Business Keeper AG

Our newsletter (in English / German) is released four times a year and contains event notes as well as information and recent publications concerning whistleblowing, business ethics, CSR and compliance.

 

2011

Newsletter IV/2011

Newsletter III/2011

Newsletter II/2011

Newsletter I/2011

 

2010

Newsletter IV/2010

Newsletter III/2010

Newsletter II/2010

Newsletter I/2010

 

2009

Newsletter IV/2009

Newsletter III/2009 

Newsletter II/2009

Newsletter I/2009

 

2008

Newsletter III/2008

Newsletter II/2008

Newsletter I/2008

 

Contents

1. Judgment of the ECHR concerning Whistleblowing
2. Current Studies concerning Compliance and Corruption
3. Freedom of Information in Kenya
4. Implementation Status of the UN Convention against Corruption (UNCAC)
5. Business Keeper at International Anti-Corruption Conferences in Morocco
6. Scholarship for Corruption Research
7. Events
8. Literature
9. Quotation

Dear readership!
We would like to welcome you to the fourth edition of the Business Keeper newsletter in 2011. We have accumulated new information concerning business ethics, compliance and whistleblowing and hope to arouse your interest with our selection.
Enjoy reading!
The Business Keeper-Team

1. Judgment of the ECHR concerning Whistleblowing

The European Court for Human Rights (ECHR) has declared in its judgment of July 21th, that the instant dismissal of an employee because of the disclosure of grievances violates the European Convention on Human Rights. The complaint of an offense is covered by Article 10, the right for freedom of opinion.
more...

2. Current Studies concerning Compliance and Corruption

Researchers of the Technical University in Chemnitz have found a strong correlation (85 percent) between bribery concentration and the frequency of the conversion of national debts. The more corruption occurs in a country, the greater is the probability that a state does not pay back its debts. The scientists compared Transparency International's Corruption Perception Index CPI with the frequency of the conversion of national debts. Given these findings, the EU aid for Greece should be seen critically – with a CPI score of 3,5 it ranges on the same position as Thailand and Lesotho.
more... (in German)

Last week Transparency International's latest Bribe Payers Index (BPI) was published. The BPI lists the 28 leading export states concerning the willingness of their companies to pay bribes abroad. Only three countries scored better than Germany: Netherlands, Switzerland and Belgium. Already in July, the organization published its annual report.
more... and more...

The study “Who is the typical fraudster?“ of the auditing company KPMG shows the typical fraudster: male, around 45 years old and for more than ten years in the company. Greatest motivation factor of the delinquents is the gain of money. In 74 percent of the cases, lacking internal controls had been taken advantage of. A total of 348 cases from 69 countries were included in the study.
more...

3. Freedom of Information in Kenya

As the first African country, Kenya has launched an Open Data portal to make government data accessible on an Internet-based platform for every citizen. The Kenya Open Data Portal uses published data from various ministries on indicators like government spending at national and county level, Constituency Development Fund budget allocation and the status of projects in the county, data from the national census capturing demographic and development information, as well as the location of key infrastructure in the county, such as health facilities and schools. In other fields of the fight against corruption, Kenya is a trailblazer too: the national anti corruption authority KACC uses the whistleblower system BKMS® already since 2006 very successfully.
more...

4. Implementation Status of the UN Convention against Corruption (UNCAC)

The first internal report cards concerning the status of the implementation of the United Nations Convention against Corruption have been published. In Finland and Spain a high compliance standard has been found, the protection of witnesses and whistleblowers has to be strengthened though. In Mongolia the bribery of public officers has to be made liable to prosecution. Uganda should expand its corruption laws to foreign officials. More report cards will be released soon.
more...

5. Business Keeper at International Anti-Corruption Conferences in Morocco
On October 22nd and 23rd the 5th annual conference and general meeting of the International Association of Anti-Corruption Authorities (IAACA) took place in Marrakech, Morocco. Afterwards the Conference of the States Parties to the United Nations Convention against Corruption held a meeting. Business Keeper AG was represented at both high class experts' meetings by its founder and director Kenan Tur. International anti-corruption authorities who are Business Keeper's customers also took part and presented the BKMS® System as a practical solution for the fight against corruption and for the strengthening of civil society in different workshops.
more... and more...

6. Scholarship for Corruption Research

The anti corruption research network of Transparency International calls for young researchers to deliver articles for the yearly contest until November 15th. The anti-corruption research paper competition gives young scholars an opportunity to take up the challenge of filling important knowledge gaps in the field, present innovative approaches for measuring and understanding corruption and showcase new findings on what works and what does not in tackling corruption and ensuring sound governance. Submissions can be on any topic related to corruption. The winner will be awarded with a travel grant for an international research conference.
more...

7. Events

Fraud-Management – White-collar Crime in Germany
November 17th, Berlin, Germany
How secure are companies meanwhile? How well do the new departments secure against white-collar crime? These and other topics are discussed by science and company representatives, e.g. Kenan Tur, founder and director of Business Keeper AG.
more... (in German)

Experience Circle Healthcare
November 24th, Munich, Germany
Business Keeper AG organizes an exchange of experiences for the healthcare sector. We would like to offer our guests an exclusive discussion among health insurers concerning the fight against misconduct.
more...

Annual Forum Compliance Practice 2012
December 1st, Vienna, Austria
The annual forum shall be a meeting point for compliance executives of banks and companies who wish to get a general idea of trends and current developments in just one day.
more... (in German)

International CSR Conference of BMAS
December 15th and 16th, Berlin, Germany
The German Federal Ministry for Labor and Social Affairs (BMAS) organizes this international conference with the topic Corporate Social Responsibility. The emphasis lies on “CSR – Social responsibility in the international dialog“: the national CSR action plan of the German Federal government, CSR activities of the European Union, the Organization for Economic Co-operation and Development, the International Labor Organization, the United Nations and other international organizations.
more...

8. Literature

Global Compact International Yearbook
Macondo 2011, ISBN: 978-3-9813540-1-0
Exemplary entrepreneurial commitments can foster and create incentives for other companies. To guide companies along this road, they need a blueprint for corporate sustainability. This is the focal topic of the new Global Compact International Yearbook. Guidelines for consumer standards and labels, an analysis of the new ISO 26000 SR Standard, and a debate about the historic changes in the Arab world (including an article by Business Keeper AG) are other major topics explored.
more...

9. Quotation

Very early in the morning is much too late for what one should have done the evening before.
Johann Heinrich Pestalozzi

---

 



Contents

1. Anti-Corruption Package for the EU
2. Current Studies concerning Corruption and Compliance
3. UK Bribery Act came into force
4. Whistleblower Award
5. Smartphone Application for Corruption
6. Business Keeper published Communication on Progress
7. Events
8. Literature
9. Quotation

1. Anti-Corruption Package for the EU

According to estimations by the EU Commission there is a yearly loss of 120 Billion Euros for the European economy because of corruption. Starting in 2013 the EU Commission wants to report about successes and failures of anti-corruption efforts in the 27 EU member states every two years in an own anti-corruption report. With the new instrument the commission wants to demonstrate deficiencies and to suggest improvements on the level of the individual member states.
more...

The EU Commission has agreed to a change of their code of conduct. For members who quit the Commission there will now be a time of competitive restriction of 18 months. In case that there is a conflict of interest for an active commissioner the dossier will be undertaken by a colleague. Spouses are no longer allowed to work in the office of the commissioners. Commissioners are not allowed to make use of the hospitality of their business partners. The ethics committee will be strengthened and their decisions will be make public.
more...

With a ”transparency register“ of the European Commission and the European Parliament the influences of industries, organizations and other lobbyists to European politics should increasingly be made public. The register is also to list law firms, think tanks and NGOs.
more...

2. Current Studies concerning Corruption and Compliance

In 207 national studies the NGO “Global Integrity” rates the anti-corruption systems of countries in the whole world. The reports are based on the findings of local researchers, journalists and scientists. The current studies underline the increasing risks of corruption especially in those countries where many protests occurred this year: Egypt, Morocco, Yemen and the West Bank. Improvements were recognized in Eastern European countries like Bulgaria, Rumania and Poland, when they were anxious to fulfill the requirements of the European Union and the NATO. However, efforts decreased after their accessions.
more...

Transparency International published its “Global Corruption Report (GCR)“ with the emphasis on climate change in May. The governments of the industrial countries have promised to increase the financing for climate measures by 100 Billion US-Dollars annually until 2020. A lot of this money will be given to countries which range on the last ranks of Transparency International’s “Corruption Perceptions Index (CPI)”. The 20 states mostly affected by climate change are the ones with a high corruption risk. In the corruption index with a scale from 0 (extremely corrupt) to 10 points, none of these countries reaches a higher value than 3.6.
more...

In an international study “Who is the typical fraudster?” the auditing firm KPMG analyzed 348 cases from 69 countries to develop an offender’s profile. In 87 percent of the cases the offender is male and in a leading position (82 percent), mostly in the finance or in the sales department. In 76 percent of the offenses the offender is between 36 and 55 years old. About two thirds of the offenders had already worked five years for the company, one third even ten years, at the point of time at which the offense is disclosed.
more...

Ernst & Young carried out 2.365 interviews in 25 countries for their “European Fraud Survey 2011“. Across Europe 62 percent of the interviewed persons are convinced that corruption and bribery are common in their country. More than one third would be prepared to offer donations or entertainment to make business transactions. But the acceptance of bribery is not the same in every country: whereas employees in Greece (44 percent) and Russia (39 percent) are prepared to pay bribes, in Norway only 6 percent would be willing to do so.
more...

3. UK Bribery Act came into force

On July 1st the UK Bribery Act came into force. Companies and individuals render themselves liable to prosecution under the British law when they have business with Great Britain not only when paying or accepting bribes. Companies are also liable when they do not impede corruption, even if the offender is only a business partner. Transparency International Great Britain has published a guidance document concerning the UK Bribery Act.
more...

4. Whistleblower Award

On July 1st the Whistleblower award of the Union of German Scientists (VDW) and the German section of the Union of Lawyers (IALANA) was awarded to Dr. Rainer Moormann and to “Anonymus”. Dr. Moormann works in the nuclear research facility, today’s Research Center in Jülich, since 35 years. During the past years he has contributed to the questioning of risk potentials with scientific publications and lectures in Germany and other countries. ”Anonymus” is the person who published the video “Collateral Murder” via Wiki leaks. The Whistleblower award is given to persons who have uncovered severe grievances, risks or misguided developments of public interest in their area of profession.
more... (in German)

5. Smartphone Application for Corruption

For smart phone users there is an application available which shows cases of bribery, their extent and the affected area on a map. First the application defines the user’s position and then visualizes the cases of corruption in his surroundings. If users discover cases of corruption, they can report this anonymously with the help of this application.
more...

