chapter  3
27 Pages

Key Areas of Risk: Where Knowing What is Happening Really Matters

Managing a modern corporation today presents significant new challenges well beyond what was imagined just a decade ago. If your organization is involved with overseas sourcing, sales, or production, you’re already aware of the myriad operational risks that face the modern multinational. But unstable regimes, bribery, and local corruptionlong a source of concern-are only a part of that challenge. As we saw in Chapter 2, increasingly, NGOs, the press, and local pressure groups are demanding that companies refrain from practices (that they pursue themselves or that are done in their name through their subcontractors) that violate employment and human rights standards or threaten the environment along a supply chain (extended responsibility chain) that can extend around the world.