The document discusses business ethics and corruption in developing countries. It argues that current approaches to regulating business often fail and can increase corruption by creating more rules without enforcement. It proposes that development agencies should find new ways to encourage business growth while preventing malfeasance, such as increasing support for NGOs and partnerships with ethical businesses. Agencies also need to find ways to assist citizens in corrupt regimes by bypassing their governments. The alternative is more unenforceable laws that waste aid and discourage investment without reducing corruption.
Open For Business - The economic & business case for global LGBT inclusionBrunswick Group
Open For Business is a coalition of global companies making the case that inclusive, diverse societies are better for business and better for economic growth. The purpose of the coalition is to promote a positive business and economic case for equality of opportunity for everyone, all across the world.
They have published a comprehensive report, written by Brunswick partners, Jon Miller and Lucy Parker, which shows that successful businesses thrive in open, diverse and inclusive societies.
For more information visit: www.open-for-business.org
Read how the OECD is working with countries to design, promote and implement better anti-corruption policies for better lives. For more information see www.oecd.org/corruption/
Latin America's Role in driving "Americas-Centric" Outsourcing & U.S. Competi...Loren Moss
U.S. businesses want to improve efficiencies, accelerate technical innovation and gear their businesses to be globally ready – and the Latin America IT/ BPO marketplace is starting to recognize these requirements, creating an ideal environment for ‘Americas-centric’ outsourcing.
South Africa ranks in the top four most giving nations, we explore a new platform for social justice and accountability; and a recent survey suggests MOOCs are failing to educate the poor.
Open For Business - The economic & business case for global LGBT inclusionBrunswick Group
Open For Business is a coalition of global companies making the case that inclusive, diverse societies are better for business and better for economic growth. The purpose of the coalition is to promote a positive business and economic case for equality of opportunity for everyone, all across the world.
They have published a comprehensive report, written by Brunswick partners, Jon Miller and Lucy Parker, which shows that successful businesses thrive in open, diverse and inclusive societies.
For more information visit: www.open-for-business.org
Read how the OECD is working with countries to design, promote and implement better anti-corruption policies for better lives. For more information see www.oecd.org/corruption/
Latin America's Role in driving "Americas-Centric" Outsourcing & U.S. Competi...Loren Moss
U.S. businesses want to improve efficiencies, accelerate technical innovation and gear their businesses to be globally ready – and the Latin America IT/ BPO marketplace is starting to recognize these requirements, creating an ideal environment for ‘Americas-centric’ outsourcing.
South Africa ranks in the top four most giving nations, we explore a new platform for social justice and accountability; and a recent survey suggests MOOCs are failing to educate the poor.
Giving Them an Edge? The Effects of Work Experience on the Employment Prospec...The Rockefeller Foundation
This brief summarizes the results of NCLR’s quantitative analysis of the marginal effects of work experience on the employment prospects of millennials. It focuses on Latino young men, offering an overview of the structural barriers, an investigation of whether and to what extent additional work experience gives millennials a competitive edge in today’s hypercompetitive labor market, and recommendations to ensure that they fully leverage their work to maximize their potential in the labor market. In particular, this brief will examine the labor market outcomes of Latinos, the youngest and fastest-growing segment of the American labor force.
Trend report: Everybody gains from cooperationSemcon
There is a clear trend – cross-border cooperation creates new business opportunities. The challenge is to communicate and agree. And the future may lie in artificial intelligence when people aren’t enough.
Paper written by owner of Guilty Custom addressing the motorcycle industry and lack of diversity and women in the market place. Is not addressing riders but management and company level.
The range of exposures facing directors and officers (D&Os) – as well as the resultant claims scenarios – have increased significantly in recent years.
With corporate management under the spotlight like never before, Allianz Global Corporate & Specialty (AGCS) experts provide both a reflection of the current state of the D&O insurance market and also point the lens forward to five mega trends which lie ahead, impacting risk managers, their D&Os and their broker partners.
Maurice Lévy: The Competitive Lever of Strong Boards and Good GovernanceMSL
Maurice Lévy, Publicis Groupe's chairman and CEO, discusses good corporate governance in this article featured in Directors & Boards. Under his stewardship Publicis Groupe has been transformed into a global powerhouse of leading creative advertising and marketing agencies. Among his many awards, Institutional Investor magazine named him Europe's Best CEO in the media industry, and in 2012 WomenCorporateDirectors honored him and Publicis with its Visionary Award for Leadership and Governance of a Public Company.
Governance Rules For Executive Pay – The EU and G20 Perspectives By Leonardo ...MSL
Leonardo Sforza discusses governance rules for executive pay from both an EU and G20 perspective in the November 2013 edition of Benefits & Compensation International.
Our first issue of 2013 starts with three important topics that are recently receiving much attention,
but whose consequences and dynamics are difficult to grasp. These three topics deserve another
look because the visibility of some events may hinder what are their actual potential in the future.
Our first article is about various countries in the South American region organizing macro-events
in order to attract tourist and promote their service sector —where a great portion of informal jobs
and precariousness exist. Governments are investing heavily in creating infrastructure and giving
all the support that the private sector needs to organize successful events. Nevertheless, these
events are just the tip of the iceberg: governments may be losing the opportunity of having a wave
of tourist in the next ten years in order to extend benefits to a vast group of informal workers that
depend on services that tourist demand, such as retailing, restaurants, and tours, among others.
Climate change is making things worse for vulnerable population in South American countries.
Nevertheless, the rhetoric at negotiation tables still refers to the time when the Kyoto Protocol was
being designed. Such clear division of responsibilities between developed and developing countries
simply cannot hold in a post-Kyoto world. It is now that such divisions are becoming a
insurmountable barrier to reach an agreement. Nevertheless, such divisions of interests, goals and
coalitions has roots in the growing diversity of countries in the region, but they cannot be a pretext
for not reaching a shared criteria to deal with global negotiations about climate change.
Participation was, two decades ago, the flavor of the month in development policies. Giving power
to people in democracies was a correct strategy to improve social services and design public
policies. Nevertheless, the growing gap between the political discourse on what participation can
potentially bring and what actually achieves in most localities is giving ammunition to some
authorities to reverse participatory processes. Again, cities need to be creative, not only by
improving consultations with alternative techniques to reach people that has been reluctant to
participate, but also by improving their internal bureaucratic processes to become more responsive
and open to citizens’ preferences.
Future of the company An initial perspective - Paige Morrow - Frank BoldFuture Agenda
An initial perspective on the future of the company by Paige Morrow, Head of Brussels Operations at Frank Bold. This is the starting point for the global future agenda discussions taking place through 2015 as part of the the futureagenda2.0 programme. www.futureagenda.org
Why most of the western digital firms failed in ChinaAshrith Grandi
Why western digital firms like Google, Amazon couldn't penetrate into Chinese market.
Is it because of the government restrictions on foreign enterprises or is the companies poor understanding of the Chinese market?
Death by thousand cuts.
The Society of Indian Law firms has filed a Public Interest Ligitation against the Union of India for the government to act on the Terror Attacks in Mumbai and across India
Giving Them an Edge? The Effects of Work Experience on the Employment Prospec...The Rockefeller Foundation
This brief summarizes the results of NCLR’s quantitative analysis of the marginal effects of work experience on the employment prospects of millennials. It focuses on Latino young men, offering an overview of the structural barriers, an investigation of whether and to what extent additional work experience gives millennials a competitive edge in today’s hypercompetitive labor market, and recommendations to ensure that they fully leverage their work to maximize their potential in the labor market. In particular, this brief will examine the labor market outcomes of Latinos, the youngest and fastest-growing segment of the American labor force.
Trend report: Everybody gains from cooperationSemcon
There is a clear trend – cross-border cooperation creates new business opportunities. The challenge is to communicate and agree. And the future may lie in artificial intelligence when people aren’t enough.
Paper written by owner of Guilty Custom addressing the motorcycle industry and lack of diversity and women in the market place. Is not addressing riders but management and company level.
The range of exposures facing directors and officers (D&Os) – as well as the resultant claims scenarios – have increased significantly in recent years.
With corporate management under the spotlight like never before, Allianz Global Corporate & Specialty (AGCS) experts provide both a reflection of the current state of the D&O insurance market and also point the lens forward to five mega trends which lie ahead, impacting risk managers, their D&Os and their broker partners.
Maurice Lévy: The Competitive Lever of Strong Boards and Good GovernanceMSL
Maurice Lévy, Publicis Groupe's chairman and CEO, discusses good corporate governance in this article featured in Directors & Boards. Under his stewardship Publicis Groupe has been transformed into a global powerhouse of leading creative advertising and marketing agencies. Among his many awards, Institutional Investor magazine named him Europe's Best CEO in the media industry, and in 2012 WomenCorporateDirectors honored him and Publicis with its Visionary Award for Leadership and Governance of a Public Company.
