How to Enhance Anti-corruption compliance and

Transcript:How to Enhance Anti-corruption compliance and:
How to Enhance Anti-corruption compliance and Investigation Mechanisms to Minimize Risks for Whistleblowers Jermyn Brooks, Chair, business Advisory Board, Transparency international Business Integrity Forum Prague, 17 October 2019 Do we (still) have a corruption problem? How should the private sector respond? How does whistleblowing help? Why does whistleblowing often not work? What are best practice solutions? Key Questions to answer Petrobras Brazil and Lava Jato: Liquidations, imprisonment, fines and more Major European Banks: Cum-Ex scandal (tax losses est. € 35 bn) VW Diesel scandal: Cost $ 25 bn in USA, now unwinding in Europe Telecoms and supplier corruption: Ericsson has just provided € 1.2 bn. AND More than 60% of all countries score less than 50 on TI‘s CPI Corporate Corruption scandals The business case Stakeholder pressure: Companies are facing increasing pressure from stakeholders (e.g. customers, investors, export credit agencies, development banks) to do business honestly and adopt, implement and monitor programmes to counter corruption. Legal and regulatory sanctions: Multinational companies based in the US, the UK and most OECD countries face prosecution at home and abroad based on the US Foreign Corrupt Practices Act and the UK Bribery Act. They risk fines, civil damages and even prison terms. Damage to Reputation: Companies compete in a global marketplace. Corrupt practices can lead to negative publicity that can lead to long-term reputation damages through media coverage, civil society campaigns, social networking… Guidance for private sector compliance programmes Business Principles for Countering Bribery First published in 2003, revised in 2013 The Business Principles are the basis for all other TIS tools developed over the last decade or so. They have influenced other initiatives and standards in the area of anti-bribery such as the Partnering Against Corruption Initiatives (PACI) of the World Economic Forum. Importance of due diligence – identify, mitigate, prevent and remedy Risk exposure through use of third parties, agents suppliers, sub-contractors etc COMMIT Business Principles for Countering Bribery Business Principles for Countering Bribery – SMEs 12 SOE Principles ASSESS Anti-Bribery Checklist Corruption Perceptions Index Bribe Payers Index Global Corruption Barometer Business Integrity Country Agenda PLAN The 2010 UK Bribery Act Adequate Procedures REPORT UNGC Anti-corruption Reporting Guidance Transparency in Corporate Reporting MONITOR Self-Evaluation Tool Framework for Voluntary Independent Assurance of Corporate anti-corruption Programmes ACT Anti-Bribery Guidance for Transactions Managing Third Party Risk-Only as Strong as your Weakest Link TI tools for business Involving employees in reporting corruption Disclosures by whistleblowers