6. Business Keeper published Communication on Progress

Since many years we are actively engaged in the Global Compact of the United Nations. That includes the publishing of an annual communication on progress in which we show how we integrate the ten principles concerning human rights, labor, environment and anti-corruption in our daily work.
more...

7. Events

Degree program: Certified Ethics & Compliance Officer, 1st sequence
September 19th until 23rd, Constance, Germany
The University of Constance and the Constance Institute for Corporate Governance have developed a degree program for further education as a Certified Ethics and Compliance Officer in cooperation with the Lake Constance Business School.
more... (in German)

8. Literature

Key Concepts in Corporate Social Responsibility
Suzanne Benn, Dianne Bolton
Sage Pubn Inc, January 2011. ISBN-13: 978-1847879295
The reference book contains more than 50 terms to the topic CSR.
more...

The Age of Responsibility: CSR 2.0 and the New DNA of Business
Wayne Visser
Wiley, February 2011. ISBN-13: 978-0470688571
The provoking theses are to demonstrate the next evolution level of Corporate Social Responsibility. The author is one of the most active CSR advocates worldwide.
more...

9. Quotation

Who wants to identify right, hast to have been in doubt before.
Aristotle

---

 

Contents

1. OECD evaluates Germany regarding the implementation of the convention
2. Studies concerning compliance and corporate governance
3. Third BKMS® Experience Day regarding compliance and whistleblowing systems
4. News about the UK Bribery Act
5. German companies present their sustainability insufficiently
6. Legal protection for whistleblowers boosts whistleblowing systems
7. Transparency International Integrity Awards 2011 - Nominations
8. Events
9. Literature
10. Quotation

 

Dear readership!

We would like to welcome you to the second edition of the Business Keeper newsletter in 2011. We have accumulated new information concerning business ethics, compliance and whistleblowing and hope to arouse your interest with our selection.

Enjoy reading!

Your Business Keeper-Team

The working group for anti-corruption of the Organization for Economic Cooperation and Development (OECD) evaluated Germany’s implementation of the “Convention on Combating Bribery of Foreign Public Officials in International Business Transactions”. In the last years, Germany has strengthened its actions against cases of bribery of foreign officials. There are still improvements necessary to prosecute companies and to enforce sanctions. The upper limit for fines remains too low; to date one million Euro for the bribery of foreign officials by companies. Germany should guarantee that sanctions are definitely higher than the illegal profits.
more...

In March, the OECD has presented a new initiative to improve the coordination of anticorruption and transparency initiatives. At first it is supposed to be implemented for all member states; afterwards with other important actors like governments, international organizations, NGOs and in the private sector.
more...

2. Studies concerning compliance and corporate governance

The Association of Certified Fraud Examiners (ACFE) released its “Report to the Nations for 2010”. It points out that the loss caused by fraud damages in companies averages 5 % of the annual turnover. 80% of the fraud cases were committed by staff in accounting, operative business, sales, top management, distribution and purchasing. 80% of the companies changed or increased their control mechanisms after a fraud case. The results were based on 1.843 cases from 100 countries in the period from January 2008 until December 2009.
more...

Transparency International and the New Yorker Revenue Watch Institute published a study regarding the transparency efforts of global player oil and gas enterprises. The companies were rated concerning three criteria: general information about anti corruption programs, transparency of the corporate structure and statements about the business relations to individual countries. Companies which are listed on the stock market are more transparent overall.
more...

3. Third BKMS® Experience Day regarding compliance and whistleblowing systems

This year's BKMS® Experience Day took place on March 31st and April 1st, hosted by Commerzbank AG with its impressive "Haus der Commerzbank" next to the "Brandenburger Tor" in Berlin, Germany. About ninety invited guests listened to experts' lectures as well as to a panel discussion with the emphasis on compliance and whistleblowing systems. Our key note speaker Professor Dr. Klaus Leisinger (Novartis Foundation for Sustainable Development) referred to the topic "Corporate responsibility with a global business ethos". On the previous day, the BKMS® users' forum met in a closed group of participants for a confidential exchange of experiences. The informative program was completed by a visit of the Federal Chancellery and a boat trip on the river Spree with a Get-Together in the evening.
more...

4. News about the UK Bribery Act

On July 1st 2011 the UK Bribery Act will come into force. The law applies to all companies with offices in Great Britain or with business relationships to persons or companies in Great Britain. Under the new law, bribes will remain illegal. Presents, hospitalities, agents and business partners will have to be controlled better; a corporate liability will be introduced. Recently the British government published guidance for the Bribery Act to help companies in implementing the law. From the point of some critics, it’s a help to find gaps.
more...

5. German companies present their sustainability insufficiently

German companies perform poorly in several rankings concerning business responsibility. One reason could be the different interpretation of good corporate governance in comparison with the North-American definition. Many social and environmental standards are mandatory in Germany based on laws. Therefore, these are not mentioned in the companies’ sustainability reports; different to the statements in Anglo-Saxon companies.
more... (in German)

6. Legal protection for whistleblowers boosts whistleblowing systems

At their conference in Seoul, the G20 formulated the target to establish and implement regulations for protecting whistleblowers by the end of 2012. An article in the magazine juve remarks that whistleblowing systems could then obtain broad acceptance also in SMEs.
more...

7. Transparency International Integrity Awards 2011 - Nominations

Launched in 2000, the awards honor the bravery of individuals and organizations around the globe whose efforts are making a distinct difference in curbing corruption. Until June 30th candidates can be proposed for the TI Integrity Award 2011. Nominees should have undertaken an action that is likely to significantly influence, or to have had a significant impact on existing levels of corruption in his, her or their respective country, region or globally.
more...

8. Events

1st practice panel for compliance management: Compliance management in emerging markets
May 5th and 6th, Constance, Germany
This event is a cooperation of the Constance Institute for Corporate Governance and the user’s council for value management. Requirements, challenges and chances of compliance management in important emerging markets will be considered and discussed.
more... (in German)

Compliance Day 2011
May 13th, Munich, Germany
Experts from business and law present best practices and latest developments from their points of view.
more... (in German)

11th annual conference of the council for sustainable development
June 20th, Berlin, Germany
With the title “…and what does sustainability mean? A place for opinions”, this event is to provide a stage for new ideas and complex concepts.
more... (in German)

9. Literature

The Prosecution and Defense of Public Corruption: The Law and Legal Strategies
Peter J. Henning, Lee Radek
Oxford University Press, March 2011. ISBN 978-0195378412
This book offers a detailed legal analysis of the unequal fields of law which are used to pursue public officials.
more...

10. Quotation

You do not solve problems by putting them on ice.
Winston Spencer Churchill

 

---

 

Contents

1. ISO 26000: First international guideline for social responsibility
2. Current studies concerning corruption and compliance
3. Transparency International‘s Integrity Awards
4. BKMS® System upgraded with case management tool
5. Whistleblower protection in Malaysia
6. High US-penalties for European companies
7. Events
8. Literature
9. Quotation    

1. ISO 26000: First international guideline for social responsibility

The guideline provides orientation and suggestions how all types of organizations should act to be viewed as socially responsible. It contains 100 pages and is explicitly not intended for certification but voluntary in use. “ISO 26000“ is a worldwide accepted framework for social responsibility in seven core subjects (organizational governance, human rights, labour practices, the environment, fair operating practices, consumer issues, community involvement and development).
more…

2. Current studies concerning corruption and compliance

Transparency International published its “Corruption Perceptions Index“ at the end of October. The CPI ranks 178 countries in terms of perceived levels of corruption, as determined by expert assessments and opinion surveys. New Zealand, Denmark and Singapore reach the highest scores. Germany degrades to position 15. Afghanistan, Myanmar and Somalia rank on the last positions.
Considering a study by the “Reporters sans Frontières“ concerning freedom of the press, a high level of freedom of press correlates with a high CPI score, that means with a low vulnerability to corruption.
more... and
more...

Another opinion poll by Transparency International, the “Global Corruption Barometer 2010“,  provides an indicator of how corruption is affecting individuals on a national level and how efforts to curb corruption around the world are viewed on the ground. The 2010 Barometer, the seventh edition, reflects the responses of 91,000 people in 86 countries, and offers the greatest country coverage to-date. One of four citizens worldwide has paid a bribe to public authorities or institutions in the past twelve months. About half of them wanted to avoid problems, about one fourth wanted to accelerate public authorities’ procedures.
more...

3. Transparency International‘s Integrity Awards

Now in its tenth edition, the Integrity Awards were created to recognise the courage and determination of the many individuals and organisations confronting corruption around the world, often at great personal risk. The three individuals who are honoured this year are: the Russian lawyer Sergei Magnitsky who died in custody, the Gabonese Grégory Ngbwa Mintsa of Transparency International France and Attotage Prema Jayantha from Sri Lanka.
more…

4. BKMS® System upgraded with case management tool

The electronic whistleblowing system BKMS® System has been upgraded with two important modules. Therewith, it expands and concentrates the internal investigation process concerning breaches of laws and company guidelines. Responding to current requirements of the market, the software now contains a comprehensive reporting module with statistics, reports and decision memos which are prepared e.g. for presentations. Another new component is the case management, which allows for the administration and combination of all information after receiving the whistleblower’s report and dialogue.
more…

5. Whistleblower protection in Malaysia

To fulfil its commitments to the United Nations convention against corruption, Malaysia has enacted a Whistleblower Protection Act. The Act states that anyone who has evidence of someone who has committed a corrupt practice, act or fraudulent activity can file a complaint against that individual and refer the case to court. The whistleblower would be provided immunity from civil or criminal charges. Experts criticize the implementation, though.
more…

6. High US-penalties for European companies

US authorities prosecute corruption cases increasingly outside the USA. In the past year mainly European companies had to pay high fines or had to accept costly settlements after US investigations. Worldwide 1.5 billion US dollars have been imposed as a fine or settlement. In 2008, Siemens paid the highest fine so far with US$ 800 Million.
more…

7. Events

3rd BKMS® Experience Day
March 31st and April 1st, Berlin, Germany
The third BKMS® Experience Day will take place at the “Haus der Commerzbank“ next to the Brandenburger Tor. This year’s key aspects for the BKMS® users’ forum are the interaction with whistleblowers under employment laws, the crisis communication as well as the access rights of SEC to German companies. On the second day Professor Dr. Klaus Leisinger (Novartis Foundation for Sustainable Development), Dr. Andreas Pohlmann (Director Compliance Ferrostaal AG), Harald Prihoda (Head of Central Compliance Commerzbank AG) and others will speak about the issues data privacy and protection, international compliance systems, corporate responsibility and more. The experts’ meeting will close with a panel discussion.
more...

