Microsoft increases penalties for partner violations
‘We’re committed to winning in the market ethically and in compliance with the laws and regulations of the countries/regions in which we operate,’ the tech powerhouse said
Microsoft has increased penalties for partners and suppliers who violate contracts and the Partner Code of Conduct.
For some of the worst offenders, the vendor could revoke the solution provider's ability to sell in certain partner programs and even remove the provider from the partner ecosystem.
"We're committed to winning in the market ethically and in compliance with the laws and regulations of the countries/regions in which we operate," Microsoft said in a post.
"Our values are enshrined in our Standards of Business Conduct: respect, integrity, and accountability. As such, we expect our partners to embrace and continually improve on these values."
CRN has reached out to Microsoft for comment.
Microsoft ups partners penalties
Microsoft could require offending solution providers to go through training, take away incentives and pay back incentives earned through the violation, according to the post.
Solution providers with repeated violations may have to participate in the Partner Accountability and Remediation program.
The tech giant could boot solution providers out of partner programs if they refuse to go through remediation. And Microsoft may hold the offending provider's incentives until the provider completes the program.
Phil Walker, CEO of Microsoft solution provider Network Solutions Provider, told CRN in an interview that he's glad to see the vendor take these issues seriously.
"It's necessary," Walker said. "It's a sign they are getting more involved in compliance as it relates to the partner community."
He added that while Microsoft continues to look at partner compliance issues, the vendor should also consider adding license portability for customers brought in under the terms of the new commerce experience (NCE). The controversial Microsoft program leaves solution providers potentially footing the rest of a customer's bill if the customer tries to change solution providers before the end of a commitment.
"They have to make it less customer impactful," he said.
What are the violations?
Some of the ways partners can violate the Partner Code of Conduct include:
- Breaking anti-corruption and anti-money laundering laws through bribery, kickbacks and other practices
- Improperly influencing government officials, employees or political candidates through gifts, meals, travel, entertainment
- Breaking fair competition and antitrust laws
- Breaking rules around government procurement, tenders and bids, including conspiring with other partners to rig bids, place orders before tender finalisation and fix prices
- Placing orders for Microsoft technologies, products, support or services without a corresponding customer order or agreement
- Cold-calling seniors, children and other vulnerable consumers to buy or subscribe to unneeded technical support or services
- Breaking conflict of interest rules in government contracting
- Not disclosing fees, commissions and compensation the partner gets from Microsoft if required for working with a government entity
- False, inaccurate and misleading advertising and marketing
- Using forced labour or child labour
- Discriminatory hiring, compensation, training access, promotions, firings and retirement due to protected statuses such as race, sex, national origin, religion, age, disability, gender identity, disability, political affiliation and veteran status
- Using discriminatory, intimidating, harassing, threatening, abusive, sexually explicit, offensive and inappropriate language
- Sexual harassment
- Misbehaviour at Microsoft events
- Breaking environment laws and regulations
- Using technology and software illegitimately acquired and licensed
- Using illegal methods to get competitive knowledge about products and manufacturers that compete with Microsoft
- Not having business controls for detecting and preventing unlawful conduct by employees and counterparties
- Not having an adequate training program
- Not providing reasonable assistance for a violation investigation