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Workshop

Business abroad: how to manage corruption risks?

19 November 2010

Chantal HébetteChair Transparency International Belgium

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What is Transparency International?

created in 1993

Transparency International exists to create change towards a world free of corruption; to challenge the inevitability of corruption

global movement and world-wide network of national chapters in over 90 countries

National Chapters around the world

How does TI define corruption?

Corruption is…

…the abuse of entrusted power for private gain.

INTEGRITY

Government & Public Sector

Civil SocietyPrivate Sector

o fights corruption at its rootso analyses and diagnoses

corruption o develops coalitions with

governments & public sector, private sector, civil society

o is politically non-partisano does not undertake

investigationso combines local and

international expertise

TI’s approach

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TI Toolssuch as: research

National Integrity Studies (NIS) Global Corruption Reports (GCR)

indices Corruption Perceptions Index Bribe Payers Index Global Corruption Barometer

business Business Principles and self-assessment

tools Integrity Pacts (between business and

government with civil society monitoring)

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TI’s Global Priorities

o reduce corruption in politics (e.g. political party and campaign financing)

o curb corruption in public contractingo enhance private sector anti-corruption standards

(e.g. Business Principles)o advance and monitor implementation of

international conventions against corruption (UNCAC, OECD)

o reduce corruption in poverty and development

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The Belgian Chapter

o created in 1995

o reactivated in October 2008. Executive team

o action fields

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TI-Belgium Action Fields

1. promote and mesure integrityo National Integrity System (NIS) for Belgium

2. curb corruption in public contracting o training in Public Procurement for Belgian civil

servants (OLAF)

3. promote public whistleblowing policy

4. reduce corruption in politics o “Transparency & Politics”: 2 inquiries & follow-

upo financing of Belgian political parties(GRECO)

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TI-Belgium‘s Action Fields

5. enhance private sector anti-corruption standards

o “Corporate Package”o “Banks & Ethics” academic think-tank, debates o follow-up of TRAC (Transparency in reporting on

anti-corruption)

6. participate in international studies & monitor international conventions

o Studies: Sanctions; Statute of limitations; Export credit agencies.

o OECD convention. GRECO reports

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Companies should put fight against corruption high on their agendas

International consensus about the fact that corruption:

o is a brake on economic development

o distorts national and international trade

o jeopardizes sound governance and ethics in the private sector

o undermines democracy and the rule of law

o is one of the most serious obstacles to reducing poverty

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o Belgian companies o doing business in US, shares listed in US, acting on behalf

of US company: FCPA o with part of business in UK: Bribery Act (April 2011)

extra-territorial application/ high fines/ imprisonment of individuals

o Long term: sanctions in 5-7 years for acts committed today

o Fair play is good business: cost of bribery/ good to work with/for & invest in clean company

o Goes beyond legal compliance: adequate procedures

Companies should put fight against corruption high on their agendas

Programme

8:10 8:30 Reception

8:30 8:40 Welcome Chantal Hébette,Chair Transparency International

8:40 9:25 Foreign corruption: consequences for Belgian companies

Pascale Helene Dubois, Sanctions Evaluation and Suspension Officer, World Bank

9:25 10:10 Foreign corruption: concrete Belgian cases

Evert-Jan Lammers, Managing Partner Triforensic, Executive professor at the Antwerp Management School

10:10 10 :30 Coffee break

10 :30 11 :15 How preventive anti-money laundering measures contribute to fighting corruption

Jean Spreutels, Judge at the Constitutional Court, professor at ULB, former Chair of the Belgian Financial Intelligence Unit (CTIF)

11:15 12:00 Social costs of corruption and collective action. An agenda for action

Djordjija Petkoski, Professor at the Wharton School, Head of the Business, Competitiveness and Development team at the World Bank Institute

12:00 12:35 Panel Q&A

12:35 12:40 Concluding remarks Chantal Hébette

12 :40 13 :30 Light Lunch and networking