Conference of State Parties to the Mechanism for the Follow - PDF document

Fourth Conference of State Parties to t
Fourth Conference of State Parties to the Mechanism for the Follow-Up to the Inter-American Convention Against Corruption (MESICIC) 14 December 2015 Partnering Against Corruption Initiative (PACI) Partnering Against Corruption Initiative The “gold stMndMrd” CEO commitment to anti-corruption and transparency. Harnessing the strength of global business leaders to collectively level the playing field and enable competitive and dynamic market conditions. History of PACI PACI works with committed business leaders, international organizations and governments to address corruption, transparency and emerging-market risks . PACI sha

pes the Global Anti-corruption Agen
pes the Global Anti-corruption Agenda, supports Regional Initiatives, and facilitates Industry Projects of Collective Action. Since 2004, PACI has become the leading global business voice on anti-corruption and transparency. Comprising nearly 90 active companies, PACI creates a more visible, dynamic and agenda-setting platform and is one of the strongest cross-industry collaborative efforts at the Forum. 3 4 PACI community overview •Current Membership: 90+ companies •New members: CA Technologies, Google, Royal DSM, Iberdrola, Greenberg Traurig •PACI Vanguard •PACI Vanguard Delegates •Global Agenda Council •PA

CI (cross-)industry projects •A
CI (cross-)industry projects •Annual Meeting •PACI Community Meetings •Regional Meetings •Ad-hoc events co-hosted with other organizations •Maintaining the community of purpose •Strategic content development •Drive collective action •Initiate business-government dialogue •Increase public awareness •Shape cultural and ethical change within industries PACI Membership Pillars Meetings Modes of engagement 4 Vision: Be the foremost business driven anti-corruption platform and global catalyst to level the playing field and design corruption out of the system Publicly showing leadership in t

he fight against corruption rein
he fight against corruption reinforces corporate commitment to integrity, values and ethics giving rise to a competitive advantage for companies by becoming the preferred choice of ethically concerned customers/consumers as well as attracting investments from ethically oriented investors. Why do PACI signatories demonstrate leadership in fighting corruption? Corporate executives are increasingly being held personally responsible for acts of corruption with CEOs, Board Members and Senior Managers losing their jobs and prosecuted for the same. 6 PACI Status Report •Current Membership: 90+

companies •Projects: IU project
companies •Projects: IU project: Building Foundations for Transparency, B20 Anti-corruption Task Force •Events: PACI Community Fall Meeting (9 December 2015), Annual Meeting 2016, PACI Community Spring Meeting (April 2016) 0510152025Agriculture, Food & BeverageAutomotiveAviation and TravelChemicalsFinancial ServicesHealthcareInformation TechnologyInfrastructureInsuranceMedia, Entertainment &…Mining & MetalsOil & GasPrivate InvestorsProfessional ServicesRenewable EnergyRetail & Consumer GoodsSupply Chain & TransportationTelecommunicationsUtilities & TechnologyMembers per Industry 6 Constituents gain business value from PACI en

gagement Engage with leaders from top
gagement Engage with leaders from top companies, government, and civil society to collaborate to create a level playing field. Gain and share insights on transparency initiatives, key risks, and mitigation strategies. Get recognition for your efforts on a regional and global basis. Shape the global policy agenda on transparency and anti-corruption. 7 PACI Signatories commit to: 1. Raise awareness and visibility of anti-corruption and transparency issues 2. Demonstrate strong business leadership and “tone from the top” 3. Catalyze industry collective action 4. Increase business-government dialogue on a regional and country basis 5

