Conference Report | Business Case for Anti-Corruption: Call For Collective Action

AGENDA OF CONFERENCE
TIME PROGRAM
09:00 – 09:50 Tea & Registration
09:50 – 10.00 Welcome Address Dr. Uddesh Kohli, Senior Advisor UNGC
10:00 – 10:20 Keynote Address Dr. A. K. Balyan, Member GCNI Governing Council
and MD & CEO PLL
10:20 – 10:40 UNGC Collective Action Projects Ms. Olajobi Makinwa, Head, Transparency and
Anticorruption Initiatives, UNGC
10:40 – 10:50 Collective Action Project - India Ms. Shabnam Siddiqui, Project Director, GCNI
10:50 – 11:20 TEA BREAK
11:20 – 13:00 CEO ROUNDTABLE: Moderator: Ms. Olajobi Makinwa, Head,
BUSINESS CASE FOR Transparency & Anticorruption Initiatives, UNGC
ANTICORRUPTION IN INDIA
Discussants:
• Dr. A. K. Balyan, MD & CEO, PLL
• Mr. Arun Kumar Jain, MD, FLUOR Daniel India
Pvt. Ltd.
• Dr. Raman Ramchandran, CMD, BASF India
13:00 – 14:00 LUNCH
14:00 – 15:00 Panel Discussion: Strengthening Moderator: Ms. Cristina Albertin,
Anticorruption Efforts in Indian Representative, UNODC,
Policy Regime in light of UNCAC Regional Office for South Asia
Discussants:
• Mr. S. N. Sahu, Joint Secretary, Rajya Sabha
• Mr. Kaushik Dutta, Director, TARI
• Mr. Mukesh Arya, MD & CEO, Red Flag Oversight
Consultancy Services Pvt Limited
15:00 – 16:00 Panel Discussion: Business Case Moderator: Ms. Navita Srikant,
for Transparency in Value Chain & Governance and Anticorruption Specialist
Supplier Code of Conduct

Discussants:
• Mr. P. Mani, Chief Compliance and Head
Assurance, Dr. Reddy’s Laboratories Ltd.
• Mr. Amit Vidyarthi, Lead Ombudsman and Chief
Investigator, GE India Industrial Pvt. Ltd
• Mr. Arvind Kadyan, CVO, BHEL
16:00 – 16:15 TEA BREAK
16:15 – 17:15 Panel Discussion: Business Case Moderator: Ms. Bulbul Sen,
for Transparency in Procurement Chief Commissioner of Income tax and
Consultant, CUTS International

Discussants:
• Ms. Usha Chandrashekhar, CVO NMDC
• Mr. Sandeep Kumar, Director Industry Interface,
Fluor Daniel India Pvt. Ltd.
• Mr. Amar Prasad, CVO, KRIBHCO
17:15 – 17:30 Summing Up • Ms. Shabnam Siddiqui, Project Director, GCNI
17.30 onwards HIGH TEA

Conference Report, November 28, 2014 Business Case for Anti-Corruption: Call For Collective Action 3
G
LOBAL COMPACT NETWORK INDIA organized an Interna-
tional Conference on ‘Business Case for Anticorruption: Call
For Collective Action’ on Friday November 28, 2014 at The
Lalit, New Delhi. The Conference was organized to mark
the successful completion of UNGC – Siemens Integrity Initiative
Anti-corruption Collective Action Project in India. The Conference
brought together a significant number of champions from the public
and private sector, civil society, government, media and academia
who discussed the business case for anti-corruption and the value
transparency measures hold for companies.
UNGC’s10thPrinciplestatesthat“Businessesshouldworkagainstall
forms of corruption, including extortion and bribery”. In furtherance
of this principle, UNGC launched the Anti-Corruption Collective
Action Projects in five countries – Brazil, Egypt, India, Nigeria and
South Africa for a period of four years (2011 -2014) – with financial
support from Siemens Integrity Initiative. The aim of the projects was
to foster a high-impact collective action platform on anti-corruption
by facilitating dialogue between private and public sector and
incentivize ethical behavior of businesses.
In the past four years, the India project has taken up pressing
transparency issues in the Indian context viz. public procurement,
bribery and fraud in the private sector and its trend in the country,
ethical business conduct, supply chain sustainability and sports
related hospitality.
COLLECTIVE ACTION
November 28, 2014, The Lalit, New Delhi
CONFERENCE REPORT
BUSINESS CASE FOR
ANTI-CORRUPTION
CALL FOR

