Programs John Morrell Regional Director, Asia November 2016 How - - PowerPoint PPT Presentation

Potential Role of ISO 37001 In Private Sector Anti-Corruption Programs

Center for International Private Enterprise

John Morrell Regional Director, Asia November 2016

How ISO 37001 Might Help

• Center for International Private Enterprise

(CIPE) is the international affiliate of the United States Chamber of Commerce

• CIPE implements and supports anti-corruption

programs around the world

– Private sector perspective

• Business associations, think tanks
• Corporate governance, corporate compliance

– Lack of “gold standard” – role of ISO

How ISO 37001 Might Help

Thailand

• Corruption is a source of constant frustration for

businesses in Thailand

• Public sector paralysis means that the private

sector must act if corruption is to be addressed

– Hence the interest in “collective action”

• But they didn’t know how to do it

– Focused only on Integrity Pacts

• No private sector champion

– Would not work if led by government or a donor

Collective Action – Initial Steps

• Define the problem
• Private sector survey on corruption

– IOD and Chamber members surveyed – To document the nature of corruption in Thailand

• Corruption not limited to public procurement
• An institutional approach was needed

– Create incentives for stakeholders to avoid bribery – Make ethical business practices and compliance the norm and isolate violators (as opposed to the other way around)

How ISO 37001 Might Help

Thailand

• Collective Action Against Corruption
• Among the strongest private sector anti-

corruption initiatives in the world

• 300 major Thai and multinational firms in

coalition; 1 million employees, 25% of Thai GDP

– Anti-Corruption Declaration & Business code of Conduct

• Specific and verifiable requirements
• Strong certification mechanism
• New and unique training programs

How ISO 37001 Might Help

Thailand

• CIPE partnered with the Thai Institute of

Directors (IOD)

– Corporate governance institute founded in 2000 – NOT an anti-corruption institute – CIPE provided the technical expertise in the beginning

• IOD is the local organizer and “public face” of

the collective action coalition

Creating a Certifying Coalition

• Anti-Corruption Declaration & Business Code
• f Conduct

– Specific and verifiable requirements

• 23 companies and 4 major business

associations pledged to sign up

– November 2010 conference – Coalition was born! – November 2016: 800+ companies

How ISO 37001 Might Help

Thailand

• Joining the coalition is not merely a photo-op

– Companies pledge to take specific, tangible steps – Signatories must submit to external verification

• Training courses

– Directors and senior executives (one day) – Compliance officers and finance staff (two day)

• Incredible private sector interest in this, but

lack of a “gold standard” – role of ISO

How ISO 37001 Might Help

Thailand

• A standard against which companies can

benchmark their anti-bribery compliance programs

• A standard against which private sector anti-

corruption approaches can be compared

– What standards should companies meet? – What specific things should CIPE verify? – What should companies be trained to do?

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Certification Process for Signatory Companies How ISO 37001 Can Add Value

• 1. Application/Commitment

1.1 The company applies to join the coalition by signing the Declaration 1.2 CAC Council accepts or not the application after checking preliminary qualifications.

• 2. Company executive(s) attend training course to

prepare for certification.

• 3. Verification process for CAC certification

3.1 Company completes the Self Evaluation and provides required attached documents 3.2 Verification by external audit 3.3 Evaluation of submissions and executive interview by CAC Council. Additional questions may be asked and further evidence required (including from relevant regulators). To pass, a company must get not less than 70% mark. Improvements within three months Fails to improve within 3 months Company is informed of evaluation result Company receives CAC Certification document Verification and certification every is renewed 3 years

• Legal registration status
• Membership of business associations
• Not in the news for corruption

(self assessment)

Impact of CIPE’s Work in Thailand

• Percentage of businesses that view corruption

level as “high” or “very high” increased from 81% to 93%

• Percentage that believe “progress is possible

in the fight against corruption” tripled, and percentage that “definitely” want to be part of a collective action initiative against corruption increased from 14% to 51%

– So we are impacting public perceptions!

How ISO 37001 Might Help

Kenya

• CIPE training East African companies on anti-

bribery compliance standards

– FCPA sentencing guidelines – vague – Need for established standards - role of ISO