Governance Rules For Executive Pay – The EU and G20 Perspectives By Leonardo ...MSL
Leonardo Sforza discusses governance rules for executive pay from both an EU and G20 perspective in the November 2013 edition of Benefits & Compensation International.
Our first issue of 2013 starts with three important topics that are recently receiving much attention,
but whose consequences and dynamics are difficult to grasp. These three topics deserve another
look because the visibility of some events may hinder what are their actual potential in the future.
Our first article is about various countries in the South American region organizing macro-events
in order to attract tourist and promote their service sector —where a great portion of informal jobs
and precariousness exist. Governments are investing heavily in creating infrastructure and giving
all the support that the private sector needs to organize successful events. Nevertheless, these
events are just the tip of the iceberg: governments may be losing the opportunity of having a wave
of tourist in the next ten years in order to extend benefits to a vast group of informal workers that
depend on services that tourist demand, such as retailing, restaurants, and tours, among others.
Climate change is making things worse for vulnerable population in South American countries.
Nevertheless, the rhetoric at negotiation tables still refers to the time when the Kyoto Protocol was
being designed. Such clear division of responsibilities between developed and developing countries
simply cannot hold in a post-Kyoto world. It is now that such divisions are becoming a
insurmountable barrier to reach an agreement. Nevertheless, such divisions of interests, goals and
coalitions has roots in the growing diversity of countries in the region, but they cannot be a pretext
for not reaching a shared criteria to deal with global negotiations about climate change.
Participation was, two decades ago, the flavor of the month in development policies. Giving power
to people in democracies was a correct strategy to improve social services and design public
policies. Nevertheless, the growing gap between the political discourse on what participation can
potentially bring and what actually achieves in most localities is giving ammunition to some
authorities to reverse participatory processes. Again, cities need to be creative, not only by
improving consultations with alternative techniques to reach people that has been reluctant to
participate, but also by improving their internal bureaucratic processes to become more responsive
and open to citizens’ preferences.
Future of the company An initial perspective - Paige Morrow - Frank BoldFuture Agenda
An initial perspective on the future of the company by Paige Morrow, Head of Brussels Operations at Frank Bold. This is the starting point for the global future agenda discussions taking place through 2015 as part of the the futureagenda2.0 programme. www.futureagenda.org
Why most of the western digital firms failed in ChinaAshrith Grandi
Why western digital firms like Google, Amazon couldn't penetrate into Chinese market.
Is it because of the government restrictions on foreign enterprises or is the companies poor understanding of the Chinese market?
Death by thousand cuts.
The Society of Indian Law firms has filed a Public Interest Ligitation against the Union of India for the government to act on the Terror Attacks in Mumbai and across India
The Salient Features of "The Constitution of India".
This PPTX file is better viewed in Microsoft PowerPoint 2010 or above.
Office 2007 ver is not capable for viewing animations properly.
The economic and business case for global LGB&T inclusion.
Open For Business is a coalition of global companies making the case that inclusive, diverse societies are better for business and better for economic growth. The purpose of the coalition is to promote a positive business and economic case for equality of opportunity for everyone, all across the world.
They have published a comprehensive report, written by Brunswick partners, Jon Miller and Lucy Parker, which shows that successful businesses thrive in open, diverse and inclusive societies.
For more information visit: www.open-for-business.org
Enhancing Integrity for Business Development in the Middle East and North AfricaOECDglobal
Panel 3: Mr. Fadi SAAB Chairman, Anti-Corruption Committee, ICC Lebanon, Anti-Corruption Committee, ICC Lebanon; Enhancing Integrity for Business Development in the Middle East and North Africa, 18 April 2016, Paris, France, Session 3
Identify in 150 - 200 words your reactions to the concepts of global.pdffathimafancyjeweller
Identify in 150 - 200 words your reactions to the concepts of globalization and Global Business
Ethics Issues.
Solution
Overview
The current financial crisis has raised questions about the legitimacy of capitalism. Ethical
failures certainly played a role. While it remains to be seen whether and how many people
blatantly broke the law, there are abundant signs of various forms of potentially unethical
behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption
(such as ratings agencies that appear to have had a conflict of interest), complex financial
instruments that no one really understood, and herd behavior where people just followed along
and failed to exercise independent judgment.
It is difficult or impossible to regulate against greed and against many of the other ethical
shortcomings that have been seen. What can be done is to force greater transparency and
accountability, a process which began with Sarbanes-Oxley and is expected to continue with new
regulations of the financial system.
Context
Drawing upon learnings from their work and experiences, the panelists and moderator exchanged
views with the audience on the ethics and legitimacy of business and capitalism in general, and
the financial crisis in particular.
Key Takeaways
The financial crisis may shift societal views on the legitimacy of business.
Each panelist offered a different perspective on the issue of ethics and legitimacy in business:
– The financial crisis has the potential to damage the legitimacy of capitalism (Di Tella). Richer
nations tend to be more right-wing in their views and have more capitalistic economic systems.
The United States is exceptionally right-leaning, even among developed nations.
These attributes are heavily influenced by beliefs regarding the reasons why people are
prosperous or poor. Americans tend to see prosperity as a product of effort more than luck; left-
leaning nations believe the opposite.
Affecting these beliefs: the number and severity of the shocks a society has weathered; and
perceptions regarding the legitimacy of business—i.e., the perceived degree of corruption.
America generally perceives that corrupt businesspeople are the exception, and punishes deviants
severely. However, this financial crisis holds the potential to shift America leftward since it: 1) is
a major shock that 2) suggests systemic corruption. Both call into some question the legitimacy
of U.S. capitalism.
– It is ethically legitimate for businesses to place the customer\'s interests above all else, because
only through profit comes the freedom to contribute to society (Vasella). Business leaders must
use their personal moral compasses to make ethical decisions. As for the business\'s compass, it
should be oriented toward satisfying customers above all stakeholders. That is the orientation
that allows for the greatest competitive success and profitability. In Mr. Vasella\'s view, only by
making a profit does a company earn the rig.
BRICS 5th Academic Forum - Global Gov Reform Dr Lendy Spires
In the presentation of global governance reform, questions arose on the whether the BRICS “evolutionary or revolutionary”/“reformist or transformist”? It remains to be seen in how the BRICS navigates change in the global regime that could manifest in a global geopolitical power shift from a unipolar to multipolar world. 2 My presentation emphasises three aspects on transforming global governance: 1. I argue that the structure and composition of institutions lags behind the changing political realities and question how the BRICS challenge this situation. 2. The reform agenda of BRICS on international financial institutions is limited. 3. A key issue that differentiates South Africa from the rest of the BRIC countries that may have implications on South Africa role and/or economic participation in the BRICS commitments. 1. The structure and composition of institutions lags behind the changing political realities on how does the BRICS challenge this situation The weakening of the UN as the central global international governance institution is critical to address. For instance if we look at the composition of global institutions to regulate Multinational Corporations, they are non-existent, allowing MNCs to operate with impunity. Rasigan Maharajh in his presentation showed that many of the top MNCs surpasses the economies of countries.2 These corporations have found various ways to increase their profits in a poorly regulated global financial system.
Answer questions 14-1 and 14-4 with approximately 40 to 90 w.docxjustine1simpson78276
Answer questions 14-1 and 14-4 with approximately 40 to 90 words each.
14-1.
Identify which level(s) of government regulate(s) NFP organizations and identify the source of authority.
14-4.
What are the distinguishing characteristics between a public charity and a private foundation? What is a public support test and how does it relate to public charities and private foundations?
Answer the following questions with 100 to 150 words each.
FASB Statement 117
1. What are the three classifications of net assets established by FASB Statement 117? How are these net assets affected by the existence or absence of donor-imposed restrictions? How are releases of these net assets accomplished?
A. how is adherence to the restrictions monitored?
B. how is income from restricted assets reported?
Financial Reporting
2. What financial statements are required of not-for-profit organizations? How are they different or comparable to those provided by organizations that operate for profit? How does the retained earnings section of for-profit organizations differ from that of the net assets section of not-for-profits?
a. what are some of the differences in the balance sheet of a not for profit entity and a for profit entity?
NFP or Governmental
3. in what ways can governmental entities raise additional revenue for large dollar projects?
45
The Corporation’s Social
Responsibilities
The idea that businesses bear broad responsibilities to society as they pursue economic goals is an
age-old belief. Both market and nonmarket stakeholders expect businesses to be socially responsi-
ble, and many companies have responded by making social goals a part of their overall business
operations. Some businesses have even integrated social benefit with economic objectives as their
primary mission. With these dramatic changes in the mission and purpose of a business organiza-
tion, what it means to act in socially responsible ways is not always clear, thus producing contro-
versy about what constitutes such behavior, how extensive it should be, and what it costs to be
socially responsible.
This Chapter Focuses on These Key Learning Objectives:
• Understanding the role of big business and the responsible use of corporate power in a
democratic society.
