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SAP and the Convention on Business Integrity

SAP and the Convention on Business Integrity. Dr. Caroline King Vice President Public Affairs , SAP AG. Summary of SAP Today. SAP AG in 2002 Revenues: € 7.4 billion 64,500 installations More than 20,000 companies run SAP Providing 23 Industry Solutions 28,961 SAP employees (June 2003)

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SAP and the Convention on Business Integrity

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  1. SAP and the Convention on Business Integrity Dr. Caroline KingVice President Public Affairs, SAP AG

  2. Summary of SAP Today • SAP AG in 2002 Revenues: € 7.4 billion • 64,500 installations • More than 20,000 companies run SAP • Providing 23 Industry Solutions • 28,961 SAP employees (June 2003) • 12 million users in 120+ countries team with us to • Integrate their business processes • Extend their competitive capabilities • Get a better return on information at a lower total cost of ownership • Unique Partner Ecosystem • More than 1,500 partners • Overall more than 120,000 SAP partner certificates

  3. Transparency: Activities at SAP • 1997 • INTEGRITY, a Nigerian NGO is founded by Soji Apampa, today an SAP employee. • 2002 • SAP signs the Convention on Business Integrity in Lagos, Nigeria and provides funds for the establishment of a secretariat. • SAP becomes a member of the German chapter of Transparency International. • SAP funds the first international symposium for scholars on “Corrupt Transactions”, initiated by Graf Lambsdorff.

  4. Transparency: Activities at SAP • 2003 • SAP becomes a member in the Business Principles Steering Committee with Transparency International UK. • SAP develops and introduces a Business Code of Conduct. • Cooperation with TI chapters in Nigeria, Kenya and South Africa, USA. • SAP becomes a member in the Business Principles Steering Committee with Transparency International UK. • CBI accepted as a case study in the Global Compact.

  5. Why is SAP engaged in the fight against corruption? • The costs for everybody involved are too high. • Everybody suffers from the consequences – also those who play by the rules. • Corruption doesn’t stop at the border. • Emerging markets suffer in particular – and in a global village no company interested in growth can afford to ignore the issue. • The responsibility has to be shared by the public AND the private sector. • A fight against corruption which is built on a strong alliance of different forces will be more efficient since risks and costs can be shared. • Competitors and companies reluctant to join the fight have to be convinced and integrated. • It is the responsibility of such an alliance to educate and support all initiatives which prove to be successful.

  6. Why CBI? • SAP believes that it is the private sector which will play a vital role in supporting the African continent in its development.While SAP supplies the African market with solutions to help the economy join the global marketplace, we also support promising initiatives that strengthen the society as well as the private sector. • SAP believes that self-imposed solutions have a much better chance of succeeding than guidelines imposed externally. • Since CBI was developed locally; Nigerians know what is necessary to win the fight against corruption in their country. • It is a firm belief of everybody involved with CBI that what works in Nigeria will also work in other communities and countries threatened by corruption.

  7. What is the CBI? • Founded in 1997 in Lagos, Nigeria by Integrity, an organization of Nigerian business people, national and international companies operating in the country a s well as Transparency International Nigeria. • CBI is a covenant among businesses operating in Nigeria to build a private sector coalition against corruption and corrupt practices. • It does not impose a legal obligation but represents a moral contract among signatories to promote integrity in the conduct of business. • CBI was the first initiative of its kind to make responsible governance an issue of focus in the Nigerian business world. SAP is signatory and supporting member of the Convention on Business Integrity, an initiative for more transparency and integrity in the African business community.

  8. Founding Signatories • Accenture • Cadbury • Dunlop • Pfizer • SAP • Omolayole & Associates • Prominent Securities • Denham Management • Agusto & Co. • Diamond Bank • Risk Watch Insurance & Re-Insurance Brokers • Nigerian Institute of Management • Lagos Chamber of Commerce & Industry • The Lagos Business School • Mr. Akintola Williams • Dr. Christopher Kolade • INTEGRITY • Transparency Nigeria PENDING SIGNATORIES 5 major Nigerian corporations to sign-up in November – (e.g. Shell Nigeria)

  9. CBI: The Rating System • Fitness For PurposeHow do the processes in a particular entity work? • Ethics & MoralsWhich credos, codes or policy statements are made by the organization? • Transparency & AccountabilityHow are the disclosure processes to stakeholders organized? • Will & Power to do The Right ThingEnsuring an audit of organization compliance. • A Proven Track RecordChecking Anecdotal behavior to check on the commitment of an organization.

  10. CBI: Components PEER PRESUREE Self policing of the members is an important element in compliance! Sanctions & Appeals The Website OVERSIGHT MECHANISMUS The General Assembly of Signatories The Core Group The Secretariat • ADVOCACY FOCUS • Stakeholders as whistleblowers • Pull strategy first • (Through Nigerian Diaspora, Trade & Diplomatic Bodies, Chambers of Commerce & Industry, Development Agencies etc.) • Push Strategy • (Quarterly Signing Ceremonies, Publication of Success Stories, Direct Marketing)

  11. CBI Achievements in 2003 In Nigeria • Increasing partnerships with local and regional bodies such as ..... • Minister of Federal Capital Territory wants to use his ministry as a test case for CBI (is successful implementation in the Federal Government of Nigeria) • Enugu State Government interest in CBI International • Trade and Industry Minister of Kenya wants to sign CBI and establish it. • Other countries, such as Uganda and Rwanda, interested • Enquiry from TI Slovakia for CBI • Commonwealth Business Council article for Modernizing Governments Reports • Case Study UN Global Compact

  12. CBI: Challenges & Opportunities OPPORTUNITIES • DFID • Concept Test • Business Plan & Funding • Nigeria – British Consulative • The Swedish Embassy and SIDA • Kenya Minister for Trade & Industry • Requests for collaboration by Nigerian and other African Governments. CHALLENGES • Capacity Issues • Funding • Leadership – The Core Group

  13. SAP & Transparency: Challenges and Opportunities in 2004 • Draft company ethics code. • Create education tools for employees. • Ongoing support of Transparency International. • Campaign for alliance on the issue with other IT companies.

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