7th German CSR-Forum
April 5th and 6th, Stuttgart, Germany
Company representatives of all levels will discuss with representatives of the civil society, politics, media and science about current questions of Corporate Social Responsibility (CSR) and sustainability.
more… (in German)

8. Literature

Justice, Crime, and Ethics
Michael C. Braswell, Belinda R. McCarthy, Bernard J. McCarthy
Anderson Pub Co, February 2011. ISBN-13 978-1437734850.
The contributions in this book examine ethical dilemmas pertaining to the administration of criminal justice and professional activities in the field. Comprehensive coverage is achieved through focus on law enforcement, legal practice, sentencing, corrections, research, crime control policy and philosophical issues.
more...

The Anatomy of Fraud and Corruption: Organizational Causes and Remedies
Tomas Brytting, Richard Minogue, Veronica Morino
Gower Publishing Ltd, February 2011. ISBN-13 978-0566091537.
This book explores what happens when the fine line between competitive excellence and fraudulent and corrupt practice is crossed. It looks at how organizations as a whole and the people within it behave when fraud and corruption takes place.
more...

Foreign Corrupt Practices Act: A Practical Resource for Managers and Executives
Aaron G. Murphy
John Wiley & Sons, January 2011. ISBN-13 978-0470918005.
This is a critical FCPA training resource for executives, managers, sales, marketing, finance and accounting personnel, as well as high level professionals.
more...

9. Quotation

Values can only be preserved by change.
Richard Löwenthal

 

---

 

 

Contents

1. New British anti-corruption act
2. Current studies on compliance and corruption
3. New anti-corruption award for movies
4. International anti-corruption academy founded
5. German ranking of sustainability reports
6. Ethical business commitment and new partners of Business Keeper AG
7. Provisions for US whistleblowers
8. Events
9. Literature
10. Quotation

1. New British anti-corruption act

In April 2011 the new UK Bribery Act will come into effect. It will also apply to German companies with subsidiaries in the UK, even if the act of corruption takes place in a third country. For the first time bribery of companies by companies will be charged as well as facilitation payments and the failure to act against corruption. Companies are requested to prove that they have established appropriate means and processes against corruption. They are also liable for the actions of their co-operation partners. Exact guidelines for anti-corruption measures will be published by the ministry of justice soon.
more...

2. Current studies on compliance and corruption

In Transparency International’s yearly progress report concerning the implementation of the OECD Anti-Bribery Convention Germany scores well. Anyway Transparency calls for further reforms like the establishment of a criminal law for companies, because up to now corruption is punished as a regulatory offense, and not as a crime. Delinquent companies should be banned from public tenders and public prosecutors specialized for corruption should be strengthened. According to Transparency, only 7 of the 36 countries evaluated are actively enforcing the OECD Anti-Bribery Convention to which they are party.
more...

Researchers of the World bank, the London Metropolitan University and the Kiel Institute for world economy show in their new study “Corruption and Productivity“ that companies paying bribes are by trend less productive. Though they get orders and permissions faster, the bribe money lacks elsewhere: for better employees, new machinery or marketing campaigns. In less corrupt countries, corruption might be profitable for companies under certain circumstances. In what extent bribery pays off for companies depends on how much competitors pay. Nevertheless, the individual national economies always suffer from corruption.
more...  

3. New anti-corruption award for movies

The Croatian Motovun Film Festival has a long tradition of highlighting films that raise social awareness. This year for the first time, the best film that deals with the problem of corruption has been honored with the Corruption-free award: The French movie “In the Beginning (A l'origine)”, made by Xavier Giannoli in 2009.
more...  

4. International anti-corruption academy founded

The international Anti-Corruption Academy (IACA) with headquarters in Laxenburg / Austria is the first training center worldwide established to fight against corruption. Initiators are the United Nations Office on Drugs and Crime, the Austrian government as well as the European Anti-Fraud Office (OLAF). From autumn 2010 on, investigators such as policemen and public prosecutors will be taught by experienced experts in asset recovery, the tracking of asset flows and interrogation techniques. The gap between theory and practice shall be closed to establish a new generation of experts and multipliers in the fight against corruption worldwide.
more...  

5. German ranking of sustainability reports

The Institute for Ecological Economy Research (IÖW) and the association future e.V. carry out a ranking of German sustainability reports every two years. For the first time, corruption prevention measures have been included as an assessment criterion. The BASF Group was awarded for the best sustainability report, followed by Siemens and BMW.
more...  

6. Ethical business commitment and new partners of Business Keeper AG

This year we have again actively contributed to the implementation of the ten Global Compact principles of the United Nations and published our progress report.
more...

We were able to expand our network with new customers and partnerships with designated experts.

Digital spirit is one of the most renowned suppliers of corporate eLearning and eTraining content within German-speaking countries. For whistleblowing, and particularly for the BKMS® system, we have cooperated in creating a learning module.

With the support of MLT Compliance Solutions GmbH we can now offer the BKMS® system in combination with experienced ombudsmen. Dr. Reinhard Preusche, former Head of Group Compliance of Allianz SE, and Dr. Jan-Gerrit Iken are providers of compliance services and establish an operative platform for the outsourcing of compliance functions.
more...

Because of the fast expansion in many areas, we need more support for our team: We are looking for a HTML-Programmer as well as for an assistant for Customer Care / Sales as soon as possible.
more... (in German)  

7. Provisions for US whistleblowers

Whistleblowers shall receive provisions in the millions for the disclosure of illegal practices. According to the “Dodd-Frank Wall Street Reform and Consumer Protection Act“, part of the Wall Street reformations, there will be the following incentive: Those who contribute original information that leads to recoveries of monetary sanctions of $1,000,000 or more in criminal and civil proceedings will be awarded with between 10% and 30% of any monetary sanctions that are collected, based on the original information provided by the whistleblower. The Securities and Exchange Commission (SEC) expects that especially managers and third parties will be attracted by the high amounts.
more...  

8. Events

14th International Anti-Corruption Conference (IACC)
November 10th until 13th, Bangkok, Thailand
The conference is organized by Transparency International and others. This year’s emphasis lies on “Restoring trust: Global action for transparency“.
more...

4th Conference “Prosecution of Corruption“ 2010
December 9th, Berlin, Germany
Transparency Germany and the Friedrich-Ebert Foundation arrange this conference for the fourth time on the international Anti-Corruption Day.
more... (in German)

7th Meeting of the Anti-Corruption Working Group of the United Nations Global Compact
December 9th and 10th, New York, USA
The UN Global Compact working group will discuss how the private sector can further promote the UN Convention Against Corruption, and identify ways to scale up the existing private sector efforts in this regard.
more...  

9. Literature

Global Compact International Yearbook 2010
macondo, July 2010, ISBN 978-3-9810638-5-1
A profound retrospective of the first decade of the UN Global Compact, challenges in the light of the year of biodiversity, and instruments for an adequate Corporate Citizenship are some of the issues highlighted in this yearbook.
more...  

10. Quotation

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.

Warren Buffet

---

Contents

1. Checklist for the effectiveness of compliance programs
2. European resolution for whistleblower protection
3. Latest studies on whistleblowing
4. Fight against corruption differs in OECD member states
5. Global investors call for disclosure on anti-corruption measures
6. Declaration of G-20 Toronto summit
7. OECD guidelines for multinational enterprises are being revised
8. Impacts of corruption depend on gender
9. Events
10. Literature
11. Quotation

1. Checklist for the effectiveness of compliance programs

The FCPA blog (Foreign Corrupt Practices Act) has published twelve questions, based on the U.S. Federal Sentencing Guidelines of 2005, to check the effectiveness of an organization’s compliance program. The clearly defined program shall promote a culture of adherence to laws with the goal to disclose and prevent illegal behavior. It has to be communicated within the organization and contain a system to handle anonymous reports: "The organization shall take reasonable steps to have and publicize a system, which may include mechanisms that allow for anonymity or confidentiality, whereby the organization’s employees and agents may report or seek guidance regarding potential or actual criminal conduct without fear of retaliation."
more... 

2. European resolution for whistleblower protection

The Parliamentary Assembly of the Council of Europe has passed a resolution for whistleblower protection in April. The delegates recognize the courage and determination of whistleblowers to point out false practices in their organizations for the society’s interest. The European states are called on to check and adjust their legislations to protect these whistleblowers. One important aspect is anonymity: "The identity of the "whistle-blower" is only disclosed with his or her consent…"
more...

3. Latest studies on whistleblowing

Medium-sized companies with up to 1000 employees are disproportionately victimized by occupational fraud, according to the Association of Certified Fraud Examiners (ACFE)’s study "2010 Report to the Nations". It takes between 18 and 27 months to disclose these offenses – mostly with the help of anonymous reports. Occupational frauds are much more likely to be detected by tip than by any other means. Especially small organizations are typically lacking in anti-fraud controls and whistleblowing systems, which makes them particularly vulnerable to fraud.
more...

A study released in the New England Journal of Medicine in May shows that whistleblowers are mostly motivated by personal integrity, not by financial incentives. The finding is based on interviews with 26 US whistleblowers who received a share of financial recoveries through the disclosure of offenses of pharmaceutical producers in the years 2001 until 2009. Their incentives lay between 100,000 and 42 million US Dollars, in the average 3 million US dollars.
more...

4. Fight against corruption differs in OECD member states

According to the annual report of the Organisation for Economic Co-Operation and Development (OECD)’s Working Group on Bribery, only 13 of the 38 nations, that committed to fight the bribery of foreign officials, have imposed penalties over the 10 years since the Anti-Bribery Convention came into force in 1999. They sanctioned 148 individuals and 77 companies in total. For example, the USA have sanctioned 20 individuals and 20 companies whereas most parties to the convention, including the Netherlands, Australia and Spain haven't sanctioned any individual or company.
more...

5. Global investors call for disclosure on anti-corruption measures

A coalition of global investors has written to 21 major companies in 14 countries calling on them to improve their disclosure of bribery and corruption risks and avoidance measures. Companies from eight sectors - including defense, construction and capital goods - were contacted to explain whether their anti-corruption management systems adhere to international reporting frameworks. The investors behind this effort manage over US$1.6 trillion of assets in nine countries.
more...  

