02.11.2015 the business principles for countering bribery an introduction
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Transparency International is an anti-corruption organization founded in 1993 with chapters in over 100 countries. Their approach is zero tolerance for corruption as it embeds corruption in systems and has victims. Their Business Integrity Toolkit provides resources for companies to commit, assess, plan, report, and monitor anti-corruption programs, including business principles for countering bribery that promote good practices and risk management. The principles prohibit bribery and require implementing a program with roles and responsibilities around issues like gifts, political contributions, and relationships with intermediaries.
02.11.2015 the business principles for countering bribery an introduction
- 1. TRANSPARENCY INTERNATIONAL Susan Côté-Freeman Head, Business Integrity Programme, Transparency International BCM Ulaanbaatar, Mongolia, 2 November 2015
- 2. TRANSPARENCY INTERNATIONAL • FOUNDED IN 1993 • CHAPTERS IN OVER 100 COUNTRIES • ‘COALITION AGAINST CORRUPTION’ TRANSPARENCY INTERNATIONAL’S APPROACH: • Zero tolerance • Corruption has victims • Any bribery embeds corruption in the system • Fighting corruption often requires collective action to achieve systemic change
- 3. ANTI-CORRUPTION: WHAT’S AT STAKE? 73% of business people said they had lost business due to bribery in the last 12 months. (TI, 2012) In 40 countries around the world, more than 50 % of the people think the private sector is corrupt or extremely corrupt. (TI, 2013) 65% of business people surveyed believe a level playing field is crucial to their company’s future business activities. (PwC, 2008) 10% to 25% of the value of public contracts may end up in the hands of the corrupt. (UNODC, 2013) The European Commission calculated that in the Member States around €120 billion or US$163 billion is lost to corruption. About 2 in 3 adults worldwide believe corruption is widespread in the businesses in their countries. (Gallup, 2012)
- 4. THE CHANGING ENVIRONMENT Stakeholder pressure: Enterprises are facing increasing pressure from stakeholders (e.g. customers, investors, export credit agencies, development banks) to do business honestly and adopt, implement and monitor programmes to counter corruption. Changes in the legal & regulatory environment: Enterprises must to adhere to foreign bribery laws. Otherwise they risk fines, civil damages and even prison terms. Damage to Reputation: Enterprises compete in a global marketplace. Corrupt practices can lead to negative publicity that can damage their reputation through media coverage, civil society campaigns, social networking…)
- 5. COMMIT • Business Principles for Countering Bribery • Business Principles for Countering Bribery – SME ASSESS • Anti-Bribery Checklist • Corruption Perceptions Index • Bribe Payers Index • Global Corruption Barometer • National Integrity System PLAN • The 2010 UK Bribery Act Adequate Procedures REPORT • UNGC Anti-corruption Reporting Guidance • Transparency in Corporate Reporting MONITOR • Self-Evaluation Tool • Framework for Voluntary Independent Assurance of Corporate anti-corruption Programmes ACT • Anti-Bribery Guidance for Transactions • Resisting Extortion & Solicitation in International Transactions BUSINESS INTEGRITY TOOLKIT
- 6. BUSINESS INTEGRITY TOOLKIT BUSINESS PRINCIPLES FOR COUNTERING BRIBERY First published in 2003, re-launched in 2013 Anti-bribery framework for business promoting: Good business practices Risk management Developed by TI with a multi-stakeholder Steering Committee: Companies (Shell, Norsk Hydro, PwC, Sanlam, Stora Enso (FIDIC, EBRD, UN Global Compact) NGOs Trade Union Academia Scope Bribery, not wider forms of corruption (but new CoI clause) Bribery wherever it happens including private-to-private International and domestic For use by companies of all sizes
- 7. BUSINESS INTEGRITY TOOLKIT BUSINESS PRINCIPLES FOR COUNTERING BRIBERY TWO BASIC PRINCIPLES Prohibition of bribery Implementing a Programme Risk assessment Scope of the Programme: Conflicts of Interest Bribes: cash, in-kind, kick-backs Political contributions: not to gain contracts; fully disclosed Philanthropic contributions and sponsorships: not used for bribery; fully disclosed Facilitation payments: they are bribes, zero tolerance Gifts, hospitality and expenses: clear guidelines for giving and receiving
- 8. BUSINESS INTEGRITY TOOLKIT BUSINESS PRINCIPLES FOR COUNTERING BRIBERY ORGANISATION AND RESPONSIBILITIES…. Business Relationships Subsidiaries, Joint Ventures , Agents, lobbyists and other intermediaries Human resources Training Raising concerns and seeking guidance (Whistleblowing) Communication and Reporting Internal controls and record keeping Monitoring and review Cooperation with authorities Independent assurance
- 9. Thank you very much for your attention!