4 Business Case for Anti-Corruption: Call For Collective Action Conference Report, November 28, 2014
The theme of the Conference
BUSINESS CASE FOR ANTI-COR-
RUPTION was designed to show-
case the impact made by Collec-
tive Action Project (CAP) India on
some of the pressing issues of
corruption in the country. In the
Introductory Panel Dr. Uddesh
Kohli, Advisor UNGC, welcomed
the guests and Dr. A K Balyan,
Managing Director and CEO, Petr-
onet LNG Limited while giving the
Inaugural Address said that at the
time when talking about corrup-
tion in the corporate world was
seen as a taboo, CAP India was
successful in getting all the stake-
holdersononeplatformtodiscuss
organizational issues related to
graft. Ms. Olajobi Makinwa, Head
Transparency & Anti-Corrup-
tion at UN Global Compact spoke
about the achievements of all the
five Collective Action Projects
implemented across the globe;
Brazil, Egypt, Nigeria, South
Africa and India and Ms. Shabnam
Siddiqui, Project Director, Global
Compact Network India spoke
of the specific achievements of
CAP India so far and outlined the
agenda of the Conference.
INAUGURAL PANEL
WELCOME ADDRESS
Dr. Kohli welcomed the Confer-
ence participants and spoke at
length about the events that led
United Nations Global Compact
to select India as one of the first
countries to implement CAP.
Dr. Kohli further said that when
the CAP India started, anti-cor-
ruption in business was a new
concept in India, and the organi-
zation required guidance towards
the implementation of the project.
Anextensivestakeholdermapping
was conducted at the beginning of
the Project, to gauge the readi-
ness of stakeholders to discuss
graft. Thereafter a series of semi-
nars and workshops were held
across the country to share the
goals of CAP India and a roadmap
developed in an inclusive manner.
With the seminars, discussion and
interactions, the buy-in of Project
goals was ensured. Since 2011,
the project has produced litera-
ture on anti-corruption, capturing
anti-graft practices in the Indian
industry and mapping the chang-
ing landscape of fraud and bribery
in the country.
Dr. Kohli shared that in the begin-
ning the project started inter-
acting mostly with public sector
undertakings, and in due course
the project got involved with the
government functionary. In the
last two years though, the project
has received extensive support
from the private sector in India,
both home-grown and multina-
tional businesses.
During the tenure of the imple-
mentation of the project, India
Dr. Uddesh Kohli, Advisor,
UN Global Compact
(Left-Right) Ms. Shabnam Siddiqui, Dr. A.K. Balyan, Ms. Olajobi Makinwa and Dr. Uddesh Kohli

witnessed a very strong anti-cor-
ruption wave which led to the
passing of the Lok Pal Bill in the
lower house of the parliament.
This movement helped the project
as anti-corruption became a topic
of discussion not just among the
classes but also amongst the
masses.
INAUGURAL ADDRESS
Dr. Balyan stressed that everyone
recognizes anti-corruption as a
social problem. However corrup-
tion and business are very closely
related. Business is so intricately
connected with corruption that
there is a larger responsibility for
all the stakeholders to come up
with new ways to fight graft and
eliminate it. In a global survey by
Ernst &Young, it was highlighted
that Indians have a soft approach
towards corruption. This is the
issue which needs urgent atten-
tion. In the same study one of the
otherfindingswasthatonanaver-
age 38-40% of Indians have been
asked to pay bribe as compared to
the global average of 7-8%. This
is overwhelming.
Dr. Balyan further shared that in
the recent past, Indian ranking in
the ‘Ease of Doing Business’ and
‘Corruption Perception Index’,
has been dipping to embarrass-
ingly low levels. Federation of
Indian Chamber of Commerce
and Industry (FICCI) did a study
on India Risk Survey 2014, which
found that one of the biggest
threats to Indian economy is
from corruption, bribery and
fraud. In the first three months
of 2014, a number of scams were
reported namely; The Indian
Railways-Railtel Corporation of
India mobile scam, Hindustan
Aeronautics Limited and Rolls-
Royce defense scam to the tune
of INR10,000 crores, Air India
Family Fare Scheme scam,
Bokaro steel plant recruitment
am, to name a few.
Dr. Balyan reiterated that all of
these developments indicate that
time is ripe to inculcate clean,
transparent business systems, to
benefit citizens. GCNI’s anti-cor-
ruption project has tried to do
that by involving a diverse group
of stakeholders in its interven-
tions. CAP India’s first publication
collated best practices followed
by Indian businesses to address
graft in their organizations. It was
anattempttosharebestpractices,
which could be used as models
for other businesses to design
their own codes of conduct for
business operations. The second
publication captured trends of
measure of success of any initi-
ative can be gauged from the
change in attitude and mindset
that has been brought amongst
its stakeholders. It is important
to transform efforts into effec-
tive end result. Corruption is an
ever involving phenomenon, to
address it one should adopt inno-
vate ways. The journey of effec-
tively implementing the 10th Prin-
ciple at GCNI has just begun.
UNGC COLLECTIVE
ACTION PROJECTS
Ms. Makinwa called on busi-
nesses to develop policies and
plans to align business practices
with needs of their communi-
ties. Global Compact believes
that there is a glaring case for
business to fight corruption and
companies must work collectively
to do so. The Global Compact
as a collective action initiative
creates enabling environments
for companies to better embrace
the Global Compact’s 10th Princi-
ple on Anti-Corruption.
Ms. Makinwa stated that Collec-
tive Action Project and its success
Dr. A.K Balyan, MD and CEO,
Petronet LNG Limited
COLLECTIVE
ACTION PROJECT
AND ITS SUCCESS
IN DIFFERENT
COUNTRIES,
INCLUDING INDIA,
HAVE INSPIRED
UNGC TO TAKE
CONCRETE ACTION”
fraud and bribery in India in the
last fifteen years. A topic specific
consultation on Procurement was
conducted in partnership with
United Nations Office of Drug and
Crime in New Delhi while another
National consultation on Supply
Chain was conducted in Mumbai.
With the aim to involve younger
generation in the fight against
corruption, CAP India along with
University of Mumbai conducted a
national level paper competition;
papers were submitted on various
anti-corruption topics.
Dr. Balyan concluded that while
efforts have been made to fight
corruption through CAP, the real

