TRAC: TRANSPRENCY IN REPORTING OF
TRAC: TRANSPRENCY IN REPORTING OF
Dealing with corruption in high-risk territories April 3rd 2014
Robert Barrington, Executive Director Transparency International UK
Is there a corruption problem?
Corruption Perceptions Index 2013
BRIBE PAYING IS STILL VERY HIGH
Global Corruption Barometer, TI, 2013
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7 things that distinguish better companies
Survey of 129 global defence companies - Board leadership - Risk assessment - Effective extension of programme to third parties - Quality of training programme - Whistleblower follow-up - Board reviews programme’s effectiveness - Public reporting Source: TI-UK, Defence Companies Anti-Corruption Index, 2013
Dealing with corruption
Three steps
1. Avoid it in the first place The most important step • • • • •
Understand the risks Understand the market Train key staff Be able to turn the business down Smart project design - Trusted third parties - Anticipate pinch-points - Payment mechanisms - Timescales - Transparent bidding processes
• Does this have to be expensive? - Much market intelligence available free - Training available free www.doingbusinesswithoutbribery.com - Pay for specialist and tailored advice
2. Dealing with it If you get this far you’ve already got a problem • • • • • • •
Having a strategy Feeling supported internally Determination not to pay Knowing who to contact Finding allies in the system Collective action Tried & tested techniques - No, sorry I can’t - Ha, good try - Yes I have got all year - Can I record this? - I can embarrass you into stopping this - You are breaking the law - etc…
2. Dealing with it – example
Scenario: senior government official demands large bribe Key points: a negotiation that will take some time; official may be vulnerable; not everyone in the country is corrupt Some strategies: • Make your policy clear at the outset • Don’t say yes – delay the response till you have thought what to do • Consult internally and agree the response • Explain to the official the reasons why it is not possible • Bring others to your meetings – escalate the seriousness for the official • Go over the official’s head – possibly • Give the official an elegant way to back down – possibly • Engage allies – anti-corruption commission, officials with integrity
3. Reporting it The satisfaction of revenge • Internal vs external reporting • Internal – who to? • Sympathetic voice or getting fired? • Problems with recording • Real experience is the best way to avoid it next time
• External – who to? • Embassy • Trusted government officials • SFO • Bribeline/ipaidabribe • Transparency International
Summary
• • • •
It’s everywhere – but don’t panic Step 1: avoid it in the first place Step 2: know how to deal with it Step 3: report it – and learn for next time
TI’s Adequate Procedures series
www.transparency.org.uk