1. New Zealand and Australia Can Lead the World Through Just Business Rotary Institute, Michael Fowler Centre Saturday, 6 December 2014, 9.30am Suzanne Snively (ONZM), Chair Transparency International New Zealand suzanne.snively@paradise.net.nz “I would serve my nation but I have a reverence for humanity. Let this then by my vision of the future – my extended family, all creeds, all races, all nations.” Dame Mira Szaszy (1921 – 2001) www.transparency.org.nz

2. Rotary is committed to ensuring that: First: The development of acquaintance as an opportunity for service; Second: High ethical standards in business and professions; the recognition of the worthiness of all useful occupations; and the dignifying of each Rotarian’s occupation as an opportunity to serve society; Third: The application of the ideal of service in each Rotarian’s personal, business, and community life; Fourth: The advancement of international understanding, goodwill, and peace through a world fellowship of business and professional persons united in the ideal of service. Four way test: 1. Is it the Truth? 2. Is it Fair to all concerned? 3. Will it build Goodwill and Better Friendships? 4. Will it be Beneficial to all concerned? Rotary Values Provide a Framework www.transparency.org.nz

4. For countries that like to win at everything they do, Australia and New Zealand have had disappointing news this week. Both countries dropped in the Transparency International rankings of the least corrupt public sectors. New Zealand is now #2 and Australia is #11. The contrast is greater for our other Rotary visitors, also in the top half of the 175 countries scored and ranked: - Taiwan, ranking 35 th with a score of 61. - Philippines and Sri Lanka both ranking 85 th with scores of 38 (along with India and six other countries). Transparency International Corruption Perception Index www.transparency.org.nz

5. Australia and New Zealand are unique: Both countries have the knowledge to demonstrate ethical, transparent, and corruption free practices, where integrity systems operate as antidotes to corruption They observe international anti-corruption conventions They have public, community, NGO and private institutions who are working towards maintaining good governance and transparency, key elements of strong integrity systems (though lack of resources make them vulnerable) They are involved in supporting programmes available for the anti- corruption and transparency work in the Pacific Australia and New Zealand are Unique www.transparency.org.nz

6. TI Corruption Perceptions Index Transparency International’s Corruption Perceptions Index (TI CPI) ranks countries "by the perceived levels of corruption of their public sectors, as determined by expert assessments and opinion surveys." TI National Integrity System (NIS) Assessment On 13 November 2012, TINZ set out to discover whether this perception of New Zealand was valid through the 2013 National Integrity System Assessment. According to the 2013 NZ NIS, New Zealand’s institutions generally scored well for integrity. Australia completed its own NIS several years ago TI CPI and NIS: Opportunity to be Proud www.transparency.org.nz

7. The core messages of the 2013 New Zealand National Integrity System Assessment: “stronger action to promote and protect integrity in NZs is overdue”. www.transparency.org.nz/nis The SFO/TINZ on-line training is a tool for engaging employees to ensure that their organisations are as good as their public sector is perceived. www.transparency.org.nz/anti-corruption-training Everyone Can Take Action to Protect Integrity www.transparency.org.nz

8. Everyone benefits from strong integrity systems… Strong integrity systems: Foster public trust – building legitimacy – ensure the sustainability of our institutions – engage citizens’ respect for our institutions Supports tax system / tax base Strong integrity systems support social cohesion with diversity Benefits from Strong Integrity Systems www.transparency.org.nz

9. Everyone benefits from strong integrity systems… Strong integrity systems: Foster public trust – building legitimacy – ensure the sustainability of our institutions – engage citizens’ respect for our institutions Supports tax system / tax base Strong integrity systems support social cohesion in an increasingly diverse country Benefits from Strong Integrity Systems Plentiful Renewal Resources for a Pacific Focused on Sustainability Benefits from Strong Integrity Systems Plentiful Renewal Resources for a Pacific Focused on Sustainability www.transparency.org.nz

10. I Trust is an economic as well as a constitutional and social value International perceptions of Australia’s and New Zealand’s trusted public sectors, backed up by NIS evidence of actual good law and practice, benefit the taxpayer and business. The economic zones in the Pacific will be the sources of sustainable, renewable resources IF there is good governance ensuring transparent monitoring and reporting of how the resources are protected and usage monitored. Strong Integrity Systems Good for Business www.transparency.org.nz

11. There are 7 key areas that enhance competiveness, profitability and productivity. The first two are: Reputation and brand are powerful galvanisers drawing global interest in New Zealand products and services, increasing activity, revenue and the size of the tax base Absence of corruption means a lower cost of doing business every day of the year in New Zealand Strong Integrity Systems Good for Business www.transparency.org.nz

12. The other 5 of the 7 key areas that enhance competiveness, profitability and productivity are:.. It can also result in a lower cost of capital It supports easier market access Responsible entities achieve a higher rate of return on investment Staff prefer to work for ethical organisations Ethical organisations achieve greater customer value. For many organisations, the benefits of the 7 key areas above are largely unrealised – to be realised, organisations need to focus on good governance that sets a strategic direction aimed at gaining the returns from them. Strong Integrity Systems Good for Business www.transparency.org.nz

13. By promoting good governance and just business through Rotarian values, Australia and New Zealand can exemplify the attributes of strong integrity systems and help organisations take the steps to realise the returns. Joined by Rotarians from Taiwan, Sri Lanka and the Philippines, they can promote the economic gains from just business. Building strong integrity systems demonstrates trusted governance, Good governance, setting a strategic direction to maximise the 7 benefits of this, enhances innovation, productivity and profitability, in this way generating ecomonic growth – go for it! Australia and New Zealand Can www.transparency.org.nz

14. Working together to address corruption, Australian and New Zealand Rotarians can help grow the world’s yellow zones! www.transparency.org.nz

15. DISCLAIMER This proposal is for information and discussion purposes. Peace on Earth Transparency International (New Zealand) Inc cannot accept any liability whatsoever for the consequences from the use of this presentation by any party in any circumstances. Comment, including reference to others’ knowledge, is actively sought and will be considered in future discussion. Thank You www.transparency.org.nz