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Business Ethics: Transparency International Latvia perspective Tallinn, April 8 2008 Agris Varpins, Development Director Sabiedrība par atklātību DELNA / Transparency International Latvia. Presentation Road-Map. TI Latvia contribution to a better business environment - PowerPoint PPT Presentation
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Business Ethics:Transparency International
Latvia perspective
Tallinn, April 8 2008
Agris Varpins, Development DirectorSabiedrība par atklātību DELNA / Transparency
International Latvia
Presentation Road-Map
TI Latvia contribution to a better business environment
Integrity Pact a tool for government and businesses
TI Latvia business survey:major findings
TI Latvia activities in the area of business integrity
TI Business ethics club www.biznesspretkorupciju.lv Integrity Pact with the
Ministry of Culture
TI Latvia Business Ethics Club (Concept)
Informal and open TI Business principles, UN
Global Compact Resource in implementation of
anti-corruption strategies Developing reputation through
demonstration of values New marketing instrument Synergie of competences
Integrity PactMinistry of Culture, Agency Three New
Brothers, TI Latvia
• The National Library: 230 million EUR• Museum of Contemporary Art: 27 million EUR•Concert Hall: 45 million EUR
Integrity Pact main principles
• Public administration, business and NGO cooperation for corruption prevention
• Agency procedures streamlined
• Mandatory anti-corruption declaration
• TI Latvia right to participate in decision-making before the final decision is taken
Main Conditions of Integrity Pact
Grace period given to agency/ministry to remedy situation
Bidders not complying with Anti-corruption declaration excluded from the process
Agency has the right to withdraw the contract if there is reasonable doubt about a contractor involvement in corrupt behavior.
Benefits for Businesses
Encouragement to implement anti-corruption programmes and codes of conduct
More competitive industry Access to free-of-charge
expertise Whistle blowers mechanism Building integrity alliances
Merko Ehitus/Merks case• Excluded from competion • Reasonable doubt about
corruption• Information from Estonia’s
Prosecutor General Office• Initial wihdrawal from
submitting a bid• Accusation of TI Latvia being
biased
German business in Latvia (2007)
19 responses out of 32 95% - precise definition of
corruption 84% “have heard” about
corruption in their sector 11% have used corrupt
methods
US business in Latvia (2008)
Originally 37 businesses Answers from 12 Refused to participate 8
US business in Latvia (2008)
75% - have codes of conduct 16% - anti-corruption
programmes 91% - would bribe if
companies existance was in question
36% - does not extend requirements of code of conduct or anti-corruption programme to partners
Businesses and anti-corruption policies
Corruption is declared as unacceptable, however, there is no active anti-corruption stance
Discrepancy between level of corruption in the country and high ethical standards of companies
Not willing to speak openly about business ethics
