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.
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.
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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.
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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.
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“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.
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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.
more... (German)
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.
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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.
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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)
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.
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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)
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.
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The more citizens with moral courage a country has, the lesser heroes it will need someday.
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
Trust is the most important asset for organisations; without it no good endeavour may succeed. It is precondition for prosperous doing in all areas.
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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."
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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.
more...(in German)
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".
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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.
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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.
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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.
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11. Quotation
Without courage and determination one cannot achieve anything, as there is danger everywhere.
Carl von Clausewitz
Newsletter II/2009
Content
- Publication Series on International Prevention of Corruption
- Global Alliance for Banking on Values
- Current Surveys on Business Crime
- New Degree Course on Compliance
- CSR Forum of the German Federal Government Founded
- Integrity Award 2008
- Ranking of German Sustainability Reports
- Anti-Corruption Experts Convene to Advance 10th Principle of the UN Global Compact
- Denmark Introduces Mandatory CSR Reporting for Large Companies
- Event
- Literature
- 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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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12. Quotation
Those who say A don’t need to say B. They may also realise that A was wrong.
Berthold Brecht
Newsletter I/2009
Content
- Global Accountability Report 2008 published
- International Anti-Corruption Academy founded
- Code of Conduct for the economy
- Swiss Federal Council to protect whistleblowers
- Current surveys on business crime
- New publications by Transparency International
- Council of Europe demanding whistleblower protection in Austria
- Dissertations on the personality of business criminals
- Events
- Literature
- 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.
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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.
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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.
more... (pdf, German)
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.
more... (pdf)
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.
more...
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.
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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.
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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.
more...
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
Newsletter III/2008
Content
- Corruption Perceptions Index 2008
- German Federal Court of Justice - Judgment on False Accounts
- Strategic Co-operations of Business Keeper AG
- Transparency International Accelerates Ratification of UNCAC
- International Chamber of Commerce Publishes Whistleblowing Guidelines
- Update on Business Crime Statistics for Germany
- Award “Konrad Adenauer”
- New ACFE Guidelines Published
- Events
- Slogan
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.
more... (German)
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.
more... (pdf, German)
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.
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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.
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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.
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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.
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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.
more...
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.
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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?
more...
10. Slogan
Change in society always start with outsiders who feel what needs to be done.
Robert Jungk (1913-94), Austrian author and futurologist
Newsletter II/2008
Content
- BDI-President Recommends Anonymous Whistleblowing Systems
- Act for Whistleblower Protection Was Discussed in German Parliament
- Ceremony for 8th Max-Weber-Award for Business Ethics
- Global Compact Report - Communication on Progress
- Workshop on Combatting Corruption at Global Compact Network Meeting
- Anti-Corruption Measures at Deutsche Bahn AG
- Conference „Corporate Responsibility – A Benefit for Everybody“
- Events
- 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.
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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.
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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.
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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.
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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.
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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.
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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...
Newsletter I/2008
Content
- First Meeting of Member of the German Chapter of the Association of Certified Fraud Examiners
- Survey: Corruption in German Companies
- Companies increase internal controls
- German Compulsory Health Insurance and Association of Accredited Doctors of Compulsory Health Insurances use BKMS® System
- Verdict for international liability of Sarbanes-Oxley Act
- Implementation of 8th EU Directive - EuroSOX
- Transparency International disappointed with results of UNCAC conference on Bali
- Literature
- Quote
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. Quote
In Germany, the person who points at dirt is considered to be more dangerous than the one who has caused it.
Carl von Ossietzky
Newsletter III/2007
Content
- Profitable Members of Parliament
- Compliance as Number 1 Strategic Risk
- 10 Years OECD-Anti-Corruption Convention
- Study about Values of Business Professorst
- Best Sustainability Report, Most Sustainable DAX-30-Company
- Integrity Award Winner Announced
- Slogan
1. Profitable Members of Parliament
A new study of the Centre for Financial Research of the Cologne University stipulates that companies listed on the stock exchange which employ members of the German parliament, earn on average more money than companies without such political connections. Political connected companies also show a better stock market performance. These findings are explained with the assumption that members of the parliament provide these companies with privileged access to public contracts and lower taxation. It might also be possible that the politicians influence the legislative procedure in the interest of their additional employers.
more... (German)
2. Compliance as Number 1 Strategic Risk
Ernst & Young with the support of Oxford Analytica have interviewed 70 analysts from 20 disciplines in a global study about strategic business risks. The aim of the study was to find the top 10 strategic business risks which the analysts identify for the next five years. The most dangerous risks for all disciplines were regulatory and compliance risks.
more... (pdf)
3. 10 Years OECD-Anti-Corruption Convention
The convention of the Organisation for Economic Cooperation and Development (OECD) on Combating Bribery of Foreign Public Officials in International Business Transactions was adopted on November 21st, 1997 and celebrated as a breakthrough in the international fight against corruption. However, until today only 30 companies and individual perpetrators have been convicted. 100 cases were investigated in the 36 OECD signatory states, i.e., less then 3 cases per country in 10 years. According to a current study of Transparency International, only 14 signatory states have successfully implemented the guidelines thus far.
more...
