Business principles for countering bribery

Abstract

The risks from bribery are a growing concern for both large and small companies which can be confronted with demands for bribes, faced with competitors acting corruptly or undermined by employees violating their codes of conduct. The increasing enforcement of foreign bribery laws, the imposition of record fines and the threat of criminal penalties for company directors and employees are giving enterprises pause for thought. New pressures are coming from socially responsible investment funds and indices which are adding anti-bribery criteria to their screening procedures. In addition, development banks and export credit agencies are stepping up their due diligence and introducing debarment sanctions for companies engaging in corrupt behaviour. As a result, responsible companies understand the need to guard and promote their reputation for integrity and responsibility as stakeholders become less tolerant of lapses. Companies can respond positively to these growing risks and mitigate these threats with the help of robust policies that are implemented effectively and supported by transparent processes. To assist companies in the design and implementation of effective anti-bribery policies, Transparency International (TI) and Social Accountability International joined forces to launch the Business Principles for Countering Bribery in 2003. The development of the Business Principles was carried out through a multi-stakeholder exercise undertaken with the co-operation and support of a Steering Committee drawn from international business, academia, trade unions and other non-governmental bodies. Since their introduction, the Business Principles have encouraged the development of other anti-bribery codes. Companies and researchers now look to them as a benchmark. The Business Principles have been translated into more than ten languages and introduced through seminars and workshops to corporate and governmental audiences in countries around the world. This revised edition reflects developments in anti-bribery practice and incorporates improvements to the original text based on the experience gained in the past five years. The Steering Committee, which has remained active since the inception of the Business Principles, has contributed its knowledge and expertise to this process.