectives during the programme. Finally, the co‑ordinators conduct evaluations mid-way and at the end of each exchange.
3.3. Elements of a successful peer-to-peer learning programme – step by step
The Compliance Without Borders co‑ordinators have developed a five‑stage, step-by-step process, along with associated documents to support participants from their expression of interest to the conclusion of the programme. This guidance supports the participants in deciding whether the programme suits their needs and skills, in developing a common language to articulate which objectives they wish to reach and how they can achieve these goals through co‑operation. Each step of the cycle is detailed below.
Figure 3.3. Compliance Without Borders Programme Cycle
3.3.1. Identifying and engaging with host SOEs
The section gives an overview of which SOEs are suited for participating in the programme, how they can benefit from it and how they can make the most out of their participation.
Preliminary questions for interested SOEs
SOEs considering engaging with Compliance Without Borders should review the following series of questions to examine whether the programme is suited to their needs, and whether they are capable and willing to meet the conditions required for the programme. The questions will also provide an overview of what Compliance Without Borders expects from its participants and how it might impact their work.
Figure 3.4. Preliminary questions for host SOEs
The host SOE’s first call with the Compliance Without Borders co‑ordinators
After an expression of interest, the Compliance Without Borders co‑ordinators will conduct a preliminary due diligence on the interested SOE. The co‑ordinators will assess its suitability based on current or recent events and evaluate risks for their potential to harm the programme or institutions involved or hinder its success.
Should the SOE appear suitable, the co‑ordinators will reach out to the interested SOE and schedule a call to get to know the representative and the SOE and introduce the programme. Since the nature of Compliance Without Borders is based on an exchange between persons with different backgrounds and nationalities, the human factor is important to an exchange’s success. The call will give both the SOE as well as the Compliance Without Borders co‑ordinators the chance to get a first impression of the people that will be working together.
Tip: Prepare for the first call to get the most out of it:
It is strongly encouraged to determine the individual within the SOE who will act as the contact person for the co‑ordinators and the private sector peer, before or immediately following the first call. This would typically be a compliance officer but could be another representative with responsibilities related to subjects covered by Compliance Without Borders.
SOEs can begin thinking about which areas of support they are most interested in.
SOEs can consider whether the exchange can be conducted in English.
Prepare to elaborate on the SOE’s ownership and governance structure, its anti-corruption compliance arrangements (and relatedly, risk management processes and similar) and any high-risk areas.
Concerning SOEs that wish to pursue the programme following the initial call, the Compliance Without Borders co‑ordinators will conduct a second due diligence. It is based on publicly available information and other information provided voluntarily by the SOE in their outreach.
Preliminary Needs Assessment
The Compliance Without Borders co‑ordinators send the interested SOE a “Needs Assessment” form to be filled in and returned. This is a crucial step in defining the scope of the support required during the peer-exchange, and essential for identifying a private sector peer to match the SOE’s areas of interest. In general, SOEs should be thinking about which arrangements, processes or policies it would like to improve related to anti-corruption compliance.
The Needs Assessment document is divided into three main (and non-exhaustive) categories: governance arrangements, risk management and internal controls, and ethical culture. Each category provides several areas in which the SOE could benefit from support. These are not exhaustive and can be expanded by the SOE tailored to their structure and needs.
As mentioned in Chapter 2, examples of concrete products of the peer-exchange are:
Developing an internal anti-corruption training programme.
Strengthening codes of conducts or codes of ethics.
Revision of conflict of interest standards or disclosure requirements.
Assessing the strength of the internal audit function.
Identifying gaps in the board’s oversight of risk management and control.
Based on the initial expression of needs, the co‑ordinators and SOE, and eventually the SOE and the private sector peer, will work together to refine the scope of the exchange in accordance with the needs, the private sector peer’s skill set and the duration set for the exchange.
