Brooks

TI STRATEGIES WITH THE PRIVATE SECTOR

09/06/2015

Jermyn Brooks Chair of the Business Advisory Board

- 1 -

BUSINESS AND CORRUPTION: WHY IT MATTERS

73% of business people said they had lost business due to

bribery in the last 12 months (TI, 2012)

In 40 countries around the world,

more than 50% of the people think the private sector is corrupt

or extremely corrupt. (TI, 2013)

65% of business people surveyed

believe a level playing field is crucial to their company’s future business

activities. (PwC, 2008)

Corruption adds up to 10% to the

total cost of doing business globally(UNGC, ICC, TI, 2008)

The European Commission calculated that in the Member States

around €120 billion or US$163billion is lost to corruption.

About 2 in 3 adults worldwide believe corruption is widespread in the businesses in

their countries. (Gallup, 2012)

TRANSPARENCY AND INTEGRITY, MADRID 09/06/2015 - 2 -

HOW TI VIEWS THE CORRUPTION CHALLENGE


The demandside

The supply side

• Governments

• Public authorities and agencies

• State Owned Enterprises

• Business – The private sector

• (ordinary citizens)

If we could eliminate the supply of bribery from the business world, TI would come closer to its mission of creating a “world free of corruption”

BUT the challenge: business works in many very corrupt environments

THE CORRUPTION PERCEPTIONS INDEX


OUR APPROACH

ENVIRONMENTStrengthened level playing field to promote clean

business practices

GROUPS OF BUSINESSESIndustry sector and business umbrella

groups promote integrity

INDIVIDUAL BUSINESSES

Individual businesses act with integrity

Enhanced capacity of the TI

Movement at international and national level to

be a catalyst for…

…COLLECTIVE ACTION…

…by Government,

businesses and civil society...

…leads to…

…leads to…

…leads to…


TI EFFORTS TO IMPROVE ENVIRONMENT FOR BUSINESS

(EXAMPLES)


Advocacy with

governments

Advocacy with

international bodies

• Effective law enforcement

• Public procurement standards (integrity pacts)

• Lobbying, access to information, whistleblowing laws

• G20 (beneficial ownership registers)

• EU (CbC reporting)

• IDBs and ECAs (enhanced due diligence, blacklisting)

COLLECTIVE ACTIONS BY GROUPS OF COMPANIES


Aim: Strength in numbers

and peer pressure

• Same industry (defence, pipe laying, telecommunications, shipping)

• Same country (Malaysia, UK, Vietnam)

• International (UNGC, PACI)

COMMIT• Business Principles for

Countering Bribery • Business Principles for

Countering Bribery –SMEs

ASSESS• Anti-Bribery Checklist• Corruption Perceptions

Index• Bribe Payers Index• Global Corruption

Barometer• National Integrity

System

PLAN• The 2010 UK Bribery

Act Adequate Procedures

REPORT• UNGC Anti-corruption

Reporting Guidance• Transparency in

Corporate Reporting

MONITOR• Self-Evaluation Tool

• Framework for Voluntary Independent

Assurance of Corporate anti-corruption

Programmes

ACT• Anti-Bribery Guidance

for Transactions• Resisting Extortion &

Solicitation in International Transactions

BUSINESS INTEGRITY TOOLKITSUPPORT FOR INDIVIDUAL

COMPANIES


• First published in 2003, revised in 2013

• Developed by TI with a multi-stakeholder Steering Committee:

Companies

NGOs

Trade Unions

Academia

• Consultation and field testing (2002 and 2013)

• Evolving document

BUSINESS PRINCIPLES FOR COUNTERING BRIBERY


• Conflicts of interest

• Political contributions

• Charitable contributions and sponsorships

• Facilitation payments

• Gifts, hospitality and expenses





Organisation and

responsibilities

• Business Relationships

• Subsidiaries,

• Joint Ventures,

• Agents, lobbyists and other intermediaries.

• Human resources

• Training

• Raising concerns and seeking guidance (Whistleblowing)

• Communication and Reporting

• Internal controls and record keeping

• Monitoring and review

• Cooperation with authorities

• Independent assurance

MORE TOOLS FOR COMPANIES


ASSESSING EMERGING MARKET MULTINATIONALS

2013

TRANSPARENCY IN CORPORATE REPORTING

ASSESSING THE WORLD’S LARGEST COMPANIES

2014


COUNTRY REPORTS

2012 Belgium

2013 Argentina

Greece

Italy

Hungary

Kuwait

Norway

Sweden

2014 Denmark

UKChile

Coming in2015

IsraelRussia (similar study)LithuaniaTurkey


TRANSPARENCY IN CORPORATE REPORTING

EMERGING ISSUES


• Tax evasion, use of shell companies, offshore centres, money laundering risks

• Trade sanctions dangers

• Personal liability of business leaders – see TI’s no impunity campaign

https://www.transparency.org/programmes/overview/bip

facebook.com/transparencyinternational

twitter.com/anticorruption

blog.transparency.org

© 2014 Transparency International. All rights reserved.

- 16 -

Government & Nonprofit

Brooks