in different countries, including
India, have inspired UNGC to take
concrete action. UNGC has facil-
itated dialogue between govern-
ment and companies, as well as
learning between companies and
sharing of best practices. Work-
ing with small and medium enter-
prises has empowered vulnera-
ble stakeholders to join the fight
againstcorruptionandcollaborate
with UNGC. The Global Compact
has also produced e-learning
program on the UN Convention
Against Corruption, which is avail-
able on its website and translated
into different languages. This has
enabled its use within companies
for training their staff and also to
use the learnings to develop their
own tools and resources. The
message is clear – Corruption
will not be tolerated in any form.
The projects serve as a platform
to convene businesses to work
together and engage in dialogue,
exchange information, share
good practices and reinforce
commitment to the fight against
corruption.
Ms. Makinwa said that collective
action provides a framework for
a coalition of like-minded stake-
holders (industry peers, commit-
ted government officials & policy
makers, civil society, academics,
and business associations) to act
together for a common cause.
Collective action has been the
hallmark of the Global Compact’s
efforts to further anti-corrup-
tion and transparency. Collective
action can create a more stable
business climate by enhancing
access to markets and allowing
companies to save revenue and
profits that would otherwise be
lost to bribery. Collective action-
led solutions, arrived at by multi-
ple stakeholders, have more
credibility, ownership, acceptance
and their implementation is more
sustainable. But collective action
is indeed not easy. It requires
many things, the most important
being trust among companies,
which is difficult to secure. This
is the dilemma. Global Compact’s
COLLECTIVE ACTION CAN CREATE A
MORE STABLE BUSINESS CLIMATE BY
ENHANCING ACCESS TO MARKETS AND
ALLOWING COMPANIES TO SAVE REVENUE
AND PROFITS THAT WOULD OTHERWISE BE
LOST TO BRIBERY”
Collective action projects in five
countries are bold initiatives
that have taken the bull by its
horn by laying the foundation for
solid collective efforts to address
corruption challenges in the
countries of implementation.
The five country collective action
projects were launched in Janu-
ary 2011 in Brazil, Egypt, India,
Nigeria and South Africa with the
support of the Siemens Integ-
rity Initiative, to engage critical
stakeholders in concrete efforts
to eliminate corporate corrup-
tion. All the projects have been
working with local businesses,
governments, civil society and
academia in these countries
to create an enabling environ-
ment for dialogue, discussion
and action against corruption.
By facilitating ongoing dialogue
between the private and public
sector, the projects set the stage
and offered an opportunity for a
wide range of stakeholders to
explore how collective action can
create incentives for ethical busi-
nessperformance,andtodiscuss
areas for further improvement.
The Global Compact has proved
to be the best incubator for these
collective action initiatives.
Ms. Makinwa concluded by
saying that these five collec-
tive action projects conclude
in January 2015. However, the
spark of action that has been
ignited has the potential to shine
brightly and incessantly with the
commitment from business –
whether local or global – and all
key players in the international
arena. Ms. Makinwa congratu-
lated the GCNI for completing
its first collective action project
and urged Indian companies to
use UNGC tools and resources,
increase engagement with the
local network and set the tone
from the top for zero tolerance of
corruption in any form.
Ms. Olajobi Makinwa, Head
Transparency & Anti-Corrup-
tion at UN Global Compact

PSUs SIGN AN
INTEGRITY PACT
AND ALL CONTRACT
TERMS AND
CONDITIONS ARE
LAID CLEARLY.
IN CASE OF ANY
IRREGULARITY,
INDEPENDENT
EXTERNAL
MONITORS CAN BE
APPROACHED FOR
REDRESSAL”
At a special CEO Roundtable
held as a part of the Business
Case for Anti-Corruption Confer-
ence, convened by the Collective
Action Project of Global Compact
Network India in New Delhi, top
leaders from diverse company
backgrounds candidly discussed
the importance of ethics and
transparency in business opera-
tions, as well as the key attributes
of a healthy and holistic business
establishment. Drawing from
their current and previous work
experience, the leaders talked
about a wide array of issues that
have helped grow their organiza-
tions sustainably – ranging from
respecting and ensuring diver-
sity in the business establish-
ment to non-negotiables related
to gift policies, to responsive
management. And prosper these
organisations have – BASF will
complete 150 years of operations
TONE FROM THE TOP –
IN CONVERSATION WITH LEADERS
in January 2015, Fluor Corpora-
tion completed 100 years in 2012
while ONGC is a natural leader
and always ahead in defining and
implementing rules of the game,
whether it is to invite UN Global
Compact to India or sign the
Integrity Pact promoted by Trans-
parency International worldwide.
Inefficiency is one of the biggest
contributor to corruption both
within and outside organizations.
The roundtable panelists agreed
that employees want to work
for a company whom they can
trust. As an example, when BASF
conducted a brand perception
study in which a group of relevant
stakeholders were observed in a
closed room, within ten minutes
the first thing that the stakehold-
ers recalled of BASF was that
it is an ethical company. Fluor
reiterated its belief and experi-
(Left-Right) Dr. A.K Balyan, Ms. Olajobi Makinwa, Dr. Raman Ramchandran and Mr. Arun Jain

