Criteria for verification of anticorruption compliance programs
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The document outlines principles for verifying anti-corruption compliance programs, emphasizing continuity, consistency, usability, adaptability, and adequacy. It details the criteria for assessing regulatory and operational anti-corruption activities within companies, including the necessity of a solid internal framework and employee training. Additionally, it highlights the need for legislation to support these initiatives, particularly for small and medium enterprises, without imposing excessive costs.
Criteria for verification of anticorruption compliance programs
- 1. Subtitle (Arial regular 20 point) XX Month 200X (Arial regular 16 point) Criteria for verification of anticorruption compliance programs Anatoly Kilyachkov manager, FIDS EY – Moscow 27 October 2014
- 2. Страница 2 Principles Criteria for verification of anticorruption compliance programs should be based on the following principles: –Continuity. Criteria should be based on ‘Anticorruption Guidance’ (appr. by Ministry of Labor and social protection, 08.11.13). –Consistency. Criteria should assess all kinds of anticorruption activities in a company. They should rely upon corresponding adjustments in the legislation. –Usability. Criteria should be easy-to-use with their characteristics observed and measurable. –Adaptability. Criteria should be applicable for verification of anticorruption compliance programs of small and medium enterprises with minimum modifications. –Adequacy. The assessment of anticorruption compliance program implemented in a company should be objective and not to demand unreasonably high expenses for fulfilling them.
- 3. Страница 3 Consistency Criteria should enable to check the implementation of all major kinds of anticorruption activities in a company: –Regulatory, meaning that a company should have a required set of internal Anticorruption Standards complying with the Russian legislation. –Executing, implying fulfillment of all required anticorruption activities and their effectiveness. –Control, enabling to monitor anticorruption procedures implemented in a company along with quality control. –Information, implying large public awareness of active anticorruption activities in a company and results with training program for all types of managers and employees. Legislation, in turn, should contain leniency provision for receiving illegal gratification on behalf of a legal entity for companies which have implemented anticorruption procedures (art.19.28 The Code of the Russian Federation on Administrative Offenses).
- 4. Страница 4 Usability (examples) Kind of activity Criterion Evidence Regulatory Completeness and quality of legislative environment 1. Management’s clear and public announcement of its readiness to comply with anticorruption requirements. 2. A set of internal anticorruption standards that have been developed, approved and subject to execution in a company. 3. Internal standards contain anticorruption requirements. Executing Functions of anticorruption procedures implemented in a company comply with their standard content. Top management of a company: 1) hears a report on fulfillment of anticorruption activities at every meeting. 2) is aware of its obligations of compliance with the anticorruption policy. 3) is aware of the anticorruption legislation in the countries where a company runs business. Information System of anticorruption training and retraining for management and employees. 1.Introductory trainings. 2.Regular (annual) trainings. 3.Special trainings. 4.Additional trainings etc.
- 5. Страница 5 Adaptability (cost vs quality) Effective anticorruption activities that are in compliance with current anticorruption requirements. Activities that can be implemented with minimum costs of their realization The methodology should suggest the following actions for small and medium enterprises:
- 6. Страница 6 Adaptability (results) Transparency International described: ► 231 anticorruption actions for ► 26 processes. Taking into account SME specific we get: ► 29 anticorruption actions for ► 8 processes. Filter cost vs quality gives: ► 95 anticorruption actions for ►10 processes.
- 7. Страница 7 Adequacy Size Characteristics of criterion factor Criterion value Large enterprises B – basic R – recommended O – optional Perfect Good Satisfactory Bad Very bad Small and medium enterprises Only basic Satisfactory Unsatisfactory
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