Soft factors, hard facts
Governance and compliance on an international scale
Regulating compliance for German companies in international markets requires a keen sense of cultural differences and legal frameworks. It is important to combine global practices and principles with an understanding of local values. This ensures corporate governance that complies with regulations and proves itself in practice. Niels Schumann shows what this involves in two exemplary projects.
Compliance management system for a Chinese joint venture
A foreign OEM in the automotive industry establishes a joint venture with a Chinese state-owned enterprise.
As Head of Compliance, Integrity and Risk Management, Niels Schumann is tasked with setting up the joint venture's compliance management system and introducing a culture of integrity.
Niels Schumann is also jointly responsible for the joint venture's corporate governance.
The major challenge is to reconcile different perceptions of the tasks and responsibilities of compliance departments in Germany and China.
This challenge requires the parallel implementation of a culture of integrity and error culture. And this in a hierarchical professional context where grievances and mistakes are rarely addressed openly.
There are also differences in structure, objectives and implementation in the areas of corporate governance and risk management, which require a tailored approach.
In countless meetings, legal consultations and in close coordination with the parent company, Niels Schumann and his team have succeeded in mastering all challenges.
This includes ensuring compliance with the requirements of the German legislator under the Supply Chain Due Diligence Act with regard to environmental and human rights issues.
US monitorship of a DAX-listed company
As part of an agreement with the US government, a "monitorship" was set up to develop and implement a compliance and integrity programme in a DAX-listed company. Over the following years, this team set strict guidelines and closely monitored their implementation. All requirements of the US authorities had to be implemented within a tight timeframe in Germany and worldwide in all brands and national entities.
Niels Schumann was part of the team responsible for designing and implementing the programme. It was a huge undertaking, as a group-wide change project had to be carried out and a significant cultural shift had to take place.
And all this under considerable time pressure. The changes affected all companies and subsidiaries and impacted structures, processes and culture. This was accompanied by an increased awareness of the importance of supposedly "soft" factors such as culture, values and integrity.
The entire project was successfully completed within the specified parameters. All requirements were met and the US monitor's certification was obtained.
The group's internal second line with a comprehensive compliance management system was strengthened. At the same time, a strong awareness of values and ethical behaviour was developed.