• Knowing when the idea of corporate social responsibility originated and the phases through
which it has developed.
• Investigating how a company’s purpose or mission can integrate social objectives with
economic objectives.
• Examining the key arguments for and against corporate social responsibility.
• Defining a social enterprise and understanding its role in solving social problems.
• Evaluating business’s social obligations to help the world’s poorest members.
• Recognizing socially responsible best practices.
C H A P T E R T H R E E
Law29473_ch03_045-066.indd Page 45 29/11/12 9:13 PM user-TRVT-065Law29473_ch03_045-066.indd Page 45 29/11/12 9:13 PM user-TRVT-0.
Special Report: The Evolution of the Global Anti-Corruption MovementMYO AUNG Myanmar
Special Report: The Evolution of the Global Anti-Corruption Movement
From the enactment of the Foreign Corrupt Practices Act (FCPA) in 1977, the global anti-corruption landscape has seen dramatic evolution
and rapid intensification over the past 40 years. Along with a detailed and informative timeline, our Special Report highlights
3 megatrends that offer a glimpse into the future of anti-corruption and offers vital lessons for businesses across the globe.
https://ethixbase.com/wp-content/uploads/2017/06/Special-Report_The-Evolution-of-the-Global-Anti-Corruption-Movement-Print-Version.pdf
https://ethixbase.com/special-report-evolution-global-anti-corruption-movement/?utm_source=EAM&utm_medium=Email&utm_campaign=SpecialReportEAM
https://www.facebook.com/pg/ethiXbase/about/?ref=page_internal
https://ethixbase.com/special-report-evolution-global-anti-corruption-movement/
Similar to Business ethics and public interest (20)
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
1. Business Ethics and Public Interest
Presentation by Frank Vogl
IV Global Forum on Fighting Corruption, Brasilia, June 8, 2005
Some Key Points in this Presentation:
A radical rethinking of attitudes toward the regulation of business behavior is essential
to fight corruption in developing countries. This requires recognition of regulatory
enforcement failures and the dangers that more red tape diminishes economic growth
prospects and enhances corruption.
A key purpose of fighting corruption is to reduce poverty, which demands economic
expansion that requires a vibrant private sector. Aid agencies should find new ways to
encourage business development, while being mindful of business malfeasance.
Projects funded by aid agencies to promote good governance are well intentioned, but
often have scant impact. Donor agencies must increase their efforts to find ways to
bypass corrupt regimes in order to assist the victims of these regimes – this requires
greater support for NGOs and new partnerships with business. We need a major
expansion of the International Finance Corporation and of other aid agency private
sector programs.
This demands, however, trusting business. Scandals underscore that business cannot just
say ―trust me.‖ Business must initiate major programs to earn public confidence.
More corporations must recognize that it is in their self-interest to apply a Value
Equation that asserts that good ethics yields good business results. In an age of
transparency business has nowhere to hide. It needs to apply a 10-point ethics
framework that earns trust and incorporates safeguards against rogue behavior.
Multinational corporations dare not pursue a double standard: one ethical standard in
their home country and a lower one in developing countries. ―Facilitating payments‖
under the U.S. Foreign Corrupt Practices Act, for example, are bribes and illustrate the
unacceptable double standard that currently exists.
Companies must adopt anti-corruption and corporate social responsibility principles and
programs (learning from leading enterprises) and apply them with zeal. In return, aid
agencies and NGOs should seek to partner with business to build viable new initiatives.
The alternative to heightened voluntary business ethics initiatives and greater support by
aid agencies for NGOs and private enterprise is:
still more unenforceable laws, rules and regulations;
more red tape and wasted aid in the quest to secure good business behavior;
less business investment and growth;
and possibly even more corruption.
2. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
Business Ethics and Public Interest
Presentation by Frank Vogl1
IV Global Forum on Fighting Corruption, Brasilia, June 8, 2005
Frank Vogl is President, Vogl Communications, Inc. (www.Voglcommunications.com), co-founder and member
of the Advisory Council of Transparency International (www.transparency.org), co-founder and member of the
Board of Directors of the Partnership for Transparency Fund (www.partnershipfortransparency.info), Trustee
of the Committee for Economic Development (www.CED.org), member of the Fellows Program and of the Board of
Directors of the Ethics Resource Center (ethics.org).
Introduction
The opening sentence of a lead article on the front page of the Sunday Business section of
The New York Times on May 29 read as follows: ―Rooting out conflicts of interest on Wall Street
has become a full-time job for securities regulators in recent years.‖ Our topic today could not be
more timely. Our focus on this grand stage of anti-corruption at the Global Forum is business
behavior and, in particular, the conflicts of interest that are so evident, but so hard to contain.
Across the world we see business enmeshed in myriad activities where conflicts are at the
fore. These may relate to business efforts to influence partners and consumers, customs officials,
grantors of official permits, politicians, political parties, and governments. We find countless
examples where executives have faced conflicts between their own narrow self-interest and the
larger interests of the companies that employ them. We have every reason to be worried about
business ethics and the endless conflicted entanglements of corporations. This is especially the
case in fragile environments where economic growth is precarious, where infrastructure is
inadequate and where widespread poverty is a tragic fact of life – namely in the developing
countries.
Today, I am going to propose courses of action that challenge the conventional strategies
of official bilateral and multilateral aid agencies and many of the governments of the developing
countries, and indeed quite a number of non-governmental organizations.
At the outset permit me to thank the organizing committee for inviting me to this
conference and I would particularly like to acknowledge Claudio Weber Abramo and his
colleagues at Transparencia Brasil. As I prepared this presentation I was pleased to note that we
are meeting here on the 10th anniversary of the launch of the first Transparency International
Corruption Perception’s Index, which has played a critical role in raising public awareness
around the world to the unacceptably high levels of perceived corruption in a considerable
number of countries. Finally, let me draw your attention to the work by Daniel Kaufman, Aaart
Kray and Massimo Mastruzzi of the World Bank Institute, who with their new report
―Governance Matters IV: Governance Indicators for 1996-2204,‖ have provided us all with an
encyclopedic base of information to comprehend corruption’s complexity across the world.
1
Frank Vogl, Vogl Communications, Inc., 1010 Wisconsin Avenue NW, Suite 570,Washington DC,
20007. Tel: (202) 331 8183 Fax (202) 295 9006 Voglcom@aol.com www.voglcommunications.com
1
3. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
Connections
The World Bank’s governance indicators leave no doubt that corruption is seen to be
pervasive in many of the very poorest countries. In these countries where starvation runs
rampant, where clean water, decent healthcare, adequate shelter and even modest schooling is
absent for millions of people, we find public officials plundering exceptionally scarce public
resources for their personal gain.
In these same countries where corruption flourishes we find, according to the new
indicators, that levels of press freedom and public accountability of officials is low; that political
stability is often precarious; that government effectiveness and regulatory quality are inadequate;
and that the rule of law provides cause for grave skepticism. The data confirms much that we
have long known or suspected and underscores the enormous task of fighting corruption.
The indicators highlight the enormous gap between performance in OECD countries (for
example, the United States, the U.K and Canada) and developing countries. The Ethics Resource
Center, for example, supports a network of business ethics institutes in Colombia, Dubai,2 South
Africa and Turkey – countries that are by no means the world’s poorest and which are all
increasingly engaged in global commerce. In each of the key six categories that the World Bank
clusters together as governance indicators3 we find substantial performance gaps between these
four countries as well as between them and the major industrial countries. If we add China, India,
Brazil, Mexico and Korea to our sample group – and these are among the most dynamic
emerging market economies in the world today – we find that the performance gaps are even
more stark. And, if we were to add the poorest countries of the world, then the low levels of
performance are so substantial in most cases that one might conclude that fighting corruption is a
hopeless endeavor. I am less pessimistic, but this is partly because I believe that aid agencies,
NGOs and business can demonstrate the courage to unleash new initiatives that can yield
positive reforms and solid development progress.
If ever there was an opportunity for radical new thinking and action by donor agencies in
the development arena then it is the year 2005. This year sees brand new leadership at the Asian
Development Bank, the African Development Bank, the World Bank, the World Trade
Organization, the Organization of American States and the Inter-American Development Bank.
This is the year when the G-8 Summit makes development assistance, especially to Africa, its
top priority.
The leadership of the donor community and those who most influence their policies need
to review anti-corruption strategies, especially as they pertain to the role of business and business
ethics. In so doing the I believe consideration should be given to some of the conclusions that I
draw from the new research that point to, among other conclusions, that:
The World Bank Institute’s governance indicators are not specific for Dubai, but do include the United
Arab Emirates.
3
Please see the endnote to this paper that draws on the new World Bank research and provides the
definitions of the indicators.
2
2
4. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
1. There is no simple solution to fit each nation. The variations in the governance indicators
from one country to the next highlight the differences between nations and the need to
tailor strategies to each individual nation. The dangers of over-generalization are
profound.
