FTSE Group launched on 21 February 2006 criteria for countering bribery for its FTSE4Good Index Series. The criteria are based on the Business Principles for Countering Bribery and were developed in conjunction with Transparency International (TI). The development process included a wide public consultation exercise and the criteria have been widely welcomed by companies, investors, NGOs, and government bodies. Companies that are high risk according to the new criteria and currently FTSE4Good constituents must meet the criteria to remain in the index, according to a timetable of phased deadlines. The criteria will be implemented into the index series on a phased basis over two years, beginning 1 July 2006.

Jermyn Brooks, Board Member of TI and leader of TI’s private sector programmes said: “Transparency International welcomes the introduction of the FTSE4Good Criteria for Countering Bribery and is delighted to have contributed to their development. Too few companies have systematic approaches to implementing anti-bribery polices and these criteria, based on past FTSE4Good experience, will encourage development of corporate anti-corruption practices, initially in high-risk companies, but eventually in all major companies. The criteria, both initial and planned for future implementation, indicate the basic levels that companies should attain and will encourage consistency of approach.

Companies will recognise the business reasons for countering bribery as exemplifying their values and supporting their risk management approach by protecting reputation but corruption lies behind many social issues such as poverty, environmental damage and abuse of human rights. The FTSE4Good criteria signal that countering corruption is an important part of the corporate social responsibility agenda. If we are to achieve the Millennium Development Goals then corruption must be tackled and the FTSE4Good criteria are an important contribution towards this aim.”

For further information visit FTSE4Good.

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Note: The FTSE4Good Index Series identifies companies that meet globally recognised Corporate Responsibility standards in environmental sustainability, relationships with stakeholders, and universal human rights. The Criteria for Countering Bribery are the last outstanding criteria development commitment identified at the launch of the FTSE4Good Index Series.

The FTSE4Good criteria for Countering Bribery are intended to set a standard for companies which is challenging but achievable. The objectives of the criteria are to encourage the vast majority of high impact companies who have not yet achieved best practice standards in the management of bribery to take action and put into place quality management systems to address these issues. Once applied, the new criteria will therefore ensure that all FTSE4Good constituent companies that are assessed as having a higher potential risk of exposure to bribery and corrupt practices are managing these risks appropriately.