Global Compact in Serbia Declaration against Corruption Seminar: Serbian Chamber of Commerce and the European Commission

Transcription

1 United Nations Global Compact Transparency International Global Compact in Serbia Declaration against Corruption Seminar: Serbian Chamber of Commerce and the European Commission Belgrade, 8 December, 2010

2 No defence There is no defence for corruption. Corrupt payments destroy business opportunities and drag down economic growth Corruption undermines both free politics and free markets Financial Times editorial, 2009

3 Values are the basis Values are the essential foundation for a sustainable anticorruption programme it is exceedingly difficult to realize the economic benefits of an ethical orientation without actually having an ethical orientation Dr. Lynn Sharpe Paine To see what is right, and not to do it, is want of courage, or of principle Kongfuzi

4 Integrity is a win for business Quality Competiveness Fit for purpose Admired

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6 The Business Principles for Bribery Basis for TI s private sector work Multi-stakeholder developed: companies, civil society, unions, academia Owned by a multi-stakeholder committee Has resulted in or influenced amongst others: PACI Principles OECD Recommendations FTSE4Good anti-bribery criteria : Global Compact Reporting Guidance UK Bribery Act Ministry of Justice Guidance GRI Reporting Framework ISO 26000

7 Six actions for companies and TI tools to help STAGE RELEVANCE TI Tools Assess Where do you stand? TI ABC Checklist What are the risks? TI Indices, TI research Plan Benchmark against best practice using a code; develop detailed polices Business Principles for Countering Bribery and SME Edition Act Implement your no-bribes policies through detailed procedures TI Guidance Document; TI6Step process Monitor Carry out continuous self-check and improvement TI Self-Evaluation Tool; Enablon ABS interactive tool Report Report internally and externally on what you do Global Compact-TI Reporting Guidance; TRAC survey Assure Raise the credibility of what you do TI Assurance framework

8 TI Global Corruption Barometer Citizen s view of corruption in their own countries Opinion survey conducted in c.60 countries Every two years 8

9 9 TI-UK adequate procedures guidance Adequate Procedures Guidance

10 TI 6Step implementation process

11 TI ABC checklist

12 Drivers of change 12 Conventions and laws OECD 1997, UNCAC 2003 FCPA 1997, UK Bribery Act 2011 Inter-governmental EU Investors SRI Indices, fund managers Soft law Export credit agencies Multi-lateral development banks Peer pressure Industry leaders Sector initiatives Stakeholders Civil society, unions, public Global Compact The business case

13 The Anti-Corruption Reporting Guidance raises the bar for company reporting The joint UNGC-TI Anti-Corruption Reporting Guidance was published on 9 December, 2009 and has been widely acclaimed The guidance provides a comprehensive set of 22 Reporting Elements which can be reported against in a mainly descriptive manner. From 2011, all Global Compact participants with over five years commitment will be required to report in their COP against Basic Reporting Elements. Companies are already starting to use the guidance for their Sustainability Reporting.

14 14 Members of the Taskforce on Reporting on the 10th Principle 14 The Reporting Guidance was created over the course of 15 months (from September 2008 until November 2009) by a Taskforce which included non-governmental organizations, anti-corruption experts and business practitioners: Members of the Taskforce (in alphabetical order): Accenture BASF Global Compact Local Network Spain Sanlam Siemens Total Transparency International Sven Biermann (co-chair), Chad A. Fentress, Kari K. Gregory Eckart Sünner Isabel Garro, Cristina Sanchez Jacques Marnewicke Daniel Kronen, Sabine Zindera Laure Armandon, Richard Lanaud Jermyn Brooks, Birgit Forstnig-Errath (co-chair), Peter Wilkinson (co-chair) UN Global Compact Simon Gargonne, François Georges, Oliver Johner, Olajobi Makinwa, Mark Snyderman UN Office on Drugs and Crime World Economic Forum Partnering Against Corruption Initiative (PACI) Maria Adomeit, Giovanni Gallo Michael Pedersen Observers of the Taskforce (in alphabetical order): F&C Asset Management Global Reporting Initiative George Dallas Sean Gilbert, Mike Wallace