6. Declaration of G-20 Toronto summit

In their declaration, the participants of the G20 summit focus on transparency in the financial system and measures against money laundering. Explicitly they request all G20 members to ratify und completely implement the UN Convention against Corruption. They agree in the opinion that corruption threatens the integrity of markets, undermines fair competition, distorts resource allocation, destroys public trust and undermines the rule of law.

7. OECD guidelines for multinational enterprises are being revised

The OECD guidelines for multinational enterprises, existing since 1976, are currently revised again, ten years after the last revision. They contain recommendations for responsible entrepreneurial behavior concerning transparency, work relations, environment, corruption, consumer protection, technology transfer, competition and taxes in ten chapters. Organizations criticize that these are only recommendations without the imposition of sanctions.
more...  

8. Impacts of corruption depend on gender

A working paper "Corruption and Gender in Service Delivery: The Unequal Impacts" by Transparency International shows that corruption in the provision of basic services such as health and education can have disproportionate and negative consequences for women and girls. The systemic discrimination that poor women and girls already face – such as in education, justice, health care and jobs – is deepened when corruption becomes the currency for access.
more...  

9. Events

EBEN Annual Conference 2010
September 9th - 11th, Trento, Italy
The European Business Ethics Network organizes its 23rd annual conference with the focus on “Which Values for which Organizations”.
more...

4th International Conference on Corporate Social Responsibility
September 22nd - 24th, Berlin, Germany
Relying on global exchange and scientific discourse, the conference seeks to identify professional trends in CSR and suggest options for responsible action in an increasingly globalized world.
more...

The Economics of Corruption - Lecture and Workshop in Good Governance and Reform
October 9th - 16th, Passau, Germany
Around 100 participants are expected from around the world, including students, practitioners and doctoral scholars. Guest presentations by internationally reputable speakers will enrich the interdisciplinary course.
more...

10. Literature

RESIST: Resisting Extortion and Solicitation in International Transactions International Chamber of Commerce, United Nations Global Compact, Transparency International, World Economic Forum
The collection of practical means for the prevention and adequate handling of solicitation and extortion demands shall help organizations in training their employees.
more...

11. Quotation

Crises are best mastered by preventing them.
Walt Whitman Rostow (*1916), US-economist

---

 

Contents

1. Business Keeper AG’s new address
2. Scholarship program “Public Policy and Good Governance”
3. 10 years United Nations Global Compact
4. Current studies
5. New degree program “Certified Fraud Manager“
6. ISO launches international standard providing guidelines for social responsibility
7. Business Keeper scholarship
8. Development Banks cooperate in the fight against corruption
9. Events
10. Quotation

1. Business Keeper AG’s new address

On March 29th Business Keeper AG has moved its headquarters to the capital. Our new offices are located in Bayreuther Street 35 in 10789 Berlin. The building is situated directly on the Wittenberg plaza (Wittenbergplatz) vis-à-vis to the KaDeWe. You may contact us now at +49 (0) 30 88 77 444 0.
more...

2. Scholarship program “Public Policy and Good Governance”

The German Academic Exchange Service (DAAD) offers a new program “Public Policy and Good Governance” for future leaders in politics, law, economics and administration at the Hertie School of Governance in Berlin. The scholarship program, funded by the Federal Foreign Office, is designed to support Good Governance in Africa, Latin America, South Asia, and Southeast Asia as well as in countries in the Middle East. It shall strengthen civil society structures in selected regions. With the acquired knowledge and experience the scholarship holders should later contribute to the establishment of democratically oriented economic and social systems in their native countries.
more...

3. 10 years United Nations Global Compact

The former UN secretary general Kofi Annan called upon companies, governments and organizations to follow basic rules and values in their daily work. The so called ten principles include human rights, labor, environment and the fight against corruption. Today nearly 8,000 members take part in the Global Compact; also Business Keeper AG supports the ethical initiative by its active membership since 2002.
more...

4. Current studies

“Who Blows the Whistle on Corporate Fraud?” The US-survey shows that employees are by far the most important information source to detect criminal acts within organizations. However 82 percent of the whistleblowers, who did not stay anonymous, were transferred or laid off. Certified Public Accountants (CPAs) are in the same position: If they publicized grievance, in 91 percent of the cases their mandate was unseated.
more...

PricewaterhouseCoopers analyzed in a study the correlation between compliance and corporate culture in large enterprises and discovered that the acceptance and also the success of compliance programs and whistleblowing systems crucially depend on the corporate culture. Only a third (34 percent) of the companies have introduced a whistleblowing system. Fear of denunciation is one of the major objections (44 percent). The risk of abuse is overestimated however: Half of the enterprises did not report any abuses.

The overall trust of people in their fellow men decreases when the number of officials convicted of corruption rises. For this finding the American political scientist Sean Richey matched the arrests of officials in 50 US states with data about voters conduct, political participations and public opinion in the years 2000 until 2004. In the states having corruption on the government level, trust not only decreases concerning politicians themselves but also generally in the public.
more...

To the topic lobbying Burson-Marsteller conducted 500 interviews in 15 European countries. German politicians have a very ambivalent opinion on lobbying: Appreciated are the practicality of information, knowledge and reasoning of lobbyists. 61 percent request the exchange with lobbyists. 74 percent valuate lobbyists revealing the local and national relevance of an issue. On the other hand more than half of the German interviewees have concerns about the outcome of lobbying for the democratic decision process. All European respondents valuate two industries as particularly successful in the enforcement of their interests: energy providers and pharmaceutical companies.
more...

5. New degree program “Certified Fraud Manager“

For the first time, the Frankfurt School of Finance & Management will offer a degree program as “Certified Fraud Manager”. The extra-occupational studies are to impart the handling of fraud detection and the implementation of fraud prevention. In addition to specialized knowledge soft skills and psychological aspects will be taught. The first semester begins on May 7th 2010.
more... (German)

6. ISO launches international standard providing guidelines for social responsibility

After five years of development the international guideline for social responsibility for companies and organizations is to be launched by the International Organization of Standardization (ISO) in May: ISO 26.000. The guide is not perfect yet, critics say, but it comes with a high legitimacy, as the recommendations have been developed in consensus. Among others, our partner Dr. Annette Kleinfeld has been part of the expert think-tank.
more...

7. Business Keeper scholarship

Business Keeper AG cooperates with the Steinbeis College in Berlin and offers a 14,500 Euro-scholarship for the Master of Business Administration in the specialization Governance, Risk, Fraud Management and Compliance. Applicants may study further in the mentioned topics sideline for two years. In addition they can establish a top-class expert’s network. Please send your applications directly to the School GRC until July 23rd.
more... (German)

8. Development Banks cooperate in the fight against corruption

The World Bank and four regional development banks plan a joint blacklist of companies and individuals to be excluded from development projects. The agreement has been signed in Luxembourg by heads of the World Bank, Inter-American Development Bank, European Bank for Reconstruction and Development, Asian Development Bank and African Development Bank. Currently 162 companies and individuals from 25 countries are forbidden to bid on World Bank projects, the Asian Development Bank even bars 566 companies and individuals.
more...

9. Events

BKMS® Experience Day 2010
May 27th and 28th, Frankfurt / Main, Germany
The Experience Day exclusively pools experts from companies and administrations. The first day is specially arranged for a closed circle of participants in order to allow an open exchange between users of the BKMS® System. The second day features substantiated presentations on Compliance and Whistleblowing related topics for the panel of experts.
more...

EBEN Research Conference 2010
June 14th until 16th, Tampere, Finland
"From Theory to Practice – How does business ethics matter?" is this year’s topic of the European Business Ethics Network conference.
more...

2010 Global Compact Leaders Summit
June 24th and 25th, New York, USA
Executives from economy, civil society, science and politics are expected to attend, among heads of states and governments as well as CEOs of worldwide leading companies. The summit will be headed by UN Secretary General Ban Ki-moon and concentrates this year on “Building a New Era of Sustainability“. In focus is the exchange of information concerning ecologically and socially responsible governance as well as its implementation.
more...

10. Quotation

The more citizens with moral courage a country has, the lesser heroes it will need someday.

Franca Magnani, Italian journalist

Contents

1. GRECO reports on Germany have been published
2. Current surveys on compliance, corruption and whistleblowing
3. Corruption as an important subject in the EU
4. BKMS® Experience Day 2010
5. The DNWE Award for Business Ethics
6. Events
7. Literature
8. Quotation

1. GRECO reports on Germany have been published

The Group of States against Corruption of the Council of Europe (GRECO) criticises the anti-corruption initiatives taken by the German government. Twenty changes of law are recommended in the two evaluation reports "Criminalisation of Corruption" and "Transparency of Party Funding".

GRECO is the sub-organisation of the Council of Europe responsible for anti-corruption initiatives to whom belong forty-five European countries and the US. It does not deal with concrete cases, but supports states in the reformation of laws for the fight against corruption.

The reports’ recommendations include e.g. an accentuation of the offense to bribe a delegate as well as a prohibition of donating to candidates and delegates. Alternatively, members of the Bundestag and potential candidates may be obliged to follow the same principles of disclosure as political parties do.

Experts of GRECO have observed an extraordinarily limited definition of corruption of the national delegates, which focuses solely on the purchase or selling of votes at elections. Donations to individual politicians through lobbyists or sponsors which do not stand in contact with buying votes are not object of punishment. Moreover, the surveys criticise that only the names of big donators who spend more than Euro 10.000 in a year are to be disclosed and that bribery of members of the Bundestag is extensively exempted from punishment in general.

GRECO is in favour of the extension of the elements defining active and passive corruption of foreign delegates, functionaries and employees of international institutions. According to the experts this is important as Germany is strongly represented as important economic power in the international trade.

Until June 30, 2011, Germany will be granted the opportunity to realize these recommendations legally and the consequent reporting upon such.
more...  

2. Current surveys on compliance, corruption and whistleblowing

19 of the 30 biggest publically listed corporate groups in Germany have significantly extended or centralised their surveillance systems (compliance) within the last 5 years. The growing appreciation or – in some cases – the initial establishment of the compliance structures is the consequence of the big corruption and data scandals in Germany, so the Financial Times Germany.
more... (German)

Transparency International shows in the report “Alternative to silence: Whistleblower protection in 10 European countries“ that most of the included countries lack adequate laws to protect whistleblowers. Besides the legal support an educational process to destigmatise whistleblowing is also essential so that citizens understand the value of disclosing wrongdoing and how this benefits the public good.
more...

An Eurobarometer survey has found that on average 78 percent of the EU citizens regard corruption as a serious problem in their respective country. 42 percent find a strong connection between politics and economics for the most important source of corruption. According to a third of the citizens interrogated, governments and politicians do not take enough initiatives to fight corruption, punishments related to corruption are insufficient and there is a lack of transparency about the usage of public funds.
more...

