Confronting corruption for a sustainable future short report

Pedro Lago de Carvalho, Glen Ware, Dimitris Papalexopoulos, Michael Peel, Ana Revuelta, Mark Snyderman, Jermyn Brooks, 13th IACC, Workshop report, Sustainability, Private Sector

 


WORKSHOP REPORT FORM

 

Number and title of workshop  Special Session 2 – Confronting corruption for a sustainable future: is the private sector ready?

Coordinator: Susan Cote-Freeman

Date and timeof workshop: 31.10.08 – 17:00-19:00

Moderator (Name and Institution) : Michel Peel, The Financial Times

Rapporteur (Name and Institution): Ana Revuelta, TI-S

Panellists(Name, institution, title)

  1. G. Prokop, Director, PWC
  2. Marc Snyderman, Chief Ethics and Compliance Officer, The Coca Cola Company
  3. JermynBrooks, Director, Private Sector Programmes, TI
  4. Dimitris Papalexopoulos, Managing Director, Titan Cement Company Petronas

 

Main Issues Covered

Structure of the session:

  • Presentation of the “Business Case for an effective anti-corruption programme” by PWC (available at booth in the main hall). The gap between corruption risks and companies’ anti-corruption programmes, as well as guidance to remedy it, is explored in PricewaterhouseCoopers' Confronting corruption report.
  • Comments by panellists.
  • Open debate with participants.

 

Main Outcomes

  1. PricewaterhouseCoopers' Confronting corruption report, based on a survey including almost 400 senior executives from 70 countries, and complemented with interviews with 36 senior executives and experts in anti-corruption efforts from 14 countries, examines what companies are currently doing to manage the risk of corruption and the steps they can consider to better protect themselves in the future. Main findings of the report were the following: business is more keenly aware than ever of the dangers of corruption (strong business case for having an anti-corruption strategy). Yet, companies still need to expand the scope and rigor of their efforts to manage corruption risks with well-designed controls that are clearly communicated and enforced (while around 80% of the companies have an anti-corruption programme, only 22% are confident that it helps mitigate corruption). Also, the report stressed that anti-corruption programmes enhance corporate reputation and help establish the credibility of the company.
  2. It is important to take into account the differences between companies (size, scope, etc.) and within a same company operating in several countries (different kinds of corruption risks).
  1. How to move from short term to long term thinking? On the short term, corruption might be the easiest way for a company to operate; but it is necessary to think on the long term effects of corruption: on brands, on markets, and ultimately on the lives of people.
  1. It is imperative to convince the business case for ethical behaviour and overcome the perception that an ethical behaviour is a disadvantage for the company.
  1. An integrated approach is needed: ethical behaviour and anti-corruption programmes have to be integral part of the business and the company. It is easy to have policy, but much less to effectively implement it.
  1. In that sense, the role of top management is also crucial. Formalistic approaches without authenticity are at the end disaccredited.

 

 

Main Outputs

Recommendations, Follow-up Actions

 

  1. What companies should do? Assess, write their policy, and ensure its implementation (monitoring, follow up). Have a “safety management”: the management cannot abandon the follow up of ethical issues, or they will be dropped out from the list of priorities, particularly in difficult situations/environments (such as the actual global financial crisis).
  1. Civil society organizations will continue to raise their voice, and council companies towards more ethical behaviours.

 

Workshop Highlights (including interesting quotes)

Even a 2$ facilitating payment is contributing to a system that ultimately, in some part of the world, makes many people die.

Signed

Ana Revuelta

pdfConfronting corruption for a sustainable future short report

Brazil 2012

Brazil 2012

IACC Video

IACC Video

FaceBook

FaceBook