Tip: Being as specific as possible in the Needs Assessment form will help the Compliance Without Borders co‑ordinators find the most suitable peer-exchange partner. The co‑ordinators are available to help in completing the form. The form is not exhaustive and interested SOEs can add any information or wishes considered important.
3.3.2. Creating a community of compliance experts
This section is of relevance for compliance experts that consider engaging with Compliance Without Borders. It gives an overview of which experts are suited for participating in the programme, how they can benefit from it and how they can make the most out of their participation.
Preliminary questions for interested compliance experts
Experts considering engaging with Compliance Without Borders should review the following series of questions to examine whether they fulfil the criteria sought for. Note that, for the purposes of this programme, “private sector” does not include professional service firms (e.g. law firms, accountancy firms, management consultancies).
The private sector peer’s first call with the Compliance Without Borders co‑ordinators
After an expression of interest, the Compliance Without Borders co‑ordinators will conduct a preliminary due diligence on the interested compliance expert and their company. The co‑ordinators will assess the suitability based on current or recent events and evaluate risks for their potential to harm the programme or institutions involved or hinder its success.
The Compliance Without Borders co‑ordinators will then reach out to the interested expert and schedule a call to get to know the individual and their company and introduce the programme. Since the nature of Compliance Without Borders is based on an exchange between persons with different backgrounds and nationalities, the human factor is of paramount importance for the success. The call will give both the private sector peer as well as the Compliance Without Borders co‑ordinators the chance to get a first impression of the people that will be working together.
To enhance the efficiency of the call with the OECD, private sector peers should ideally consider and prepare their motivation and expectations for the programme beforehand. During the call, the private sector peer will be asked to explain relevant experience and both technical and soft skills, and to provide some background information of their current employer, with whom the private sector peers should already have confirmed their availability to engage with Compliance Without Borders.
Figure 3.5. Preliminary questions for private sector peers
Due diligence
For experts that wish to pursue the programme following the initial call, the Compliance Without Borders co‑ordinators will then conduct a second due diligence based on publicly available information and other information provided voluntarily by the private sector peer – such as that required from the host SOE as mentioned above.
Identification of expertise
The identification of the private sector peer’s knowledge and skills is a crucial step for matching the private sector peer with an SOE. The Compliance Without Borders co‑ordinators will provide private sector peers with a document to establish their profile. Apart from indicating their professional qualifications and areas of expertise, private sector peers are asked to provide information on their non-technical skills such as language skills and experience in specific regions.
Tip: private sector peers are invited to indicate any particular interests and areas/regions they would wish to work on. Although the Compliance Without Borders co‑ordinators cannot guarantee that these preferences will be satisfied, efforts can be made to find a host SOE that can meet these interests.
3.3.3. Matchmaking
Based on the information provided by the potential host SOE and prospective private sector peer in writing and during the first calls, the Compliance Without Borders co‑ordinators begin looking for the best-suited match. Identifying the right match is at the heart of the co‑ordinators’ work. The overall success of the programme hinges on the identification of peers that will be able to achieve successful results together. It takes into account:
Matching needs and expertise: the private sector peers should possess the skills and experience that are required to address the interests indicated by the host SOE. The two organisations will, by design, operate in different sectors and will likely have different sizes and structures, but a match will be made based on common ground and synergies that work in favour of the programme’s objectives. This kind of pairing could for example consider two entities that interact with third parties and that prioritise trust building in their respective field of work.
Examples: A state‑owned airport wishes to develop a risk assessment methodology that will adequately capture risks related to sanctions and money laundering. The private sector peer brings years of experience in developing and tailoring risk assessments that will be transferable, though sanctions and money laundering risks are not among their company’s current risk profile. Another SOE is interested in strengthening its due diligence processes owing to its engagement in large concessions. It is matched with a private sector peer whose firm, though operating in a different sector with vastly different strategic objectives, has a strong system for managing third-party interactions.
