Considering ISO 37001

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The new ISO 37001 standard on anti-bribery management systems is expected to be finalized later this year. In many respects, the standard brings the re-affirmation of global best practices in anti-corruption compliance that emerged through norms such as the OECD Convention on Combating Bribery or Department of Justice and Serious Fraud Office guidance on the U.S. Foreign Corrupt Practices Act and the UK Bribery Act, respectively. At the same time, ISO 37001 is not likely to be a silver bullet to all the compliance challenges given its lack of clarity in focus on the existence of formal elements of a compliance program vs. its effective implementation, or the cost of certification that may be prohibitive for smaller companies.

William Marquardt, Director, and David Holley, Managing Director at the Berkeley Research Group, LLC (a private management consulting firm) analyze ISO 37001’s promise and limitations in a recent post on The FCPA Blog: https://globalanticorruptionblog.com/2016/08/25/guest-post-the-draft-iso-37001-anti-bribery-standards-promise-and-limitations/  Read More...

‘Carrots’ for Countering Corruption in Emerging Markets

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Richard Bistrong CEO Front-Line Anti-Bribery LLC interviewed CIPE’s Frank Brown Value Chain and Anti-Corruption Program Team Leader in a two part series. In the first interview, Bistrong and Brown discuss incentives or ‘carrots’ for small and mid-sized enterprises to take action even in environments with pervasive corruption practices.  Incentives for addressing corruption include creating sustainable businesses, and attracting multi-national organizations. How can we utilize a ‘carrots over sticks’ approach, to create incentives for small to medium size businesses in emerging markets to embrace ethical and compliant business practices? How can we get smaller enterprises in frontier markets beyond a ‘box checking’ mentality by making anti-bribery compliance a ‘selling point’ ?  Read More...

Q&A with ABB Legal Counsel on Anti-Corruption Compliance

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CIPE’s Anna Kompanek Director of Multiregional Programs interviews Lisette van Eenennaam Group Legal Counsel Integrity, Vice President, ABB Asea Brown Boveri Ltd about anti-corruption compliance for international corporations.

What attracted you to the field of anti-corruption compliance?

I became interested in related topics quite early when I was in law school in the Netherlands and I chose to specialize in International and European law – specifically human rights. I had the opportunity to do an internship at a Dutch multinational company where I supported the drafting of their first anti-corruption policy. About a year later, for my Master Thesis, they asked me to research the United Nations draft norms on human rights for international corporations. To my slight surprise, my first job saw me at a corporate investigations company where I started as an investigations analyst. Corporate investigations was fun and exciting, and as a result I moved on to several jobs in the field of private and public fraud and corruption investigations.  Read More...

The Value of Business Process Management to Anti-Corruption Programs

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Business Process Management Team at the Iraq Ministry of Agriculture

By Robert E. Ross, Managing Director of Global Enterprise Consulting

When you think of corruption, you may not think about process and key performance indicators as critically important. And yet, establishing the appropriate foundation and metrics is critical to unearthing and preventing corruption in public and private sector entities. Corruption sees no boundaries. The conflicts in Iraq, for example, and the constant struggles among political parties, religious factions, and governmental leaders have allowed corruption to expand unchecked and unchallenged. Numerous other countries face the same ongoing challenges, whether in a post-conflict state or functioning in a seemingly stable environment. Yet Non-Governmental Organizations (NGOs), concerned citizens, and ministry workers eagerly strive to address corruption and improve delivery of services by government ministries and agencies to citizens in all areas, especially health services, pharmaceutical distribution, and basic utilities. Combating unfairness, social inequities, waste, fraud, abuse, and poor service delivery are inherent in anti-corruption programs.  Read More...

Instituting an Effective Compliance Program

The third video of CIPE’s Anti-Corruption Compliance series looks into detail the initial steps for instituting an effective compliance program. The video explains how to implement the following points:

  • conduct a risk assessment for a company’s specific business unit, geographic location, or for the entire firm;
  • develop a code of conduct with anti-corruption and bribery as the foundation for all company policies & procedures;
  • build a sound compliance infrastructure with a strong corporate governance that sets the right tone from the top as well as a chief compliance and ethics officer who looks at compliance issues within companies;
  • and provide regular, on-going education and training services for management, staff and board members on important elements of compliance system.

