1 Workshop Business abroad: how to manage corruption risks? 19 November 2010 Chantal Hébette Chair Transparency International Belgium

2 What is Transparency International?  created in 1993  Transparency International exists to create change towards a world free of corruption; to challenge the inevitability of corruption  global movement and world-wide network of national chapters in over 90 countries

National Chapters around the world

How does TI define corruption? Corruption is… …the abuse of entrusted power for private gain.

INTEGRITY Government & Public Sector Civil SocietyPrivate Sector o fights corruption at its roots o analyses and diagnoses corruption o develops coalitions with governments & public sector, private sector, civil society o is politically non-partisan o does not undertake investigations o combines local and international expertise TI’s approach

6 TI Tools such as:  research National Integrity Studies (NIS) Global Corruption Reports (GCR)  indices Corruption Perceptions Index Bribe Payers Index Global Corruption Barometer  business Business Principles and self-assessment tools Integrity Pacts (between business and government with civil society monitoring)

7 TI’s Global Priorities oreduce corruption in politics (e.g. political party and campaign financing) ocurb corruption in public contracting oenhance private sector anti-corruption standards (e.g. Business Principles) oadvance and monitor implementation of international conventions against corruption (UNCAC, OECD) oreduce corruption in poverty and development

8 The Belgian Chapter ocreated in 1995 oreactivated in October Executive team oaction fields

9 TI-Belgium Action Fields 1. promote and mesure integrity o National Integrity System (NIS) for Belgium 2. curb corruption in public contracting o training in Public Procurement for Belgian civil servants (OLAF) 3. promote public whistleblowing policy 4. reduce corruption in politics o “Transparency & Politics”: 2 inquiries & follow- up o financing of Belgian political parties(GRECO)

10 TI-Belgium‘s Action Fields 5. enhance private sector anti-corruption standards o “Corporate Package” o “Banks & Ethics” academic think-tank, debates o follow-up of TRAC (Transparency in reporting on anti-corruption) 6. participate in international studies & monitor international conventions o Studies: Sanctions; Statute of limitations; Export credit agencies. o OECD convention. GRECO reports

11 Companies should put fight against corruption high on their agendas International consensus about the fact that corruption: ois a brake on economic development odistorts national and international trade ojeopardizes sound governance and ethics in the private sector oundermines democracy and the rule of law ois one of the most serious obstacles to reducing poverty

12 o Belgian companies o doing business in US, shares listed in US, acting on behalf of US company: FCPA o with part of business in UK: Bribery Act (April 2011) extra-territorial application/ high fines/ imprisonment of individuals o Long term: sanctions in 5-7 years for acts committed today o Fair play is good business: cost of bribery/ good to work with/for & invest in clean company o Goes beyond legal compliance: adequate procedures Companies should put fight against corruption high on their agendas

Programme 8:108:30Reception 8:308:40Welcome Chantal Hébette, Chair Transparency International 8:409:25 Foreign corruption: consequences for Belgian companies Pascale Helene Dubois, Sanctions Evaluation and Suspension Officer, World Bank 9:2510:10 Foreign corruption: concrete Belgian cases Evert-Jan Lammers, Managing Partner Triforensic, Executive professor at the Antwerp Management School 10:1010 :30Coffee break 10 :3011 :15 How preventive anti-money laundering measures contribute to fighting corruption Jean Spreutels, Judge at the Constitutional Court, professor at ULB, former Chair of the Belgian Financial Intelligence Unit (CTIF) 11:1512:00 Social costs of corruption and collective action. An agenda for action Djordjija Petkoski, Professor at the Wharton School, Head of the Business, Competitiveness and Development team at the World Bank Institute 12:0012:35Panel Q&A 12:3512:40Concluding remarks Chantal Hébette 12 :4013 :30Light Lunch and networking