Potential conflicts of interest: the Compliance Without Borders co‑ordinators assess whether possible conflicts of interest exist between a potential match, particularly considering the sectors they are operating in and possible contractual or other relations between their organisations or related parties. For example, if a state‑owned port is a major exporter or importer of a product sold by a private sector peer’s company, it is not a suitable match. The co‑ordinators will also assess the declaration of the SOE or the private sector peer or its company for incompatibilities with the prospective peer or their firm.
Language barriers: Language is another crucial aspect of a successful peer exchange. The programme is currently run in English in order to ensure that the host SOE, the private sector peer and the programme co‑ordinators can exchange and learn together. This is important to developing mutual understanding and trust. The peers should be able to communicate freely and without intermediaries, through which important content can get lost in translation, and which can lead to misunderstanding. It can be part of the common journey of the peers to develop a mutual understanding of these structures and regimes despite having different native languages, but a fluent level of English is essential to achieve that at this current juncture in the programme. This said, however, if the two peers speak the same language they are free to exchange in this language when the programme co‑ordinators are not participating in the meeting.
Interpersonal dynamics: The human element of the peer-exchange is not to be neglected. Experience has shown that the professional chemistry between the participants is a sine qua non for any successful match. Building the trust required to work on compliance‑related issues requires a natural and mutual respect and cultural awareness, particularly if the objectives of the exchange require discussion of sensitive issues. Therefore, the Compliance Without Borders co‑ordinators will look for peers who may demonstrate cultural awareness, for instance having worked previously in the other’s setting or country.
Introducing the peers
If both peers agree to interact, the Compliance Without Borders co‑ordinators will organise and moderate an introductory call. The peers will have received basic information about the other individual and their firm, as well as their broad goals for the programme, before the call. The Compliance Without Borders co‑ordinators will introduce the peers, leaving them to elaborate on their interests and expectations. These calls typically reveal a positive interpersonal dynamic and leave the participants excited to get started.
Tip: It is helpful to prepare in advance the most relevant information about yourself, your company and the most important aspects of your work, as well as expectations for this first introduction and the programme in general. You may come with an idea of the ideal frequency of interactions (e.g. X meetings of X hours per week), and the duration of the exchange (e.g. three, four, five or six months). Do bring any questions you have for your peer-exchange partner at this point.
3.3.4. Commencement and execution of the peer-exchange
After the peers have been introduced, the actual exchange can start. The initiation of the programme and its organisation varies according to the match, the objectives and the format for the exchange. This phase is mainly in the hands of the peers, with the Compliance Without Borders co‑ordinators providing advice and support. The following steps hence describe what the Compliance Without Borders co‑ordinators recommend for a successful exchange, noting that not all steps will be applicable to each match up.
Building trust
Peer-exchange is most successful when the communication between the participants is based on mutual trust, and characterised by fairness, solidarity, transparency and openness. Trusting a foreign expert around the enterprise’s sensitive issues such as corporate governance, compliance and integrity can however take some time and effort, especially when the exchange only takes place virtually. Experience has shown that the peers developing their own momentum and recognising each other as like‑minded actors can facilitate creating an environment of transparency and trust.
Tip: The Compliance Without Borders co‑ordinators recommend that the peers get to know each other in a more informal setting first, be it in person or via a virtual coffee break, to share their personal journey and experience on an eye‑to‑eye, non-hierarchical level. There are also virtual formats for trust-building exercises.
It is crucial for the success of the programme that both peers provide an overview of each other’s experiences and existing skills as well as challenges. The host SOEs should further provide the private sector peers with as much information on their compliance system and the required support as possible.
Peer-learning plan and implementation of the exchange
The Compliance Without Borders co‑ordinators strongly encourage the peers to jointly develop a Peer-Learning Plan that guides their engagement. A template is available. The Peer-Learning Plan creates a platform for articulating shared goals and making expectations transparent. It moreover facilitates tracking the progress of the peer-learning as well as the final evaluation by defining objectives and indicators. Indicators set at the beginning are helpful to monitor the progress and can be adjusted during the exchange, providing flexibility and a tool for reflecting on how the peer-learning experience can be enhanced practically on the way.
