Compliance is an essential component of the success of any global business. It involves acting ethically and building trust. Consequently, it plays a fundamental role in shaping a company’s culture. We sat down with Inchcape’s Head of Legal & Compliance for Europe and Africa, Aleksandr Lebedev, to discuss the importance of compliance to becoming a more sustainable business, the regulatory challenges ahead and how shared responsibility is a central pillar in the evolution of Inchcape’s ethical business practices.

A few things about myself

I studied law at Moscow State University and financial management at the Higher School of Economics (Moscow). I also completed Pericles LL.M. (Master of Laws) at Hong Kong University and Duke University (USA). I joined Inchcape in 2019 and now manage legal and regulatory compliance in Europe and Africa. Before Inchcape, I worked at Unilever as Legal Business Partner for Russia, Ukraine and Belarus. Before that, I spent about three years at the Sochi 2014 Organising Committee for the Winter Olympics in Sochi. In my free time, I enjoy running (I’ve completed two marathons!) and hiking.

At a basic level, compliance involves adhering to both national and international regulatory requirements. But it also means following our company’s internal policies – our guiding principles. At Inchcape, we have a robust Code of Conduct that outlines these principles in all areas of compliance.

Has Inchcape’s approach evolved over time?

Our core values of ethical conduct haven’t changed, but the compliance landscape has undoubtedly become more nuanced. There are two main drivers behind this development. Internally, as Inchcape has grown geographically and expanded into new business areas, our compliance framework had to adapt to encompass these complexities. Externally, the regulatory environment has become stricter, with new requirements emerging alongside evolving customer behaviour. What matters to our customers is constantly shifting; compliance needs to reflect that. A great example is the recent update of Inchcape’s Code of Conduct at the end of 2023. This revision included specific commitments to combating climate change, building a sustainable future, and minimising the environmental impact of our business operations. This aligns perfectly with Inchcape’s commitment to responsible business practices.

How does Inchcape position compliance?

It is vital to our Accelerate strategy, specifically the Responsible Business and Practices Pillar, which informs how we operate our business. Our approach to compliance is evolving. There’s been a shift in the culture of compliance internally, where a shared sense of responsibility is replacing a focus on rigid rules. There is a growing awareness of the need for accountability across different levels and roles – this provides a strong foundation for ethical and compliant business practices. Ultimately, strengthening our governance policies reflects our position as an international PLC.

What governance do we have over compliance?

If we’re talking about the narrow definition of “regulatory compliance,” we concentrate on four main topics:

• Anti-bribery & corruption
• Anti-money laundering
• Fair competition
• Data privacy.

A Regional Head of Legal & Compliance is responsible for each of these topics globally. For instance, I’m responsible for Data Privacy compliance. With Elena Belyaeva, the Legal Business Partner for Europe, I set requirements (like Global Data Privacy Controls), monitor compliance, and support Group projects.

From your perspective, which regulatory compliance areas are the most risky or the most important in the Europe & Africa Region?

They are all equally important and require our attention. However, data privacy and competition are the most complex areas. In Anti-bribery and Corruption, the violations are usually clear – you give/receive or do not give/receive the bribe, etc. However, in Data Privacy, for instance, last year, Meta received a €1.2 billion fine for implementing “improper measures” when it shared EU residents’ data with its subsidiaries in the US. There is much room for interpretation of “proper” and “not proper”. Data privacy laws were recently enacted in Kenya and Ethiopia, and in Europe, the new AI Act is expected to be adopted shortly. It will also contain a data privacy angle. With Competition, the complexity is based on very intricate and strict European regulations (for example, Vertical Block Exemption or Motor Vertical Block Exemption) and our position as the distributor in the middle of the go-to-market chain (between OEM, Retailer, and consumer).

What are Inchcape doing to address those challenges?

We launched global data privacy controls applicable worldwide, i.e., even in a market where the data privacy regime is not yet well developed. For European markets – together with Market Data Privacy champions – we performed Data Privacy testing, checking the implementation of Data Privacy regulatory requirements across 42 areas for each market. For Competition (as well as other compliance pillars), we delivered training to management teams in all European markets; this has continued with our regulatory compliance educational program this year.

What changes can we expect within compliance?

The proposed EU AI Act I mentioned above is becoming a global benchmark; we will follow its requirements when implementing any AI element solutions. The Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive will require a reporting obligation for Inchcape entities in Europe from 2026 (for the Financial year 2025), as well as the requirement to review compliance in the whole value chain.

What are your recommendations for your Inchcape colleagues?

Besides the clear requirements to follow our Code of Conduct, local laws and internal policies, it’s always advisable to think twice. If it’s unclear whether something is OK or not – just ask. That’s where that sense of shared responsibility we mentioned earlier really comes into play. The legal partners in your market and I will always be happy to discuss any concerns.

Thank you to Aleksandr for his valuable insights into the importance of compliance and its role in shaping Inchcape’s ethical business practices. We look forward to hearing more from him in the future.

You may also like