Worldwide bribery risk assessment

Our client is a major automotive OEM. Although production largely takes place in the UK, the company has a presence in the majority of countries across the world either through purchasing activity, direct sales or through its franchise network of dealerships. Mazars was selected to review the company’s ethical processes and procedures with reference to new legislation introduced in the UK.

Challenge

As a multinational company undertaking both importing and exporting activities, the generic risk of non-compliance by our client with the UK Bribery Act was high and hence their request for an independent bribery risk assessment to be undertaken.

Solution

Mazars undertook a bribery risk assessment of the client's key activities both within the UK and overseas and, from this, developed an action plan to further enhance the anti-bribery control framework. The client’s entire value chain was evaluated, including: Legal and Compliance, Finance, Production, Purchasing and Stores, Supply Chain, HR, IT, Marketing and Design Development.

Impact

Our client was able to gain a better understanding of where it was most exposed to the risk of bribery and could begin to address weaknesses in internal controls to minimise the risk of a corporate charge under the new UK Bribery Act

Automobile

Reorganised, checked and certified inventory

Our client sells buses produced by the parent company and performs repairs and maintenance for the Group's buses. The service quality is of high importance as the brands serviced are premium brands. Mazars designed new procedures for stocktaking, staff training and warehouse organisation for the client.

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Captive finance

All automotive groups possess a captive finance subsidiary enabling them to finance some of their business activities, including loans to customers. For example, PSA has bank PSA Finance and General Motors, GMAC. These financial entities can manage up to 30% of vehicle purchases, but this differs depending on manufacturers and the market situation.

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Auditing sales incentive contracts

Our client is an international car manufacturer with an extensive sales network in France which is almost exclusively composed of franchisees.