People with power often expect higher moral behaviour from others than they are willing to indulge themselves. This is a conclusion of psychologists of the US Northwestern University and the Dutch University in Tilburg. The powerful very sincerely examine the behaviour of others while being very forgiving with their own actions. However, only those develop a dissembling behaviour who have not achieved power through hard work e.g. entrepreneurs, but who were conferred power.
more...

What factors influence susceptibility to corruption of a company in the procurement process? This question has been examined in a pre test by the chair of marketing of capital equipment and procurement management at the German Stuttgart University. The polled included procurement officers of SME specifically in the sectors of industry, energy, trade, technology and pharma. The susceptibility to corruption has been examined in four areas: organisational complexity, complexity of procurement processes, corporate culture and corporate internationalisation.
more...  

3. Corruption as an important subject in the EU

The EU has incorporated an anti-corruption clause in its five-year plan regarding the co-operation of the Judiciary and the Federal Ministry of the Interior (Stockholm Program). The Stockholm Program defines the competences of the EU at the evaluation and fight of corruption in sensible areas concerning the safety of the EU citizen.

Siim Kallas, vice president of the European Commission and commissioner of administration, audit and anti-fraud has introduced his report “My results 2005-2009”. Experts, however, criticize that achievements in some key issues would be overrated. According to them, the voluntary EU lobby register has too many weaknesses for achievements to be highlighted. Moreover, Siim Kallas regards the extensive ethical guidelines for EU functionaries as an achievement, which may have increased the level of cognition of potential conflicts of interest but the ethical guidelines of the EU Commission are still incomplete and their implementation is far from effective.

4. BKMS® Experience Day 2010

After a successful prelude-event in May 2009 in the Bertelsmann representative office in Berlin, attendees have called for a regular meeting of users of the BKMS® System and interested parties. Therefore, we have planned this year’s BKMS® Experience Day with the support of Fraport AG at the airport in Frankfurt on the Main. Again it will be held in a closed group of participants.

The circle of users of the BKMS® System which has been initiated by our clients will meet on May 27, 2010, from noon onwards to discuss specific topics regarding the implementation of BKMS® System. Subsequently, there will be a get-together to which all the participants of the following day are invited. Both events take place in the DaVinci House, a sound-proof building right next to the departure and landing runway of the airport.

On the following day, May 28, we will assembly experts on compliance and whistleblowing from 9am to 3pm in order to discuss current topics in the same manner as we did last year. The program of the event will be available in March.
more...  

5. The DNWE Award for Business Ethics

The German network for business ethics (DNWE) has awarded the price for business ethics 2009 to two organisations: the Business Social Compliance Initiative (BSCI) and the medium-sized Seafood specialist Ristic AG.

The award for business ethics has been assigned since 2000 every two years to exemplary initiatives and organisations who have successfully implemented their ethical guidelines in the daily routine.
more... (German) 

6. Events

5th European Forum on Anti-Corruption
January 26th and 27th, Frankfurt / Main, Germany
The faculty will not only answer questions about the increasing enforcement of U.S. and European authorities, but also provide the latest best practices to help minimise the company’s risk in an era of heightened scrutiny.

Practice Dialogue Compliance
January 28th and 29th, Berlin, Germany
To support companies in the implementation and communication of compliance issues is in the focus of digital spirit GmbH. The event offers the opportunity to exchange experiences of diverse aspects of compliance training and compliance communication. Referees from well-known companies will incite inspiring discussions with their very practical speeches.
more... (German)

Sustainable values for valuable sustainability - about ambiguity and cultural interpretations of responsibility
February 5th and 6th, Florence, Italy
Through this event Club of Florence seeks to promote an intellectual exchange and networking opportunity on the compatibility of strategic economic and ethical criteria, taking account of historical, philosophical and cultural circumstances and their rendering of accounts.
more... 

7. Literature

Economic Gangsters
Raymond Fisman and Edward Miguel
Looking at specific examples, the authors examine various methods and motives of corruption, how agencies counteract it, and what it means with regard to human nature and the fate of nations.
more...

8. Quotation

Trust is the most important asset for organisations; without it no good endeavour may succeed. It is precondition for prosperous doing in all areas.

Albert Schweizer

---

Contents

1. The sentence of the German Federal Court of Justice: Compliance officers are liable for a third party’s adherence to criminal law regulation
2. Current studies and statistics on corruption and business crime
3. Numerous information on the new Business Keeper AG website
4. Ludwig Erhardt award for dissertation in research on corruption
5. World Bank investigators and OLAF jointly target aid fraud
6. New European laws and judgements on the topics whistleblowing and compliance
7. Whistleblowing in Indonesia with the BKMS® System
8. Events
9. Literature
10. Quotation

---

Contents

1.  New Recommendations by the Commission of the German Corporate Governance Code
2.  International Transparency Initiative for the Fight against Corruption within the Construction Sector
3.  First BKMS® Experience Day Receives positive Feedback
4.  Current Studies on Corruption
5.  The World Bank’s Blacklist
6.  Whistleblower Award for Former Frankfurt Tax Investigators
7.  UN Global Compact urges the Ratification of the Convention against Corruption
8.  Freedom of Information Representatives demand Whistleblower Protection
9.  Events
10.  Literature
11.  Quotation

  

1. New Recommendations by the Commission of the German Corporate Governance Code

In meetings on May 29 and June 18, the Federal Commission of the German Corporate Governance Code has agreed upon further measures with regard to the limitation of manager salaries.
When formulating variable compensation features, positive as well as negative developments should be allowed for. The commission has agreed that no compensation feature should be incentive for managers to take inappropriate risks.
The legislator has integrated this commission’s formulation into the German stock corporation law (AktG) on June 18 upon the introduction of the law on adequacy of management compensation (VorstAG). The advisory board must, henceforth, introduce a limitation for variable compensation components for extraordinary developments for the management.
Furthermore, the following changes (among others) have been incorporated in the code:
In a D&O insurance for the advisory board, it shall be agreed upon a corresponding retained amount. For rotation of members of management into the supervisory board of the same company there is a designated duty of abstention of two years with the exception of family businesses. Members of management of a publically listed company shall henceforth not have more than three Board of Director’s seats in company-external publically listed companies.
more... (in German)

2. International Transparency Initiative for the Fight against Corruption within the Construction Sector

PricewaterhouseCoopers und British non-governmental organisations have inaugurated the Construction Sector Transparency Initiative (CoST), which is to prevent corruption of construction projects of the public sector by extended publishing of information.
CoST assembles teams for participating countries e.g. Vietnam, Tanzania and Zambia, which are to publish relevant information in order to give the public a chance to compare original plans with the outcome. Sponsors include the World Bank and the UK among others.
more...

3. First BKMS® Experience Day Receives positive Feedback

On May 28, the first BKMS® Experience Day took place at Bertelsmann, Unter den Linden 1, in Berlin. Approximately 70 participants from an economic, administrative and science background attended to hear presentations on value management, compliance and whistleblowing followed by a panel discussion.
The Experience-Day takes place in a closed circle of participants in order to allow for an open exchange between users of the BKMS® System with regard to compliance and whistleblowing.
more... 

4. Current Studies on Corruption

A study published on June 19 by Transparency International with the title “Transparency in Reporting on Anti-Corruption“ has shown that most leading companies report insufficiently on their anti-corruption measures, although public reporting forms an important component of fighting corruption. 500 companies from 17 countries, amongst Germany, have been investigated upon their reporting based on publicly available documents. The software and service industry as well as the pharmaceutical and biotechnology sector performed best according to this study.
more... 

Transparency International’s “2009 Global Corruption Barometer” shows that more than half of the participants of this worldwide survey perceive the private economy as corrupt. Only one out of five persons who have been asked to pay a bribe has reported the incident. This confirms that implementing efficient whistleblowing systems has become an indispensable component on today’s agenda.
more...

For the “European Fraud Survey 2009“ by Ernst & Young 2.200, employees in 22 European countries have been interviewed. Every fourth German employee finds corruption to be necessary in order to obtain mandates and almost every fifth German interviewee agrees upon the exchange of presents or expensive invitations.
more...

Transparency International introduced the “OECD Progress Report 2009“ on June 23 which shows that out of the OECD states, merely Germany, Norway, Switzerland and the US conduct active persecution of bribery overseas. The authors investigated upon the state of implementation of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions of 1997 in 36 member states. According to this study, 11 out of the 36 examined states are moderately involved in the persecution of foreign bribery, including France, the UK, Italy and Japan. None or almost no persecution is henceforth conducted in 21 states among which are Australia, Canada, Austria, and Turkey.
more...

5. The World Bank’s Blacklist

In January, the World Bank Group published a new list of companies and individuals excluded from participation of projects financed by the World Bank, as they have infringed upon the World Bank’s anti-corruption guidelines. In 2008, the World Bank granted more than 38 billions of US-Dollars for credits, investment assistance and guarantees for approx. 300 projects.
more...

6. Whistleblower Award for Former Frankfurt Tax Investigators

On May 9, two former Frankfurt tax investigators have received the whistleblower award of the Union of German Scientists (Vereinigung Deutscher Wissenschaftler VDW) and the German Section of the Union of Jurists (Deutschen Sektion der Juristenvereinigung IALANA). Rudolf Schmenger and Frank Wehrheim have been awarded for their commitment to reveal the obstruction processes during their investigations and the consequent destruction of their department.
more... (in German)

7. UN Global Compact urges the Ratification of the Convention against Corruption

The United Nations Global Compact has called the CEOs of its member companies upon signing a letter supporting the United Nations Convention against Corruption (UNCAC). The letter addresses the secretary general Ban Ki-moon and demands the introduction of examination mechanisms with regard to the implementation of the convention. The UNCAC was signed on December 9, 2003, by the German Federal Republic. It includes 71 articles with partly new criminal offenses. The agreement which has been approved by the UN General Assembly calls upon all governments to prosecute bribery and corruptibility. The agreement has become effective with the ratification of the signature of the 30th state in September 2005. Its implementation into German law is still in progress. The 10th principle of the Global Compact addresses the fight against corruption: “Businesses should work against corruption in all its forms, including extortion and bribery."
more...

8. Freedom of Information Representatives demand Whistleblower Protection

Commissioners for freedom of information of the German federal government and nine German states passed two decisions on their assembly on June 28. These include the improvement of information access for civilians and the legal protection for whistleblowers. Examples for successful whistleblowing include mouldy-meat scandals, secret telephone surveillance and the excessive recording of health-data. Workers shall not fear labour-law related consequences, only because they report on misconduct in the working environment.
more... (in German)

9. Events

International Anti-Corruption Regimes in Europe
24.07. Constance / Germany
The conference shall convene accounted researchers, young academics of diverse disciplines and other experts in forming international regimes. The objective is to assemble and discuss a variety of key issues of fighting corruption in Europe.

