Bribes, which at one time even benefited from tax reductions, have been criminalized, and such crimes are subject to prosecution in the company’s home country.
“North America has 40 years experience of anti-corruption regulations. However, when monitoring how efficiently such regulations are working, USA is not at the top of the list in TI’s Bribe Payers’ Index, for several reasons. One is that there exists some evidence of the use of external agents, whose payments the company involved says it “knows nothing about”. There is a perception that too often business is closing its eyes to the activities of intermediaries… At the top of the list, when it comes to integrity and ethical conduct, we find the Scandinavian countries”, comments Jermyn Brooks.
Tone from the top
Jermyn Brooks leads the development of the Business Principles for Countering Bribery (BPCB) initiative, which were introduced by Transparency International (TI). He is also a board member of PACI, which requires business to sign up to its anti-bribery principles. It was initiated by World Economic Forum.
“Most important is the tone from the top – that there is a culture for integrity”, Brooks says. “That commitment is certainly there in Hydro. But that alone is not enough.”
“You also need detailed procedures to prevent corruption, money laundering and cartels, all reflecting the specific nature of your business. Such policies must be implemented through communication and training so every member of staff will understand the message. And you should report publicly what you are doing.”
Improvement through monitoring
Brooks also points at the need to continue to check that these systems are really working. “Such monitoring can be done by auditors or the legal department and presented as a report to the board or its auditing committee. External evaluators can further improve the company’s standards and their credibility”
“It’s a great comfort when business partners obtain information about a company’s standards,” he adds.
“Overall a significant shift”
According to Jermyn Brooks the change in attitudes and practise within OECD countries have gradually also affected companies in non-OECD countries and their commitment to high ethical standards. Overall there is a significant shift. Boards are much more aware of the value of high integrity standards. Public opinion is becoming more aware and less likely to tolerate breaches of such standards. And CEOs no longer say in public that they have “just done what they have to do” to win a contract.
According to Jermyn Brooks a good due diligence system for evaluating other companies can also include involving others to assist. “In some countries it’s difficult to know the level of local standards. You might even experience that you are told by the authorities that you have to use certain agents. Then it is important to understand how they operate and evaluate whether or not you can cooperate with them”.
The danger for any company…
“The danger for any company is that it can become self-satisfied – and relax. We strongly recommend that self-monitoring is kept up. To remain fresh it can take up special issues, review particular areas and ask more detailed questions: How are you dealing with gifts, hospitality, and facilitation payments? Are proper approval processes in place? Never become self-satisfied!” says Jermyn Brooks.
