Einde inhoudsopgave
Corporate Social Responsibility (IVOR nr. 77) 2010/5.5.2.3
5.5.2.3 Establishing third party anti-corruption policies (external efforts)
Mr. T.E. Lambooy, datum 17-11-2010
- Datum
17-11-2010
- Auteur
Mr. T.E. Lambooy
- JCDI
JCDI:ADS370632:1
- Vakgebied(en)
Ondernemingsrecht (V)
Voetnoten
Voetnoten
Statement by Lovland, supra note149.
Statement by Snyderman, supra note156.
Ibid.
Statements by Snyderman, supra note 156; Lovland, supra note 149.
Statement by Michael Jarvis, supra note 134.
EITI: 'Supporting Countries', at: http://eitransparency.org/supporters/countries, accessed on 5 August 2010, and EITI supra note123 and 124.
ICGN, 'Statement and Guidance on Anti-Corruption Practices', March 2009, p. 2, at: http:// www.icgn.org/files/icgn_main/pdfs/best_practice/guidance_on_anti-corruption_practices/2009_anti-corruption_practices_%28march%29.pdf, 14 June 2010.
Taking supply-chain responsibility in respect of preventing corruption means that a company encourages business partners, including sub-contractors and intermediaries, to do business in a manner which is compatible with the company's own anti-corruption policies. A study has shown that two-thirds of FCPA investigations concern cases with third-party involvement.1
Companies such as the Coca-Cola Company2 and Vetcogray/GE Oil & Gas3 have included supply-chain responsibility in their third-party dealings as a mechanism aimed at preventing corruption. These two companies have implemented the following mechanisms:
agreements must all be in writing;
agreements must include an 'event of default' clause relating to bribery;
a contractual 'right to audit' is imposed. Furthermore, both companies conduct third-party forensic due diligence investigations, or audits prior to engagement if this is considered necessary.4 Vetcogray/GE Oil & Gas conducts a risk assessment to determine the need for such a due diligence assessment.
Collective actions reinforce the individual action. Companies that have implemented internal measures to fight corruption may fear competitive disadvantages or a lack of leverage to change the business environment through their individual action. They therefore engage in collective initiatives. Furthermore, collective action creates a business environment with a reduced risk of corruption and it also brings vulnerable individual players into a stronger alliance. The collective action usually involves various stakeholders: companies, civil society and governments. According to the World Bank Institute, collective action may complement or temporarily substitute and strengthen weak local laws and anti-corruption practices.5 The following are some examples of collective initiatives aimed at combatting corruption:
EITI is a coalition of governments, companies, civil society groups, investors and international organisations that aim to improve transparency and accountability in the extractive sector in resource-rich countries through the verification and publication of company payments and revenues from oil, gas and mining. By disclosing the amounts that a company pays to the host government in connection with the exploitation of such countries' resources, the transparency of government income is established for the benefit of the people of that country. Currently 37 of the world's largest oil, gas and mining companies, including BP Group, Shell and Chevron Corporation, are supporting members of this initiative. Ten of the twelve supporting countries are European;6
International Corporate Governance Network (ICGN) is the largest international institutional investors' network counting 500 members. In 2009, ICGN issued a policy solliciting appropriate anti-corruption controls and anti-corruption reporting by companies. Reporting on anti-corruption policies, due diligence investigations and instituting whistleblower policies are among the ICGN recommendations to companies. ICGN believes that corruption is incompatible with good governance and harmful to the creation of value. It promotes that investors engage with companies to ensure that they demonstrate to their owners that they have good systems in place to detect and deal with any corrupt practices. The ICGN policy establishes the importance of combating bribery and corruption as part of the corporate governance agenda, and will be referenced as part of the ICGN's Global Corporate Governance Principles in its next revision;7 and
Collective Action Against Corruption Guide the World Bank Institute has issued guidelines in the form of a toolkit and an interactive web portal aimed at establishing a level playing field and assisting companies, such as small-sized companies, which might otherwise have to abandon doing business in a corrupt environment. The toolkit and interactive web portal provide multiple options for combatting corporate corruption based on proven ' how-to-do' examples from many regions and sectors. The guide was launched by a coalition made up of Grant Thorton International (a consulting firm), Siemens, Global Compact, the Center for International Private Enterprise, Transparency International and Global Advice Network. The World Bank Institute acted as a coordinator.