news room/in focus/2010/World Economic Forum 2010

27 January 2010

_{Photo:swiss-image.ch/Annette Boutellier}

“Rethink, Redesign, Rebuild” is the banner under which more than 2,500 leaders from 90 countries, representing business, government and civil society, will meet at the World Economic Forum’s Annual Meeting in Davos. Transparency International (TI) Chair Huguette Labelle and Managing Director Cobus de Swardt are there to ensure that transparency, accountability and integrity remain at the top of the agenda.

TI will participate in discussion to tackle challenges such as the governance failures laid bare by the global crisis, mainstreaming zero corruption in the private sector and stemming illicit trade. Critical to overcoming these hurdles will be identifying stumbling blocks, best practices and frameworks in which government, business and civil society can collectively forge innovative solutions.

>> Government

Swiftly and fully implement international conventions, such as the UN Convention against Corruption and the OECD Anti-Bribery Convention. For example, TI’s 2009 Progress Report on the enforcement of the OECD convention exposed active enforcement in only four of the 38 countries covered.
Deliver new financial regulation needed on “too big to fail” institutions, hedge funds and derivative trading. Such regulations were identified by G-20 leaders as the main structural answers to the crisis back in 2008 and have yet to materialise
Strip tax havens of their anonymity to act against illicit tax evasion and make it harder for corrupt individuals to hide illicit gains.

Mitigate emerging risk. As governments publicly and financially support green technologies, the risks of corruption, state capture and conflicts of interest needs to be guarded against in terms of technology selection and distribution of financial incentives
Promote transparent and accountable procurement. By adopting Integrity Pacts – signed agreements committing institutions or organisations to ethical behaviour – governments can send the message that corruption will not be tolerated.

>> Business

Commit publicly to clean business and deliver. Zero tolerance for corruption needs to go from best practice to standard practice in the business world. Recent TI research reveals that many leading companies make high-level, strategic commitments to prevent corruption but still have a long way to go in reporting how these commitments are integrated into their policies and activities. CEOs can voice their company’s support of the UN Convention against Corruption by signing up to the UN Global Compact’s CEO letter campaign.

Instil transparency, accountability and integrity at the very core of their operations. For instance, publicly listed financial-service firms in all countries should fully and publicly disclose any shareholdings owned by directors to protect against any conflicts of interest.
Guarantee accountability across borders and all the way down supply chains. In a globalised world, it is more important than ever for companies to ensure that their anti-corruption systems are robust, up to date and rigorously enforced

>> Civil society

Engage constructively with public and private sector actors. Civil society participation lends decision-making legitimacy, but with this comes the responsibility to unflinchingly hold both governments and business to account.
Conduct independent research. Diagnostic studies, such as TI’s National Integrity Systems Studies, can provide governments with clear evidence of where specific reforms are needed most.

Build consensus. By bringing different players to the table, civil society can develop effective and practical tools to mitigate corruption risks. For example, TI’s Business Principles for Countering Bribery, developed in collaboration with multinationals and non-corporate stakeholders, provide a model of good practice adaptable to different company sizes and settings.
Identify best practices. Benchmarking recognises good performance and provides compelling evidence to raise the bar. For example, one-third of the companies assessed in TI’s report on Revenue Transparency of Oil and Gas Companies were considered high performers.

>> TI and the World Economic Forum

>> Media Coverage

Davos: food security and the fight against corruption, Thai PM’s priorities
Asia News, 01 February 2010
Beleaguered Bankers Get Some Support
Wall Street Journal, 28 January 2010

Media Contact:

Berlin
Gypsy Guillén Kaiser
tel: +49-30-34 38 20-662
e-mail: ggkaiser@transparency.org