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[IWS] GLOBAL CORRUPTION REPORT 2009: CORRUPTION & THE PRIVATE SECTOR [23 September 2009]

IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau
________________________________________________________________________

Transparency International

Global Corruption Report 2009: Corruption and the Private Sector [23 September 2009]
http://transparency.org/news_room/in_focus/2009/gcr2009
or
http://www.transparency.org/publications/gcr/gcr_2009
or
http://www.transparency.org/content/download/46187/739801
[full-text, 496 pages]

Executive Summary
http://www.transparency.org/content/download/46184/739789

[excerpt]
After a first broad wave of anti-corruption activism and corporate social responsibility (CSR)
activities, business worldwide now has a clearer responsibility, more profound self-interest and
greater potential to assume a vital role in the fi ght against corruption. This is a key message of
the Global Corruption Report 2009, which brings together more than eighty recognised experts,
practitioners and scholars to present the most comprehensive analysis to date of corruption
and remedies for the business sector in all world regions.
The lesson from the analysis is clear: more of the same simply will not do. A step change
in strategy and action is required to ensure that corruption in the business sector is tackled
effectively.

œ Business needs to recognise that corruption risks start with bribery and go beyond, requiring
an integrated approach to corporate integrity and corporate citizenship.

œ Governments need to take advantage of a new generation of innovative tools and thereby
put much more emphasis on regulatory capabilities, actual enforcement and international
cooperation.

œ Civil society needs to become fully aware of how corruption in business is at the core of many
other social, developmental and environmental challenges, and must forge much broader
and more effective partnerships to support corporate integrity.

œ Stakeholders ­ from business owners, executives and workers to auditors, investors,
regulators and anti-corruption activists ­ have to acknowledge that corporate integrity is a
multi-stakeholder effort that requires collective action across sectors, borders and institutional
boundaries.

AND MUCH MORE....

Figures
1 Corruption risks within spheres of corporate activity 8
2 From corporate integrity to a corporate integrity system 9
3 Share of pyrethroid contracts won 28
4 The four key pillars of the Business for Social Responsibility framework 64
5 Increase in business codes among Fortune Global 200 companies, 1970­2007 84
6 Measures at the Fortune Global 200 to embed their codes of ethics 87
7 Percentage of companies using whistleblowing systems and their effectiveness 94
8 Key standards: reach and potential impact 105
9 Staff for public enforcement of securities regulation, selected countries 125
10 Budgets for public enforcement of securities regulation, selected countries 125
11 Forms of corruption in the private sector, 2007 249
12 Corruption and poverty 396
13 Types of foreign bribery 405
14 Respondents stating that corruption was 'very relevant' or 'highly relevant' to their business 410
15 Percentage of respondents from each country stating that corruption took place 'often' and 'always' when companies compete for public sector contracts 411
16 Percentage of respondents from each country stating that corruption took place 'often' and 'always' when companies compete for private sector contracts 412
17 Reasons why IPUs' activities are not registered 414
18 Proportion of IPUs that were in contact with public agents and made payments to them 415
19 Administrative corruption and degree of informal activity 417
20 Number of companies by rating category 421
21 IOC and NOC average results, by areas of revenue transparency 425
22 Financial penalties collected annually: SEC compared to FSA (US$ millions) 434
23 Financial penalties collected annually (US$ per billion dollars market
capitalisation) 435

Tables
1 Disclosure policies for executive remuneration in selected European countries 91
2 Executive remuneration policies in Asia 92
3 Independent directors and corporate governance in the Middle East and north Africa 93
4 Whistleblower laws for private sector employees in Asia 95
5 Selected standards in comparative perspective 104
6 Sovereign wealth fund scoreboard: leaders and laggards 115
7 Offences and related provisions in regional and international anti-corruption conventions 118
8 Shortcomings in OECD country anti-corruption legislation 122
9 Comparison of the level of obstacles for doing business: rank among 181 countries 171
10 Acceptability of corrupt practices in the private sector 172
11 Prevalence of corrupt practices according to the reason for giving a gift or bribe in the course of paying local taxes, by sector 173
12 Classification of the causes of corruption in public sectors/services 173
13 Corruption Perceptions Index 2008 397
14 Bribe Payers Index 2008 404
15 Predicted probability of the willingness to register according to the types of
contact with public agents 415
16 TRAC country/territory rankings 422
17 Foreign bribery cases and investigations 427
18 Resources for public enforcement in securities regulation, selected countries 432

Boxes
1 Making compliance feasible rather than walking away 65
2 Engaging workers in supply chain integrity 65
3 Facing up to the consequences of bribery: a real-world case 121
4 Global bribery risks and the global banking system: some recent examples 141
5 Extract of an interview with Mr Farid Lahoud, Banque Audi 193
6 Information sought on corporate anti-bribery efforts for TRAC survey 420

______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

****************************************
Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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