Managing Third-Party Corruption Risk: The Case of Safaricom and Its Suppliers

08.17.2020 | Case Studies

This case study highlights the importance of anti-corruption compliance in the modern marketplace, specifically examining how it applies to supplier relationships in Kenya. Anti-corruption compliance continues to be a challenge among mid-sized businesses that, more often than not, are exposed to corruption and expose themselves and others to third-party liability. This case study shares practical guidance for mid-sized companies in Kenya and beyond that are either suppliers looking to enhance their compliance programs or businesses aspiring to join global supply chains and create new business opportunities.

CIPE has conducted research, produced publications, and held training and capacity-building workshops around the globe aimed at enhancing anti- corruption compliance. In particular, CIPE’s innovative publication, Anti- Corruption Compliance: A Guide for Mid-Sized Companies in Emerging Markets, is meant to help local companies around the world think about anti-corruption compliance as a strategic investment and take concrete steps to introduce or strengthen their internal compliance programs.

This case study illustrates how Safaricom PLC, Kenya’s leading telecommunication company and in many ways the most successful company in Kenya, has positively influenced two mid-sized companies in improving anti-corruption compliance. This case study also demonstrates how building an ethical culture can be a good investment for businesses. Safaricom was selected due to its strong anti-corruption advocacy role in many multi-sectorial initiatives, such as the Code of Ethics for Business in Kenya,1 a collective effort by the business community to promote and enhance ethical business conduct in line with the Ten Principles of the United Nations Global Compact (UNGC).2 Safaricom also participated in anti-corruption compliance workshops facilitated by CIPE and Kenya Association of Manufacturers (KAM) for its suppliers. Adrian Kenya Limited and Extra Dimensions Company Limited were selected, among several Safaricom suppliers, to be featured in this case study. Adrian is a leading telecoms contractor and Extra Dimensions is a leading events management supplier and renewable energy and infrastructure service provider with Safaricom.