. Harnessing demographic trends that po
. Harnessing demographic trends that point to increased intolerance of the status quo, especially views of younger adults (18-25) 6. Furthering legislative reform through public-private collaboration with other organizations e.g. OECD 7. Leverage the role of technology to level the playing field Responsibility of the private sector Driven by identified needs and interests of PACI Signatories, PACI undertakes initiatives to address industry, regional, country or global issues in anti-corruption and compliance. Collective Action to design corruption out of the system •Determine corruption risks across supply-chains and project life cycles, describe mitigati

on strategies and identify technical so
on strategies and identify technical solutions •Foster business-government discussions and interaction, supported by civil society •Examples: Aviation, Travel and Tourism Industry (2014) and Infrastructure and Real Estate Industries (2014-2017) Industry Projects Aviation & Travel Industries Project Output Example: Compliance Areas Heat Map Familiarization tripsCharitable contributionsHospitalityLoyalty ProgrammesFranchisingOperational risks & Facilitation PaymentsCommercial bribery or kickbacks3rd PartiesBribery of government officialsJoint venturesNot ImportantLess ImportantSomewhat ImportantModerately ImportantImportantVery ImportantExtremely

ImportantThe survey was conducted by
ImportantThe survey was conducted by the World Economic Forum and supported by Deloitte Financial Advisory Services, LLP in July 2013. Respondents are Chief Compliance Officers and General Counsels part of the Task Force team. SNC-Lavalin, Colliers International, ABB, Alcoa, Amec Foster Wheeler, Bilfinger SE, Construction Products Holding Company (CPC), Danfoss A/S, JLL, LIXIL Group, Petrofac, WS Atkins 11 Conducted Industry survey on corruption risks Developed Recommendations of the Task Force 1.Promote Collective Action on transparency in permitting and licensing 2.Increase interaction of business with government 3.Share insights on c

orruption risks and good practices more
orruption risks and good practices more broadly Collected Learnings from the field 1.Engage in Collective Action •Assemble technology-driven solutions to increase transparency in permitting and licensing as well as land registration •Collaborate with local government and supply chain partners to design implementation strategies 2.Increase Interaction with Government •Share government and industry experience and lessons 3.Share insights more broadly •Invite other companies and initiatives to join the project Task Force Members 2014: Analysis & Recommendation Phase 2015: Implementation Phase 87% of respondents say corruption impo

ses additional costs of business 92
ses additional costs of business 92% of respondents agree corruption is a significant reputational risk for a company of transaction value in the construction industry were related to corruption 4% Strategic importance PACI – IU Project Phase I: Building Foundations Against Corruption 12 Identify processes within key risk areas •Dismantle and identify sub-issues within key areas, permitting & licensing and land registration •Develop solutions to provide more transparency with high potential for successful implementation and high potential economic impact •Bring findings into dialogue Method: •Expert

interviews •Desk research •Ex
interviews •Desk research •Expert survey Pilot Framework for two Indian states Toolkit development •Create a diagnostic tool •Use the experiences to build up a toolkit in parallel of the progress that can be universally adapted •This will ensure scalability and replicability of the project •A first replication of the India pilot could be tested in Africa in 2016 Initiate dialogue •Invite state/municipality level bureaucrats from India to the project community •Initiate discussion on risk areas and how identified solutions could be implemented •Share best practices and success stories from other places App

lication Solutions Issues Action
lication Solutions Issues Action •First test of an identified solution •Identify a body to convene further dialogue after first phase until JMnuMry (int’l or locMl NGO, industry association, independent arbitrator) Transparent and Efficient Processes Civil Society Government Business PACI – IU Project Phase II: Building Foundations for Transparency 12 Strategic Content Development In addition to the PACI Vanguard comprised of CEOs, the PACI community consists of many compliance practitioners who meet at our meetings and engage in various work streams that support specifi

c initiatives of interest to t
c initiatives of interest to the communities. The PACI community engages virtually through Toplink. Through this online platform, we obtain broad-based input into projects, best practices, community connection and engagement http://www.weforum.org/community/partnering-against-corruption-initiative-0 14 Contacts: Pedro Rodrigues de Almeida Head of Basics Industries Directorate World Economic Forum Tel: +41 (0)22 869 3613 prod@weforum.org Lauren Silveira Project Manager, Partnering Against Corruption Initiative (PACI) World Economic Forum Tel: +41 (0)22 869 3521 lsil@weforu