Compliance Program Best Practices in Chile: A Guide for Multinationals Operating in the Country

As Chile continues to update its corporate crime laws, multinationals with operations in the country must be informed of the compliance changes being implemented. In order to prevent employees from being involved in situations that may have legal and/or reputational consequences, companies should follow six key steps.

Applying Global Standards Locally

Firstly, it is essential to apply the same standards everywhere. Companies operating in Chile should not turn a blind eye to practices or behaviors that they would not accept in their home country. An act of corruption committed in Chile will sooner or later end up affecting the reputation of the parent company.

Adapting Compliance Programs to Local Realities

Secondly, companies should acknowledge local idiosyncrasy and adapt their compliance program within reasonable parameters to the reality of each country. This includes making sure to monitor its correct implementation in accordance with local customs and practices.

Consistency is Key

Thirdly, if a company decides to include something in its compliance program, it must stick to it. A good compliance program is only effective if it is believed to be necessary and is actively implemented throughout all areas of the organization.

Incentivizing Good Behavior

Fourthly, companies should turn compliance into the carrot and not just the stick by making it an integral part of their incentive and compensation programs for executives and workers. This encourages a culture of good practices and helps to prevent bad behavior.

Due Diligence with Third Parties

Fifthly, companies must exercise due diligence in their relationships with third parties, including those operating in other countries and who may be unfamiliar with local customs and practices. This includes conducting periodic evaluations and constant monitoring to ensure that all actors involved are acting ethically and legally.

Protecting Sensitive Information

Finally, companies should control their sensitive information by implementing measures to prevent its misuse, such as the use of messaging applications like WhatsApp or Telegram. In case of an investigation, having access to and being able to collect and present evidence of compliance will be key.

By following these best practices, multinationals operating in Chile can ensure that they are complying with local laws and regulations while also promoting a culture of ethics and transparency within their organizations.