NAVEX Case Studies Zespri International Strengthens Compliance Following Challenges

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	Zespri International Strengthens Compliance Following Challenges NAVEX

Zespri International Strengthens Compliance Following Challenges

NAVEX

Technology Category	Application Infrastructure & Middleware - API Integration & Management
Applicable Industries	Food & Beverage
Applicable Functions	Business Operation
Use Cases	Fraud Detection Regulatory Compliance Monitoring
Services	System Integration Training
Challenge	Zespri International, a New Zealand-based kiwifruit exporter with operations across Europe, Asia, and the Americas, faced severe financial and legal repercussions when one of its importers was found guilty of duty evasion in China. The company's Chinese subsidiary was prosecuted as an accessory to the under-declaration of customs duties by a former importer. This led to an investigation, the imposition of significant fines on Zespri, imprisonment of a Zespri employee, and significant legal fees. Investigations revealed that trust and a lack of understanding were core factors. The incident also resulted in huge costs in terms of time and resources, with employees being interviewed, documents being requested multiple times, ongoing court cases taking employees away from their jobs, and media attention shining an unwanted spotlight on the company. Read More
About Customer	Zespri International is a relatively small company with a large global footprint. Based in New Zealand, the kiwifruit exporter also has operations spread across Europe, Asia, and the Americas. The company commenced shipments to China in the late 90s, with a model that meant distributors in the market were responsible for clearing the goods through the border, paying the local taxes, and selling the fruits through reliable channels. With largely decentralized operations, each of Zespri’s offshore markets operated with quite a bit of autonomy. The company has around 450 employees. Read More
Solution	Following its legal troubles in China, Zespri took significant steps towards understanding the global compliance regulations in the areas in which they were operating. One of the key features of its new compliance program was EthicsPoint Incident Management. With localization, translation, and interpretation services for more than 160 languages, EthicsPoint made it easy for Zespri to tailor its hotline to each of its global markets and meet rapidly evolving international privacy and reporting requirements. The anonymous reporting solution is promoted throughout the company on posters in common areas, in Zespri’s code of conduct in its corporate training programs, and in agreements with customers. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - API Integration & Management

Applicable Industries

Food & Beverage

Applicable Functions

Business Operation

Use Cases

Fraud Detection

Regulatory Compliance Monitoring

Services

System Integration

Training

Challenge

Zespri International, a New Zealand-based kiwifruit exporter with operations across Europe, Asia, and the Americas, faced severe financial and legal repercussions when one of its importers was found guilty of duty evasion in China. The company's Chinese subsidiary was prosecuted as an accessory to the under-declaration of customs duties by a former importer. This led to an investigation, the imposition of significant fines on Zespri, imprisonment of a Zespri employee, and significant legal fees. Investigations revealed that trust and a lack of understanding were core factors. The incident also resulted in huge costs in terms of time and resources, with employees being interviewed, documents being requested multiple times, ongoing court cases taking employees away from their jobs, and media attention shining an unwanted spotlight on the company.

About Customer

Zespri International is a relatively small company with a large global footprint. Based in New Zealand, the kiwifruit exporter also has operations spread across Europe, Asia, and the Americas. The company commenced shipments to China in the late 90s, with a model that meant distributors in the market were responsible for clearing the goods through the border, paying the local taxes, and selling the fruits through reliable channels. With largely decentralized operations, each of Zespri’s offshore markets operated with quite a bit of autonomy. The company has around 450 employees.

Solution

Following its legal troubles in China, Zespri took significant steps towards understanding the global compliance regulations in the areas in which they were operating. One of the key features of its new compliance program was EthicsPoint Incident Management. With localization, translation, and interpretation services for more than 160 languages, EthicsPoint made it easy for Zespri to tailor its hotline to each of its global markets and meet rapidly evolving international privacy and reporting requirements. The anonymous reporting solution is promoted throughout the company on posters in common areas, in Zespri’s code of conduct in its corporate training programs, and in agreements with customers.

Impact #1	Zespri invested heavily in internal and external communication detailing its strict expectations for ethical behavior from employees, distributors, importers, and customers.
Impact #2	The company dismissed a handful of customers that weren’t meeting its guidelines for ethical behavior, but was able to make up that gap and found better business partners.
Impact #3	With clearer expectations, a better understanding of global compliance, and improved avenues for reporting, Zespri has revamped its culture and ensured that its global footprint is an ethical one.

Impact #1

Zespri invested heavily in internal and external communication detailing its strict expectations for ethical behavior from employees, distributors, importers, and customers.

Impact #2

The company dismissed a handful of customers that weren’t meeting its guidelines for ethical behavior, but was able to make up that gap and found better business partners.

Impact #3

With clearer expectations, a better understanding of global compliance, and improved avenues for reporting, Zespri has revamped its culture and ensured that its global footprint is an ethical one.

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Overview

Zespri International Strengthens Compliance Following Challenges

Operational Impact