Reporting on  Anti-Corruption Policies  and Programmes  Presented by Jermyn P Brooks Director, Private Sector Programmes  ...
   Presentation contents <ul><li>The Argument for Disclosure </li></ul><ul><li>B&C reporting survey </li></ul><ul><li>The ...
Corporate Reporting: The Need for Reporting on Integrity Issues <ul><li>Changing demands </li></ul><ul><ul><li>FTSE4Good -...
Corporate Reporting <ul><li>TI's aim is to promote private sector  reporting on policies and management systems for combat...
Corporate Reporting: Scope of Research <ul><ul><li>Desk research on 500 companies from Fortune 2000 from 32 countries. </l...
Corporate Reporting: Results by country Source: Transparency International, 2008
Corporate Reporting: Results by Sector Source: Transparency International, 2008
Good Reporting Standards <ul><li>1.) Description of anti-corruption policies </li></ul><ul><ul><li>Scope </li></ul></ul><u...
Examples of best practice <ul><ul><li>1.)  Description of Policies   </li></ul></ul><ul><ul><li>BG Group </li></ul></ul><u...
<ul><ul><ul><li>from BG “Corporate Commitments” </li></ul></ul></ul><ul><ul><ul><li>“ OUR COMMITMENT: We recognise that co...
<ul><ul><li>Performs risks assessments:   </li></ul></ul><ul><ul><li>Methodology includes assessments of country risk wher...
<ul><ul><li>2.) Implementation </li></ul></ul><ul><ul><li>BP </li></ul></ul><ul><ul><li>Includes detailed basic provisions...
<ul><li>2.) Implementation Scope </li></ul><ul><li>GE </li></ul><ul><li>Extends policies to countries of operation. </li><...
3. Monitoring GE  Whistleblower activity Ombudsperson   concerns by area, 2002-2006 (Extract from GE 2007 Citizenship Repo...
<ul><ul><li>3.) Monitoring </li></ul></ul><ul><ul><li>BP </li></ul></ul><ul><ul><ul><li>Report KPI.   “Every year, each bu...
<ul><li>Thank you ! </li></ul><ul><li>Jermyn Brooks </li></ul><ul><ul><li>Transparency International </li></ul></ul><ul><u...
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The Public Face of Integrity: What should companies report about their anti-bribery and corruption policies and programmes?

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A presentation by Jermyn Brooks at TBLI CONFERENCE EUROPE 2008.

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  • The Public Face of Integrity: What should companies report about their anti-bribery and corruption policies and programmes?