2. That raising the performance indicators in the governance area is difficult and takes a
great deal of time. Aid agencies with their mounting mandates to demonstrate results may
find that the anti-corruption field is one where striving to measure the impact of
initiatives is difficult indeed. Progress is not only likely to be slow, but often some years
of positive developments can be followed by periods of reversals.
3. Even countries with relative poor governance performance can achieve formidable rates
of economic growth (see endnote table, for example, for China, Mexico, Brazil, Korea,
South Africa). However, one is prompted to suggest that the quality of life of the great
majority of the citizens of these countries would be significantly higher if indeed
improvement is achieved in the governance indicators.
4. We must be willing to pursue radical thinking and radical action, including challenges to
the conventional wisdom, if profound improvements in governance performance,
including anti-corruption efforts, are to be attained.
Critical components for fighting corruption including a vibrant private sector
All of our experience, supported by increasing volumes of research, demonstrates that, at
a minimum, the fight against corruption demands the following: press freedom; public access to
governmental information; means of holding public officials publicly accountable; monitoring of
governmental actions including institutionalized checks and balances between branches of
government; respect for the rule of law which requires an independent judiciary; effective law
enforcement; clearly visible respect for human rights.
Moreover, I venture to suggest that the fight against corruption is virtually hopeless when
economies are stagnant and/or depressed. I believe that anti-corruption efforts on a sustained
basis are only likely to succeed when there is economic expansion, rising employment, price
stability and prospects for future economic growth. This has profound implications for our
discussion of business ethics.
The fact is that only those very poor countries that enjoy a vibrant and growing private
sector are likely to attain the sustainable economic growth conditions for significant periods of
time that are essential if an effective anti-corruption environment is to be established. The
choice, therefore, is not whether countries do or do not need the private sector. The choice is how
best to encourage the private sector to contribute to the maximum while striving to contain its
conflicts and its frequent proclivity to pursue unethical actions.
For too long fear and suspicion of business – general distrust in business – has been the
leading edge in development discussions about the roles of corporations in very poor countries.
The result has been that strategic thinking has too often started with considerations of ways to
3
5. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
curb and constrain business for fear of business malfeasance and exploitation. But, I am
suggesting today that this has to change. The cause of anti-corruption in the poorest countries
requires the building of trust in business’s potential and the creation of incentives to stimulate
business investment. Donor agencies and NGOs need to make this a central focus of their
planning and action as they work to fight corruption.
False Advice
Strategies to enhance good governance in many developing countries, which so often are
formulated in the donor countries, often seek to include regulatory institutions and rules that
oversee business behavior. This is understandable. To a degree this is appropriate – but only to a
degree. I think that too often the focus is so narrow that consideration of its damaging impact is
ignored. But, regulatory strategies dare not result in serious disincentives to business investment,
or to the creation of rising mounds of red tape that risk even more corruption.
Time and again experts from bilateral and multilateral aid agencies, together with
officials from NGOs, run seminars and promote capacity building programs to encourage the
governments of developing countries to define and establish more regulation of business. The
amounts of money involved in these approaches, often including the salaries of numerous
expatriates are substantial, but these endeavors yield few benefits. I recall, for example, an
intensive series of seminars and meetings sponsored by donor agencies to write rules for the
establishment of a new stock exchange in an African country – the focus became so dominated
by fears of business exploitation that rules were written that went to an extreme in striving to
protect potential stock market investors. The result, at the end of the day, was a minimal amount
of corporate listings on the exchange, barely any trading volume and – in terms of the
fundamental goal of building a stronger capital market – a total failure.
We have reached a point in time where we find in vast numbers of countries veritable
mountains of rules and regulations pertaining to business actions and all manner of arrangements
for governmental oversight of business actions. But, in very few countries is there meaningful
enforcement. Just look at the situation here in Brazil. Look at the stock exchange, which ought to
be a major focus for capital development in this huge developing company. But it is not. There
are lots of sensible rules and regulations designed to secure transparency and protect minority
shareholder rights. In fact, most of the listed companies are still dominated by family owners,
transparency is often inadequate and minority shareholder rights are not really enforced. Look at
environmental protection in the Amazon, to take another example. There are large numbers of
regulations and laws designed to constrain business logging and protect the forests – but the
Amazon is being destroyed.
Why should we believe that countries far poorer than Brazil with far less resources and
professional expertise to manage governmental regulations should succeed in enforcement, when
we see even Brazil falling so short in vital areas?
To use another example let us turn to the most highly industrialized countries that have
sophisticated regulatory institutions and highly trained expert public officials. Almost all of these
countries have failed to enforce the OECD Anti-Bribery Convention that each of their
4
6. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
governments approved. We have seen how many of the governments of the richest nations have
made secrecy, rather than transparency, the rule when their arms industries have been engaged in
foreign sales – sales that frequently have involved corrupt practices. Should we expect anticorruption enforcement in developing countries to be better than it is in the OECD?
Are development agencies and NGOs adequately mindful when encouraging
governments of developing countries to establish new environmental regulations that
enforcement is likely to be impossible so long as official inspectors receive barely a living wage
and almost always lack the institutional support, the training and the authority to confront
powerful corporations?
Are the persistent advocates of labor regulations sufficiently sensitive to the incredible
enforcement difficulties in many developing countries related to the new regulations that host
governments approve largely to please foreign aid donors and under pressure from international
NGOs?
Moreover, how sensitive are the well-intentioned aid agencies and NGOs to the dangers
of the regulations that they advocate: dangers to economic growth and to creating new
opportunities for corruption?
Frequently, the strategies that are proposed are derived from practices that have been
applied in the most developed economies, where business is well established, where business has
strong incentives to accept regulatory costs, and where public sector oversight agencies have
deep experience. Rarely do any of these conditions exist in the world’s poorest countries.
Let us be crystal clear about the risks of continuing to encourage developing countries to
establish more and more rules, regulations and laws to oversee business behavior:
1. If the level of regulatory enforcement is perceived to be too high, then foreign investors
will go to other countries where the costs of doing business are less.
2. If the enforcement of new regulations is haphazard and amateur – as it is in most
developing countries - then the temptation by business to pay bribes to evade regulations
is likely to be considerable.
3. If regulation is indeed zealous then the creative energies of business may become more
focused on playing the system, than on innovating to be competitive, profitable and a
rising contributor to the nation’s economic growth.
In our efforts to regulate business in developing countries we need to be constantly
mindful of the dangers of false advice. I believe that this is a danger today. Our starting point
must be how best to attract business to contribute to the economic growth of nations, while being
mindful of the dangers of business malfeasance.
5
7. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
Bypassing corrupt regimes and strengthening NGO support
When we begin by saying that we need to first attract business, rather than saying that we
first must regulate business, then we need to consider the broader policy environment in which
such a view can be promoted. We are unlikely to be comforted by what we find.
All too often the focus on anti-corruption and the concern about business ethics on the
part of aid agencies and NGOs loses sight of the most important of all priorities: the need to
define strategies to reduce poverty. For the last 15 years, from the time when a few of us sought
to establish Transparency International, and subsequently in the fostering of other organizations,
my concern with anti-corruption has been inextricably linked to the broader global development
agenda. Corruption represents a critical obstacle to economic growth, development and social
and civil justice. Curbing corruption is a key requirement to enhancing the prospects of poverty
alleviation and securing human rights.
Aid agencies have political and legal imperatives that drive them to seek to work closely
with the governments of developing countries, even highly corrupt governments. Despite efforts
to introduce safeguards, the fact is that projects and programs involving such governments fall
short of desired objectives. Taxpayers in industrial countries see aid money being wasted and
ending up in the private bank accounts of corrupt foreign leaders. Support for foreign aid thus
diminishes. The response by aid officials to monitor programs more and more closely and
develop reports on results, while laudable, often add to bureaucracy without really adding to
poverty alleviation.
We must face the truth – aid involving corrupt regimes is a high-risk endeavor and
frequently aid fails to diminish poverty. The time has come for donor agencies to say no. They
must become far louder whistleblowers – publicly refusing to grant more and more aid to
programs that are managed by corrupt governments.
At the same time, donor agencies must find effective ways to bypass corrupt regimes in
order to assist the victims of these regimes – the poorest peoples of these countries. Bypassing
corrupt regimes to help the poor involves two paths: the NGO path and the private sector path.
Permit me to digress from my focus on business for a moment to explain the NGO path
in this context. Aid agencies need to consider making far greater commitments to support NGOs.
Yes, we do see aid agencies bypassing rotten regimes and working directly with NGOs in some
desperate countries (for example in Sudan and Zimbabwe) to secure emergency food provisions
and health services for the destitute. But this represents a tiny fraction of total official aid flows.
