the Link more Explicit November 2016 Our Mission Our mission is to - - PowerPoint PPT Presentation

CSR and Anti-Corruption: Making the Link more Explicit

November 2016

Our Mission

Our mission is to work with business to create a just and sustainable

• world. We envision a world in which everyone can lead a prosperous and

dignified life within the boundaries of the Earth’s natural resources.

3

San Francisco New York Paris Guangzhou Copenhagen Shanghai Hong Kong Tokyo

8

OFFICES

75

PROJECT LOCATIONS

100

GLOBAL STAFF

250

MEMBER COMPANIES

+ + +

3

Global Nonprofit Business Network

We are a global nonprofit organization that works with our network of more than 250 member companies to build a just and sustainable world. From our offices in Asia, Europe, and North America, we develop sustainable business strategies and solutions through consulting, research, and cross-sector collaboration.

Corporate anti-corruption approaches must evolve

4

There is an established consensus on best practice for managing anti-corruption compliance programs, but many questions over how well this is working in practice. Consideration of corporate culture and corruption impacts are the new frontiers of innovation.

Commitment from senior management Code of conduct and policies Oversight, autonomy and resources Risk assessment Third party due diligence Training and continuing advice Confidential reporting and investigation Incentives and disciplinary measures

Best Practice

Top-level commitment Proportionate procedures Risk Assessment Due diligence and screening Culture, communication and training Monitoring and review

UK Adequate Procedures US FCPA Compliance Principles

Business ethics means going beyond compliance

5

Sustainability & CSR

• Sustainability reporting
• Responsible sourcing
• Stakeholder engagement
• Community relations
• Human rights impacts
• Carbon emissions
• Water and biodiversity
• Circular economy
• Environmental

responsibility

• ESG risk
• Labor and worker rights,

trafficking, slavery

• Diversity and inclusion
• Women’s empowerment
• Inclusive economies

There is a lack of alignment on thinking, messaging and approaches to business ethics in most organizations today. There is need to go beyond compliance and consider wider ethical conduct and relationships with the community. Ethics & Compliance

• Bribery
• Money laundering
• Sanctions
• Conflicts of interest
• Corporate governance
• Health and safety
• Whistleblowing and

grievances

• Reporting
• Training
• Auditing and monitoring
• Investigations
• Disciplinary systems

What would an integrated approach to business ethics look like?

6

The relationship between business and communities is evolving rapidly

Companies

Mounting economic, social, political and environmental challenges Increased expectations on corporate transparency and ethics Collapsing public (and employee?) trust in business and government Technology enabling new kinds of interaction with broader range of stakeholders, and stakeholder relationships with each other Growing role of business in sustainability and investor interest in ESG factors

Response Need for more collaborative, inclusive, and deeper engagement with society?

This is driving a new focus on stakeholder and community engagement

• Rise of hyper-transparency as a focus for civil society and a values system has brought a

new whistleblowing model of vast data leaks

• Developments in open data and involvement by society in ensuring government is clean

and benefits are shared throughout society

• Global/local distinctions are melting away, with ‘local’ problems being adopted by global

civil society organizations and vice versa

• This signals a fundamental shift in the terms and conduct of stakeholder engagement
• Increase in complexity of stakeholder relationships and management, including

expectations

• Transparency, timeliness and accountability are now fundamental operating principles

for a responsible company

• Enhanced understanding of impacts of companies, industries, and specific projects and

companies’ understanding of stakeholders interests, demands, networks

• Increase in the number (and effectiveness?) of communication and other engagement

channels

• Increase in potential impact/risk that stakeholders pose to companies
• Greater transparency into supply chain operations and global interconnectivity

7

Ethics and compliance needs to align with CSR

8

• CSR programs can increase corruption by directing resources to the most powerful

and loudest stakeholder voices, or, they can bolster inclusivity, engagement and collaboration, which reduces risk in turn

• Key to this is an understanding of both CSR and corruption in the context of

relationship with the community and society

• Greater focus on expanding the types of stakeholders engaged (non-traditional),

prioritizing across issues and networks, understanding their needs and interests

• Increase in investment in the most important stakeholders and issues, as well as

the training of staff (all are ambassadors now)

• Establish internal framework for ensuring alignment across engagement

touchpoints and space and time

• Incorporate stakeholder engagement processes and outcomes into strategic

business planning and implementation Engagements drive value though new insights or through results that companies cannot achieve on their own Multi-level engagement on material issues at market, regional, and HQ levels

• Grievance mechanisms must be anonymous, available and in line with international

human rights best practice – if implemented properly, they can be of huge assistance in helping companies identify and address corruption risk

9

Conclusions

• Pressure on business to address ethical questions is set to increase,

perhaps dramatically

• The discourse of CSR and sustainability has lacked an explicit focus on

ethics, but this is changing

• Ethics and compliance teams have expanded power, responsibility,

liability

• The future might see greater focus on:
• Increasing coalescence around human rights, transparency and

environmental justice

• Collaboration for systemic change via business, society and

government networks

• Diagnosis and analysis of organizational culture
• Greater alignment between commercial and oversight functions on

strategy, goals and incentives

• More structured thinking on stakeholder trust

Thank You! Alison Taylor, Director, Advisory Services ataylor@bsr.org

10