15 15 Outcomes of the Consultation Phase Representation of participants number/distribution is adequate 15 What type of organization are you () Number of participants: 19 () Number of employees Number of company participants in your network

16 0 16 Outcomes of the Consultation Phase Guidance will be used even if basic elements were mandatory % 83% of all participants state that it is very likely or likely that they will use this reporting guidance in their next Communication on Progress / next CSR / Corporate citizenship report. of all participants would very likely or likely report against the Basic Reporting Elements if those were to be made mandatory by the Global Compact. Source: Other question No Source: General Feedback question No

17 1 17 Outcomes of the Consultation Phase Guidance is perceived as being useful and user friendly 17 95% of all participants find it very useful or useful to have this guidance on reporting on the 10th principle. Source: General Feedback question No % of all participants think this reporting guidance is very user friendly or user friendly. Source: Other question No

18 6 18 Outcomes of the Consultation Phase Selected statements by participants 18 Good initiative - I think it is much needed by many UNGC participants We agree in the idea of structuring the guide in Commitment, Implementation, Monitoring and to integrate the basic and desired elements under these three areas, instead of structuring the guide just in Basic and Desired elements The structure of the guidance is complicated Consider streamlining the elements where the desired elements are merged with the basic elements We find the reporting guidance very useful for two Source: Other question No. 6

19 Section 1: The Business Case for reporting for the 10th Principle 19 Why reporti ng on anticorrupt ion: Reportin g on anticorruptio n is an importan t way to demons trate that a company is a respons ible company living up to its commit ment to the Global Compact s 10th principle. Benefits: There are three major benefits from reporting on anticorruption.: Increased internal integrity and transparency Reporting on anti-corruption raises awareness among employees and provides a means of control and discipline for the management. Enhanced reputation Reporting on anti-corruption positively influences your organization s reputation in the marketplace and society and can deter corrupt approaches. Common information basis Reporting on anti-corruption establishes a common language to measure, compare, discuss and improve anti-corruption activities and practices.

20 20 The Business Case for reporting for the 10th Principle Three major benefit categories 20 Increased internal integrity and transparency Enhanced reputation Common information basis obtaining competitive sharing experience and advantage as a procedures with other preferred choice of organizations; ethically concerned stimulating multicustomers, suppliers stakeholder dialogues; and other stakeholders; encouraging and increasing importance of attracting highly skilled supporting employees in disclosure on antiand motivated people; resisting corruption; corruption activities in supporting and overall sustainability providing management encouraging business agendas; and with a foundation for partners and analysis of progress, challenging competitors driving media coverage planning and continuous to resist corruption by of good anti-corruption improvement; and setting standards of practices through excellence; Reporting on anti-corruption can provide strong benefits and sends strong signal provision ofa comparable motivating employees to that the company is living up to itsthe commitment Compact s 10th Σ proud reducing cost of to the Global progress reports. be of the principle. financing strengthening anticorruption behaviour, including better risk management and compliance;

21 ABOUT THE REPORTING GUIDANCE Section 2: Reporting Elements for the 10th Principle The Reporting Guidance provides a comprehensive set of 22 Reporting Elements which can be reported against in a mainly descriptive manner. The guidance comprises of 22 Reporting Elements, outlined in the following matrix: By reporting elements: Basic Reporting Elements: These 7 Elements are considered to be the basic level of reporting on an organization s anti-corruption policies and procedures; Desired Reporting Elements: These additional 15 Elements give you the opportunity to report more extensively on your anticorruption policies and procedures. By categories: Commitment and Policy: how your organization has committed to a zero-tolerance of corruption Implementation: how your organization s commitment has been put into practice through detailed policies and systems Monitoring: how your organization monitors progress and has a continuous process for improvement

