By Adam Turteltaub

Joint ventures are created to capitalize on a business opportunity, but they come with challenges. Each partner may have a different experience with or attitude towards compliance. They may have distinctly different cultures, and, in the worst case, may each be expecting the other to be watching compliance when, in fact, no one is.

Hassan Chaudry, a member of the SCCE & HCCA Board and Chief Compliance Officer of POSCO JV, a General Motors joint venture, recommends several keys to success in JVs. First, having meaningful conversations with leadership right at the start is important, especially if it is face-to-face. This helps establish rapport and makes top management more comfortable with the role of compliance.

Look to commonalities between the partners, not just the difference. In his case, with one party being from North America and the other from South Korea, there were different approaches and laws, but both countries are members of the OECD, and its guidance for compliance programs provided a common reference point.

Once the groundwork is set, take the time to meet with employees from senior and middle management, as well as the front line. Also, don’t forget the board: setting expectations with them and building an ongoing line of communication is essential.

He also recommends treating the JV like a start-up, not an established company.

Finally, put yourself in the shoes of joint venture partners. Look at the business from their perspective, and that will help you better understand what will make for a truly successful compliance program.

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