Why is this a risk?

Most companies have a policy about engaging political parties, political officers or people heavily involved in government as one of their suppliers. This is to protect the impartiality of the company and also to ensure that there is minimal risk of bias towards a particular government or political party.


Examples of where this risk could affect you

  • You engage a PR company or lobbying company that has ties to a particular political party

  • You engage a law firm to advise you on certain new proposed legislation and the law firm is linked to a government or political party


What sort of suppliers could be engaged in this risk area?

There may not be many types of suppliers that directly engage with political parties or governments; however, there are many companies that do trade off their political bias and status. Merely being involved with one of those companies might be detrimental to your reputation. These companies may include:

  • State-run companies

  • PR companies

  • Law firms

  • Lobbying groups and industry associations

  • Trade unions


How are these risks managed?

The risks of engaging a supplier with strong political affiliations are normally managed through:

  • Conducting detailed due diligence on their connections and relationships with government officials

  • Reviewing their policies towards gifts and entertainment

  • Conducting audits of their political activities

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