1 / 10

Integrity and responsible governance in a private sector - case Finland

Integrity and responsible governance in a private sector - case Finland. Pentti Mäkinen Conference of the Corruption-free society Prague 12 September 2014. Is Finland really a low corruption country.

caleb-fleming
Download Presentation

Integrity and responsible governance in a private sector - case Finland

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Integrity and responsiblegovernance in a privatesector- case Finland Pentti Mäkinen Conference of theCorruption-freesociety Prague 12 September 2014

  2. Is Finland really a lowcorruption country • Yes: According to the TI CorruptionPerception Index, CPI, Finland is one of thebest • Thecorruption is not a problem in publicsectorneither business to business • Lowamount of casesinvestigatedbypoliceorjurisdictionbycourts • How weseethebasicelements of lowcorruptionsociety • Theopeness of thesociety, free and independent media, democraticvaluesand politicaldesicion-making, highcommitment on personalworkethic, strong business culture includingtendencyto obeythelawverystrictly • But in Finland wefacealsoproblems: • Increasingmistrust on politicians on bothlocal and nationalleveland also on business • Non-transparentnetworks (”oldboysnetworks”)

  3. Theimportance to preventcorruption • WhyFinnish business wants to tacklecorruption and bribery • Maintaintheleading position as one of theleastcorruptedcountries • Preventcorruptionboth in publicsector and business to business relations • Keepthegoodreputation of Finland • MinorcorruptiongivesFinnishenterprisescompetitiveedge operating beyondnationalborders • Corruptionmakes it easier to blackmailenterprises • Corruptiondistortsbasicelements of market economyespeciallyfreecompetition

  4. How enterprisecouldberesponsible • Anti-corruptionpolicystartsfromthetop of thecompany • Highcommitment of the Board of directors, CEO and Executive Team • Corporategovernanceincluds anti-corruptionpolicy • Corporateethicscodemustbeuniversal • No differentactions in differentcountries • Sameethicalstandarsmustbeappliedeverywhere • Responsibility of subsiadiaries and agents • Duediligencemustbedonebeforecontracts • Documentation of allexternalrelations • Monitoring of thepartner´sconduct

  5. How to countercorruption in privatesector • Corporate culture (corporategovenance) in whichanyform of corruption is nottolerated • Companiesneed a specialprogrammecounteringcorruption • Crucial for biglistedcompanies • Company mustin practicecomplyitsownpolicy • If so, companyhas no need to explain in media afterwards • An effective anti-corruptionpolicy • Includesvalues, process, training and guidance • Provides a framework for good business practices and risk management counteringcorruption

  6. Basic principles of anti-corruptionpolicy • Enterprise shouldprohibit • anyforms of corruption (icludingbribes) • whichcouldprovideimproperbenefits to customers, agents, contractors, suppliersoremployees of anysuch party orgovernmentofficials • Enterprises shouldprohibit • an employeearrangingoraccepting • anyforms of corruption for theemployee´sbenefit

  7. Relationswithcontractorsand suppliers • Fair and transparentprocurementpractices • Duediligence: • Evaluatemajorprospectivecontractorswhethertheyhave an effective anti-corruptionpolicy • Monitoringthe anti-corruptionpolicy of contractors and suppliers • Avoiddealingwithpartiesknown to bepayingbribes

  8. Communication • Company needs an effectiveinternal and externalcommunication of its anti-corruptionpolicy: • training for managers, employeesand contractors • Direct and immediateinformation of theviolationsof theanti-corruptionpolicy • Anti-corruptionmeasuresshouldbedeveloped in consultationwithemplyees • Clearmessage for employees: • no negativeconsenquenses for refusing to paybribeseveniftheenterprisemightsuffer in business • Appropriatesanctionsfor thosewhohavenotfollowedthe anti-corruptionpolicy

  9. Internalcontrols and audit • Documentsconserningallfinancialtransactionsshouldbeavailable for afterwardsinspections • No off-the-booksaccounts • Effectiveinternalcontrolsystem • Audit systemwhichinformstheshareholdersbriberyand otherforms of curruption

  10. Thankyou for your attention

More Related