China’s Crackdown on Corruption Triggers Concern Among Multinationals
High Street Partners Offers Command and Control Solutions for Companies Operating Overseas
July 24, 2013 – (Boston/Annapolis) – The arrest earlier this week of several China-based GlaxoSmithKline employees on charges of bribery has heightened concerns for foreign companies operating in China. HQ is generally tasked with the development and oversight of robust controls to ensure that inappropriate cultural norms don’t run afoul of increasingly tougher regulatory environments, in China and elsewhere. According to statements issued by the pharmaceutical giant, the employees in question “appear to have acted outside of our processes and controls.”
"The news that healthcare giant GlaxoSmithKline had several of their executives arrested in China is a sobering reminder to all multinationals, large or small, on the need to ensure due command and control on their overseas operations" says Larry Harding, Founder & CEO of High Street Partners. "Establishing oversight over employee expense reimbursements and payments to your suppliers in overseas markets is hard to do, but is absolutely essential in order to protect your brand and minimize any risk of non-compliance. GSK’s operations in China grew from one person in-country to more than 400 people in a relatively short period of time. The easiest way to ensure that rapid expansion won’t result in untenable risks is to put robust controls and visibility in place beforehand.”
Operating overseas, particularly in developing markets like “the BRICs” (Brazil, Russia, India and China), is very complex, and getting more challenging all the time. Fast developing markets like China have rapidly changing regulatory environments, increasing the need for constant monitoring and adjustment.
Multi-national companies are looking for expertise, technology and integrated systems to help consolidate processes and make their operations more efficient, while at the same time mitigating risk. As the leading international business software and services firm, High Street Partners offers a cloud-based software platform, HSP OverseasConnect® that provides visibility for HQ into overseas operations, in one place, with 24/7 access. Global payroll, compliance, cash management, bookkeeping, expense reporting – all these applications are integrated in HSP OverseasConnect®, giving companies ready access to systems and information that would be otherwise difficult to aggregate.
Harding continues, “The right technology to help manage and control international operations is critical, especially when you’re managing several back office operations in multiple countries. At High Street Partners, we’ve helped more than 600 customers in more than 100 countries ensure that adequate standards of command and control are in place over their financial, human resources, payroll, expense, treasury and tax filing operations," Harding says.
High Street Partners is a premier provider of international business software and services. Its mission is to help companies capitalize on their international growth opportunities by simplifying the management and control of international expansion and operations. HSP’s signature solutions include HSP Overseas Direct®, an integrated service bundle which incorporates all required recurring services, including international payroll, expense reimbursement, cash management, vendor payments, bookkeeping, quarterly and annual tax filings, and local statutory compliance, and HSP OverseasConnect®, a cloud-based application for the aggregation and management of accounting, finance, HR and legal requirements across multiple geographies and lifecycles. Both solutions are offered with a full suite of custom Advisory Services. HSP provides a single point of accountability for customers spanning a range of industries and sizes: from those making their first overseas hire, to larger, publicly traded companies managing multiple subsidiaries on several continents, to top universities and research institutions operating in dozens of countries. HSP now has 15 global offices, including Annapolis, Atlanta, Boston, Dallas, Miami, New York, San Diego, Silicon Valley, Hong Kong, London, Munich, Shanghai, Singapore and Tokyo. For more information, call 1-888-881-6576 or visit www.hsp.com.