Chart of the Week CW-049 | March 2014 © 2014 The Conference Board, Inc. All rights reserved. In collaboration with For more information on this and over 70 other sustainability metrics, download Sustainability Practices: 2013 Edition at: http://www.conferenceboard.org/sustainabilitypracticesor contact Matteo Tonello at [email protected] THE CONFERENCE BOARD INITIATIVE ON SUSTAINABILITY™ Why it matters… – Bribery represents the most common form of corruption. It can significantly impede economic growth and stability, undermine political and economic order, increase the cost of doing business, and perpetuate poverty. It has been estimated that over $1 trillion in bribes are paid globally each year. 1 – Companies involved in bribery do not operate in the best interests of their stakeholders (including employees and shareholders), but for the individual interests of important decision makers. Business decisions influenced by bribery can be costly and can negatively affect a company’s long-term performance, reputation, and credibility. 1 Daniel Kaufmann, “Myths and Realities of Governance and Corruption,” Global Competitiveness Report 2005-2006, World Economic Forum, 2005, p. 96. Anti-bribery Policies FROM SUSTAINABILITY PRACTICES: 2013 EDITION Thirty-nine percent of S&P Global 1200 companies reported having a policy specifically against bribery, but fewer than one-quarter of S&P 500 companies reported having such a policy. The analysis by sector reveals that materials companies were most likely to have an anti-bribery policy, while companies in the consumer discretionary sector were least likely. The geographic analysis shows that European companies lead their global peers in terms of reporting an anti-bribery policy. Anti-bribery Policy, Adoption Rate by Sector 29% 43 39 35 38 46 33 48 43 38 Industrials Information Materials Telecommunication Utilities 89 cos. technology 57 cos. services 27 cos. 37 cos. 16 cos. Consumer Consumer Energy Financials Health discretionary staples 36 cos. 75 cos. care 49 cos. 44 cos. 32 cos. Source: The Conference Board/Bloomberg, 2013. Anti-bribery Policy, Adoption Rate by Geography 22% 54% 61% 30% North America Latin America Europe Asia-Paciﬁc 119 cos. 20 cos. 223 cos. 74 cos. Source: The Conference Board/Bloomberg, 2013. Anti-bribery Policy, Adoption Rate by Index 39 % 23 14 462 cos. 113 cos. 139 cos. S&P Global 1200 S&P 500 Russell 1000 Source: The Conference Board/Bloomberg, 2013.

Anti-bribery Policies

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Bribery represents the most common form of corruption.

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Chart of the Week

CW-049 | March 2014

In collaboration with For more information on this and over 70 other sustainability metrics, download SustainabilityPractices: 2013 Edition at: (http://www.conferenceboard.org/sustainabilitypractices) or contactMatteo Tonello at [email protected]

THE CONFERENCE BOARD INITIATIVE ON SUSTAINABILITY™

Why it matters… – Bribery represents the most common form of corruption. It can significantly impede economic growth and stability, undermine political and economic order, increase the cost of doing business, and perpetuate poverty. It has been estimated that over $1 trillion in bribes are paid globally each year.1 – Companies involved in bribery do not operate in the best interests of their stakeholders (including employees and shareholders), but for the individual interests of important decision makers. Business decisions influenced by bribery can be costly and can negatively affect a company’s long-term performance, reputation, and credibility.

1 Daniel Kaufmann, “Myths and Realities of Governance and Corruption,” Global Competitiveness Report 2005-2006, World Economic Forum, 2005, p. 96.

Anti-bribery PoliciesFROM SUSTAINABILITY PRACTICES: 2013 EDITION

Thirty-nine percent of S&P Global 1200 companies reported having a policy specifically against bribery, but fewer than one-quarter of S&P 500 companies reported having such a policy. The analysis by sector reveals that materials companies were most likely to have an anti-bribery policy, while companies in the consumer discretionary sector were least likely. The geographic analysis shows that European companies lead their global peers in terms of reporting an anti-bribery policy.

Anti-bribery Policy, Adoption Rate by Sector

Figure 4.2

Anti-bribery Policy, Adoption Rate by Sector

29% 43 39 35 38

46 33 48 43 38

Source: The Conference Board/Bloomberg, 2013.

Industrials Information Materials Telecommunication Utilities 89 cos. technology 57 cos. services 27 cos. 37 cos. 16 cos.

Consumer Consumer Energy Financials Health discretionary staples 36 cos. 75 cos. care 49 cos. 44 cos. 32 cos.

Source: The Conference Board/Bloomberg, 2013.

Anti-bribery Policy, Adoption Rate by Geography

22% 54% 61% 30%

North America Latin America Europe Asia-Pacific