    1. 1. Reporting on Anti-Corruption Policies and Programmes Presented by Jermyn P Brooks Director, Private Sector Programmes Transparency International www.transparency.org
    2. 2.   Presentation contents <ul><li>The Argument for Disclosure </li></ul><ul><li>B&C reporting survey </li></ul><ul><li>The case for reporting on B&C </li></ul><ul><ul><li>Scope of research </li></ul></ul><ul><ul><li>Results by country </li></ul></ul><ul><ul><li>Results by industry sector </li></ul></ul><ul><li>Good reporting standards </li></ul><ul><li>Best practice examples         </li></ul><ul><li>Discussion </li></ul>
    3. 3. Corporate Reporting: The Need for Reporting on Integrity Issues <ul><li>Changing demands </li></ul><ul><ul><li>FTSE4Good - bribery indicators adopted </li></ul></ul><ul><ul><li>UNGC - Communications on Progress </li></ul></ul><ul><ul><li>PACI - Highlighting achievers process </li></ul></ul><ul><ul><li>GRI - Standardised quantified disclosures </li></ul></ul><ul><li>Raises credibility of voluntary standards </li></ul><ul><li>Basis for independent verification </li></ul>
    4. 4. Corporate Reporting <ul><li>TI's aim is to promote private sector reporting on policies and management systems for combating bribery and corruption b ased on accepted standard disclosures </li></ul>
    5. 5. Corporate Reporting: Scope of Research <ul><ul><li>Desk research on 500 companies from Fortune 2000 from 32 countries. </li></ul></ul><ul><ul><li>Company selection criteria: </li></ul></ul><ul><ul><ul><li>250 largest companies listed </li></ul></ul></ul><ul><ul><ul><li>180 companies from “high risk sectors” -Oil & gas, materials/mining, aerospace & defence, capital goods, construction, telecoms, and utilities. </li></ul></ul></ul><ul><ul><ul><li>70 companies from each of the 25 largest global exporting nations. </li></ul></ul></ul><ul><ul><li>Data sources: Publicly available company documents (documents available on company’s website, latest annual and sustainability reports) </li></ul></ul>
    6. 6. Corporate Reporting: Results by country Source: Transparency International, 2008
    7. 7. Corporate Reporting: Results by Sector Source: Transparency International, 2008
    8. 8. Good Reporting Standards <ul><li>1.) Description of anti-corruption policies </li></ul><ul><ul><li>Scope </li></ul></ul><ul><ul><li>Legal compliance </li></ul></ul><ul><ul><li>Detailed provisions </li></ul></ul><ul><li>2.) Steps taken to implement the policies </li></ul><ul><ul><li>Scope </li></ul></ul><ul><ul><li>Communication </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>HR policies </li></ul></ul><ul><ul><li>Helplines and whistleblowing </li></ul></ul><ul><li>3.) How are the systems monitored? </li></ul><ul><ul><li>Self-evaluation processes </li></ul></ul><ul><ul><li>Frequently and scope </li></ul></ul><ul><ul><li>Dealing with incidents </li></ul></ul><ul><ul><li>Feedback to Board </li></ul></ul>
    9. 9. Examples of best practice <ul><ul><li>1.) Description of Policies </li></ul></ul><ul><ul><li>BG Group </li></ul></ul><ul><ul><li>Anti-corruption forms part of a wider approach within the company towards business conduct. </li></ul></ul><ul><ul><li>Links its approach to multi-stakeholder initiatives. </li></ul></ul><ul><ul><li>It does not treat corruption as only bribery, but shows an understanding of its relationship to a wider range of issues. </li></ul></ul>
    10. 10. <ul><ul><ul><li>from BG “Corporate Commitments” </li></ul></ul></ul><ul><ul><ul><li>“ OUR COMMITMENT: We recognise that corruption can come in many guises, including bribery, extortion and the misuse of power. </li></ul></ul></ul><ul><ul><ul><li>We prohibit the offer, gift or acceptance of a bribe in any form. We work to identify and eliminate facilitation payments. We support Transparency International’s Business Principles for Countering Bribery. </li></ul></ul></ul><ul><ul><ul><li>We support the Extractive Industries Transparency Initiative and work with governments to publish revenue payments. </li></ul></ul></ul><ul><ul><ul><li>We ensure that our social investment projects are free of corruption and that charitable contributions and sponsorships are honest and open. </li></ul></ul></ul>BG Group (continued)
    11. 11. <ul><ul><li>Performs risks assessments: </li></ul></ul><ul><ul><li>Methodology includes assessments of country risk where the social, political, economic or other factors related to the countries in which BHP Billiton operates or plan to operate can potentially impact on their operations, business or reputation. </li></ul></ul><ul><ul><li>Include bribery, fraud, extortion, collusion, conflict of interest and money laundering, which in this context include an offer or receipt of any gift, loan, fee, reward or other advantage to or from any person as an inducement to do something that is dishonest, illegal or a breach of trust in the conducting of our business. </li></ul></ul><ul><ul><li>Acknowledge importance of training for employees, management, or third parties (e.g. suppliers) on corruption related issues. </li></ul></ul><ul><ul><ul><ul><li>“ Source: BHP Billiton, Sustainability Report 2007 </li></ul></ul></ul></ul>1.) Policy development 2.) Implementation BHP Billiton
    12. 12. <ul><ul><li>2.) Implementation </li></ul></ul><ul><ul><li>BP </li></ul></ul><ul><ul><li>Includes detailed basic provisions in their documents – e.g.: </li></ul></ul><ul><ul><ul><li>“ We will not engage in bribery or corruption in any form. Corruption is the enemy of development and human progress, and we are committed to transparency in all our dealings.” </li></ul></ul></ul><ul><ul><ul><li>“ We must choose suppliers carefully, based on merit, and with the expectation that our suppliers will act consistently with our compliance and ethics requirements.” </li></ul></ul></ul><ul><ul><li>Presents examples and rule-based details – e.g.: </li></ul></ul><ul><ul><ul><li>“ Always unacceptable Other types of gifts and entertainment are simply wrong. These are never permissible, and no one can approve them. These are: Any gift or entertainment that would be illegal (anything offered to a government official in breach of local or international bribery laws)…” </li></ul></ul></ul>
    13. 13. <ul><li>2.) Implementation Scope </li></ul><ul><li>GE </li></ul><ul><li>Extends policies to countries of operation. </li></ul><ul><li>Chile </li></ul><ul><li>GE Anti-Corruption and compliance efforts also extend to particular countries. In 2006, GE partnered with Transparency International in Chile to develop a model compliance program that can be adopted by both private-sector and governmental entities. To date, one large business group in Chile has fully implemented the initiative, and two very important countries kicked off their integrity and transparency programs in 2007”. (Extract from GE 2007 Compliance &Governance Overview, 2007) </li></ul>
    14. 14. 3. Monitoring GE Whistleblower activity Ombudsperson concerns by area, 2002-2006 (Extract from GE 2007 Citizenship Report.)
    15. 15. <ul><ul><li>3.) Monitoring </li></ul></ul><ul><ul><li>BP </li></ul></ul><ul><ul><ul><li>Report KPI. “Every year, each business or functional team is asked to produce a certificate indicating the extent to which it has complied with laws, regulations and the code of conduct. Under this process, line managers certify the behaviour of teams under their direction, following a team discussion….” </li></ul></ul></ul><ul><ul><ul><li>Submits a number of its processes and systems to external verification and comment. </li></ul></ul></ul>
    16. 16. <ul><li>Thank you ! </li></ul><ul><li>Jermyn Brooks </li></ul><ul><ul><li>Transparency International </li></ul></ul><ul><ul><li>Alt Moabit 96 </li></ul></ul><ul><ul><li>10559 Berlin </li></ul></ul><ul><ul><li>E-Mail: [email_address] </li></ul></ul><ul><ul><li>http://www.transparency.org/global_priorities/private_sector </li></ul></ul>

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