Global Compact Network Belgium workshop Anti-corruption policy: a case study 10 th June 2010 UN Global Compact Network Belgium

Global Compact Network Belgium A little bit of history: Taskforce of founding members Belgium established in June 2009 Outreach event 15th October 2009: 300 participants General Assembly meeting: 25 th February 2010 GC Network Belgium KBC groupRosy BlueUbeonEfico Bonas- Couzyn JCI Ministry Foreign Affairs FT & DC

Global Compact Network Belgium Today Members: Total members today: 42, 18 Formal and 20 Associated Activities: TI Belgium lunch seminar on Corruption in Business COP Workshop: Workshop on COP started

Scheduled Events Global Compact Leaders Summit 2010: Lessons learned, hosted by KBC on July 6th Workshop on Supply-chain management together with Business & Society Regional European Local UN GC Networks Network event on October 29th Global Compact Network Belgium

Connect the current Belgian participants to the global network Incorporate CSR practices based on the 4 pillars of UNGC with other initiatives: joined efforts Improve CSR reporting standards “Promote a culture of compliance and the rule of law by providing systematic ways to help improve day-to-day conduct of business” Mission of the Local Network

UN Global Compact The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption.ten universally accepted principleshuman rightslabourenvironment anti-corruption The Global Compact is a leadership platform, endorsed by Chief Executive Officers, and offering a unique strategic platform for participants to advance their commitments to sustainability and corporate citizenship. The Global Compact is policy framework for the development, implementation, and disclosure of sustainability principles and practices and offering participants a wide spectrum of specialized workstreams, management tools and resources, and topical programs and projects

UN Global Compact objectives and actions Mainstream the 10 principles in business around the world Catalyze actions in support of broader UN goals Shape an initiative that provides collaborative solutions to the most fundamental challenges facing both business and society Combine moral authority and convening power, with the private sector’s solution-finding strengths, and the expertise and capacities of a range of key stakeholders Make us of a unique Constellation of participants and stakeholders – bringing companies together with governments, civil society, labour, the UN and others

Benefits Adopting an established and globally recognized policy framework for the development, implementation, and disclosure of environmental, social, and governance policies and practices Sharing best and emerging practices to advance practical solutions and strategies to common challenges Advancing sustainability solutions in partnership with a range of stakeholders, including UN agencies, governments, civil society, labour, and other non- business interests Linking business units and subsidiaries across the value chain with the Global Compact's Local Networks around the world -- many of these in developing and emerging markets Accessing the United Nations' extensive knowledge of and experience with sustainability and development issues

Principle 1:Businesses should support and respect the protection of internationally proclaimed human rights, and Principle 2:Businesses should make sure they are not complicit in human rights abuses. Human rights Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour; Principle 5: Businesses should uphold the effective abolition of child labour; and Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation. Labour standards Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility; and Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies. Environment Anti-corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. United Nations Global Compact: 10 Principles

Principle 10: Anti-corruption Origin of the 10th principle On 24 June 2004, during the UN Global Compact Leaders Summit it was announced that the UN Global Compact henceforth includes a tenth principle against corruption. Underlying legal instrument With the adoption of the United Nations Convention against Corruption in Merida, Mexico in December 2003, an important global tool to fight corruption was introduced. The Convention is the underlying legal instrument for the 10th principle against corruption and entered into force on 14 December 2005.

Objectives and definition Objectives of the 10th principle The adoption of the tenth principle commits UN Global Compact participants not only to avoid bribery, extortion and other forms of corruption, but also to develop policies and concrete programs to address corruption. Companies are challenged to join governments, UN agencies and civil society to realize a more transparent global economy. How to define corruption? Corruption can take many forms that vary in degree from the minor use of influence to institutionalized bribery. Transparency International's definition of corruption is "the abuse of entrusted power for private gain". This can mean not only financial gain but also non-financial advantages.

Extortion & Bribery What is meant by extortion? The OECD Guidelines for Multinational Enterprises define extortion in the following way: "The solicitation of bribes is the act of asking or enticing another to commit bribery. It becomes extortion when this demand is accompanied by threats that endanger the personal integrity or the life of the private actors involved."... and what about bribery? Transparency International's Business Principles for Countering Bribery define "bribery" in the following way: "Bribery: An offer or receipt of any gift, loan, fee, reward or other advantage to or from any person as an inducement to do something which is dishonest, illegal or a breach of trust, in the conduct of the enterprise's business

Practical steps to fight corruption The UN Global Compact suggests to participants to consider the following three elements when fighting corruption and implementing the 10th principle Internal As a first and basic step, introduce anti-corruption policies and programs within their organizations and their business operations; External Report on the work against corruption in the annual Communication on Progress; and share experiences and best practices through the submission of examples and case stories; Collective Join forces with industry peers and with other stakeholders

United Nations Convention against Crime Corruption poses a threat to the stability and security of societies, undermining the institutions and values of democracy, ethical values and justice and jeopardising sustainable development and rule of law Corruption that involves assets constituting a substantial proportion of State resources, may threaten political stability and sustainable development Links between corruption and organised, economic crime No longer local matter, but trans-national phenomenon Comprehensive and multi-disciplinary approach needed to prevent and combat