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Presentation Road-Map

Business Ethics: Transparency International Latvia perspective Tallinn, April 8 2008 Agris Varpins, Development Director Sabiedrība par atklātību DELNA / Transparency International Latvia. Presentation Road-Map. TI Latvia contribution to a better business environment

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Presentation Road-Map

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  1. Business Ethics:Transparency International Latvia perspectiveTallinn, April 8 2008 Agris Varpins, Development DirectorSabiedrība par atklātību DELNA / Transparency International Latvia

  2. Presentation Road-Map • TI Latvia contribution to a better business environment • Integrity Pact a tool for government and businesses • TI Latvia business survey:major findings

  3. TI Latvia activities in the area of business integrity • TI Business ethics club • www.biznesspretkorupciju.lv • Integrity Pact with the Ministry of Culture

  4. TI Latvia Business Ethics Club (Concept) • Informal and open • TI Business principles, UN Global Compact • Resource in implementation of anti-corruption strategies • Developing reputation through demonstration of values • New marketing instrument • Synergie of competences

  5. Integrity PactMinistry of Culture, Agency Three New Brothers, TI Latvia • The National Library: 230 million EUR • Museum of Contemporary Art: 27 million EUR • Concert Hall: 45 million EUR

  6. Integrity Pact main principles • Public administration, business and NGO cooperation for corruption prevention • Agency procedures streamlined • Mandatory anti-corruption declaration • TI Latvia right to participate in decision-making before the final decision is taken

  7. Main Conditions of Integrity Pact • Grace period given to agency/ministry to remedy situation • Bidders not complying with Anti-corruption declaration excluded from the process • Agency has the right to withdraw the contract if there is reasonable doubt about a contractor involvement in corrupt behavior.

  8. Benefits for Businesses • Encouragement to implement anti-corruption programmes and codes of conduct • More competitive industry • Access to free-of-charge expertise • Whistle blowers mechanism • Building integrity alliances

  9. Merko Ehitus/Merks case • Excluded from competion • Reasonable doubt about corruption • Information from Estonia’s Prosecutor General Office • Initial wihdrawal from submitting a bid • Accusation of TI Latvia being biased

  10. German business in Latvia (2007)‏ • 19 responses out of 32 • 95% - precise definition of corruption • 84% “have heard” about corruption in their sector • 11% have used corrupt methods

  11. US business in Latvia (2008)‏ • Originally 37 businesses • Answers from 12 • Refused to participate 8

  12. US business in Latvia (2008)‏ • 75% - have codes of conduct • 16% - anti-corruption programmes • 91% - would bribe if companies existance was in question • 36% - does not extend requirements of code of conduct or anti-corruption programme to partners

  13. Businesses and anti-corruption policies • Corruption is declared as unacceptable, however, there is no active anti-corruption stance • Discrepancy between level of corruption in the country and high ethical standards of companies • Not willing to speak openly about business ethics

  14. Thank you! More information: www.delna.lv or by emailTI@delna.lv www.biznesspretkoruciju.lv

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