”Imagine you are compliance counsel at a global express delivery service based in the United States. Every week, you enter into hundreds of agreements with both customers and suppliers of all sizes in locations around the world. Each contract includes compliance clauses requiring someone to certify that they will not pay or accept bribes, and so someone must review these contracts.”
Behind every contract, there is a compliance professional who must make sure that the contract meets their company’s corporate policy. The clauses vary widely in scope and rarely meet the exact standards of any one company policy—either imposing too many requirements or too few.
There are three groups:
1. Companies with a lot of bargaining power (due to market dominance or brand recognition, for example) or very few third parties.
2. Companies that typically enter negotiations with companies of equal bargaining power.
3. Companies with a high volume of contracts or less bargaining power.
(This goes for all clauses in all contracts – not only compliance)