22nd EBEN Annual Conference
10. - 12.09. Athens / Greece
The annual conference of the European Business Ethics Network (EBEN) is subtitled "Pathos for Ethics; Business Excellence, Leadership and the Quest for Sustainability".
more...

11th Academic Symposium of the Criminological Society
17. - 19.09. Gießen / Germany
The conference shall convene accounted researchers, young academics of diverse disciplines and other experts in forming international regimes. The objective is to assemble and discuss a variety of key issues of fighting corruption in Europe.
more... (in German) 

The Economics of Corruption - A University Training in Good Governance and Reform
10. - 17. 10. Passau / Germany
The chair of economic theory by Prof. Graf Lambsdorff at the University of Passau has been organising the international event which deals with corruption from an theoretical as well as practical viewpoint since 2001. Participants learn about the political, economical and institutional sources for corruption via a range of talks, case studies and simulation games.
more...

10. Literature

Private Corruption and its Actors
Tanja Rabl
Pabst Science Publishers 2008. ISBN 978-3-89967-525-2.
The book focuses on the subjective decision making of corruption criminals. Based on an empirical model on corrupt behaviourism, this study shows concrete measures for companies for the dealing with the personal causes in a preventative and repressive nature.
more...

Business Principles for Countering Bribery 2009
Transparency International
This document targets companies, the sciences and the civil society reflecting on current trends with regard to worldwide practices on fighting corruption. The new version stresses the importance of public reports for corruption prevention and recommends an external check of respective systems to companies.
more...

11. Quotation

Without courage and determination one cannot achieve anything, as there is danger everywhere.

Carl von Clausewitz

---

Content

1. Publication Series on International Prevention of Corruption
2. Global Alliance for Banking on Values
3. Current Surveys on Business Crime
4. New Degree Course on Compliance
5. CSR Forum of the German Federal Government Founded
6. Integrity Award 2008
7. Ranking of German Sustainability Reports
8. Anti-Corruption Experts Convene to Advance 10th Principle of the UN Global Compact
9. Denmark Introduces Mandatory CSR Reporting for Large Companies
10. Event
11. Literature
12. Quotation

 

1. Publication Series on International Prevention of Corruption

The International Chamber of Commerce, Transparency International, the Global Compact of the United Nations and the World Economic Forum have jointly developed a practice-oriented publication, which is to sensitize its readership to risks of corruption through possible everyday-life-scenarios.
The first part of this publication series “RESIST (Resisting Extortions and Solicitations in International Transactions)“, published in March 2009, deals with procurement. A second issue - to be published until the end of this year - shall focus on potential scenarios in the context of project implementations. By doing so, classical situations managers must face on a daily basis will be revealed.
more... (pdf)

2. Global Alliance for Banking on Values

Eleven alternative banks have aligned in March 2009 to a “Global Alliance for Banking on Values“. Their objective is a joint development of a socially, ecologically and economically sustainable and successful alternative to the global financial market. Altogether, these eleven banks dispose of assets of over $ 10 billion and look after over 7 million clients in 20 countries.
more...

3. Current Surveys on Business Crime

The psychological survey “Delinquents’ Motivation for Business Crime” published by the University of Pforzheim in December 2008 identifies five different profiles of criminals which facilitate the understanding of the emergence of business crime.
In order to discuss potential consequences for the prevention and the fight of business crime, it is important to understand the complex interplay of emotional, motivational and cognitive processes leading to the criminal act.
First results of this survey show a variety of criminal profiles which call for a mix of prevention tools and appropriate framework requirements of ethic management.
more... (pdf)

The survey “Gefahrenbarometer 2010 (Indicator of Distress 2010)“ of the Corporate Trust regards corruption, fraud and disloyalty with 15.1% shortly after theft (20.1%) to be the second common cause of damage within mid-sized companies.
For the evaluation of the risk the actual damage of the past three years as well as an estimation value of future dangers has been taken into account. Over 5.000 companies have been accounted and only a fifth takes preventive measures such as assigning a compliance officer or promoting a sense of law and responsibility.
more...

The “Open Budget Index 2008“, published in February 2009 by Transparency International, shows that almost 50% of the 85 examined countries provide as few information that it would not be difficult to conceal controversial, corrupt and wasteful expenses. It is Sudan and Rwanda that count as least transparent countries, while South Africa and France are regarded as most transparent.
more...

4. New Degree Course on Compliance

At the German Frankfurt School of Finance & Management, a twelve month degree course “Certified Compliance Professional (CCP)“ may be completed simultaneously to full-time employment from June 2009 on. It is designed for specialists and managers of Compliance and legal departments across all industries as well as within the public sector and non-profit organizations. Risk management, prevention of corruption, supervisory lay and crisis management are some compulsory subjects. With compulsory optional subjects, participants may focus on their individual field of interest, e.g. industry-specific compliance topics (e.g. energy, pharma, media), environmental law, business crime and product liability.
more...

5. CSR-Forum of the German Federal Government Founded

The first meeting of the CSR Forum inaugurated under control of the federal ministry of labour and social matters took place on January 20, 2009 in Berlin. This board is to identify topics throughout the year and to generate recommendations from discussions in order to strengthen and expand on sustainable corporate sociability.
more...

6. Integrity Award 2008

Laureates of the Integrity Award 2008 by Transparency International are David Leigh, editor of the Guardian (Great Britain), and Roman Shleynov, editor of the Novaya Gazeta (Russia). The distinction has annually been awarded since 2000 to those who have significantly contributed to the fight against corruption. The investigative journalists Leigh und Shleynov stand out due to their research and dismantling of so far unknown and concealed networks. Leigh has shed light on the affair of British Aerospace Systems and Shleynov has disclosed misappropriation of the former Russian minister of nuclear energy.
more...

7. Ranking of German Sustainability Reports

This year the institute of ecological economic research and the association future e.V. evaluate sustainability reports of the 150 biggest German companies and, for the first time, sustainability reports of SMEs. SMEs who aim at integrating their sustainability reports into this ranking have to file their reports at latest until June 30, 2009 with future e.V. The award ceremony for the SME-ranking will take place in September in Berlin. The board of sustainable development additionally honours the winners of the SME ranking as well as of the ranking of group reports at the annual conference on November 23, 2009 in Berlin.
more... and more...

8. Anti-Corruption Experts Convene to Advance 10th Principle of the UN Global Compact

More than 50 anti-corruption experts from global business, civil society, governments and the United Nations gathered at UN Headquarters from February 26 until 27, 2009 for the fourth meeting of the UN Global Compacts Working Group on Anti-Corruption. The two-day meeting is part of an ongoing series of dialogues to advance implementation of the Tenth Principle by business. At the meeting, several sub-working groups presented preliminary results on their work related to anti-corruption reporting, supply chain management and multi-stakeholder dialogue. A meeting report will be released shortly.
more...

9. Denmark Introduces Mandatory CSR Reporting for Large Companies

A law was adopted in Denmark on December 16, 2008 requiring the countrys publicly-listed companies, state-owned companies and institutional investors to include information on CSR in their annual financial reports from 2010 on. This must include information on corporate policy guidelines of CSR and on socially responsible investments and it must reveal information on respective practical implementation processes. Results must be presented and the board’s expectations for future development of CSR strategies must be articulated. In the midst of the financial crisis the demand for more transparency on corporate activities has been growing and therefore discussions on introducing mandatory CSR reporting standards for publically listed companies are currently also being held on EU-level.
more...

10. Event

Corporate Compliance 2009
June 30 – July 2, Berlin, Germany
Constant advancement of corporate compliance systems have become indispensable in order to protect a business from business crime. Changing framework requirements, such as the reform of the BilMoG, call for continuous adjustment. Corporate key objectives include constant optimisation of corporate processes, integration of employees and early prevention of misconduct.
more...

11. Literature

Fighting Corruption through Collective Action: A Guide for Business
The World Bank Institute
This Guide is intended to help companies meet the legal, competitive, economic and ethical challenges posed by corruption as they do business around the world.
more...

Those who say A don’t need to say B. They may also realise that A was wrong.

Berthold Brecht

 

---

Content

1. Global Accountability Report 2008 published
2. International Anti-Corruption Academy founded
3. Code of Conduct for the economy
4. Swiss Federal Council to protect whistleblowers
5. Current surveys on business crime
6. New publications by Transparency International
7. Council of Europe demanding whistleblower protection in Austria
8. Dissertations on the personality of business criminals
9. Events
10. Literature
11. Quotation

 

1. Global Accountability Report 2008 published

The Global Accountability Report of the One World Trust foundation is an annual ranking of 30 global institutions and consolidated companies regarding transparency related issues, co-determination, critical self-assessment and handling of complaints. According to this survey, the International Olympic Committee (IOC) is the least transparent institution among the 30 institutions in examination. Particularly the insufficient means of control of the IOC-members and the so called shareholders of the Olympic movement are subject to criticism. This survey finds the second and third least transparent institutions to be the International Nuclear Energy Organisation and the NATO. The International Federation of Organic Agriculture Movements comes out as the most transparent institution in the annual ranking of 2008.
more...

2. International Anti-Corruption Academy founded

The United Nations and Interpol have founded the first anti-corruption academy worldwide in Austria near Vienna, to be inaugurated this year. It will enable around 1000 national public officials from developing and industrial countries to study strategies for fighting corruption and fraud. Graduates may obtain a masters or PhD.
more...

3. Code of Conduct for the economy

The International Chamber of Commerce Germany and the German Chambers of Industry and Commerce have updated their Code of Conduct titled “Korruption bekämpfen” (To fight corruption). It contains recommendations for a confidential whistleblowing system.
more... (pdf, German)

4. Swiss Federal Council to protect whistleblowers

Whistleblowers in Switzerland who report on corruption or misconduct of any kind within a company or public authority, shall be protected from revenge-firing. The draft for the Swiss obligation law which is to be partly revised, lists conditions for lawful reporting of offenses at the workplace in a new article. According to this law, nobody infringes his duty of loyalty when reporting legal wrongs in good faith. If the employer does not take measures against those offenses, the employee may contact a responsible authority. Should the authority fail to take necessary action, the employee may consider appearing before the public. Guidelines on professional secret are to be exempted. Subsequent firing to lawful reporting is illegitimate and allows for monetary compensation of up to six monthly wages.
more... (German, French, Italian)

5. Current surveys on business crime

PricewaterhouseCoopers interrogated over 1,100 companies in Germany for their survey on “Business Crime 2007”on damages, profiles and motives of delinquents, their internal controls and sanctioning practice. Due to this survey’s design which included a worldwide interrogation of 5,600 companies in 40 countries, these results may be interpreted in an international context.

