Transparency International and the fight against corruption Protect Your Business!

1. Transparency International and the fight againstcorruption Protect Your Business! How to develop and raise standards of practice in countering corruption Guro Slettemark, Transparency International Norway slettemark@transparency.no

2. The bigpicture • «Whenpeopletake to thestreets to protest againsttheirgovernments, the list ofgrievances is usuallylong and complex, butcorruption is always at thetop». Huguette Labelle – Chair Transparency International: (CNN) • The «Arabic Spring», The «Indian Summer» and themovement «Occupy Wall street» - strongwill for changes

4. The spirit ofour time What is the spirit of our time? “In the broad perspective I wish I could say that the spirit is at work with how we are to eradicate poverty in the world, stop global warming and get rid of the greedy and corrupt leaders who abuse their people. But if it is the spirit I am unfortunately not quite sure.” Elisabeth Grieg – DagensNæringsliv 7th August 2012

5. The effects of corruption • Corruption threatens the rule of law, democracy and human rights, undermines good governance, fairness and social justice, distorts competition, hinders economic development and endangers the stability of democratic institutions and the moral foundations of society.- Preamble, Council of Europe Criminal Law Convention on Corruption

6. The effects of corruption Poverty increase • Social and economic development, stability and security are adversely affected by corruption. Grand corruption (corruption by greed) is a cause of poverty, rather than a result of it. Small corruption (corruption by need) that people encounter in the course of their everyday lives is often caused by poverty. • Bribing companies are actively undermining the best efforts of governments in developing nations to improve governance, and thereby driving the vicious cycle of poverty.- Huguette Labelle, Transparency International’s Chair

7. The effects of corruption Decision are not taken for the public benefit but serve private interests High-cost, overly complex and prestigious projects are favoured over cost-efficient development projects making use of the most relevant technology BRIBERY ANNUALLY IS ABOUT 1 TRILLION USD (does not include embezzlement of funds, theft of public assets).

8. Transparency International The world’sleading anti-corruption NGO Founded in 1993 Chapters in almost 100 countries TI-Norway established in 1999 Corruption is ”theabuseofentrustedpower for private gain”

9. Our mission Our Mission is to stop corruption and promote transparency, accountability and integrity at all levels and across all sectors of society. Our Core Values are: transparency, accountability, integrity, solidarity, courage, justice and democracy. Our vision Our Vision is a world in which government, politics, business, civil society and the daily lives of people are free of corruption

10. Our approach Government & Public Sector DIMENSION NATIONAL INTEGRITY Private Sector Civil Society INTERNATIONAL DIMENSION • TI fights corruption through advocacy and awareness-raising • TI analyses and diagnoses corruption • TI does not undertake • investigations • TI is politically non-partisan • TI combines local rooted- • ness with international expertise • TI develops coalitions

11. TI analyses and diagnoses corruption Transparency International seeks to provide reliable quantitative diagnostic tools regarding levels of transparency and corruption at the global and local levels. • The annual TI Corruption Perceptions Index (CPI), first released in 1995, is the best known of TI’s tools. It has been widely credited with putting TI and the issue of corruption on the international policy agenda. The CPI ranks more than 150 countries by their perceived levels of corruption, as determined by expert assessments and opinion surveys. Other corruption measurement tools to complement the CPI. • The Bribe Payers’ Index (BPI) assesses the supply side of corruption and ranks corruption by source country and industry sector. • The Global Corruption Barometer (GCB) is a public opinion survey that assesses the general public’s perception and experience of corruption in more than 60 countries.

12. What is the CPI 2011? An aggregate indicator that… • Measures the degree to which corruption is perceived to exist among public officials and politicians in 182 countries around the world. • Focuses on perceptions and not hard data • Draws on 13 different surveys and country assessments from 10 independent institutions carried out among experienced observers, such as business people and country analysts, including local experts.

13. Objectives • To enhance comparative understanding of levels of public sector corruption. • To create public awareness of corruption – and create a climate for change. • To offer a snapshot of the views of businesspeople and experts who make decisions about trade and investment. • To stimulate scientific research and complementary diagnostic analysis on causes and consequences of corruption, both at international and national level.

15. TI Bribe Payers Index • The 2011 bribe payers indexranks the likelihood of companies from28 leading economies to win business abroad by paying bribes • The Index also looks at the likelihood of firms in 19 specific sectors to engage in bribery and exert undue influence on governments: - Public works and construction companies scored lowest in the survey. This is a sector where bypassed regulations and poor delivery can have disastrous effects on public safety. - Oil and gas is also a sector seen as especially prone to bribery. The extractives industry has long been prone to corruption risk.

17. TI Global Corruption Barometer • Transparency International’s Global Corruption Barometer (the Barometer) is the only worldwide public opinion survey on views and experiences of corruption. As a poll of the general public, it provides an indicator of • how corruption is viewed at national level (institutions) • how efforts to curb corruption around the world are assessed on the ground • it also provides a measure of people’s experience of corruption in the past year.

20. Protect your businessAnti-corruption handbook for the Norwegian business sector

21. 2. Corruption and consequences What is corruption? How is corruption damaging? Which countries and industries are most affected? Why should companies combat corruption? Opinion poll among the Norwegian public Surveys among Norwegian companies

22. 3. International law and Norwegian law Anti-corruption conventions Provisions against corruption in the Norwegian Penal Code Norwegian corruption law enforcement Other relevant Norwegian laws Other countries’ laws The US Foreign Corrupt Practices Act

23. 4. Developing an anti-corruption programme Why is a company programme necessary? The Business Principles for Counterinng Bribery and related tools What is an anti-corruption programme? Management systems

24. 5.Scope oftheprogramme: corruptionissues Bribery Facilitation payments Political contributions Charitable contributions Sponsorships Gifts, hospitality and expenses Conflict of interest Tax havens

25. 6. Scope oftheprogramme: business relations Why be concerned about business relations? ”Due diligence” Subsidiaries, partly-owned companies, joint ventures and consortia Agents Contractors and suppliers Customers Mergers and acquisitions

26. 7. Programme implementation • Commitment from thetop • Mappingpractices and risks • Organisationinvolvement • Writtenpolicies and standards • Trainingprogrammes • Internalcontrols and auditing • Whistle-blowingmechanisms • Investigatingincidents • Accountability and consequences • Information and communication • Programme review and adjustment

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