ence that suppliers and business
stakeholders want to be associ-
ated with a company in which they
have implicit trust. Also, investors
want to put funds in a company in
which they have faith, a company
which executes business in an
ethical manner and enjoys a good
reputation. Fluor’s 100 years of
operations have strengthened
this image of Fluor being an ethi-
cal organization.
Compliance Structure
Dr. A. K. Balyan, member GCNI
Governing Council and Manag-
ing Director and Chief Executive
Officer of Petronet Liquid & Natu-
ral Gas (LNG) Limited said that he
firmly believes business can be
conducted in a better way and that
way is being clean and transpar-
ent. He said that it is because of
the society that business survives,
and as business is a sub-set of the
society it should indulge in trans-
parent activities that bring bene-
fit to the society. The importance
of business cannot be under-
mined but how the business is
conducted is of prime impor-
tance. Businesses should not only
disclose their financial results but
also the impact (positive/negative)
that it is having on the environ-
ment, disclosure of compensa-
tions, their relations with differ-
ent stakeholders, among others.
There are some industry role
models which companies should
replicate. These role models have
made profit and have created
value for the society and led to
overall wealth creation. He said,
there is merit is conducting the
businessinatransparentmanner.
Transparent business creates
value not just for the company but
also for the employees and soci-
ety at large. Dr. Balyan added that
systems are great but the actual
issue is their implementation.
Agreeing to this view, Dr. Raman
Ramchandran, Chairman BASF
Companies in India and Head
South Asia, said that BASF
believes that each employee is
their brand ambassador. Multina-
tional companies like BASF, need
to be very careful as non-compli-
ant behavior of an employee puts
the entire organization at risk. The
risks are severe which included
damage to their brand image,
huge compensations and financial
losses. To safeguard the company
from reputational and financial
risks, BASF has a code of conduct
which is uniform for all the subsid-
iaries operating across the globe.
The code of conduct ranges from
environment to human rights and
to anti-trust which is an important
component of anti-corruption.
In terms of the compliance struc-
ture of the BASF organization,
there is a compliance officer
in each country who reports to
the country head and also to the
global CEO. There is dual report-
ing on all compliance issues. This
is done to ensure no discretion-
ary powers rest with the Country
head. Further, the compliance
officers are required to go through
regular trainings, normally once
in three years. For other oper-
ations which are considered as
risk such as sales and marketing,
employees are trained annually.
These training comes in form of
an e-clip training program which
automatically comes to employ-
ees every year. After the comple-
tion of the training program, the
employees’ profile gets locked
with the HR department.
Dr. A. K. Balyan, Managing
Director and CEO, Petronet
LNG Limited
Dr. Raman Ramchandran,
Chairman BASF Companies in
India and Head South Asia
IF YOU HAVE AN ETHICAL COMPANY THERE
ARE LOT OF PEOPLE WHO ARE WILLING TO
WORK IN THAT COMPANY BECAUSE THEY
CAN HAVE A GOOD NIGHT’S SLEEP AND A
CLEAR CONSCIENCE”

Mr. Arun Kumar Jain, Manag-
ing Director, Fluor Daniel India
Private Ltd., said that Fluor strives
to move beyond mere compli-
ance with laws and regulations,
approaching ethics issues proac-
tively to continually improve and
enhance its ethics and compli-
ance programme by monitoring
evolving risks and benchmarking
best practices in our company,
our industry and the global busi-
ness community.
Fluor values open and trans-
parent communication. Fluor
expects employees, suppliers and
other business partners to report
known or suspected misconduct
involving Fluor, even if they are in
no way involved with the miscon-
duct. Recognizing the importance
of creating an environment that
promotes enquiry in fostering
ethical conduct, Flour India, for
the past eight years, conducts
all-hands town hall meetings in
which employees, irrespective of
their ranks, ask questions of their
top management (this cuts across
traditional Indian hierarchical
organization structures). This has
developed into an excellent tool of
open communication within the
organization.
Supplier Code of
Conduct and Vendor
Payments
In Dr. Balyan’s former associa-
tion with ONGC as Director HR,
he observed that a supplier code
of conduct which covers environ-
ment, society and governance
is most important. This code of
conduct mandates suppliers to
make disclosures. These supplier
disclosures are audited in cases
where suppliers are given
responsibility of supplying items
which fall under dangerous cate-
gory. Also, the suppliers in some
cases were required to give right
of accessing their database to
ensure that they were following
good practices. ONGC was the first
PSU to have an open house with
the vendors in which the company
was informed about suppliers’
material services. In cases of
construction work, the company
invited vendors for a vendors meet
and made detailed presentation
of the project. The vendors were
given the opportunity to raise
issues, and this ensured open-
ness. ONGC was also the first
company to introduce the TI Integ-
rity Pact in India. Initially, there
ism in payment of vendor bills
as bill payment in most compa-
nies is software driven. One
single person is not responsible
for giving clearance and making
payment. There are several offi-
cials who are involved in clearing
a bill, who are not connected to
each other. If there is an issue,
it should be raised by vendors.
There is no official who would
like to put anyone in discomfort
by non-payment of cleared bills.
As mentioned, once the bill is
submitted every detail is online,
bills can be tracked and in case
of any issue or delay, a query can
be sent to the concerned authori-
ties. Further, PSUs sign an Integ-
rity Pact and all contract terms
and conditions are laid clearly.
In case of any irregularity, Inde-
pendent External Monitors can be
approached for redressal.
A Zero tolerance policy
towards violation of code of
conduct is practiced by BASF.
There have been instances where
the code of conduct has been
violated to benefit the company,
but that has not deterred the
company from dismissing the
Mr. Arun Kumar Jain,
Managing Director, Fluor
Daniel India Pvt. Ltd.
FOR THE PURCHASE DEPARTMENT IN
BASF, EMPLOYEES ARE NOT AUTHORIZED
TO RECEIVE ANY GIFT (NON-NEGOTIABLE)”
were few contractors that used to
bid for projects, but gradually the
number of bidders has increased.
Thus, new initiatives that were
introduced by ONGC couple of
years ago have started paying
good dividends now.
As far as vendor payment was
concerned there is no favourit-
employee. Dr. Ramchandran
said that “if you have an ethical
company there are lot of people
who are willing to work in that
company because they can have
a good night's sleep and a clear
conscience”.
There is a hotline established
by BASF where complaints are