Aid agencies – bilateral and multilateral – need to consider reassessing their relationships
to governments and NGOs. I believe they should be far more generous to those NGOs whose
skills are proven and whose track records are effective. I believe this approach should apply
across the board of development work, from education, sanitation and healthcare to
environmental protection and the stimulation of micro-enterprises. We must find ways that are
more direct and explicit than heretofore to exclude corrupt officials from aid flows.
6
8. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
In the area of fighting corruption, we should recognize that at best those external
organizations, such as international NGOs and aid agencies, have supplementary roles to incountry domestic civil society anti-corruption movements. Only such national movements can
bring about change and ensure that change is sustained. When the people of Ukraine got fed-up
they drove the crooks from the seat of government; when the people of Nigeria had enough of
the rotten generals, they demanded civilian rule through multiparty elections.
Transparency International’s national chapters, together with many other NGOs in scores
of countries today, have the potential to secure lasting change in their nations – they deserve
greater support from the international community. They are the front line in the fight against
corruption and deserve larger recognition for their courageous work.
The Private Sectors Critical Role
At the same time as donor agencies seek more effective ways to serve the world’s poor
and thus examine ways to bypass corrupt governments, so they must pursue a much more
dynamic path involving private enterprise.
We need increased cooperation between aid agencies, NGOs and business. We need
compacts based on mutual trust and here there should be a clear onus of responsibility on the
shoulders of entrepreneurs.
In a survey of perceptions that I undertook for the African Development Bank last year, I
found large numbers of prominent politicians across Africa who said that government and aid
agencies had failed too often in Africa over the last few decades. Some of these politicians
acknowledged that they had been part of the problem. They had believed too greatly in the power
of government to secure improvements, while they had been party to the formulation of policies
that often weakened the roles and the potentials of business development.
The overly great reliance on government in far too many countries as the engine of
poverty alleviation and growth has been a disaster. The poor have frequently been ill-served.
Corruption has been too prevalent. Tied-aid has often spawned riches for the contractors and the
host authorities, but yielded little for the poor. Projects funded by aid agencies to promote good
governance have all too often brought benefits to expatriate experts and local civil servants, but
yielded few positive development results.
We need a combination of key actions:
We must provide incentives for more direct engagement by private enterprise in
infrastructure development free of governmental red tape, kick-backs and bribes. The
International Finance Corporation has exceptional experience in this area and all bilateral
and multilateral agencies need to learn from IFC and work together to expand IFC-type
programs.
We must find means to support the growth of the private sector in the rural areas of
scores of developing countries where poverty is enormous and history reveals scores of
7
9. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
failed development projects. Here direct partnerships between NGOs and private sector
sponsored foundations – with donor agencies serving as critical catalysts – need to be
greatly expanded. The example of the work being undertaken through partnerships of
business, civil society and donor agencies on HIV/Aids in Africa provides a good model
for what should be far more of such activity that can reach the needy and bypass the
corrupt.
If we are to strengthen anti-corruption approaches in procurement, in business
transparency and in many other vital micro-economic areas, then we should encourage
donor agencies to be far more aggressive in financing ventures like the Partnership for
Transparency Fund, which in just over three years has provided small grants to over 30
NGOs to work very often with business and government to develop excellent model
projects. Business should be more visible in supporting such initiatives and I believe
they would be if directly encouraged by donor agencies.
If we are to move towards attainment of the Millennium Development Goals – most
notably the halving of global poverty within the next 10 years – then we must maximize
the engagement of the private sector.
But, if we are to encourage a far greater role for the private sector in development, then
we must be confident that business can be trusted.
The Age of Transparency
Public trust in business has been tested in recent times. Rarely before has it seemed that
media in so many OECD countries has been so dominated by news of corporate scandals. If you
want evidence to support the argument that business dare not be trusted, then just turn to Enron’s
collapse; WorldCom’s bankruptcy; Shell’s false public disclosures of its petroleum reserves;
Parmalat’s downfall; assorted corporate scandals in Australia from HIH to National Australia
Bank; major fines levied on the leading auditing firms of KPMG and PricewaterhouseCoopers;
and the disclosures of malfeasance in mutual fund and insurance companies in the United States.
One might ask, for example, why have so many corporate scandals in the United States
been exposed in recent years? There are many explanations, but an important one relates to
technology. Embarrassing e-mails at Boeing, Enron, Merrill Lynch, Credit Swiss, Morgan
Stanley and scores of other enterprises, have shown how greed triumphed over sound ethics. The
hard-drives of corporate computers are revealing secrets that are exposing myriad unethical
practices. Thanks to the Internet the ability of corporations to keep information confidential is
declining fast.
In fact in this age of transparency there should be no doubt that those corporations and
their chief executives who dodge the rules, cheat and exploit, and sail through the business
waters without a moral compass, will be found out. They have nowhere to hide.
As we look ahead we should recognize three considerations:
8
10. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
1. The amount of information available in the public domain about every aspect of the
activities of corporations will rise.
2. The number of investigations into wrong-doing will increase.
3. The sophistication of pressure groups seeking to promote new laws, rules and regulations
to make corporations behave will no doubt rise as well.
Recognizing the dawn of this new age of transparency provides context for our
discussion here. So too does an understanding of the crisis of public confidence in business that
now exists.
Corporate America’s Shame
Ever since the collapse of the Enron Corporation in December 2001, the suggestion by
business that it can be trusted and that it recognizes that acting with integrity is the path to profit
and success has a hollow ring. To be sure, there have always been business scandals. There have
been dishonest businessmen since the earliest days of commerce. There have been wretched
multinational corporations that have exploited the natural resources of the poorest countries with
self-interested ruthlessness. But, over the years the public has not sat still in the face of such
behavior. The leading industrial countries evolved laws, regulatory institutions and abundant
rules to govern the national and the international approaches of corporations.
As the Soviet Union collapsed and capitalism seemed set to embrace virtually every
nation on earth, there was a profound sense of pride in the halls of American business in the
ability of corporate America to serve as a global model. U.S. friends of mine in Transparency
International hailed the 1977 Foreign Corrupt Practices Act and called on all industrial nations to
enact similar legislation, which they did by the end of the last decade under the banner of the
OECD Convention Against Corruption.
The shining example of the honest and ethical U.S. multinational corporation was key to
the offensive pursued by President Clinton to secure the transition of Central and Eastern Europe
to free enterprise and open markets; to forge NAFTA as a vast zone of free commerce; and, to
pave the way for China’s entry into the World Trade Organization with the explicit obligation
that this vast emerging economy would open its doors to the aspirations of multinational
corporations.
Let us not forget how centrally important this U.S. model had become. A number of the
largest U.S. corporations have annual sales revenues that are far greater than the gross domestic
products of scores of developing countries. GE, Exxon, IBM, GM and numerous others are
globally dominating leviathans. They have the ability to marshal armies of lobbyists in national
capitals in order to influence trade and investment legislation, a capability which dwarfs the
resources that most developing countries can mobilize to influence the rules of global commerce.
The collapse of Enron shook the model of the leading, trustworthy U.S. multinational
corporation. The subsequent collapse of WorldCom and a string of other huge U.S. enterprises
9
11. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
undermined the model. And, ever since, we have seen one corporate scandal after another in the
United States. These scandals have diminished public confidence in the leadership of American
business both among the American people and across the globe.
Greed and arrogance have brought some of the biggest companies in America to their
knees and taken numerous top executives off to prison. The scandals have shown how regulatory
authorities often failed in a nation that prided itself on the skill and seriousness of its business
compliance approaches. And, if even such sophisticated and powerful regulatory authorities as
those in the U.S. have been found inadequate, then one has to question whether national
authorities in many other countries that have neither the experience or the skilled experts to
match the U.S. levels can achieve much in their nations when it comes to taming corporate
tigers. Thus, I come to our discussion here about business ethics and conflicts of interest with
many doubts: doubts about the integrity of business matched by doubts about the ability of
governments to promote ethical business.
Laws, Rules and Regulations
Earlier I raised questions about enforcement. I am confident that were the international
official donor community to take stock of the last eight years of intensive efforts to assist
developing countries to pursue the path of good governance, then it would find today a massive
surplus of rules and regulations covering business and government and a huge enforcement
deficit.
I believe that what is now needed is:
(a) careful review by aid agencies of all of the governance advice they have provided and a
recognition of the dangers of over-regulation;
(b) a substantial pruning by governments of the mass of rules and regulations and laws that
they have on their books with regard to business practices and, as a result, the
establishment of a small priority list that can be well managed and well enforced;
(c) major efforts supported by donor agencies to examine enforcement failures in developing
countries of regulations designed to strengthen governance and, as a result, new
initiatives to directly enhance enforcement in the absolutely top priority areas;
(d) a full discussion promoted by NGOs and business in the OECD countries of why
enforcement of the OECD Anti-Bribery Convention has been so minimal – honest
companies have a major vested interest in this because enforcement of the law can
strengthen their competitiveness;
(e) the recognition by all concerned in these issues at the international and national levels
that a fine balance must be struck between the regulation of business practices and the
need to encourage business development; and,
(f) pressure from NGOs and public officials on business to demonstrate that it can be trusted.