Learn more about each of these points by watching the video here.

This video is part of CIPE’s video series that explores the basic elements of an anti-corruption compliance system. The content of the videos are based on CIPE’s Anti-Corruption Compliance Guidebook .  Read More...

A Plan for Integrating Local Partners into the Global Supply Chain

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CIPE’s Frank Brown, Value Chain/Anti-Corruption Program Team Leader, offers strategies to help local firms in emerging markets navigate and implement anti-corruption international standards on The FCPA Blog. Brown explains that local firms in emerging markets are interested in joining international supply chains but often do not have adequate compliance practices in place to be selected by multinationals. See the full article hereRead More...

Can Corruption Act as a Barrier to Entry in the Private Sector

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This blog post was originally published by Accountability Lab. Posted on CCTrends with permission.

“Power doesn’t corrupt people, people corrupt power.” – William Gaddis

Corruption, defined as exploitation of entrusted power for private benefit is, unfortunately,  prevalent in Pakistan. It can take many forms, including bribery, graft, theft and extortion. In the corporate sector, its presence reduces business credibility when professionals misuse their positions for personal gain. Corruption has not only been identified as one of the most significant constraints to private sector development but is also becoming a leading problem for people all around the world.

Engagement in corruption depends heavily on the costs and risks involved, and these vary from region to region. Corruption in business is an economic issue, and it will linger as long as the gains from unethical behavior surpass the anticipated losses that are, in turn, closely linked to the probability of being caught.  Read More...

Video: An Effective Anti-Corruption Compliance Program

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The second video of CIPE’s Anti-Corruption Compliance series explores what corruption is, and also provides an overview of best practices for implementing an anti-corruption system in a company. The animated clip outlines why taking a prevent, detect, respond framework works best for companies and how to reduce risks by setting up a comprehensive compliance system that incorporates 7 steps:

  • Standards of conduct, policies, and procedures
  • Compliance oversight, commitment and resources
  • Education and training
  • Monitoring and auditing
  • Reporting and investigation
  • Enforcement, discipline and incentives and
  • Response, prevention and improvement

Learn more by watching the video here.

This video is part of CIPE’s video series that explores the basic elements of an anti-corruption compliance system. The content of the videos are based on CIPE’s Anti-Corruption Compliance Guidebook .  Read More...

Xi is Committed ‘Rule by Law’ not ‘Rule of Law’

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CIPE’s Michelle Chen, Program Officer in the Asia Region, discusses Xi’s anti-corruption campaign in China on the FCPA blog. Chen focuses on how, when there is not a broader-based rule of law in place, an anti-corruption campaign cannot be effective.  She identifies ways in which China’s anti-corruption campaign has been used to further the regime’s own agenda rather than address systemic corruption issues.

See the full blog at: http://www.fcpablog.com/blog/2016/7/7/michelle-chen-xi-is-committed-to-rule-by-law-not-rule-of-law.html#sthash.kAwXDQxu.dpuf  Read More...

What does ISO 37001 Mean for Firms in Emerging Markets?

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Image: trident-integrity.com

In the relatively new sphere of anti-corruption compliance, 2016 is shaping up to be one of the most significant years ever. Not because of a record fine levied against a multi-national corporation. Nor because of a new law or stepped up enforcement. But, rather because a group of compliance practitioners from dozens of countries have painstakingly devised a new global standard that lays the groundwork for unambiguous anti-corruption compliance certification of firms large and small.

The new standard, known as ISO 37001 – Anti-bribery management systems, is set to be released for use on September 15 by the Geneva-based International Organization for Standardization (ISO). The ISO is the global body that develops and maintains thousands of standards, ranging from technical and industrial specifications that ensure products can work together – how pipes are threaded, the data structure of CD-ROMs, the direction of on/off switches in aircraft, the dimensions of camera film and office paper – to environmental practices and health and safety in the workplace.  Read More...