received by an external legal
firm. Employees as well as direc-
tors of the company can access
and register complaints This has
helped in improving the level of
transparency in the company.
There is a hotline also for suppli-
ers wherein they can complain
about any demand by employees,
which goes against the code of
conduct of the company.
Additionally, BASF undertakes
an awareness programme on its
codeofconductforemployeesand
global gift policy. The Gift Policy
puts an upper cap to the amount
of gift which is acceptable by an
employee. In case this amount is
required to be exceeded, then the
CEO needs to approve. For the
purchase department in BASF,
employees are not authorized to
receive any gift (non-negotiable).
Mr. Arun Kumar Jain also reiter-
atedthatFluorsuppliers,contrac-
tors, and other business partners
can report any business conduct
and ethics concern via the Fluor
Compliance and Ethics Hotline,
managed by a third party company
that is available 24 hours a day,
seven days a week, with trans-
lation / interpretation support in
over 180 languages. Fluor inves-
tigates all Hotline reports and is
committed to maintaining confi-
dentiality to the maximum extent
possible. Fluor strictly prohibits
retaliation against anyone who
makes a good faith report. To
propagate the message of ethi-
cal business, Hotline posters are
prominently posted at Fluor loca-
tions in India, and one may contact
the Hotline website or the Hotline
from India via a toll-free number
(for ease, a simple 4 digit internal
FLUOR SUPPLIERS, CONTRACTORS, AND
OTHER BUSINESS PARTNERS CAN REPORT
ANY BUSINESS CONDUCT AND ETHICS
CONCERN VIA THE FLUOR COMPLIANCE
AND ETHICS HOTLINE, MANAGED BY A
THIRD PARTY COMPANY THAT IS AVAILABLE
24 HOURS A DAY, SEVEN DAYS A WEEK,
WITH TRANSLATION / INTERPRETATION
SUPPORT IN OVER 180 LANGUAGES
(Left-Right) Dr. A.K Balyan, Ms. Olajobi Makinwa, Dr. Raman Ramchandran and Mr. Arun Jain

IF YOU WANT TO FIGHT CORRUPTION
IN YOUR COMPANY, YOUR CEO HAS TO
TAKE THE LEAD. AN EMPHATIC TONE
FROM THE TOP IS THE HARBINGER OF
ANY ANTI-CORRUPTION INITIATIVE
ANYWHERE IN THE WORLD”
extension number is linked to the
10 digit toll free hotline number).
All reports are managed within
a case management system, and
all investigations are overseen
by Fluor’s Compliance Investi-
gations Lead, in accordance with
Investigations Protocols.
Diversity Management
Mr. Jain expressed that one of
the biggest challenges for lead-
ership is managing diversity in a
transparent manner. Flour has
widened the concept of diversity
to include diversity of thought,
gender and geography. In India,
thecompanybasedoutofGurgaon
employs from 26 of the 29 states
of the Indian Union. Further, Flour
promotes more visible participa-
tion of women in business deci-
sion making that has a salutary
effect on open, transparent and
consultative business conduct.
Dr. Balyan shared that with the
introduction of RTI, top PSU
management has become more
responsive, as grievances are
required to be settled within spec-
ified time frame otherwise action
is taken at the highest level for
no or delayed response. This has
led to the evolution of culture of
PSUs who have largely changed
to a different style of working and
openness in their operations.
In Conclusion
Ms. Olajobi Makinwa, Head Trans-
parency and Anti-Corruption Initi-
atives, UNGC, mentioned that the
CEO Roundtable was extremely
important as it is the CEOs that
set the agenda for their respective
companies. They are the ones that
give direction, that staff in their
companies look up to in terms of
what they do or don not do. They
are the ones that set the policy
direction for the organization and
therefore it was crucial to hear
from them directly the non-ne-
gotiables vis-à-vis transparency
within their business. A number of
people are convinced about fight-
ing corruption but if you want to
fight corruption in your company,
your CEO has to take the lead. An
emphatic tone from the top is the
harbinger of any anti-corruption
initiative anywhere in the world.

PANEL DISCUSSION
STRENGTHENING ANTICORRUPTION
EFFORTS IN INDIAN POLICY REGIME IN
LIGHT OF UNITED NATIONS CONVENTION
AGAINST CORRUPTION (UNCAC)
Ms. Cristina Albertin, Represent-
ative, UNODC, Regional Office
for South Asia, in her opening
remarks mentioned that the
United Nations Office on Drugs
and Crime is considered to be the
guardian of the United Nations
Convention Against Corruption
(UNCAC). UNCAC entered into
force in 2005, and is one of the
latest UN convention that the
international community has dis-
cussed, approved and has been
ratified by many countries. India
ratified this Convention in 2011 so
the topic of discussion on how we
strengthen anticorruption efforts
in the Indian policy regime, in light
of the Convention, is pertinent as
stakeholders cannot escape the
obligation to work against corrup-
tion.
While responding to the ques-
tion on what are the three most
important aspects that need
urgent implementation by Indian
government and institutions
and their practical feasibility Mr.
S.N. Sahu, Joint Secretary, Rajya
Sabha said that the key work of
the parliament is done within the
parliamentary committees. For
policy mechanism these com-
mittees need to be leveraged.
For instance these committees
meet throughout the year, rele-
vant bureaucrats are summoned
and policies are examined. One of
the recommendations put forth
by parliamentary committee was
to make all the Public Sector
Undertakings sign the Integrity
Pact. This recommendation was
followed. Central Vigilance Com-
mission (CVC) and Ministry of
Finance came up with guidelines
pertaining to signing the Integrity
Pact (IP) by public sector under-
takings. Similarly, adoption of
information technology in several
government setups was recom-
mended by these committees and
was duly followed.
Mr. Sahu further said that a new
area has emerged as a potential
ground for corruption – Election
Funding. UNCAC tries to cover
all the aspects of corruption –
public, private and transnational,
however, election funding, which
is infested with corruption is not
covered in this convention. Includ-
ing election funding corruption, as
one of the dimensions in UNCAC,
was recommended. Mr. Sahu
Ms. Cristina Albertin,
Representative, UNODC,
Regional Office for South Asia
Mr. Satya Narayana Sahu,
Joint Secretary, Rajya Sabha
THE GOVERNMENT
OF INDIA IS TRYING
VERY HARD TO
PROGRESS ON THE
ISSUE OF ANTI-
CORRUPTION, AND
ADOPTION OF UNCAC
WAS FIRST STEP IN
THIS DIRECTION”