10
12. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
After all the scandals, business can no longer declare, ―trust me.‖ Rather, the onus is now
on business to demonstrate that it is acting in ways that deserve praise and that engender public
confidence. We must create an environment that encourages business to have ample opportunity
to earn public confidence and support.
The Values Equation
In this context, greater effort needs to be mounted from the business schools to the
corporate boardrooms to make managers understand that there is a Values Equation. This can be
defined as: investing to build trust in corporate leadership, all other factors being equal, yields
competitive advantage. Arguing for greater corporate attention to ethics is sound business
advice. Too few companies in developing countries and in Central and Eastern Europe
adequately understand this. Too few companies across the globe, including in the OECD
countries, are putting programs in place that make this Value Equation a living reality.
Excellent ethics management is key to sustained corporate profitability and to earning trust.
Lest you have the impression that I am negative about all U.S. corporations, permit me to
note several good examples from the U.S. of corporations putting the Values Equation into
practice. Understanding this concept has made Johnson & Johnson a great firm. This company
lives by its ―Credo.‖ It publishes it each year in its annual report. It ensures that all employees
worldwide understand it, respect it and act in its spirit. It does not place the maximization of
profit or securing shareholder value at the top of its Credo. It starts by declaring, ―We believe our
first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others
who use our products and services.‖
Or take global oil giant BP, which publishes an annual report on its corporate social
responsibility that is candid and thus credible and that secured the following headline recently in
The Financial Times: ―BP sacked 252 for unethical behaviour.‖4
We must understand the Values Equation and put it into practice. Building trust and
acting with integrity is not a defensive posture, rather it is something very positive. Acting with
integrity is critical to building lasting, strong, efficient companies.
Ray Gilmartin, who recently announced that he is stepping down as the Chairman and
Chief Executive Officer of Merck & Company, once wrote that, ―People are beginning to realize
that ethics and integrity are actually sources of competitive advantage because they inspire trust,
not only for the employees but also for customers. Organizations that enjoy a reputation for
business ethics and corporate responsibility understand that business ethics are dynamic; they
must be a continuing priority.‖ 5
Jack Welch, when he headed GE, was insistent on the relationship between employee
values and business success, as is his successor, Jeffrey Immelt. Commenting on a set of
excellent GE corporate results in 2002, Welch declared in the company’s annual report: ―Values
4
5
Financial Times Tuesday April 12, 2005. Page 27.
Signed article by Mr. Giulmartin in The Detroit News, June 11, 2003.
11
13. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
and behaviors are what produce those performance numbers, and they are the bedrock upon
which we will build our future.‖
Welch argued that competitive corporations could no longer employ multitudes of
managers whose job it is to supervise other managers and teams of employees – bureaucracies
have to be fought and chains of command have to be flattened. Competitive demands lead to a
constant effort to boost the individual productivity of each employee and this is only possible
with reduced supervision and greater trust. Such a system, however, can only work when all
employees accept and support a common set of corporate values that places integrity at the
center. It is what General Motors labels, ―Winning with Integrity.‖
Doing the right thing in business means being honest, not cheating, not lying, and not
pursuing actions that demand secrecy. Doing the right thing demands a sense of fairness and
equity. It demands that supervisors demonstrate respect for all employees and for each other. It
requires that top executives demonstrate integrity through personal example on a consistent
basis. Sometimes it requires companies to make exceedingly difficult choices between losing
business while holding true to their ethical cultures and codes of conduct and making that
additional profitable deal by setting the ethics code aside.
The Value Equation applies as companies seek to recruit and retain the best and brightest
employees. Goldman Sachs noted in its 2000 Annual Report: ―Our distinctive culture, which
emphasises integrity, entrepreneurship, excellence, teamwork and fairness, has allowed us to
assemble the most talented team in the business.‖ And, ―This activity (strengthened overall
business operations) is all predicated on our continued ability to attract and retain some of the
most talented people in the world. Our culture is the glue that makes this possible.‖
A 10 Point Ethics Framework
Every company faces the danger of rogue executives. The best means of guarding against
the rogues is the establishment of a strong corporate integrity culture, involving good monitoring
and substantial employee training. There is no magic formula, or perfect code of conduct to
inspire sound business ethical practice. But, let me suggest that to implement the Values
Equation, a company, at a minimum, needs to adhere in its day-to-day business activities to a 10point ethics framework – this framework can and should be employed by companies everywhere.
Chairmen and Chief Executive Officers of companies should make it their personal
responsibility to ensure the application of this framework in their companies.
1. Law. Operate in accord with the spirit, not just the letter, of the law.
2. Ethics Code. Place the corporate code of ethics at the center of corporate operations and
decision taking and never, under any circumstances, set aside the code to permit special
actions by executives (the Enron Board, for example, twice waived the corporate code
with a formal vote). The ethics code needs to be comprehensive and thus embrace a full
panoply of corporate business compliance standards, workplace ethical norms and a
broad range of social responsibility obligations.
12
14. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
3. Honesty. Demand that all corporate employees, starting with the CEO, are truthful with
their colleagues, their customers and when representing the enterprise to the public.
4. Information Sharing. Encourage managers to maximize the sharing of information with
their subordinates and encourage transparency at all levels within the corporation.
5. Equity & Employee Respect. Pursue policies of zero tolerance regarding all forms of
sexual harassment in the workplace and discrimination on the basic of race, color, gender
and age.
6. Whistleblowers. Management and the Board of Directors should ensure that
whistleblowers are protected and indeed encouraged. When an employee sees
wrongdoing, then she or he should be encouraged to report the malfeasance – at stake is
the reputation of the company.
7. Ethics & Corporate Social Responsibility Reporting. Require that senior corporate
executives, including a chief ethics officer, report regularly and fully on the operational
effectiveness of the corporate ethics code to the Board.
8. Accountability. Demonstrate to shareholders that members of the Board of Directors
operate with the clear understanding that they are fully accountable. Boards should be
seen to be bending over backwards to ensure honesty in corporate reporting and
responding to shareholder requests for information and explanation.
9. Compensation. Formulate approaches to executive compensation that recognize that this
is a matter that contains within it key issues of ethics and, in this regard, ensure high
levels of transparency in the deliberations of board compensation committees.
10. Citizenship. Understand that corporations, like decent citizens, must operate in ways that
serve the core interests of the nation (or nations) where they operate.
Let me say that if donor agencies, as well as the media, civil society and national
governments in developing countries, were to focus on convincing locally active businesses to
demonstrate that they recognize the value of implementing this framework and are acting on this,
then a huge step will have been taken to securing trust in private enterprise.
We would need far less activity around writing ever more laws and business regulations
if there was greater public confidence – led and stimulated by business itself – in effective
business practices.
Far more will be achieved in encouraging business to implement a series of clear actions
that will demonstrate that it operates as a good citizen than can be achieved by ever more
compliance laws and regulations and the engagement of ever more officials to monitor business
activity. Voluntary approaches to regulating business behavior that are pursued by business itself
are essential.
13
15. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
A Global Dimension
Permit me to elaborate on two aspects of what I consider to be the global dimension of
this ethics framework. First, let me focus on aspects of corruption and then more broadly on
corporate social responsibility.
A company is a citizen of the countries in which it operates and as such it has societal
responsibilities. It needs to demonstrate that it understands this. It needs to show respect for the
natural environment and for the human rights of the people it works with. It dare not pay bribes
to foreign officials.
Let me again turn to the U.S. situation to illustrate my points because no set of
corporations has as great an influence on worldwide public attitudes towards business than those
that lead corporate America. Moreover, no single country has as great an influence on the
enforcement of anti-corruption laws pertaining to business than the United States.
Corporate scandals, starting with Enron’s collapse, have damaged the standing of the
United States in the world. Nobody should be surprised that companies that cook the books at
home, lie to shareholders and regulators and have top executives who pocket fortunes
irrespective of corporate performance, may be viewed abroad with skepticism and suspicion.
Such negative perceptions damage U.S. competitiveness in the global marketplace.
Enron, for example, not only imploded because of domestic fraud, but it has also faced
allegations of using bribes in its overseas business operations. In much of the world the issue of
corruption tops the list of concerns when business ethics is discussed. Here, perceptions of U.S.
corporate behavior leave much to be desired.
Surveys conducted by Gallup International for Transparency International have suggested
that U.S. firms are perceived in numerous foreign countries to pay even more bribes to foreign
governments than, for example, French, British, Canadian and Scandinavian companies. 6 It is
possible that this negative view is influenced by the propensity of U.S. firms to use a loophole in
the Foreign Corrupt Practices Act. The FCPA says that ―facilitating payments‖ may be made by
U.S. corporations to foreign officials and what is meant by this are small payments to customs
officials and other middle- and low-level foreign government officials who impose excessive red
tape on U.S. business in order to extort small bribes.
