Understanding of anti-corruption legislation by the private sector is insufficient
Assessment is needed of the companies’ vulnerability to corruption risk in all areas of business and their potential exposure and liabilities under domestic and foreign laws
1. Fighting private sector corruption in a changing world Alphons P.Ranner Member of the Board Corporate Fraud & Corruption Forum Sheraton Schiphol , May 27-28, 2010
2.
3.
4. Transparency International (TI) : Civil society organisation leading the global fight against corruption. Address corruption through many tools and over 90 national chapters. Politically non-partisan Introduction
5. Introduction No acceptable cost of doing business Corruption is the abuse of entrusted power for private gain Why fight corruption ? Corruption undermines good governance. distorts the potential benefits of trade. implies a loss of tax revenues & fundamentally distorts public policy involves a misallocation of resources harms private and public sector development hurts in particular the poor. vulnerability to extortion and reputational risk unsafe producs of questioonable qauality
6.
7.
8.
9.
10. Private sector corruption Apart from the anti-bribery index and other indices TI promotes use of many of new market and legal instruments to fight corruption. Study by Transparency International UK (Robert Barrington) for City of London. “ Corruption risk and the City, the Bribery act 2010” published May 25 th . Probably many results also of interest to companies from continental Europe.
11.
12. Key findings City and corruption Views of respondents 51% City companies do not pay bribes as a matter of principle 47% City companies pay bribes in some circumstances 33% City companies are willing to pay bribes as standard practice in some environments 25% (!) Well informed about the UK bribery act 10% Current efforts by internal auditors and compliance departments to identify corruption is “very successful” 20% Typical tests of due diligence seriously inadequate to discern whether customers business partners and/or transactions are corrupt
13. Regulatory regime concerning Bribery in other Global Financial Centres [1] [1] See resources on page 4 of “Avoiding Corruption Risks in the City: The Bribery Act 2010, City of London. Market Country corruption perceptions index OECD Anti-bribery Convention signatory OECD enforcement ranking UN Convention against corruption signed and ratified London (UK) 17 Yes Moderate Yes New York (US) 19 Yes Active Yes Paris (FR) 24 Yes Moderate Yes Frankfurt (GE) 14 Yes Active No Zurich (SW) 5 Yes Active Yes Amsterdam (NL) 4 Yes Active Yes Tokyo (JAP) 17 Yes Moderate No Toronto (CAN) 8 Yes Little or none Yes Hongkong (CH) 12 No n/a Yes Singapore 3 No n/a Yes Dubai (UAE) 30 No n/a No See resources on page 4 of “Avoiding Corruption Risks in the City: The Bribery Act 2010, City of London.