Navigating Risks in Emerging Market the Crisis May Be a Catalyst for IT Market
Total Page:16
File Type:pdf, Size:1020Kb
ETHICS & COMPLIANCE Lessons From the Frontline of Ethics and Compliance "A pig in a poke": Navigating Risks in Emerging Market The Crisis May be a Catalyst for IT Market 26 A Word From Executive Director of AmCham Dear AmCham members and friends, Operation of businesses in a legal way is not a new phenomenon in Azerbaijan. Companies respecting to themselves, their Issue 26 shareholders and community they function have been demonstrating this play since independence. It has been mostly observed by all international companies and some local ones. Credits In recent years, thanks to changes in legislation of Azerbaijan, practice and way of doing business by local (Azerbaijani) companies have also changed. AmCham Executive Director: Modern day business management in Azerbaijan calls for Natavan Mammadova compliance and ethical business. As the leading business association, AmCham has been actively promoting compliance in all spheres of business operations. This is a Editor: must towards transparency and effective management, as well as, ethical position of Aykhan Nasibli businesses in global market. It is also important to note that, AmCham has established a separate working group named “Legal and Compliance” which is expected to be transformed into operating committee. Moreover, AmCham presented a number of Articles contributed by: recommendations in this context through its biannual publication - White Paper, which Bakhtiyar Aslanbayli was published in 2016. The members of the relevant working group regularly come Alena Edisherova together for discussing current status and implementation process of recommendations Clare Farley delivered in the White Paper, as well as invite certain government officials to the meeting for exchanging opinions on different matters. Elnur Eyvazov Herein, AmCham Azerbaijan’s quarterly business magazine, IMPACT, puts an emphasis Farid Isayev for ethics and compliance subject within the 26th edition. We have observed that there Orkhan Rajabov & Gunel Farajova is a progress on this field. International companies are willing to share their experience. Mekhriban Taghiyeva Thanks to lessons learned, there is a willingness towards compliance related practices Ruslan Bayramov in local companies as well. We are sure that in short period of time, Azerbaijani Vurgun Hajiyev business community will be ready to have solid ethical and compliant way of business management. In this case, members of AmCham Azerbaijan will be able to share best Emil Garayev practices and experiences. Advertisers: I wish the best of success in your businesses and have a nice summer! Azerfon Mosaik Best regards, Natavan Mammadova Turkish Airlines BP Coca Cola Editor’s Comment Deloitte Dear friend, Capital Legal Services Ekvita Welcome to the 26th edition of IMPACT Azerbaijan magazine, ATL devoted to Ethics & Compliance. ITECA The business community of Azerbaijan is growing. This growth has been reflected not only in delivery of added value goods and Publisher: services, but also on managing businesses in ethical manner. Obviously, the latter carries a big weight, including to be compli- American Chamber of Commerce ant for the legislation, international norms and behaviors, as well in Azerbaijan as stakeholders in large. Bearing in mind importance of this subject, IMPACT Azerbaijan Tel: (+994 12) 497 13 33 magazine puts an emphasis for this subject. Within this edition you will be able to benefit Fax: (+994 12) 497 10 91 from the experience of diverse companies on application of compliance related matters, as well as relevant other topics thanks to the vision and experience of the leading Am- www.amchamaz.org Cham members. It would be also relevant to indicate that there are further steps ahead of us in ethics and Advertising opportunities: compliance related matters. Existence of willingness to work on create a good basis for Please contact the Editor at further proliferation. [email protected] Herein, it is my pleasure to appreciate one more time for interviewed people, authors of articles, as well as companies who see deep value to advertise their business in IMPACT, including Azerfon, Mosaik Printing, Turkish Airlines, BP, Coca Cola, Deloitte, Capital Le- The articles in IMPACT Azerbaijan gal Services, Ekvita and ATL. express the opinions of the authors and do not necessarily reflect the Keep reading and enjoying. position of the American Chamber of Commerce in Azerbaijan Best wishes, Aykhan Nasibli contents IN FOCUS 23 6 Transparency and Awareness Five Tips on How to Build a High- of Employees Matter Trust Culture and Organization Mekhriban Taghiyeva Bakhtiyar Aslanbayli Head of Legal Affairs and Compliance, Carlsberg Azerbaijan Vice President for