22 22 Section 2: Reporting Elements for the 10th Principle 22 Commitment and Policy: B1 B2 Basic Reporting Elements Publicly stated commitment to work against corruption in all its D1 forms, including bribery and extortion Commitment to be in compliance with all relevant laws, including D 2 anti-corruption laws D3 Detailed policies for high-risk areas of corruption Desired Reporting Elements Policy on anti-corruption regarding business partners Actions taken to encourage business partners to implement anticorruption commitments Management responsibility and accountability for implementation of the anti-corruption commitment or policy Human Resources procedures supporting the anti-corruption commitment or policy Communications (whistleblowing) channels and follow-up mechanisms for reporting concerns or seeking advice Internal accounting and auditing procedures related to anticorruption B3 Basic Reporting Elements Translation of the anti-corruption commitment into actions D5 D6 B4 Support by the organization s leadership for anti-corruption D7 B5 Communication and training on the anti-corruption commitment for all employees Internal checks and balances to ensure consistency with the anti-corruption commitment D8 D9 D 10 D 11 Participation in voluntary anti-corruption initiatives D 12 D 13 Desired Reporting Elements Leadership review of monitoring and improvement results Dealing with incidents D 14 Public legal cases regarding corruption Monitoring: B7 Basic Reporting Elements Monitoring and improvement processes Statement of support for international and regional legal frameworks, such as the UN Convention against Corruption Carrying out risk assessment of potential areas of corruption D4 Implementation: B6 Desired Reporting Elements Publicly stated formal policy of zero-tolerance of corruption

23 Section 2: Reporting Elements for the 10th Principle Example 1 Description: Importance How to implement What to report (Examples) Cross-reference: Cross-reference to Reporting Elements within this Guidance Other reporting indicators: Example of reporting indicators from other organizations (FTSE4Good, the Global Reporting Initiative, the International Corporate Governance Network, PACI and TI) 3

24 The first corporate reports using the Guidance have already been published. Example s Example 1: Accenture United Nations Global Compact Communication on Progress Report Supplemental Report on Principle 10 Overview/Corporate_Citizenship/Reporting.htm Example 2: TÜV Rheinland Holding Group Sustainability Report mediaid=33480&fileid=81090&sprachid=2

25 Some highlights of our communication activities Global Investors Ask Companies to Disclose Anti-Corruption Measures (27 April, 2010) Letter to President Myung-bak and PM Harper as G20 co-chairs of 2010 (19 May, 2010) Nigerian Businesses Endorse New Reporting Guidance on 10th Principle (20 May 2010) Presentation of the guidance at the 18th Annual Ethics and Compliance Conference in Anaheim/US (September 24, 2010) Presentation at the International Anti-corruption Conference (IACC) in Bangkok/Thailand (November 12, 2010) the conference declaration also includes a reference to the Reporting Guidance Publication of Frequently Asked Questions onthe UNGC website (planned December 2010) Presentation on the new guidance at a workshop by the Serbian Chamber of Commerce and UN Global Compact Serbia (December 8, 2010)

26 Help for the Serbia Global Compact Network to use the guidance According to the current CoP policy, at least all UNGC participants who joined the UNGC prior to January 1, 2006 must report on the 10th Principle according to the new guidance. This means more than 700 companies being required to report against the Guidance in Assistance could be provided to members of Global Compact Serbia Network on reporting as part of the Declaration against Corruption through: On-line or telephone advice sessions with members from the Taskforce and/or Transparency International and the Global Compact office The Frequently Asked Questions on the Global Compact website providing clear answers to typical questions which will be expanded according to the questions asked; An Overview presentation to be distributed to Local Network members Tailored guidance for Serbia based on local needs and experience; Identifying and sharing good practice from Serbia. Other ideas please!

27 27 Additional information 27 The Reporting Guidance on the 10th Principle against Corruption can be downloaded here: For more information, please contact: Ms. Olajobi Makinwa Issue Manager Anti-Corruption UN Global Compact

28 28 28 Thank you! Peter Wilkinson Transparency International Dr. Vladimir Goati, President Nemanja Nenadic, Programme Director Transparency Serbia 29. Novembra 36/I, Belgrade