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Illegal Logging, Corruption and Business. Presented by Ken Rosenbaum Sylvan Environmental Consultants On behalf of the Forest Integrity Network. What is the Forest Integrity Network?. FIN is an informal network of professionals concerned about corruption. - PowerPoint PPT Presentation
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Illegal Logging, Corruption and Business
Presented by
Ken Rosenbaum
Sylvan Environmental Consultants
On behalf of the Forest Integrity Network
What is the Forest Integrity Network?
FIN is an informal network of professionals concerned about corruption.
FIN emerged from a 2000 conference on forest sector corruption at Harvard.
FIN’s focus is unique. FIN is now a project of Transparency
International.
Recent FIN Activities FIN produced a paper on tools for civil society
to fight forest-sector corruption. FIN reviewed a pilot project to source wood
fiber responsibly from Russia. FIN is turning its attention to approaches for
responsible businesses. FIN will be hosting a panel on business issues
at the IACC in Guatemala in November
Why are we talking about corruption?
Corruption is the Enabler and Accomplice of Illegal Logging
Corruption has been the Inconvenient Elephant that no one wants to mention:
A Miniature Case Study: with apologies to …
The Home Depot has a strong environmental policy
In particular …
The Home Depot has traced the origin of every wood product on its shelves.
The Home Depot will not accept imports of rare species such as Intsia bijua (Merbau) unless the supplier provides the export permit.
So how did this happen?
It’s really no surprise.
The forest sector has a poor reputation for honest operation in much of the developing world.
The good people in Indonesia are working hard to build honest governance, but they may not have succeeded yet.
In these conditions you can trust the paperwork.
What’s at risk for your business?
Shame: Bad Press Fines and Jail (Foreign Corrupt Practices
Act, Lacey Act in US) Unequal Competition and Closed
Markets: When your adversaries play a dirty game
Forest Businesses are coming to recognize the problem
Weinberg’s Pickle Principle
When you add a cucumber to brine, the cucumber generally gets more pickled than the brine gets cucumbered.
A small system that tries to change a big system through
long and continued contact …
… is morelikely to get changed
itself
This holds true for:
The small CSR office trying to change a large business organization
The arm of a business functioning in the economic and social milieu of a different culture
The small certification system exposed to business practices in a large society
Not everything in brine gets pickled
There are ways to counter the pickle principle
They require organization and management
Enter the Business Principles
The Business Principles for Countering Bribery
Started 2000 International steering committee Broad based membership Consultation and three field tests Released late 2002; rollout from 2003
Business Members BP plc
General Electric
HSBC
ISIS Assets Management
Norsk Hydro ASA
Organización Corona
Pfizer
PricewaterhouseCoopers Rio Tinto plc SAP SGS Société Générale de
Surveillance S.A. Shell International Sika AG Tata Sons ltd
What are theBusiness Principles?
Anti-bribery framework for business promoting: Good business practices Risk management
For use by companies of all sizes
Basic Elements Parallel Environmental Management
Adopt high-level policy against corruption Make resisting corruption everyone’s
responsibility Communicate this to employees Set up internal controls & audits Etc.
Six step implementation plan
StepStep11 22 33 44 55 66
ActionAction Decide to adopt an ABP
Decide to adopt an ABP
Plan imple-
mentation
Plan imple-
mentation
Imple-ment
Imple-ment
Develop ABP
tailored to the
business
Develop ABP
tailored to the
business
MonitorMonitor Evaluate
Evaluate
Primary responsibility
Primary responsibility
Ethics officer/Internal and external auditors
Appointed senior manager/line managers/HR depts/business partners
Appointed senior manager/HR dept
Appointed senior manager/Project Team
Owner of company/Board/CEO
Owner of company/Board/CEO/Audit Committee
Time spanTime span One monthOne month Continuous
Continuous
One yearOne yearThree to six months
Three to six months
At least annually
At least annually
Three to six months
Three to six months
Contact Information
FIN:Andrea Figari [email protected]
Programme Manager, FIN Transparency International
Alt Moabit 9610556 Berlin, Germany
+49-30-3438 20655 +49-30-3470-3912
www.transparency.org/fin
Business Principles:
At TI-UK: Peter Wilkinson
At TI-USA: Susan Côté-Freeman