The Peer-Learning Plan can be a living document and be adjusted based on the insights gained during the exchange and the conditions of its environment. Objectives set should follow the SMART criteria: specific, measurable, achievable, realistic and time bound. Like the ToR, a peer-learning plan jointly developed by the peers promotes ownership and establishes a powerful basis for the success of the exchange.
Example: One of the Compliance Without Borders pilot projects sets as an overarching objective to strengthen the host SOE’s anti-corruption measures, including strategies to tackle corruption risks and sanction risks. The peers also stipulated in the Peer-Learning Plan that one one‑hour meetings would be held each week.
The Peer-Learning Plan laid out specific indicators, such as strengthening the corruption assessment methodology and reviewing the corruption and conflicts of interest policy of the SOE. It assigned dates for achievement of those goals. The peers updated the document continuously, logging progress using the indicators and assigned dates. They amended certain goals and methods, and eventually prolongated the exchange, to accommodate for the increasing ambition and commitment of both parties.
The Compliance Without Borders co‑ordinators will ask the peers to provide them with a copy of the Peer-Learning Plan for the improvement of the programme and this Handbook in the future. In case the peers decide not to create a written Peer-Learning Plan or ToR, it is highly recommended that the peers still address the subjects therein before commencing the exchange.
When launching the programme, it is helpful for the first sessions to comprise a presentation of the host SOE on the legal and regulatory frameworks applicable in relevant areas, existing internal normative documents, their business models and organisation structures as well as the structural units and departments involved in the issues addressed during the programme. Conversely, the private sector peers can present their business model and compliance and integrity system in the introductory session, as well as good practices in the identified areas of need for the SOE. This proves moreover useful for trust-building.
Tip: The experience of the first pilots shows that it often takes more time than expected for the private sector peers to introduce certain aspects of their good practices to the host SOE. It is therefore recommended to identify what documents and presentations are needed by the private sector peer as early as possible. Translating relevant documents beforehand can also enhance the efficiency of the exchange.
The peers have complete ownership of their work on the issues agreed upon, and each match is unique in its approaches and topics. Being a continued learning process, the programme allows for a lot of flexibility, so that the peers can adapt their working methods and required results according to the insights gathered during the exchange.
3.3.5. Programme evaluation and alumni network
After the peers have concluded the exchange according to their own terms, the Compliance Without Borders co‑ordinators will conduct an evaluation of the project. The evaluation will aim to measure the concrete impact of the exchange and collect insights, practices and lessons learned to improve the programme and have comparable data to replicate in other formats and areas. The co‑ordinators will reach out to both the host SOEs and the private sector peers with evaluation documents to complete. Unless explicit consent to share their identity has been given, the data collected will be anonymised. Any personal data collected would be protected consistent with the OECD Data Protection Rules.
Feedback from the first pilots has proven the success of Compliance Without Borders in creating measurable impact for the peer-exchange partners. The Compliance Without Borders co‑ordinators systematically analyse and reflect on the information collected during the project, together with the participants. Each exchange project has its own goals and objectives. If these have been set and defined from the start, the effectiveness and efficiency of the work undertaken can be measured and valued. The Peer-Learning Plan is an efficient tool to ensure the exchange’s impact can be measured in a systematic and comparable way.
In terms of lessons learned, the Compliance Without Borders co‑ordinators are constantly working on the programme’s structure and procedure to optimally support the parties, based on feedback gathered during the pilots. For instance, participants encouraged the co‑ordinators to explain in more detail what will be the main tasks of the involved parties within the implementation of the project would be – which are now reflected in this Handbook. The Needs Assessment forms have been updated to allow SOEs to select a more diverse set of areas they seek to improve. The Compliance Without Borders co‑ordinators will continue to follow the progress of each match, and to gather participants’ feedback, in order to make more refined and tailored matches in the future.