Communications, External Affairs, 25 Strategy & Region, BP Azerbaijan-Georgia-Turkey Essential Elements of a Successful Compliance Program 8 “A pig in a poke” Navigating risks in emerging market Ruslan Bayramov Legal Manager, Ekvita Alena Edisherova Senior Manager, Deloitte & Touche MEMBER CONTRIBUTION 27 12 The Crisis May be a Catalyst Lessons From the Frontline of for IT Market Ethics and Compliance Vurgun Hajiyev Clare Farley Chief Technical Officer, “ATL Tech” Regional Ethics & Compliance Manager, BP Azerbaijan-Georgia-Turkey (AGT) Region 28 Global “De-Risking” Practice 14 in Financial Markets and its Growing Importance Impact on Azerbaijan of Business Ethics and Compliance in Azerbaijan and the CIS Region Emil Garayev Tax & Legal Director, Deloitte & Touche Elnur Eyvazov AMCHAM AZERBAIJAN Senior Legal Advisor, Capital Legal Services 31 16 About Us Compliance Function as a Pillar of Modern Corporation 32 Farid Isayev Business Events Director, Head of KPMG’s Law Practice in Azerbaijan 20 Ethical Business Practices in Supply Chains 34 Committee Highlights 41 AmCham Legal Update Orkhan Rajabov, Manager, Ernst & Young Azerbaijan 48 Members’ News Gunel Farajova, Senior consultant, Ernst & Young Azerbaijan 52 M2M Discount Program 2 Issue 26 in focus Conference on “Economic Reforms: the Achieved Results and Recommendations” Conference on “Economic reforms: the achieved results and imli and President of the American Chamber of Commerce in recommendations” Azerbaijan Mr. Nuran Kerimov spoke about the main direc- On May 30, conference on “Economic reforms: Achieved re- tions of economic reforms and challenges ahead. sults and recommendations” co-organized by the Center for It was mentioned that the dialogue and cooperation between Economic Reforms Analysis and Communication and the American Chamber of Commerce in Azerbaijan (AmCham) has been organized. The event was sponsored by Azerbai- jan Coca-Cola Bottlers, Deloitte Azerbaijan, EY Azerbaijan, KPMG Azerbaijan, PASHA Bank and PwC Azerbaijan. Opening the conference, First Deputy Prime Minister Mr. Yagub Eyyubov, Executive Director of the Center for Eco- nomic Reforms Analysis and Communication Mr. Vusal Gas- the government and the private sector create favorable con- ditions for strengthening the role of private sector in ensur- ing sustained economic growth. In particular, it was noted that the “Strategic road maps for the national economy and main economic sectors” intend reforms in Azerbaijan that are thoroughly thought-out under the leadership of President H.E. Ilham Aliyev and target not only short-term but also medium 4 Issue 26 in focus Azerbaijan Mr. Timothy Tarrant, Managing Director of SAP Azerbaijan Mr. Rufat Hajialibayov, CEO of Azerbaijan Coca- Cola Bottlers Mr. Erdinc Guzel and Deputy Director of Vey- seloglu Mr. Ilgar Nuri also delivered speeches and expressed their opinions on discussed issues. In particular, it was men- tioned that the ongoing economic reforms serve the interests of the private sector. In this regard, a gradual reduction in the number of procedures required for business activity, digital and on-line service options offered by various governmental bodies increase the investment attractiveness of the country. Representatives of international organizations and private sector also noted their satisfaction for being in constant dia- logue with the government during the process of continuous improvement of the business environment, and gave the rec- ommendations on attracting foreign direct investments, as and long-term goals. well as strengthening stability in the country. Chairman of the Central Bank Mr. Elman Rustamov, Chair- man of the Financial Market Supervisory Authority Mr. Rufat Aslanli, Chairman of the State Customs Committee Mr. Aydin Aliyev, Chairman of the State Committee on Property Issues Mr. Karam Hasanov, First Deputy Minister of Taxes Mr. Sahir Mammadkhanov and Deputy Minister of Economy Mr. Sahil Babayev delivered speeches and presentations at this event. At the end of the conference, it was stressed that the main purpose of this type of events is raising awareness of the economic reforms, as well as ensuring close participation of private sector in the process of reforms and generally contrib- uting to further increase in inclusiveness and effectiveness of the reforms. Together with AmCham and other partner or- ganizations, the Center for Economic Reforms Analysis and The officials highlighted that macroeconomic stability and the Communication will continue discussions of the results of the stability of manat, in particular, were ensured, inflation was reforms with large segments of society pursuant to the statu- lowered to a manageable level, economic growth in non-oil tory requirements. sector and export was increased as a result of ongoing eco- nomic reforms carried out by President