Glencore Said It Revamped Its Compliance Program Following Guilty Pleas

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The Anglo-Swiss commodity company published a 13-page investor update regarding its ethics and compliance program, which coincided with settlements it has made with various regulators.

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On Tuesday, Glencore said it would pay at least $1.2 billion and that the two business units would plead guilty to bribery in the UK and conspiracy to violate US anti-corruption laws, solving a criminal investigation that has been going on for years. hangs on business.

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The guilty pleas and fines, covering a range of misdemeanors, including market manipulation and bribery, relate to Glencore’s past business conduct in developing countries, where it and other trading powerhouses obtain minerals and other resources and ferry them around the world. Put it.

Glencore said in an update published Tuesday that it has appointed new board members and improved its code of conduct over the past four years. As of the update, its employees have received extensive training on the code as well as anti-corruption, bribery and market conduct policy. The company also has a global “raising concerns” program that allows employees to anonymously report potential misconduct.

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Glencore said its annual compliance spending has increased more than 10-fold since 2016. It also said that it has quadrupled its full-time compliance staff since 2016, including hiring a dedicated head of compliance in 2020, according to the report.

Representatives for Glencore did not immediately respond to a request for comment.

According to FactSet, Glencore had $150.7 billion for 2021 and a total workforce of about 135,000. According to the company’s 74-page 2021 ethics and compliance report, the business had 61 full-time group compliance employees and 15 full-time local compliance officers. It has another 52 part-time compliance coordinators and 54 part-time support staff.

By comparison, more than half of respondents working for companies with $3 billion or more in revenue have 15 or fewer compliance employees, as compared to 1,399 individuals on compliance staffing and budgeting across industries organized by the Corporate Compliance Society. As per the benchmark survey of March 2020. and ethics. According to the survey results, about 17% of respondents working for companies with revenues of $3 billion have more than 50 employees in the compliance and ethics group.

According to the survey results, for companies with more than 100,000 employees, 37% of respondents said that they have more than 50 employees in their compliance and ethics group.

Write Mengqi Sun at [email protected]

Credit: www.wsj.com /

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