4. Study about Values of Business Professors
The department of Marketing and Consumer Research of the Leibniz University Hannover, Germany, conducted a worldwide study analyzing the values of business professors in research and education. The study came to the result, that on an educational level, professors act as gate keepers by means of content and values that are delivered to students as future managers. For these business professors the promotion of social responsibility of companies and students plays a decisive role. Surprisingly, German university professors seem to be reluctant in delivering such values.
more... (German)
5. Best Sustainability Report, Most Sustainable DAX-30-Company
The association of enterprises “Future e.V.” (an environmental initiative of companies and entrepreneurs) and the Institute for Ecological Economy Research awarded the Hamburg based company OTTO for its best German sustainability report this year. The ranking criteria of the reports of the 150 largest German companies include for example transparency in communication, completeness as well as credibility.
more... (German)
The Deutsche Telekom AG is the winner of the DAX-30 sustainability ranking of Scoris. The study called “The sustainability achievements of German large-scale enterprises” evaluated the sustainable economic management of companies, i.e., in how far are they involved in socio-political relevant fields to find solutions. The prevention of corruption is one of 120 criteria.
more... (German)
6. Integrity Award Winner Announced
Transparency International announced its winners of the 2007 integrity award in Berlin on December 12th, 2007. The award is shared by the Vietnamese grassroot anti-corruption activist Le Hien Duc and the Swiss criminology professor Mark Pieth. The official awards ceremony will be held on January 21st, 2008 in Berlin.
more...
7. Slogan
A company creates excessive effort, if it acts unethically. It is more expensive to go below the limit of moral than to exceed it.
Rupert Lay
Newsletter II/2007
Content
- Top Topic Whistleblowing
- Recommendations to combat Corruption in the Financial Sector
- Survey of Executives concerning Values
- Study: Corruption as a Barrier for Investments
- Study: Whistleblowing discloses Corruption in Enterprises
- Increase of Availability for Ombudsmen
- Prize for Whistleblowing 2007
- Events
- Literature
- Slogan
1. Top Topic Whistleblowing
The Initiative for News Clarification (Initiative Nachrichtenaufklärung) elected the subject Whistleblowing up to the fifth place of the most important – and in Germany wrongly neglected – issues in 2006. Thus – by international comparison – Whistleblowing in Germany is difficult.
more... (in German)
2. Recommendations to combat Corruption in the Financial Sector
The “Wolfsberg Group”, a consortium of twelve international banks, published recommendations to combat corruption in the financial sector. They lobby for the establishment and implementation of adequate rules treating donations or other financial incentives. Explicit requirements for the realisation and recommendations to protect whistleblowers lack though.
more...
3. Survey of Executives concerning Values
According to a study of the Commission of Values (Wertekommission) and the Institute of Applied Knowledge Cologne e.V. (Institut für angewandtes Wissen Köln e. V.) nearly every fourth executive has already changed the employer because of different moral concepts. 23% have thought about changing due to dissenting cultures of values. Responsibility, trust and respect are be the core values of the young generation of executives and specialists aged between 25 and 45 years. However, less than 10% of the enterprises possess a value management system.
more... (in German)
4. Study: Corruption as a Barrier for Investments
Control Risks and Simmons & Simmons are going to present their recent analysis “Facing up to Corruption 2006” on April, 17th, which was taken among 350 European companies. This shows that in international comparison corruption has to be seen as a barrier for investments which may have a great impact on developing countries and emerging markets. E.g. 35% of the interviewed companies did not invest abroad because of corruption, although the projects would have been lucrative. According to the results of this study, due to corruption 5% of the gross national product and 50% of the subsidies for developing countries get lost.
more... (in German)
5. Study: Whistleblowing discloses Corruption in Enterprises
According to a new US-study fraud detection does not rely on one single mechanism, but on a wide range of, often improbable, actors. Only 6% of the frauds are revealed by the SEC and 14% by the auditors whereby whistleblowing has the greatest impact. More important monitors are media (14%), industry regulators (16%), and employees (19%). 65% of all cases were not detected by the responsible controlling bodies, but by externals.
more...
6. Increase of Availability for Ombudsmen
The integration of an external ombudsman in the BKMS® whistleblowing procedure aims at the advanced evaluation of messages and the strengthening of the enterprise’s credibility dealing with reports in the BKMS® system.