added that public officials should
be oriented towards mannerisms
in which corruption takes place at
various levels. Mandated financial
disclosures by public officials and
their monitoring were some other
recommendations that Mr. Sahu
proposed during the panel dis-
cussion.
While responding to the ques-
tion of what is the main issue
that India could use from the
UNCAC to quickly and efficiently
combat corruption, Mr. Kaushik
Dutta, Director, Thought Arbi-
trage Research Institute said that
society cannot run unless there
is strong deterrence, and deter-
rence comes down to a point that
for a white collar crime, the prob-
ability of one getting convicted In
India is just 0.06%. The stats reit-
erate the fact that it is probably
more profitable to break rather
than follow the law. Post ratifica-
tion of UNCAC, India has passed
stronger Acts like the Compa-
nies Act 2013, which is a water-
shield legislation ascertaining
punitive liability for individuals
who indulge in any kind of cor-
rupt practices including directors,
officers, employees, and auditors,
internal as well as external. This
law gives significant enforcement
powers to different regulators
such as Serious Fraud Investiga-
tion Office (SFIO), Securities and
Exchange Board of India (SEBI)
and others. ‘Disgorgement of
assets’ is another aspect that has
been introduced in India which is
in tune with UNCAC. Now, fines
Mr. Kaushik Dutta, Director,
Thought Arbitrage Research
Institute
(Left to Right) Mr. Mukesh Arya, Mr. Kaushik Dutta, Ms. Cristina Albertin and Mr. S.N. Sahu
SOCIETY CANNOT
RUN UNLESS
THERE IS STRONG
DETERRENCE, AND
DETERRENCE COMES
DOWN TO A POINT
THAT FOR A WHITE
COLLAR CRIME, THE
PROBABILITY OF ONE
GETTING CONVICTED
IN INDIA IS JUST
0.06%”

Mr. Mukesh Arya, MD &
CEO, Red Flag Oversight
Consultancy Services Pvt. Ltd
will be paid in percentage of the
amount of fraud committed.
Finally one of the most significant
change visible is that fraud and
corruption are now boardroom
risks. Indian businesses have
realized that the cost of doing
business, if you are caught on
the wrong side, is extremely high
directly affecting their share price.
Mr. Mukesh Arya, MD & CEO,
Red Flag Oversight Consultancy
ONE OF THE
LIMITATIONS OF
THE COMPANIES
ACT PERTAINING TO
WHISTLE BLOWING
IS THE DEFINITION
OF “DISCLOSURE”,
AS THE DEFINITION
IS CONSIDERED TO
BE TOO BROAD”
Services Pvt Limited spoke about
audit committees in safeguard-
ing the whistle blowers, empha-
sizing that the audit committee
should recommend that all the
information should be put on the
company’s website. Mr. Arya in
his presentation emphasized on
the merits of anonymous report-
ing, explaining that the Whis-
tleBlower Protection Act 2011
has not considered anonymous
reporting. He explained how in
case of anonymous reporting, the
matter that is reported becomes
of prime importance rather than
the individual who is reporting the
issue, and hence internationally
anonymous reporting is a widely
accepted concept. Additionally
anonymous reporting also takes
care of the issue of witness pro-
tection as in the Indian context
protection of whistle blowers is
a herculean task with the police
services always having man-
power issues.
Mr. Arya further shared that the
Stock Exchange Board of India
(SEBI) in its listing agreement
has incorporated clause 49B that
is of significant importance as it
mandates provisions for whistle
blower mechanism in listed com-
panies. This sentiment is echoed
in the new Companies Act 2013,
which has made provisions for
“vigil structure” in the companies.
One of the limitations of the Com-
panies Act pertaining to whistle
blowing is the definition of “dis-
closure”, as the definition is con-
sidered to be too broad.
Ms. Cristina Albertin, concluded
that UNCAC as an instrument
needs to be evolve and include
issues such as transparency in
election funding. She said that in
her tenure in India she has wit-
nessed a paradigm shift on the
topic of corruption. The Govern-
ment of India is trying very hard to
progress on the issue of anti-cor-
ruption, and adoption of UNCAC
was first step in this direction.
She shared that UNODC has pro-
duced literature on best practices
adopted by businesses to tackle
the issue of corruption along with
other fact oriented publications.
Ms. Albertin emphasized that it is
important for companies to have
a truly independent monitoring
and evaluation of the adopted
policy, which could help in gaug-
ing its effectiveness. Further, the
government has framed policies
for good governance and trans-
parent operations. These policies
should also be monitored and
evaluated by the government and
the results should be made pub-
lic. The findings of such studies
could be an excellent basis that
civil society can champion gov-
ernments to show the good prac-
tices in international forum.

