Mexican standard for integrity policies

In recent years, the need to implement integrity policies has re-emerged worldwide, mainly due to:

• The entry into force of laws that administratively and criminally sanction acts of corruption.
• Recognition of the criminal liability of companies.
• The possibility that companies that adopt and implement optimal integrity policies and standards may be exempt from certain sanctions or receive reduced fines.
• Implementation of ESG standards to access external financing.
• The reputational risk to which companies are exposed due to complaints made through social networks.

To this end, a large number of companies, many of them multinational, have given greater importance to the creation and implementation of corporate integrity systems. However, some have limited themselves to translating standards adopted in their countries of origin or at a global level, without taking into consideration the particularities of each jurisdiction.

In the case of Mexico, it is important to remember that the General Law of Administrative Responsibilities establishes the minimum requirements that a company's integrity policies must contain so that, in the event of being involved in an investigation for alleged acts of corruption, they can avoid liability or, where appropriate, receive a reduced sanction.

The minimum elements that a corporate integrity system must contain, according to said Law, are the following:

1. Clear company organization and procedures manuals.
2. Have a published and disseminated code of conduct. The code must contain the systems and mechanisms for its application and enforcement.
3. Adequate and effective control, monitoring and auditing systems.
4. Adequate reporting systems (internal and to authorities).
5. Disciplinary processes and specific consequences for offenders.
6. Training and capacity building systems.
7. Human resources policies that include the implementation of actions for due diligence prior to hiring employees.
8. Mechanisms that ensure transparency and publicity of interests.

While the task of preparing these documents may seem simple, the reality is that for them to work in a real and effective manner, it is necessary to adopt a multidisciplinary approach, taking into account: (i) current legislation – including aspects of criminal law, administrative law, labor rights, human rights, etc. -, (ii) the structure and processes of the company, so as not to negatively impact its operation or create unnecessary bureaucracy, (iii) the objectives and risks of each company, as well as its relationships with third parties – including bodies at different levels of government, and (iv) the size of the company and its budget for the implementation of this type of policies.

In the team of Compliance At Santamarina + Steta Research we have adopted as a best practice the realization of a total immersion in each of the companies with which we work for the creation and implementation of corporate integrity systems, with the purpose of designing strategies and systems tailored to each one of them. It is vital that an integrity system becomes a living and important part of the business culture of each one of our clients, supporting them throughout their creation and implementation process.