WHY IS BUSINESS INTEGRITY SO IMPORTANT AN INTERNATIONAL

WHY IS BUSINESS INTEGRITY SO IMPORTANT? AN INTERNATIONAL PERSPECTIVE Jermyn P Brooks Chair, Business Advisory Board, Transparency International Athens, 22 September 2016

BUSINESS AS A SOURCE OF CORRUPTION Business remains a major factor in the supply side of corruption Not just a problem in very corrupt countries. Too many cases: Ø Oil & Gas Halliburton (USA) Petrobras (Brazil) Ø Engineering Siemens (Germany) VW (Germany) Ø Telecoms Vimpelcom (Russia) Teliasonera (Sweden) Athens, 22 September 2016

BUSINESS AS A SOLUTION TO THE CORRUPTION PROBLEM Businesspeople do not like corruption Ø Corruption creates uncertainty Ø Corruption prevents medium/long-term planning Ø Corruption is expensive Ø Corruption leads to potential loss of reputation, fines, imprisonment Proof: Investment is lowest in the most corrupt environments Athens, 22 September 2016

EXAMPLES OF BUSINESS AS A SOLUTION PROVIDER Business has a strong incentive to be part of the solution in order to develop successful activities Some examples: Ø Vietnam – working with Chambers of Commerce and Industrial parks Ø Egypt – MNCs supporting anti-corruption efforts of SMEs Ø Nigeria – Stock Exchange rules supporting business credibility Athens, 22 September 2016

HOW TO MAKE BUSINESS BECOME MORE EFFECTIVE Business can achieve much via collective action, even when confronted by disinterested governments But fighting corruption is even more effective in a climate of RULE OF LAW Ø Separation of the three estates, especially the judiciary Ø Independent media Ø Cooperative private sector Ø Engaged civil society Athens, 22 September 2016

TI AND THE BUSINESS WORLD • For more than 15 years, focus on helping business curb corruption • Authoritative standard: Business Principles for Countering Bribery • Three key demands of business Ø Tailor-made anti-corruption policy Ø Detailed implementation in business processes Ø Effective monitoring program • Two additional demands: Ø Public disclosure of policies Ø Third party confirmation/certification Athens, 22 September 2016

HOW TI AND BUSINESS WORK TOGETHER • Corporate Supporters Forums (Austria, Australia, Cambodia, Chile, France, Germany, Hungary, Indonesia, Israel, Italy, Mexico, Netherlands, New Zealand, Norway, Peru, Sweden, Switzerland, Turkey, UK, USA, Vietnam) • Safe space to discuss/exchange problems and solutions • Role of TI to highlight trends, developments, legal changes e. g. use of offshore centres or taxation policies • Many tools used to support business e. g. TRAC reports and benchmarking exercises Athens, 22 September 2016

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