Ms. Navita Srikant, Governance
and Anticorruption Specialist, said
the top priorities in any discussion
on value chain and supplier code
of conduct is how to increase
the bottom line and reduce the
supply chain cost, how much can
a company invest in supply chain
and how to optimize results, and
finally where does the responsi-
bility lie.
Mr. P. Mani, Chief Compliance
and Head Assurance, Dr. Reddy’s
spoke about fostering a close
relationship between suppli-
ers and the company. In case of
small and medium scale enter-
prises, which are the suppliers
to companies, handholding is an
essential task that needs to be
PANEL DISCUSSION
BUSINESS CASE FOR TRANSPARENCY
IN VALUE CHAIN & SUPPLIER CODE OF
CONDUCT
practiced. He gave the example of
Ericsson and Nokia, two giants in
their own respect, who have been
following the mantra of creating
good relations with their suppli-
ers and the result of such policy
is evident. Both companies had
humble beginnings but today they
are the market leaders in their
own segments.
Mr. Mani said that “We don’t
sign a code of conduct. We don’t
do anything but we know inher-
ently what’s right, what’s wrong.
And that’s what I think is evolv-
ing compliance into a discussion
about the right thing”.
Mr. Vidyarthi, Lead Ombuds-
man and Chief Investigator, GE
(Left to Right) Mr. Arvind Kadyan, Mr. Amit Vidyarti, Ms. Navita Srikant and Mr. P. Mani
Mr. P. Mani, Chief Compliance
and Head Assurance,
Dr. Reddy’s Laboratories Ltd.

India said that anticorruption and
compliance are topics restricted
to certain forums and training
rooms. They need to be talked
about more. He gave a real time
example when he was asked by a
supplier to talk about compliance
to the suppliers’ team, the topic
was difficult to tackle and the
speech sounded like jargon which
could not engage people.
Mr. Vidyarthi gave the example
of Indian Premier League (IPL), a
premier cricket tournament that
gives points to each team on fair
play, an aspect which has missed
most of the viewers’ attention.
One of the reasons could be that
the supporters are so engrossed
in their team winning or losing
that other aspects are over-
looked. Same could be said about
businesses, the profits become
so important that the means by
which they are attain does not
hold relevance. There needs to be
a shift in the mind set of the top
management and the companies
should see beyond profits.
Mr. Arvind Kadyan, CVO, BHEL
said that one third of the suppliers
in the list of prospective vendors
for a Public Sector Undertakings
(PSUs) are bogus. It becomes a
tough task for the PSUs then to
do due diligence of the suppliers.
BHEL does not have a notified
supplier code of conduct. But the
organization is sensitive to the
labor and human rights issues,
Mr. Vidyarthi, Lead Ombudsman
& Chief Investigator, GE India
Industrial Pvt. Ltd.
Mr. Arvind Kadyan, Chief
Vigilance Officer, BHEL
all the payment. In the capacity of
a CVO, it becomes very difficult to
take a call or suggest any solution,
as the purview of the company
was to make full payments to
its vendors, beyond that the
company has no indulgence. In
other cases, the sub-contractors
do not complain about any irregu-
larly committed by the contractor
as they are afraid of being ousted
from the next tendering process.
These issues arise due to absence
of an over arching auditing policy.
Mr. Kadyan illustrated through
examples some of the real time
compliance challenges in BHEL.
Ms. Navita Srikant, Chair of the
Session, in her closing remarks
emphasized on the importance
of information sharing and peer
learning. There are regular
meets of companies of specific
industries, mostly having an
association, which act as a forum
for discussing industry specific
issues. These forums could be
used for exchanging industry
related compliance issues such
as sharing list of blacklisted
companies and companies penal-
ized (monetarily) for indulging in
acts of corruption.
ANTICORRUPTION AND COMPLIANCE ARE
TOPICS RESTRICTED TO CERTAIN FORUMS
AND TRAINING ROOMS. THEY NEED TO BE
TALKED ABOUT MORE
in work contracts and in suppli-
ers’ contract. There have been
instances when employees of the
contractors have come to lodge
complaints about the nonpayment
of dues, whereas BHEL had done

Ms. Bulbul Sen, Consultant, CUTS
International, began the session
by saying that procurement is
THE most passionately debated
issue in India, as public procure-
ment makes up 25 to 30 percent
of India’s GDP and if you count this
with private procurement, it is one
of the biggest markets requiring
transparency and ethics promot-
ing institutions and procedures.
Ms. Sen emphasized that the
temptation for non-transparent
practices to flourish in the sector
is high as it is very loosely gov-
erned, there being no central law
governing public procurement. In
the case of the private sector on
the other hand there is no law as
yet governing corruption by the
private sector. As a result there is
a field day for uncompetitive, non
transparent, and unethical prac-
tices to flourish in this field.
PANEL DISCUSSION
BUSINESS CASE FOR TRANSPARENCY
IN PROCUREMENT
Ms. Usha Chandrasekhar, CVO,
NMDC said that the company fol-
lows 100% e-payment of suppli-
ers and contractors for all sup-
plies that are made in its major
projects. E-auction is another
practice followed to sell the iron
ore with NMDC carrying 100%
sale through e-auction mode.
NMDC has made a long term
decision of involving in electronic
mode of tendering and bidding.
The company invites all the pro-
spective bidders to attend the pre-
bid meeting to have clarity about
the requirement and to finalize
the technical and commercial
aspects in order to have a trans-
parent and fair procurement.
NMDC has also signed the Integ-
rity Pact wherein Civil works up
to INR 20 crores, contracts up to
INR 20 crores and procurements
worth INR 10 crores and above
are covered under the gambit of
IP. As a policy decision, NMDC
invites vendors for the submission
of their credentials for the area of
(Left to Right) Mr. Amar Prasad, Mr. Sandeep Kumar, Ms. Bulbul Sen and Ms. Usha Chandrasekhar
Ms. Usha Chandrasekhar,
Chief Vigilance Officer,
National Mineral Development
Corporation