U.S. business insisted on maintaining the ―facilitating payments‖ clause in the OECD
Convention and most countries in their national laws accepted this. The U.K. is a very important
exception, although like the other participants it has yet to demonstrate that it is serious about
enforcement.
The existence of the ―facilitating payments‖ clause sends absolutely the wrong signal
around the world about U.S. corporate ethics and the attitude of the U.S. Government in this
area. It is very important that the U.S. authorities recognize this.
6
Bribe Payers Index published by Transparency International, the Berlin-based anti-corruption
organization with polling data by Gallup International.
14
16. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
The U.S. law approves actions by U.S. companies abroad that are illegal at home.
Imagine the reaction in the United States if German companies started paying small bribes to
U.S. customs officials, or Japanese firms gave kick-backs to U.S. immigration officials!
Defenders of ―facilitating payments‖ are defending a double-standard: they are saying one set of
values should apply in the U.S., but another lower standard is alright overseas.
U.S. corporate lawyers argue that in many developing countries they face extortion
requests from customs and immigration officials, and that it is part of the ―local culture‖ to pay
small bribes to these officials. I have heard U.S. businessmen argue that it is expected in many
countries that they pay bribes to obtain work permits for expatriate executives and local
environmental permits and that if they fail to make such payments, then they would have to wait
long periods of time to move ahead with their projects. This is nonsense.
American companies would not dream of bribing U.S. immigration officials to secure
work permits for non-residents in the U.S., while the wait for such permits usually takes months.
U.S. officials do not pay bribes to secure environmental permits for their U.S. operations even
though gaining such permits is often a regulatory nightmare.
Across the world ―facilitating payments‖ are seen for what they are: bribes. American
corporate lawyers can strive to justify them before the U.S. Justice Department and the Securities
and Exchange Commission, but these payments are still bribes and they contribute to corroding
the fabric of law, good governance and indeed democracy in scores of nations.
Using ―facilitating payments‖ damages the image of American business. It leaves the
U.S. well behind the curve in the global bid for anti-corruption, which has seen the U.K. adopt a
tougher law than the U.S. and led companies like Shell and BP to make statements against
facilitating payments. Their statements are models.
The corruption issue is critically important around the world as an acid test of corporate
integrity. Too few multinational corporations go out of their way to publicly decry demands for
bribes in developing countries, to protest loudly in these countries when they are faced with
bribery demands or to use all legal means to refuse paying bribes. Too few multinational
companies draw public attention to bribery by domestic competitors. Time and again business
leaders in developing countries shy away from publicly standing up against bribery and
supporting anti-corruption movements. This needs to change if business is to gain trust and
respect.
Securing change will not come through legislation and more regulation. It will come from
business recognizing that such attitudes are in their own self-interest. It will come from NGOs
who are more active in this area and it will come from support by donor agencies to NGOs and
through partnerships with business. To secure this outcome we must work to build new bridges
between donor agencies, NGOs and business country by country.
15
17. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
The Sinclair Approach
Much of what I have just suggested may sound theoretical. There is comfort in clinging
to the conventional: to berating business for its conflicts and to emphasize the examples of
business bribery. But, my own experience enhances my conviction that a compact with business
is not only possible, but a win-win option.
In the early 1990s I was privileged to be asked to join a remarkable American
entrepreneur, James Sinclair, in a mining venture in Tanzania. This was a country that for over
20 years had evolved a strong suspicion of foreign corporations and thus been highly reluctant to
permit them to develop the nation’s gold, diamond, nickel, copper and other mineral resources.
Mr. Sinclair, the Chairman of Sutton Resources of Canada, understood that if his company was
to succeed in Tanzania, then he had to earn the trust of the authorities. He also believed that
success would result from transparency, honesty and good deeds.
I was an advisor to the Chairman and a member of Sutton’s Board of Directors. We never
paid bribes. We demonstrated that we were good corporate citizens. We engaged in long-term
philanthropy. We assisted the government to build a global strategy to attract more top quality
foreign investment into the mineral sector. We worked hard to prove that we took environmental
protection seriously.
Our company went to substantial lengths to underscore our long-term commitment as
solid corporate citizens to Tanzania. Mr. Sinclair’s daughter, Marlene, settled in Tanzania and
has played and continues to play important roles in philanthropy in the social services area there.
Our commitment was the basis for establishing trust and in response we were treated fairly by
the Government.
Sutton Resources invested substantial sums and reached the point where it was acquired
by one of the world’s largest mining companies, Barrick Gold Corporation of Canada. In recent
years Barrick has invested major sums in mining in Tanzania and the success of our company,
followed by Barrick’s success, has brought hundreds of millions of dollars of foreign direct
investment and seen the growth of a dynamic gold mining industry in Tanzania. And, Mr.
Sinclair, who today heads TanRange of Canada, has continued to invest in Tanzania and build a
host of exceptionally high value mineral assets with great potential. He has never paid bribes.
Nobody asks him for bribes. He has succeeded in building trust and being seen as a sincere
partner to a nation striving to develop. His approach and his company are examples of what I
believe must be the corporate anti-corruption compact of the future.
This is a compact that respects ethics and the companies that bend over backwards to
demonstrate that they walk the ethics walk across the globe. In return, these companies can enjoy
respect, not suspicion; they can operate dynamically, not be tied in red tape; they can expand and
create employment; not devote their time to bribery and corruption.
This is an approach where, for example, companies across the globe accept and apply the
―Business Principles for Countering Bribery,‖ which are a joint initiative facilitated by
Transparency International and Social Accountability International. Indeed, the approach that
needs to be taken that combines a resolute no to paying bribes by business with a determined
16
18. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
business effort to secure public trust – the James Sinclair approach – is the route that must be
encouraged. The alternative is ever more regulation that will not be enforced and that will
stimulate still greater corruption. This alternative is unacceptable.
Corporate Social Responsibility
In a world where business has nowhere to hide, where trust in major corporations has been so
damaged, and where wise firms should recognize the key Values Equation, in such a world it is
incumbent on corporations to prove that they are good citizens. This means doing more than just taking a
stand against corruption – it requires a comprehensive corporate approach to social responsibility.
Visionary enterprises have enormous opportunities in the developing economies of the world. In
many countries there are vast natural resources that could be developed. In many countries there are huge
underemployed labor forces, which with the right training, can be brought into modern commerce.
To maximize its engagement, however, business must demonstrate convincingly that it
recognizes that it has profound corporate social responsibilities. These start in the communities where it
operates. When a company opens a shop, a warehouse, a factory or another kind of installation in a
community, then it has obligations to that community. It needs to contribute to the social fabric of the
community. It needs to be generous and use philanthropy locally. It needs to demonstrate respect for local
government. It needs to ensure that it is sensitive to local customs and traditions and the culture of its
community and the citizenry. Only by such means can it start to win trust.
Companies must bend over backwards to demonstrate sincere respect for the human rights of the
people it employs – directly and through sub-contracted and affiliated companies. It must ensure that its
employees receive decent wages, that employment conditions reflect local traditions, and that labor terms
are fully consistent with basic human rights. For example, companies need to demonstrate that they have
policies in place that make zero tolerance for workplace injury a reality. Key health and safety standards
must be non-negotiable for companies – they are critical to building respect and public trust.
Respect for the protection of the environment is equally essential. Let us be realistic. Only by
voluntary actions by companies can meaningful environmental protection be secured in most developing
countries. Regulation has its place, but let us be realistic about its enforcement in most countries.
Instead of adding more and more environmental regulations, national governments, assisted by
civil society and in many cases by aid agencies, should strive to enter into constructive dialogues with
corporations – domestic and international. They should seek to secure voluntary compliance agreements
from these companies. Reason, rather than threats – dialogue rather than red tape – will achieve far more.
This applies, I believe, to the full range of corporate social responsibility issues.
Key pragmatic approaches
The Equator Principles developed by the International Finance Corporation and leading banks is
consistent with the Values Equation that I have highlighted earlier and serves as an excellent model.
These Principles recognize that banks engaged in financing infrastructure projects in developing countries
also have key responsibilities in the environmental and social areas. The Principles underscore how
adherence to high standards of social responsibility is in the self-interest of the banks and their
stakeholders, while serving the goals of economic development. The Equator Principles are designed to
apply to projects involving a minimum of $50 million and embrace multinational financial services firms.
17
19. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
A version of the Equator Principles needs to be developed that can win participation from all
financial institutions in developing countries and apply to smaller development projects. IFC might take
the lead here. We need to encourage to a far greater degree as a core component of development strategy
the voluntary participation of corporations in developing countries in meaningful codes of conduct. Let us
learn from the excellent example of the Equator Principles.
