Fourth Conference of State Parties to the Mechanism for the Follow-Up to the

Inter-American Convention Against Corruption (MESICIC)

14 December 2015

Partnering Against Corruption Initiative (PACI)

Partnering Against Corruption Initiative

The “gold standard”

CEO commitment to

anti-corruption and

transparency.

Harnessing the

strength of global

business leaders to

collectively level the

playing field and

enable competitive

and dynamic market

conditions.

History of PACI

PACI works with committed business leaders, international

organizations and governments to address corruption,

transparency and emerging-market risks .

PACI shapes the Global Anti-corruption Agenda, supports

Regional Initiatives, and facilitates Industry Projects of Collective

Action.

Since 2004, PACI has become the leading global business voice

on anti-corruption and transparency.

Comprising nearly 90 active companies, PACI creates a more

visible, dynamic and agenda-setting platform and is one of the

strongest cross-industry collaborative efforts at the Forum.

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PACI community overview

• Current Membership: 90+ companies

• New members: CA Technologies,

Google, Royal DSM, Iberdrola,

Greenberg Traurig

• PACI Vanguard

• PACI Vanguard Delegates

• Global Agenda Council

• PACI (cross-)industry projects

• Annual Meeting

• PACI Community Meetings

• Regional Meetings

• Ad-hoc events co-hosted with other

organizations

• Maintaining the community of purpose

• Strategic content development

• Drive collective action

• Initiate business-government dialogue

• Increase public awareness

• Shape cultural and ethical change within

industries

PACI Membership Pillars

Meetings Modes of engagement

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Vision: Be the foremost business driven anti-corruption platform and global catalyst to

level the playing field and design corruption out of the system

Publicly showing leadership in the fight against corruption reinforces corporate

commitment to integrity, values and ethics giving rise to a competitive advantage

for companies by becoming the preferred choice of ethically concerned

customers/consumers as well as attracting investments from ethically oriented

investors.

Why do PACI signatories demonstrate leadership in

fighting corruption?

Corporate executives are increasingly being held personally

responsible for acts of corruption with CEOs, Board Members and

Senior Managers losing their jobs and prosecuted for the same.

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PACI Status Report

• Current Membership: 90+

companies

• Projects: IU project: Building

Foundations for Transparency, B20

Anti-corruption Task Force

• Events: PACI Community Fall

Meeting (9 December 2015),

Annual Meeting 2016, PACI

Community Spring Meeting (April

2016)

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Members per Industry

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Constituents gain business value from PACI

engagement

Engage with leaders from top companies, government, and

civil society to collaborate to create a level playing field.

Gain and share insights on transparency

initiatives, key risks, and mitigation strategies.

Get recognition for your efforts on a regional

and global basis.

Shape the global policy agenda on transparency and

anti-corruption.

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PACI Signatories commit to:

1. Raise awareness and visibility of anti-corruption and transparency issues

2. Demonstrate strong business leadership and “tone from the top”

3. Catalyze industry collective action

4. Increase business-government dialogue on a regional and country basis

5. Harnessing demographic trends that point to increased intolerance of the status

quo, especially views of younger adults (18-25)

6. Furthering legislative reform through public-private collaboration with other

organizations e.g. OECD

7. Leverage the role of technology to level the playing field

Responsibility of the private sector

Driven by identified needs and interests of PACI Signatories, PACI undertakes initiatives

to address industry, regional, country or global issues in anti-corruption and compliance.

Collective Action to design corruption out of the

system

• Determine corruption risks across supply-chains and project life cycles,

describe mitigation strategies and identify technical solutions

• Foster business-government discussions and interaction, supported by civil

society

• Examples: Aviation, Travel and Tourism Industry (2014) and Infrastructure and

Real Estate Industries (2014-2017)

Industry Projects

Aviation & Travel Industries Project Output Example: Compliance Areas Heat Map

Familiarization trips

Charitable contributions

Hospitality

Loyalty Programmes

Franchising

Operational risks & Facilitation Payments

Commercial bribery or kickbacks

3rd Parties

Bribery of government officials

Joint ventures

Not Important Less Important Somewhat Important Moderately Important Important Very Important Extremely Important

The survey was conducted by the World Economic Forum and supported by Deloitte Financial Advisory Services, LLP in July 2013.

Respondents are Chief Compliance Officers and General Counsels part of the Task Force team.

SNC-Lavalin, Colliers International, ABB, Alcoa,

Amec Foster Wheeler, Bilfinger SE, Construction

Products Holding Company (CPC), Danfoss A/S,

JLL, LIXIL Group, Petrofac, WS Atkins

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Conducted Industry survey on corruption risks

Developed Recommendations of the Task

Force

1. Promote Collective Action on transparency in

permitting and licensing

2. Increase interaction of business with

government

3. Share insights on corruption risks and good

practices more broadly

Collected Learnings from the field

1. Engage in Collective Action

• Assemble technology-driven solutions to increase

transparency in permitting and licensing as well as land

registration

• Collaborate with local government and supply chain

partners to design implementation strategies

2. Increase Interaction with Government

• Share government and industry experience and lessons

3. Share insights more broadly

• Invite other companies and initiatives to join the project

Task Force Members

2014: Analysis & Recommendation Phase 2015: Implementation Phase

87% of respondents say corruption

imposes additional costs

of business

92% of respondents

agree corruption is a significant

reputational risk for a company

of transaction value in the construction

industry were related to corruption

4%

Strategic importance

PACI – IU Project Phase I: Building Foundations

Against Corruption

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Identify processes within

key risk areas

• Dismantle and identify

sub-issues within key

areas, permitting &

licensing and land

registration

• Develop solutions to

provide more

transparency with high

potential for successful

implementation and high

potential economic

impact

• Bring findings into

dialogue

Method:

• Expert interviews

• Desk research

• Expert survey

Pilot Framework for two Indian states

Toolkit development

• Create a diagnostic tool

• Use the experiences to

build up a toolkit in

parallel of the progress

that can be universally

adapted

• This will ensure

scalability and

replicability of the

project

• A first replication of the

India pilot could be

tested in Africa in 2016

Initiate dialogue

• Invite state/municipality

level bureaucrats from

India to the project

community

• Initiate discussion on

risk areas and how

identified solutions could

be implemented

• Share best practices and

success stories from

other places

Application

Solutions

Issues

Action

• First test of an identified

solution

• Identify a body to

convene further dialogue

after first phase until

January (int’l or local

NGO, industry

association,

independent arbitrator)

Transparent and Efficient Processes

Civil Society

Government

Business

PACI – IU Project Phase II: Building Foundations for

Transparency

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Strategic Content Development

In addition to the PACI Vanguard comprised of CEOs, the PACI community consists of many

compliance practitioners who meet at our meetings and engage in various work streams that

support specific initiatives of interest to the communities.

The PACI community engages virtually through Toplink. Through this online platform, we obtain

broad-based input into projects, best practices, community connection and engagement

http://www.weforum.org/community/partnering-against-corruption-initiative-0

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Contacts:

Pedro Rodrigues de Almeida

Head of Basics Industries Directorate

World Economic Forum

Tel: +41 (0)22 869 3613

prod@weforum.org

Lauren Silveira

Project Manager, Partnering Against Corruption

Initiative (PACI)

World Economic Forum

Tel: +41 (0)22 869 3521

lsil@weforum.org