The Federal Criminal Police Office (Bundeskriminalamt, BKA) has published the “Bundeslagebericht Korruption 2007”. Throughout the last year 9,563 criminal offences were registered by the BKA and the federal police authorities. This represents a 38% increase to the previous year.
more... (pdf, German)

In their worldwide survey of 1,200 companies “Corruption or Compliance – Weighing Costs”, Ernst & Young found out that action taken to prevent corruption has increased, while, at the same time, there is still a lack of knowledge of relevant legislation.

6. New publications by Transparency International

The Bribe Payers Index lists leading export nations according to the level of disposition of their companies abroad to pay bribes to leading public officers in emerging markets.
more...

The water industry is in the centre of the current Global Corruption Report. It represents cause and trigger for the global water crisis, which threatens billions of human lives and deteriorates environmental destruction.
more...

7. Council of Europe demanding whistleblower protection in Austria

In an evaluation report published on December 19th, 2008, GRECO, the Group of States against Corruption of the Council of Europe, calls for the introduction of whistleblower protection for all public officials in Austria. Altogether, GRECO finds the status quo of the fight against corruption in Austria to be subject to amelioration.

8. Dissertations on the personality of business criminals

Business criminals differ significantly from other criminals according to a pilot study of the criminologist Lothar Mueller. He investigated upon the adaptability of so called profiling to the analysis of business crime. He analysed whether personality features of business criminals show stereotype coherences of any kind.
more...

Tanja Rabl and Torsten M. Kuehlmann have investigated on how much motivational, volitional, emotional and cognitive personality features contribute to corrupt actions of a decision maker in a corporation. This study provides explanations on an action model, as in how far the interaction of diverse components leads to corrupt actions. On this foundation, they discuss approaches for prevention.
more...

9. Events

20.-22.01.2009, Munich, Germany
Management Circle “The Fraud Manager”
The sensitivity for the urgency of fighting corruption has increased. Companies progressively understand their need to catch up in this field and proactively work towards better protection from corruption. Particularly fraud managers in charge have to identify weak points and divert damage from their company. In this seminar, possibilities for the identification of employees and situations susceptible to bribe are demonstrated via concrete case exercises. Resulting information is to be used for preventative control culture within the corporation. The risks from the point of view of the company as well as from the investigating authorities are shown and valuable tips for the avoidance und revelation of unethical conduct are provided.
more... (German)

27.-29.01.2009, Frankfurt, Germany
4th European Forum “Anti-Corruption”
The event targets compliance officers and internal auditors of international companies. Current risk-management strategies within the field of anti-corruption are to be introduced and respective prevention-effects to be discussed with experts.

29.01.2009, Frankfurt, Germany
Company Integrity: Whistle-blowing systems
The German Business Ethics Network (dnwe) and PricewaterhouseCoopers organise this event where leading experts discuss feasibility of whistleblowing systems and necessary corporate culture prerequisites.
Speakers include: Prof. Dr. Josef Wieland, Director of the German Business Ethics Network; Albrecht Vahl, Ombudsman of DekaBank Deutsche Girozentrale; Kenan Tur, Member of the Executive Board of Business Keeper AG and developer of the electronic whistleblowing system BKMS® System.
more... (German)

02.-04.2009, London, UK
The UK Anti-Corruption Summit 2009
This conference gathers a variety of experts from Europe who will introduce practical example cases and respective proposals for solution. A workshop will take place on the first day.
more...

17.-18.02.2009, Berlin, Germany
13th EUROFORUM annual conference "Corporate Lawyers 2009: Corporate lawyers as part of risk management"
The annual conference presents speeches and discussions on the future Legal Department including issues of the judicial every day business and current professional subjects. It represents a unique platform for exchanging information.
more... (German)

10. Literature

Yearbook of the German Global Compact Network 2008
Mediengruppe macondo, Januar 2009, ISBN-13: 978-3-9810638-6-8
This years’ edition focuses on biodiversity, human rights, sustainable consumption as well as the financial crisis.
more...

11. Quotation

Corruption does not know political colours. It flourishes in the dark.

Wolfgang Clement

---

Content

1. Corruption Perceptions Index 2008
2. German Federal Court of Justice - Judgment on False Accounts
3. Strategic Co-operations of Business Keeper AG
4. Transparency International Accelerates Ratification of UNCAC
5. International Chamber of Commerce Publishes Whistleblowing Guidelines
6. Update on Business Crime Statistics for Germany
7. Award “Konrad Adenauer”
8. New ACFE Guidelines Published
9. Events
10. Quotation

 

1. Corruption Perceptions Index 2008

The anti-corruption organization Transparency International (TI) published its annual Corruption Perceptions Index (CPI) in a press conference on September 23rd, 2008. The CPI is based on a multiplicity of surveys conducted by experts investigating on the perception of corruption in the public sector in 180 countries.
According to the CPI, Denmark, New Zealand, and Sweden show the lowest level of corruption, whereas Somalia, Iraq, and Myanmar show the highest. This indicates a strong correlation between poverty, calamitous constitutional institutions and bribery. On a scale from 0 (most corrupt) to 10 (least corrupt), Germany has improved to 7.9 points in 2008 from 7.8 points in 2007. Among 180 countries, Germany ranks 14th this year, hence, it has a low corruption level in relative terms. In comparison to Western European countries, however, Germany finds itself on an average level.
more...

2. German Federal Court of Justice - Judgment on False Accounts

In its judgment on August 29th, 2008, the German Federal Court of Justice confirmed criminal liability for keeping false accounts. The existence and the sole knowledge of such accounts would lead to criminal liability derived from disloyalty towards the company no matter whether there was only aiding to bribery involved. This conviction significantly confirms and expands possible prosecution of managers and management. Until 1999 bribery accounts for business abroad were fiscally advantaged as so called advantageous expenses.

3. Strategic Co-operations of Business Keeper AG

In order to provide an all-comprising package for the prevention and fight of corruption for companies and public administration, the Business Keeper AG co-operates with multiple accredited experts in the field. Its newest member of the professional network is a leading provider of whistleblower hotlines. This way, the client may make use of the internet-based Business Keeper Monitoring System (BKMS) as well as of additional communication platforms. This aims at giving a large number of whistleblowers a comfortable and internal communication platform to report their concerns.

4. Transparency International Accelerates Ratification of UNCAC

The United Nations Convention Against Corruption (UNCAC) was signed by Germany on December 12th, 2003, whereas its implementation into German law has not yet been executed. Prerequisites of the ratification are an intensification of crime elements of bribery of delegates. Transparency International Germany e.V. has called its members to post letters to their respective members of parliament or to pose questions via the communication platform abgeordnetenwatch.de.

5. International Chamber of Commerce Publishes Whistleblowing Guidelines

The International Chamber of Commerce (ICC) is the first organization of world economics to have published guidelines for whistleblowing. These set up global standards and support companies introducing respecting programs. Whistleblowing programs are highly effective instruments to quickly acquire knowledge of fraud. Only few companies have so far implemented such systems due to cultural or legal peculiarities. The ICC-guidelines are the first of their kind to offer practical support to diverse jurisdictions.
more... (pdf)

6. Update on Business Crime Statistics for Germany

In August 2008, the German Federal Office of Criminal Investigation has released updates on business crime statistics in Germany. Numbers have decreased for the first time in three years. In 2007 the damage caused by business crime amounted to Euro 4.12 billion.

7. Award “Konrad Adenauer”

Every two years the award "Konrad Adenauer" is given to commemorate the honorary citizen and previous mayor of Cologne and the first chancellor of Germany. The prize shall recognize extraordinary people who have rendered outstanding services to the development of a city worth living, the consolidation of communal self-administration, and the promotion of European integration. On September 18th, 2008, this prize was awarded to the mayor of Palermo for his commitment in the fight against corruption.
more...

8. New ACFE Guidelines Published

New guidelines for fighting fraud have been released jointly by three leading professional organizations. "Managing the Business Risk of Fraud: A Practical Guide" is sponsored by the ACFE, The Institute of Internal Auditors (IIA), and the American Institute of Certified Public Accountants (AICPA). Principles for establishing effective fraud risk management, regardless of the type or size of an organization, are outlined in the guide.
With 50,000 members the ACFE is one of the world's largest associating to educate fraud examiners and to inspire public confidence in the integrity and objectivity within the profession.
more...

9. Events

October 6th-8th, 2008 in The Hague, Netherlands
Anti-corruption summit – "How to effectively manage compliance and ethics"
All aspects of global and integral anti-corruption, compliance, and ethic programs are to be discussed at this conference.
more...

October 14th-17th, 2008 in Singapore
Global Fraud Summit
The focus is on successfully approved anti-fraud strategies and methods used by organizations in order to prevent, reveal, and fight fraud. Particularly, internal control mechanisms and the building of solid frameworks are to be introduced and discussed.

October 4th-11th, 2008 in Passau, Germany
The Economics of Corruption - 1st Passau Anti-corruption Symposium
Prof. Dr. Johann Graf Lambsdorff and his team of the chair of economics at Passau University discuss the unprofitability of corruption and the importance of a "clean" business environment in the frame of the university’s international and English-speaking forum. The second part of the symposium includes guest-experts and is scheduled for October 10th and 11th, 2008.

November, 12th-13th, 2008 in Berlin, Germany
Compliance – Challenge for Communication
Designated compliance-experts are to provide answers to the following questions: What consequences has the growing importance of compliance to corporate communication? What effects have compliance violations to the company’s goodwill? How to professionally communicate the fight of corruption?

10. Quotation

Change in society always start with outsiders who feel what needs to be done.