An increasing number of major corporations are publishing annual reports on their work in the
ethics and social responsibility area. This is a trend that needs to be applauded and encouraged. If we had
business ethics institutes established across the developing world then I would argue that these new
annual reports would be ―must reading.‖ They demonstrate in very practical ways what companies are
doing. These are companies that accept the Values Equation, who know that acting ethically serves their
business self-interest.
ABN AMRO Holding N.V. of The Netherlands writes in its recently published Sustainability
Report 2004, ―because banks are part of society, we want our activities to reflect the needs and problems
of that society.‖7
This report by a leading Dutch bank is an excellent example of what a corporate ethics report
should be and a tool to raise public trust in business. It provides in-depth analysis of how the company
strives to integrate environmental, social and ethical considerations in its operations. Permit me to give
one example as we are here in Brazil. ABN AMRO notes that in 2002 it established a ―Brazil Social and
Environmental Risk Policy‖ which it used to screen 2,300 companies last year. Its screening policy was
implemented in Banco Sudamericas, which ABN AMRO acquired here in Brazil with a training program
that involved over 400 managers and analysts across the bank. The Sustainability Report added that, ―The
year 2004 also saw our Brazilian Environmental Risk Unit extend the application of the Equator
principles to our project financing activities, after analyzing 7 projects in Brazil and other South
American countries.‖
ABN AMRO and many other companies, from BP to Nike, are deepening their commitments and
their hands-on activities in the ethics and social responsibility area because of a variety of pressures. But,
these are not pressures from host governments in developing countries, or fears of prosecution in those
countries. Rather, these are pressures – first and foremost – from non-governmental organizations across
the world. It was consumer groups that led the charge against Nike over alleged exploitation of labor in
South-East Asia and the reforms that Nike has introduced have mostly been due to NGO pressures, rather
than the host Asian authorities. I want to be very clear – I want to encourage NGOs to continue to mount
pressure on business to do the right thing. I believe this is far more effective than ever more governmental
actins designed to force business to behave.
Conclusion
We need to see responsible NGOs across the world monitoring corporations and demonstrating
that indeed these enterprises have nowhere to hide in this age of transparency. Companies – often under
pressure – need to learn it is in their self-interest to seek partnerships and act ethically and accept the
validity of the Values Equation. This is the way ahead, rather than an ever-greater tangle of new and
unenforceable rules and regulations.
Let me add that the proponents of more rules and regulations often believe that the power of
business relative to government is so overwhelming that only through new regulation can the public
interest be served. In a letter to the editors of The Wall Street Journal on June 1, 2005, Joan Claybrook,
7
ABN AMRO Sustainability Report 2004 published on March 30, 2005.
18
20. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
President of Public Citizen in Washington, wrote that in the United States, ―We desperately need stronger
ethical standards. A good start would be banning all privately funded travel for members of Congress. We
should enhance the disclosure system for lobbyists, so that their contacts with lawmakers and senior
government officials and all of their expenditures are disclosed on the Internet. We should forbid former
members of Congress from lobbying their colleagues for at least three years after leaving office. Finally,
an independent office to monitor and enhance ethical standards should be established.‖
I agree with all of those recommendations. But, the fact is that we have been at work in seeking to
eradicate the loopholes and legislate to guard against business abuse of ethics in government for years in
the United States and yet, as Ms. Claybrook’s letter indicates, we still have a long way to go. All
developing countries and those in Eastern and Central Europe have far, far further to go. While they need
to focus on the most critical priority issues of business ethics regulation, they dare not use the U.S. as a
model – they just don’t have the enforcement capacity, nor are they likely to build it in the medium-term,
however great the support is for such activity by donor agencies.
We must explore voluntary ways to secure the partnerships that can lead to trust. We
must encourage aid agencies, for example, to be constructive in promoting business ethics
institutes in many countries in Africa, Asia, Latin America, the Middle East and in Central and
Eastern Europe. The Ethics Institute of South Africa and Transparencia Colombia serve as
excellent models. These two institutes, sponsored by the Ethics Resource Center in Washington
DC and funded in large measure by the Merck Foundation, are doing solid practical work. I
believe donor aid agencies can forge business partnerships and be catalysts for creating these
kinds of institutes.
More generally, we need to see aid agencies driving new forms of partnerships with
NGOs and business that enhance the ability of business to boost public trust. This should become
a priority for all aid agencies as they seek, in particular, to bypass corrupt regimes and thereby
enhance assistance to the world’s poorest peoples.
Yes, we need radical thinking. We need to always ensure our focus on anti-corruption
serves the key goal of enhancing human rights and the condition of the world’s poorest people.
To be sure, as we strive to enhance the development contributions of private enterprise we
should be ever mindful of the proclivity of many corporations to let greed and arrogance push
good ethics aside. But, as we proceed, we dare never lose sight of the limits of enforcement of
laws and rules in the area of business behavior and the acute danger that zealous rule-making
may lead to less development and more corruption.
Thank you.
(see note on governance indicators on next page)
19
21. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
Governance Indicators
The data on this page is drawn from the World Bank Report: Governance
Matters IV: Governance Indicators for 1996-2004, May 2005, by Daniel
Kauffman, Aart Kraay, and Massimo Mastruzzi.
http://www.worldbank.org/wbi/governance/pubs/govmatters4.html, 05/23/05.
Selected data* (see attached notes for definitions and explanations)
Government
Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Government
Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Year
U.S.
Turkey
S.A.
China
Korea, S
India
2004
2000
1996
2004
2000
1996
2004
2000
1996
2004
2000
1996
2004
2000
1996
2004
2000
1996
89.3
85.3
95.3
60.7
89.1
86
93.8
93.5
95.5
86.7
95.2
95.6
92.3
92.5
92.2
92.6
92.5
90
41.7
29.8
37.7
30.6
15.2
10.4
57.2
52.7
62
48.8
55.1
71.3
54.6
59.9
58.4
50.7
48.9
61.3
72.3
80.1
67.5
38.3
42.4
16.5
74.5
69.9
70.4
64.5
52.4
64.1
60.9
64.2
66.9
70.9
75.3
78
7.3
10.5
12
46.6
54.5
50.6
60.1
64
66.5
35
36.9
47
40.6
48.7
37.3
39.9
44.6
58.7
68.9
68.6
68.1
59.7
65.5
51.2
80.3
72.6
78.2
71.9
69.5
78.5
68.6
73.8
81.9
62.1
71
76.7
53.9
62.8
60.7
24.3
37
18.9
55.8
52.7
55.3
26.6
38.5
44.2
50.7
62
56.6
47.3
49.5
43.3
Year
U.K.
Canada
Mexico
Brazil
U.A.E.
Colombia
2004
2000
1996
2004
2000
1996
2004
2000
1996
2004
2000
1996
2004
2000
1996
2004
2000
1996
94.2
92.1
91.1
71.4
86.7
89
94.2
96.8
96.6
94.1
96.8
97.8
93.7
93
94.6
94.6
95.2
94
94.7
89
92.1
86.9
91.5
84.8
95.7
96.2
93.3
93.1
90.4
89
94.2
96.3
92.8
93.6
96.2
96.7
56.8
55
42.9
43.7
43
34.1
56.7
67.2
55.9
68
76.5
74
45.9
46
54.2
48.8
43.5
39.3
55.8
63.9
59.7
43.7
55.8
39.6
58.2
47.3
54.7
58.1
64.7
60.2
46.9
53.5
46.4
53.2
59.7
55.3
21.8
30.4
27.7
78.2
86.7
79.3
86.1
75.8
78.8
79.3
71.7
85.1
78.7
88.2
79.5
86.7
77.4
64
34.5
31.9
50.3
5.8
6.1
9.1
51
41.9
64.2
47.8
52.4
69.6
29.5
29.9
36.1
52.2
41.9
37.3
*Dataset based upon Percentile Rank (0-100), indicating the percentage of countries worldwide that rate below the
selected country (therefore higher values imply better governance ratings). Subject to margin of error.
Notes on the next page
20
22. IV Global Forum – Brazil – June 8, 2005: Frank Vogl
Notes:
Definition of Governance Indicators:
1. Voice and Accountability—measuring political, civil and human rights; also includes
indicators measuring the independence of the media.
2. Political Stability—measuring the likelihood of violent threats to, or changes in,
government, including terrorism.
3. Government Effectiveness—measuring the competence of the bureaucracy and the quality
of public service delivery; also measures the independence of the civil service from
political pressures and the credibility of the government’s commitment to policies.
4. Regulatory Quality—measuring the incidence of market-unfriendly policies such as price
controls or inadequate bank supervision.
5. Rule of Law—measuring the quality of contract enforcement, the police, and the courts,
as well as the likelihood of crime and violence.
6. Control of Corruption—measuring the exercise of public power for private gain,
including both petty and grand corruption and state capture.
**********
Frank Vogl
U.S. Tel: (202) 331 8183 Fax (202) 295 9006
Voglcom@aol.com
21
www.voglcommunications.com