|Name||Business Against Corruption: A Framework for Action
|Author(s)||B. Errath; P Brew; J. Moberg; J. Brooks; S. Cote-Freeman
|Keywords||corruption, Global Compact, leadership, ethic codes, reporting
|Areas of Interest||Accountability - Reporting; Codes of Conduct; Corruption; Leadership
|Citation||S. Cote-Freeman, B. Errath, P Brew, J. Moberg and J. Brooks. 2006. Business Against Corruption: A Framework for Action. Global Compact.
|Summary||n This report is a guide to companies preparing themselves to implement the objectives set out in UN's tenth principle to fight corruption within business operations. It examines why companies should fight corruption and outlines a number of practical steps to fight internal and external corruption.
|Abstract / Description||
This report is a guide to companies preparing themselves to implement the objectives set out in UN's tenth principle to fight corruption within business operations. It examines why companies should fight corruption and outlines a number of practical steps to fight internal and external corruption.
Presenting the business case for fighting corruption the report highlights a number of reasons why it is in any company's business interest to ensure that it does not engage in corrupt practices. They include:
- most forms of corruption illegal where it occurs, but also it is increasingly becoming illegal in a company's home country to engage in corrupt practices in another country
- based on the experience of recent years, companies whose policies and practices fail to meet high ethical standards, or that take a relaxed attitude to compliance with laws, are exposed to serious reputational risks
- there is now clear evidence that in many countries corruption adds upwards of 10 per cent to the cost of doing business and that corruption adds as much as 25 per cent to the cost of public procurement
- there is growing evidence that a company is less likely to be under pressure to pay bribes if it has not done so in the past
- by engaging in corrupt practices, company managers expose themselves to blackmail. Consequently the security of staff, plant and other assets are put at risk
- companies also have a vested interest in sustainable social, economic and environmental development.
This report outlines a number of steps which companies should take in order to fight corruption. These should comprise internal programmes, programmes in the area of external communication and sharing of experiences as well as collective action together with industry peers. The report outlines a number of concrete steps, including:
- providing clear leadership
- adopting a company ethic code
- implementing and integrating the anti-corruption principles into the management system and regularly train the staff on these principles
- adopting reporting procedures
- ensuring accountable and transparent businesses operations
- sharing of good practice
- creating collective business action.
In its appendix the report also provides information on initatives and links to further resources.