Robert Jungk (1913-94), Austrian author and futurologist

 

---

 

---

Content

1. BDI-President Recommends Anonymous Whistleblowing Systems
2. Act for Whistleblower Protection Was Discussed in German Parliament
3. Ceremony for 8th Max-Weber-Award for Business Ethics
4. Global Compact Report - Communication on Progress
5. Workshop on Combatting Corruption at Global Compact Network Meeting
6. Anti-Corruption Measures at Deutsche Bahn AG
7. Conference „Corporate Responsibility – A Benefit for Everybody“
8. Events
9. Literature

 

1. BDI-President Recommends Anonymous Whistleblowing Systems

The President of the Federation of German Industries (BDI), Jürgen Thuman, has suggested that companies in Germany should set up anonymous whistleblowing systems. These should enable employees to internally advert to offences committed by their supervisors.
more... (German)

2. Act for Whistleblower Protection Was Discussed in German Parliament

On June 4th, 2008, the first hearing regarding the protection of employees acting as whistleblowers took place in the German Parliament. The draft bill was introduced under the patronage of the German Ministry of Food, Agriculture and Consumer Protection and shall be incorporated in the German Civil Code. The draft bill contains similar rights for whistleblowers as the Public Interest Disclosure Act in the United Kingdom, which provides a framework of legal protection for individuals who disclose information regarding malpractice and matters of similar concern. In other words, it protects whistleblowers from victimisation and dismissal.
more... (German)

3. Ceremony for 8th Max-Weber-Award for Business Ethics

The German Federal President has opened the ceremony for the 8th Max-Weber-Award for Business Ethics on May 28th, 2008. Germany’s leading private economic research institute, the Institut der Deutschen Wirtschaft Köln, rewards this prize every second year to junior scientists with outstanding contributions in the field of business ethics. The prize has been awarded since 1992 to commemorate the intellectual heritage of Max Weber with particular attention to the entrepreneurial activity between economic and social responsibility and the current importance of business ethics. This year the award went to Prof. Dr. Guido Palazzo, professor of business ethics at the University of Lausanne. He received the award for his outstanding work on corporate responsibility and particularly for his innovative and theoretically sound proposals on how companies can realize their civic engagement and take social responsibility.
more...

4. Global Compact Report - Communication on Progress

One of the explicit commitments that a company makes when it participates in the Global Compact is to produce an annual Communication on Progress (COP). A COP is a communication to stakeholders (e.g., consumers, employees, organized labour, shareholders, media, government) on the progress the company has made in implementing the ten principles of the UN Global Compact in their business activities and, where appropriate, supporting UN goals through partnerships. As the Business Keeper AG is a member of the UN Global Compact we have recently published our new COP with this year’s focus on the fight against corruption in the health care system. Here you can read the report (in German).

5. Workshop on Combatting Corruption at Global Compact Network Meeting

German Members of the UN Global Compact conduct regular network meeting. These meetings are characterized by unique and active dialog and are a learning forum to discuss means to implement the 10 principle of the UN Global Compact. Last June the Business Keeper AG has prepared, organized and hold an all-day workshop together with another member of the UN Global Compact, Control Risks Deutschland GmbH, on current challenges in the fight against corruption. Speakers were Prof. Dr. Kai Bussmann (Martin-Luther-University Halle-Wittenberg), Birgit Galley (Steinbeis University), Dr. Kristóf Gosztonyi (Control Risks Deutschland GmbH), Dr. Alfried Heidbrink (lindenpartners), Kenan Tur (Business Keeper AG) as well as Hans-Jürgen Stephan (Control Risks Deutschland and Dr. Ochsenfeld Attorneys). A summary of the discussion as well as the contributions are available here in German.

6. Anti-Corruption Measures at Deutsche Bahn AG

The Deutsche Bahn AG as one of the largest employers in Germany and internationally operating company has committed itself in its actions by a code of conduct on ethical values and principles. A key topic of this commitment is the consistent prevention and relentless fight against white-collar crime and corruption. Since May 2008 the internetbased whistleblowing system - BKMS® system - has been implemented in addition to the existing communications channel to report offences via two external ombudsmen. Employees, suppliers, business partners and customers can use the system at any time and from any location. With the use of the BKMS® system, the Deutsche Bahn AG aims at enlarging the reach of its compliance team, especially with regard to the worldwide logistics network of DB Schenker and other subsidiary companies. The corporate culture of the Deutsche Bahn AG which focuses on integrity, transparency and fair conduct will thus be further strengthened. The Deutsche Bahn AG emphasizes once more its pioneering role in the fight against corruption.
more...

7. Conference „Corporate Responsibility – A Benefit for Everybody“

The conference „Corporate Responsibility – A Benefit for Everybody“ was held in Berlin lead-managed by the German Federal Ministry of Labor and Social Affairs. 350 representatives from companies, unions, trade associations, academia and NGOs participated in the conference. Germany’s Minister of Labor and Social Affairs, Olaf Scholz, announced that he plans to introduce the country’s first trademark for companies who commit themselves to a code of conduct. For this purpose he suggested to establish a non-bureaucratic platform. Foreign Minister Frank-Walter Steinmeier reported on the plan of his Ministry to create an Internet platform together with the Bertelsmann Foundation which shall inform about socially responsible companies in Germany and abroad.
more...

8. Events

October 4th – 11th in Passau, Germany
The Economics of Corruption - A University Training in Good Governance and Reform
The annual program "The Economics of Corruption - A University Training in Good Governance and Reform" this year hosts a symposium on anticorruption. The international event combines science with everyday business practices and brings together students and graduates of social sciences with decision makers and practitioners. The program consists of exercises, workshops, lectures, case studies as well as presentations.
more...
 

October 30th – November 2nd in Athens, Greece
13th International Anti-Corruption Conference (IACC)
Global Transparency - Fighting Corruption for a Sustainable Future
The world’s leading International Anti-Corruption Conference (IACC), which is organized by Transparency International, brings together leading experts and practitioners on governance, corruption and transparency. Participants will meet to discuss the role of corruption and governance in the crucial social, political, economic and environmental questions that will define the quality of life for people across the globe, today and tomorrow.
more...

9. Literature

The Institutional Economics of Corruption and Reform: Theory, Evidence and Policy
Johann Graf Lambsdorff
Cambridge University Press, Juli 2008, ISBN: 978-0521068673
The author shows how insights from institutional economics can be used to develop a better understanding of why corruption occurs and the best policies to combat it. He argues that rather than being deterred by penalties, corrupt actors are more influenced by other factors such as the opportunism of their criminal counterparts and the danger of acquiring an unreliable reputation. This suggests a novel strategy for fighting corruption similar to the invisible hand that governs competitive markets. This strategy - the 'invisible foot' - shows that the unreliability of corrupt counterparts induces honesty and good governance even in the absence of good intentions. Combining theoretical research with state-of-the-art empirical investigations, this book will be an invaluable resource for researchers and policy-makers concerned with anti-corruption reform. The book is now available in paperback format.
more...
 

Essentials of Corporate Fraud
Tracy Coenen
John Wiley & Sons, April 2008, ISBN: 978-0470194126
Author and fraud expert Tracy Coenen presents an insider's look at corporate fraud and equips you with real-world guidance for each stage, from detection and investigation, to prevention and warning signs, to educating employees in implementing policies and procedures specifically designed to prevent fraud.
more...

 

---

 

Content

1. First Meeting of Member of the German Chapter of the Association of Certified Fraud Examiners
2. Survey: Corruption in German Companies
3. Companies increase internal controls
4. German Compulsory Health Insurance and Association of Accredited Doctors of Compulsory Health Insurances use BKMS® System
5. Verdict for international liability of Sarbanes-Oxley Act
6. Implementation of 8th EU Directive - EuroSOX
7. Transparency International disappointed with results of UNCAC conference on Bali
8. Literature
9. Quotation

1. First Meeting of Member of the German Chapter of the Association of Certified Fraud Examiners

The recently formed local chapter of the Association of Certified Fraud Examiners in Germany aims at fighting fraud and establishing the title Certified Fraud Examiner in Germany, which thus far is not widely known in the country. Moreover, the chapter enables members to be more personally involved in the anti-fraud profession through trainings and seminars. After the registration as a non-profit organisation, the first general meeting of the association took place January 21st, 2008.
more... (German)

2. Survey: Corruption in German Companies

The results of a survey conducted by the Munich based personnel consultancy CGC indicate, that corruption scandals often leave managers cold. 56 percent of the German managers believe that the news coverage of the scandals damages the image of companies more than corruption itself. 44 percent of all managers who were questioned see disadvantages for law-abiding companies in the competition. Especially abroad entrepreneurs see an increase in bribery of contractors, because there it seems to be the day-to-day business practice.
more... (German)

3. Companies increase internal controls

The German financial and business newspaper Handelsblatt and the management consultancy Droege & Comp. conducted a survey among 767 German managers. The results show that more and more German companies drastically increase their internal controls. This applies to 95 percent of the companies interviewed with more than 500 employees. Especially the compliance with laws and the code of conduct is monitored to avoid damage to company’s image. Many companies now introduce the position of chief compliance officers.
more... (German)

4. German Compulsory Health Insurance and Association of Accredited Doctors of Compulsory Health Insurances use BKMS® System

In an unusual cooperation the AOK Bayern, a compulsory health insurance in the German state Bavaria, and the Bavarian Association of Accredited Doctors of Compulsory Health Insurances (KVB) are fighting against malpractice in the health care system. Insured people and health care providers can report fraudulent behaviour anonymously or by providing their name as well as around-the-clock via the BKMS® system.
more... (German)

5. Verdict for international liability of Sarbanes-Oxley Act

The international liability of the Sarbanes-Oxley-Act (SOX) was emphasized by a US federal district court on February 5th, 2008. The judge ruled that the whistleblower protection provision of SOX – a U.S. law – also applies to employees of international companies with US involvement working overseas. In addition, SOX protection provisions are also applicable for cases not involving fraud against shareholders.
more...

6. Implementation of 8th EU Directive - EuroSOX

According to the European Union’s 8th Council Directive on Company Law, companies in Europe have to approve of statutory audits similar to the regulations of the US Sarbanes Oxley Act. The 8th EU Directive, which is also called EuroSox, was already adopted in June 2006 by the EU Commission and has to be transposed into national law by all EU member states before 29 June 2008.
more...

7. Transparency International disappointed with results of UNCAC conference on Bali

According to Transparency International, the results of the international conference on the UN Convention against Corruption (UNCAC) in Indonesia are a major setback. The aim of the conference to intensify the fight against corruption by developing an effective monitoring system could not be achieved, because the delegates of the member countries could not agree upon a monitoring programme.
more...

8. Literature

Global Compact Deutschland 2007
Media group macondo (Ed.), January 2008, ISBN: 978-3-9810638-4-4
The yearbook of the UN initiative’s German network provides a detailed review of the activities of the UN Global Compact – in 2007 with the focus on Corporate Social Responsibility. In one contribution, 32 UN Global Compact participating companies describe how they accomplish the network’s 10 principles especially with regard to the topic corporate social responsibility.
more... 

9. Quotation

In Germany, the person who points at dirt is considered to be more dangerous than the one who has caused it.

Carl von Ossietzky

---