Third Parties

Third Parties Present Risks

Approximately 90% of Foreign Corrupt Practices Act (FCPA) enforcement matters between 1978 and 2023 identified a third-party intermediary, such as a sales agent, consultant or distributor, as part of the bribery scheme

Source: Stanford Law School FCPA Clearinghouse

49%

of organizations have experienced a data breach caused by a third-party vendor in the last 12 months.

61%

of organizations aren't confident that their third parties would notify them if they had a data breach involving your organization's sensitive and confidential information.

Source: Ponemon Report

Third Parties Due Dilligence

SCOPE OF DUE DILIGENCE BEFORE BRINGING ON THIRD PARTIES

55%

Conduct due diligence

before entering all

third-party relationships

HOW IS THE THIRD-PARTY DUE DILIGENCE PROCESS MANAGED?

93%

Conduct due diligence before entering all third-party relationships

43%

At the regional or business function level

Source: The Sphere, Ethisphere's Benchmarking and Ethics and Compliance Statistics tool: Get access today

Talking with Third Parties

FREQUENCY

52%

76%

Communicate regularly about E&C requirements (more than low risk)

Communicate at least annually with 3rd parties on Impacts

METHOD

88%

Internet portal

89%

Surveys / Questionnaires

Source: The Sphere, Ethisphere's Benchmarking and Ethics and Compliance Statistics tool: Get access today

"How has the company communicated its policies and procedures to all employees and relevant third parties?"

77%

Third-Party Due Diligence Evaluation Criteria

100%

Ownership information

99%

Past

misconduct

96%

Sanctions and embargo lists

96%

General

reputation

92%

Use of subs on work to be done

92%

E&C policy documentation

85%

Relationships w/public officials, etc.

85%

Employee training

79%

Information on related organizations

78%

Existence of an E&C function

72%

Third-party risk management practices

71%

Reporting requirement and mechanism

71%

Risk assessment practices

Source: The Sphere, Ethisphere's Benchmarking and Ethics and Compliance Statistics tool: Get access today

2025 PLANNING STATS

In response to ongoing regulatory uncertainty, isn't it time to put fresh eyes on your program?

Source: The Sphere, Ethisphere's Benchmarking and Ethics and Compliance Statistics tool: Get access today

2025 PLANNING STATS

Make Informed, Evidenced-Based Decisions with Data

As you finalize your 2025 plans, having the right data is just the beginning.

To help you take your insights further, we’re offering a free trial of Ethisphere’s benchmarking and data analysis tool, The Sphere.

With The Sphere, you can dive deeper into industry benchmarks, compare your program to others, and uncover actionable insights that will empower your decision-making.