A Strong Woman Changing Georgian Compliance Philosophy
The term “compliance” might be a very common word to English ears. In principle, it is quite straightforward. It regulates the right conduct of employees and employers to avoid conflicts of interest and a merit-based working environment. Salesmen often have heavy internal fights with the compliance department as going the extra mile might harm the good standing of the company. The right balance between pushing forward to market the product well and acting responsibly is the key to a fine-tuned compliance strategy.
In Georgia, where positions are often given to the son-in-law, or shady financing schemes are put in place by a friend of the CEO, compliance has become an essential tool of big corporations, especially if operating in the public sphere. Yet, first, the knowledge needs to be accumulated to apply compliance rules and the corresponding structure to the company. One person in particular is at the forefront of compliance: Tinatin Nadareishvili.
Having studied in Europe, she completed an MA in Public Administration as well as an LLM in Public International Law and Human Rights – the perfect legal foundation to strive to a career in compliance. Initially, she worked in different fields, but when a job opening allowed her to work for Geocell in Georgia, she took the opportunity and applied. “One thing led to the other and I started to work in the compliance department to implement essential rules in Georgia. Geocell at the time belonged to the Swedish Telia Company, and Telia had a strict set of rules in place to guarantee compliance across the segments,” she told us.
In fact, Telia has a set of 17 compliance rules which meet the highest standards of European legal networks. Following these 17 rules is imperative to avoid legal issues and ensures a flawless record when it comes to hiring new people or making integral decisions to the company’s strategy.
A quick outline of these rules may make one wonder why they are important, but in fact, these 17 points function as a foundation for conducting all operations in an ethically correct way.
1) Don’t accept shine gifts; 2) Don’t favor family; 3) Don’t sponsor the wrong thing; 4) Don’t do bribes; 5) Don’t meet public officials alone; 6) Don’t share sensitive information; 7) Don’t compete unfairly; 8) Don’t do insider trading; 9) Don’t launder money; 10) Don’t post without thinking; 11) Don’t buy irresponsibly; 12) Don’t be a bully; 13) Don’t endanger yourself or others; 14) Don’t travel when you don’t need to; 15) Don’t violate customer’s privacy; 16) Don’t disrespect freedom of expression; 17) Don’t waste resources.
Some points, such as “Don’t do bribes” are probably quite obvious, but also others, such as “Don’t travel when you don’t need to” contribute to a healthy working environment and help a company to run a better image campaign. Besides cost reduction measures, a company is part of society in the same way an individual is. In fact, corporations across the world are responsible for the highest levels of CO2 emissions, which heavily contributes to climate change and environmental destruction. Modern technology also allows us to collaborate and communicate in an instant across thousands of miles. So why should we then travel for work, if we don’t need to?
“Explaining the different points takes time and the goal should be to make the employees aware of the compliance rules. When they see what is wrong, they learn to refrain from engaging in undesired behavior,” Nadareishvili says, outlining the most imperative part of a successful compliance strategy.
Her work at Geocell is done and currently she is between jobs, contemplating new solutions to modern compliance issues. When speaking to Nadareishvili, one can clearly see the passion of compliance she radiates. She is admired and respected by colleagues for the rigorous implementation of internal compliance rules in a fair and equal manner. While many managers prefer to use a loud voice and disciplinary consequences as their main tool to force on people a certain conduct, she is different, as she understands the cultural predisposition in Georgia. “I am not my colleague’s enemy, although I’m often seen in such a light. In the end, we’re all working together and pulling the same string to bring the company forward. Observing compliance rules has so many advantages; it not only makes sure that the smartest people operate in the company, but that customers can trust us fully when entering into a business transaction,” she tells us.
Nadareishvili continues by stating that the Georgian law has made huge leaps forward when it comes to compliance and anti-corruption legislation. Politicians are held more accountable and compliance rules are in the process of implementation not only in private companies, but also in public institutions. “From the minister down to the lowest ranked public clerk, everyone needs to observe compliance rules, and people are starting to do so. A new legal framework in Georgia also supports such initiatives,” she explains.
When asked what the biggest challenges in Georgia are when it comes to compliance, her positive attitude speaks for her, as she believes that people will observe the rules when they understand what they are not allowed to do. She notes that there is usually a compliance framework in place which starts by telling everyone what not to do. This is followed by different activities to make sure people don’t forget the rules and have fun memories about them in their minds. “It is basically a step-by-step process,” she says.
“In case people don’t observe the rules, we talk to them and make them aware of their mistakes. Nothing bad happens initially, as people need time to get the right conduct internalized. For deliberate misconduct, disciplinary measures are introduced, which go as far as to fire the individual in question – a situation every company or institution hopes to avoid,” she notes.
Tinatin Nadareishvili is a truly powerful woman, having revamped what is means to do compliance in Georgia. Her passion and expertise for the field makes her contemplate opening up an organization to spur the culture of compliance in various fields in Georgia. We wish her all the best in doing so!
By Benjamin Music