Global Compact Network Belgium workshop

Anti-corruption policy: a case study

10th June 2010

UN Global Compact Network Belgium

Global Compact Network BelgiumGlobal Compact Network Belgium

A little bit of history:

•Taskforce of founding members Belgium established in June 2009

•Outreach event 15th October 2009: 300 participants

•General Assembly meeting: 25th February 2010

Ministry ForeignAffairs

FT & DC

JCI

Bonas-Couzyn Efico

Ubeon

Rosy Blue

KBC group

GC Network Belgium

Global Compact Network BelgiumGlobal Compact Network Belgium Today

Members:•Total members today: 42, 18 Formal and 20 Associated

Activities:•TI Belgium lunch seminar on Corruption in Business

•COP Workshop: Workshop on COP started

GCNB Total Members

86%

14%

Scheduled EventsScheduled Events

• Global Compact Leaders Summit 2010: Lessons learned, hosted by KBC on July 6th

• Workshop on Supply-chain management together with Business & Society

• Regional European Local UN GC Networks Network event on October 29th

Global Compact Network BelgiumGlobal Compact Network Belgium

Global Compact Network BelgiumGlobal Compact Network Belgium

•Connect the current Belgian participants to the global network

•Incorporate CSR practices based on the 4 pillars of UNGC with other initiatives: joined efforts

•Improve CSR reporting standards

“Promote a culture of compliance and the rule of law by providing systematic ways to help improve day-to-day conduct of business”

Mission of the Local NetworkMission of the Local Network

UN Global CompactUN Global Compact

The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption.

The Global Compact is a leadership platform, endorsed by Chief Executive Officers, and offering a unique strategic platform for participants to advance their commitments to sustainability and corporate citizenship.

The Global Compact is policy framework for the development, implementation, and disclosure of sustainability principles and practices and offering participants a wide spectrum of specialized workstreams, management tools and resources, and topical programs and projects

UN Global Compact objectives and actionsUN Global Compact objectives and actions

•Mainstream the 10 principles

in business around the world

•Catalyze actions in support of broader UN goals

Shape an initiative that provides

collaborative solutions

to the most fundamental

challenges

facing both business and society

Combine moral authorityand convening power,

with the private sector’s solution-finding

strengths, and the expertise and

capacities of a range of key stakeholders

Make us of a unique

Constellation of participants

and stakeholders –

bringing companies

together with governments,

civil society, labour, the UN

and others

BenefitsBenefitsAdopting an established and globally recognized policy framework for the

development, implementation, and disclosure of environmental, social, and governance policies and practices

Sharing best and emerging practices to advance practical solutions and strategies to common challenges

Advancing sustainability solutions in partnership with a range of stakeholders, including UN agencies, governments, civil society, labour, and other non-business interests

Linking business units and subsidiaries across the value chain with the Global Compact's Local Networks around the world -- many of these in developing and emerging markets

Accessing the United Nations' extensive knowledge of and experience with sustainability and development issues

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights, andPrinciple 2: Businesses should make sure they are not complicit in human rights abuses.

Human rights

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour;

Principle 5: Businesses should uphold the effective abolition of child labour; andPrinciple 6: Businesses should uphold the elimination of discrimination in respect of

employment and occupation.

Labour standards

Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: Businesses should undertake initiatives to promote greater environmental

responsibility; and Principle 9: Businesses should encourage the development and diffusion of environmentally

friendly technologies.

Environment

Anti-corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

United Nations Global Compact: 10 PrinciplesUnited Nations Global Compact: 10 Principles

Principle 10: Anti-corruptionPrinciple 10: Anti-corruptionOrigin of the 10th principle 

On 24 June 2004, during the UN Global Compact Leaders Summit it was announced that the UN Global Compact henceforth includes

a tenth principle against corruption. Underlying legal instrument 

With the adoption of the United Nations Convention against Corruption in Merida, Mexico in December 2003, an important global tool to fight corruption was introduced. The Convention is the underlying legal instrument for the 10th principle against corruption and entered into force on 14 December 2005.

Objectives and definitionObjectives and definition

Objectives of the 10th principle  The adoption of the tenth principle commits UN Global Compact participants not only to avoid bribery, extortion and other forms of corruption, but also to develop policies and concrete programs to address corruption. Companies are challenged to join governments, UN agencies and civil society to realize a more transparent global economy.

How to define corruption?  Corruption can take many forms that vary in degree from the minor use of influence to institutionalized bribery. Transparency International's definition of corruption is "the abuse of entrusted power for private gain". This can mean not only financial gain but also non-financial advantages.

Extortion & BriberyExtortion & Bribery

What is meant by extortion?  The OECD Guidelines for Multinational Enterprises define extortion in the following way: "The solicitation of bribes is the act of asking or enticing another to commit bribery. It becomes extortion when this demand is accompanied by threats that endanger the personal integrity or the life of the private actors involved."

... and what about bribery?  Transparency International's Business Principles for Countering Bribery define "bribery" in the following way: "Bribery: An offer or receipt of any gift, loan, fee, reward or other advantage to or from any person as an inducement to do something which is dishonest, illegal or a breach of trust, in the conduct of the enterprise's business

Practical steps to fight corruptionPractical steps to fight corruption

The UN Global Compact suggests to participants to consider the following three elements when fighting corruption and

implementing the 10th principle• Internal 

As a first and basic step, introduce anti-corruption policies and programs within their organizations and their business operations;

• External Report on the work against corruption in the annual Communication on Progress; and share experiences and best practices through the submission of examples and case stories;

• Collective Join forces with industry peers and with other stakeholders

United Nations Convention against CrimeUnited Nations Convention against Crime

• Corruption poses a threat to the stability and security of societies, undermining the institutions and values of democracy, ethical values and justice and jeopardising sustainable development and rule of law

• Corruption that involves assets constituting a substantial proportion of State resources, may threaten political stability and sustainable development

• Links between corruption and organised, economic crime • No longer local matter, but trans-national phenomenon • Comprehensive and multi-disciplinary approach needed to prevent

and combat