In the #DataInsights series, we randomly select 50 major companies* in key supply chain sectors and run them through our AI driven diligence model. Without disclosing the names of the companies, we publish some high-level insights.
Interested in gaining a better understanding of your exposure to third-party risk? Email us at info@integrus-solutions.com to schedule a conversation. *All companies are randomly selected from the internet and conflict checked
#2 Malaysian Healthcare Sector - June 2024
The most prevalent type of allegation identified by the IntegReport model across the 50 companies reviewed were governance-related, followed by labor related issues. Around 60% of companies were free of major allegations. A break down of some of the allegations we identified has been set out below.
Governance: 18%
Four were engaged in disputes with former senior management over alleged breach of fiduciary duty or fraud
In one case, criminal charges were filed against a former executive over corruption and breach of trust allegations
Two suspended their CEO in the context of internal disciplinary proceedings involving undisclosed misconduct
Labor: 12%
Several were referenced in relation to forced labor, particularly those involved in the manufacture of medical supplies
Several were subjects of a Withhold Release Order, banning their products from being imported into the US (and subsequently removed following remediation)
One was investigated by a local regulator over alleged failure to provide suitable living accommodations to workers living in dormitories
Disputes: 6%
Three were referenced in relation to major commercial or contract disputes
One was referenced in relation to an alleged breach of JV agreement
Another was involved in a dispute regarding the alleged provision of defective medical equipment
Fraud and Money Laundering: 2%
One was referenced in relation to alleged securities fraud, money laundering and insider trading by a global syndicate
Cyber Security: 2%
One was allegedly the subject of a major cyber security breach
#1 Indian Textiles Sector - April 2024
The most prevalent type of allegation identified was regulatory. Around 50% of companies were free of major allegations. A break down of some of the allegations identified has been set out below.
Labor: 10%
One was the subject of a protest by migrant laborers, in the context of forced labor allegations
Two were allegedly engaged in disputes with labor unions over facilities closure or non-payment of salaries
One was engaged in litigation with a local labor court in relation to an alleged strike that had taken place at a facility
Health and Safety: 4%
One was engaged in litigation with an insurance company regarding a fire that had allegedly broken out at one of its factories, and another the subject of a local media report regarding a factory fire
Regulatory: 25%
Five were referenced in relation to investigation and/or penalties by a securities regulator, in one case relating to an alleged undisclosed financial interest by a family member of a politician
Eight were engaged in tax-related litigation with a regulator
Financial: 10%
Four were referenced in relation to alleged bankruptcy proceedings
One was involved in litigation for allegedly not honoring a check issued to a supplier