works. After assessing the ven-
dor credentials involving techni-
cal presentations, assessment of
literature, vendor visits are con-
ducted to facilitate empanelment
for the various categories of items
for future reference and inquires
are floated to them. This is a con-
tinuous process and enables new
vendors to enter system for bet-
ter competition. Further, NMDC
gives preferential treatment to
MSMEs. The company allows the
purchase from MSMEs up to 20%
of the total procurement under a
tender where the price quoted by
MSME is in the range of L1+15 %.
Mr. Sandeep Kumar, Director
Industry Interface, Fluor India
said that one of the factors that
requires weightage in the pro-
curement process is the nature
(features) of the product to be pro-
cured. Flour as a practice draws a
matrix in which points are given
to cost, specification and other
aspects of the material – wherein
cost designated for procurement
of materials and technical spec-
ifications are evaluated on the
expected life cycle of the project.
Further, the business matrix also
takes into account quality norms
like health, risk hazard, workers
rights so that there is a win-win
situation since both the company
and the clients are at risk vis-a-
vis compliance and sustainability
issues.
Mr. Amar Prasad, CVO, KRIBHCO
said that continuous sessions of
sensitization of vendors, employ-
ees and officers on compliance
issues is practiced by KRIBHCO.
Mr. Sandeep Kumar, Director
Industry Interface, Fluor
Daniel India Pvt. Ltd.
The company has adopted all the
available technological tools in
their procurement process, be
it e-tendering, e-auctioning and
reverse auctioning. Each of the
processes was illustrated by Mr.
Prasad through examples and
emphasis placed on cost saving
through employment of these
technologies.
Mr. Prasad also recommended
that a common portal needs to be
createdwhereindustryspecific,as
well as overall information about
the non-compliant companies are
posted, so that other organiza-
tions are aware of the same. Due
diligence is conducted and rules
followed at KRIBHCO, but some-
times issues either do not surface
or are conveniently bypassed, for
such situations published data
on non-compliant organizations
would be very helpful.
In her closing remarks Ms. Sen
said that there is merit in usage
of technology and conducting
pre-bid meetings with vendors to
share new technology, especially
in hi-tech procurement sectors
such as mining. This helps in cut-
ting cost and eases towards being
compliant. The present govern-
ment has pledged to revive the
Indian economy and create a fair
level playing field ensuring trans-
parency in public procurement.
This is most important to bring
about a more healthy market as
procurement makes up a huge
share of the Indian market place.
ANTICORRUPTION AND COMPLIANCE ARE
TOPICS RESTRICTED TO CERTAIN FORUMS
AND TRAINING ROOMS. THEY NEED TO BE
TALKED ABOUT MORE
Mr. Amar Prasad, Chief
Vigilance Officer, KRIBHCO

Global Compact Network India Office
SCOPE Complex, Core 5, 6th Floor (ONGC Office)
7 Institutional Area, Lodhi Road, New Delhi 110003
Tel: 011- 64690653, Fax: 011- 24368269
Email: gcnicoe@gmail.com
United Nations Global Compact (UNGC) is the largest voluntary corporate citizenship initiative
in the world offering a unique platform to engage companies in responsible business behavior
through the Ten Principles focusing on human rights, labour standards, the environment and
anti-corruption. The Global Compact Network (GCN), India, was formed in November 2003 and
registered as non-profit society to function as the Indian Local Network of the UNGC.
LOOKING BACK
UNGC's Principle 10 states that "Businesses should work against all forms of corruption, including
extortion and bribery". In furtherance of this principle, in December 2010, United Nations Global
Compact (UNGC) launched the Anti-Corruption Collective Action Projects (CAP) in five countries –
India, Brazil, Egypt, Nigeria and South Africa for a period of four years (2011-2014) – with support
from Siemens Integrity Initiative. The aim of the projects were to foster a high-impact collective
action platform on anti-corruption by facilitating dialogue between private and public sector and
incentivize ethical behavior of businesses.
Collective Action Project India was successfully implemented from January 2011 –December 2014.
LOOKING AHEAD
Based on the Learnings from the Collective Action Project India, the UN Global Compact India
Network instituted the GCNI Centre of Excellence for Business and Transparency – to scale
up the Collective Action Agenda in India. Indian business practices a multitude of anticorruption
initiatives in silos. COE would encourage shared focus and provide a platform for greater
coordination, thereby increasing the reach and impact of business initiatives.
Essentially the COE aims to:
• Develop pragmatic approaches around UNGC Principle10 to challenging business decisions
• Provide enabling platform to businesses, policy makers, civil society, industry associations, UN
agencies and academia
• Improve organizational decision making through a stakeholder management framework that
integrates transparency and integrity
GCNI Centre of Excellence for Business and Transparency will be developed on a collaborative
model and develop new approaches and techniques, by engaging diverse range of stakeholders,
focusing on both supply and demand side of corruption.

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