Because of the internet-based communication platform whistleblowers can reach the ombudsman at all times and from all over the world. Conversely, for the ombudsman it is possible to access reports independent from place and time – thus a 24/7 availability of the ombudsman is no longer necessary. The control of the BKMS® system remains with the customer himself.
more...
7. Prize for Whistleblowing 2007
The laureates of this year’s whistleblower prize, which will be awarded in Berlin on April, 13th by the International Association of Lawyers Against Nuclear Arms (IALANA) and the Association of German Scientists within a ceremony on the occasion of the 50th anniversary of the “Göttinger Erklärung” are PD Dr. Liv Bode and Brigitte Heinisch.
more... (in German)
8. Events
03. - 04.05., Bonn
Third Sustainability Congress
The Congress – as a platform for the wide variety of perspectives – is to spread the sustainability thought into the public. Starting from his annual position-fixing in society, politics, and economy approaches for sustainable investments as innovative factor for the financial sector should be discussed.
more...
9. Literature
Global Compact Germany 2006
Media Group macondo (Hrsg.), January 2007,
ISBN-13: 978-3-9810638-2-0
Meanwhile nearly 3.000 enterprises throughout the world joined the Global Compact for fairer globalisation. Germany alone counts over 100 member companies. The German Network is the only one, which describes its dedication in a detailed yearbook for public discussion. The emphasis of this release is placed on environmental themes like the climate change and the ecological footprint.
more...
The Institutional Economics of Corruption and Reform
Prof. Dr. Johann Graf Lambsdorff
Cambridge University Press, April 2007, ISBN 0521872758
The author shows how expertise of institutional economics can be fruitful for a better understanding why corruption appears and how the best strategies for its combating look like. From this background a “strategy of an invisible foot” is proposed – in analogy to the strategy of the invisible hand of the market.
more...
10. Slogan
Things move to the one who stands still.
Laotse
Newsletter I/2007
Content
- Ethic Monitoring
- Whistleblowing and Data Security
- Survey of the Result Group: White-Collar Crime by Loss of Information
- Development of the ISO-Standard 26000 for Social Responsibility
- Webcast Whistleblowing Systems in Europe
- Suggestions of OECD to Combat Corruption in Export Credit Guarantees
- Slogan
1. Ethic Monitoring
Latest results of a study, conducted by the non-commercial foundation “Wertevolle Zukunft” (future with assets) show, that only a small amount of the German people consider the economic system as just. 43% of the Germans assess economical leaders as corrupt.
more... (in German)
2. Whistleblowing and Data Security
The “Article 29 Group for Data Security” of the European Union gives its statement to the following problem: The US-American Sarbanes-Oxley Act is valid for all companies which are listed at US-stocks as well as for their subsidiaries. Referring to section 301 also European companies are committed to set up an anonymous whistleblowing system and meeting the European regulations for data security at the same time. How is it possible to solve this apparent discrepancy?
more...
3. Survey of the Result Group: White-Collar Crime by Loss of Information
The Result Group GmbH interviewed 3868 middle-class businesses and groups. Only 2.5% of the companies have access to an anonymous, online Whistleblowing system, although those provide relevant results in 87% of all cases.
more...
4. Development of the ISO-Standard 26000 for Social Responsibility
A task force of approximately 300 experts of 50 countries will develop an international guideline for Social Responsibility for and in organisations until end of 2008. This ISO-norm is to support the development, implementation and improvement of basic conditions for social responsibility in different cultures, societies, ecological environments and legal systems. The standard is going to be applicable for all kinds of organisations and all countries in the world.
more...
5. Webcast Whistleblowing Systems in Europe
A life-discussion about whistleblowing systems in Europe is going to take place on January 18th by using the platform of the Conference Board. This is to present a new view of Best Practice and a supporting programme for the connection of all risk management measures.
more...
6. Suggestions of OECD to Combat Corruption in Export Credit Guarantees
Governments give official export credit guarantees to support national exporters in foreign business transactions. With the OEDC-convention of 1997 governments became committed to uncover and sanction bribery of foreign public officers in international business transactions, especially in those supported by export credit guarantees.
The OECD-Export Credit Workgroup developed common principles for the combat against corruption in all member states with a consolidated resolution. This includes measures like information about the culpability of bribery; declaration of the applicant concerning exemption of corruption in foreign business transactions and staff for the last five years; verification with black lists of international financial institutions (e.g. the World Bank); no credit guarantee when strong suspicion of corruption as well as refusal / reclaim of compensation in confirmed cases of corruption.
more...
7. Slogan
Economic action without ethic criteria is blind and short-sighted; ethic action without regard to economic reality and possibilities is ignorant and in vain.
Hans-Martin Sass
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