Author Archives: Anna Nadgrodkiewicz

TI-USA Recognizes James Wolfensohn with Integrity Award

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The World Bank was founded on the principle of non-interference in the political affairs of its member countries, with the focus exclusively on fighting poverty through economic development. For decades, that meant that corruption was a taboo subject in the global discourse on development, even as it crippled the economies and societies of countries around the world.

That changed on October 1, 1996 when then-President of the World Bank, James Wolfensohn delivered his famous speech at the Annual Meetings where he called corruption what it is: a cancer on development.

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Warsaw Dialogue for Democracy Highlights Closing Space for Civil Society

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Pro-democracy reformers and activists are among the most driven and courageous people in the world. Speaking out against abuses committed by authoritarian governments often brings the risk of punishment, and meaningfully engaging on policy issues even with democratic governments takes dedication, mobilization, and discipline.

Civil society is a key conduit between citizens and their governments through which such engagement should happen. Yet, in a troubling global trend, we are witnessing the shrinking of civic space, with a number of countries from Ethiopia to Russia having passed restrictive anti-NGO legislation.

Especially in such difficult environments, human rights defenders and democracy advocates more than anything need to know that they are not alone, that the ideals they fight for are universal, and that they are a part of an international community. That is exactly what the Warsaw Dialogue for Democracy helps to accomplish.

Now in its third edition, the Dialogue, which took place October 23-25 at the Natolin Campus of the College of Europe in Warsaw, is an international gathering devoted to democracy and civil society, bringing together representatives of civil society, human rights defenders and activists from Africa and the Middle East, Asia, the Americas and Eastern Europe. The Dialogue is a forum for the exchange of good practices and expertise in the evolution of democratic systems as well as a place to share success stories and challenges of democratic transitions.

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The Business Case for Putting Ethics at the Heart of Corporate Culture

Participants at Ethisphere

Participants at Ethisphere’s 2014 Europe Ethics Summit.

In today’s global business environment, corruption poses a risk that companies with operations around the world must understand and manage effectively. Those that do reap the benefits. As the Ethisphere Institute points out, the business case is clear: the five year annualized performance of the World’s Most Ethical (WME) Companies Index was 21 percent, beating S&P 500’s 18 percent. Similarly, the ten year annualized performance of the WME Index is, at 11.4 percent, significantly higher than that of S&P 500 at 7.4 percent.

The key to success in ethical business is placing ethics at the center of corporate culture and building strong compliance programs that can mitigate corruption risks. That was the overarching theme of the recent 2014 Europe Ethics Summit: Leadership through Ethics and Governance, hosted in London by the Ethisphere Institute and Thomson Reuters. The Summit was Ethisphere’s first such event in Europe and gathered nearly 150 compliance experts, professionals, and stakeholders.

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Leveraging Partnerships for Impact

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Earlier this week the U.S. Chamber of Commerce Foundation Corporate Citizenship Center’s conference The Impact Equation: Stronger Business, Greater Results, Better World gathered business and non-profit leaders committed to sharing innovative solutions on how to achieve positive change in communities in the U.S. and around the world.

This year’s event focused on results. As the Corporate Citizenship Center’s Executive Director Marc DeCourcey put it, “In today’s world, companies must ensure that every dollar spent is meaningful, that every employee volunteer opportunity is worthwhile, and that every investment shows a return. Companies must ensure that their work is driving measurable, lasting impact.”

Great speakers – including Arthur Brooks, President of the American Enterprise Institute, Stan Litow, President of the IBM Foundation, and Carolyn Berkowitz, President of the Capital One Foundation – emphasized that point throughout the conference.  The focus on results was also reinforced by a study presented by Global Impact, Giving Beyond Borders: A Study of Global Giving by U.S. Corporations, showing that effectiveness in producing results is by far the most important factor influencing corporate partnerships with non-profits.

Here are a few other highlights from that report that I found particularly interested from the Center for International Private Enterprise’s perspective centered on international projects:

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Anti-Corruption Compliance in Kenya

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Transparency International’s Corruption Perceptions Index ranks Kenya in a distant 136th place. That low ranking confirms the sentiment often encountered in Nairobi: corruption is widespread in many aspects of life, from bribing a policeman to avoid charges for alleged traffic violations to graft at the highest levels of government, as poignantly described by a British journalist Michela Wrong in her book about Kenyan whistleblower John Githongo, It’s Our Turn to Eat.

Not surprisingly, many segments of the Kenyan society are fed up with the status quo and ready for change. That includes many companies in the private sector that see their growth potential and competitiveness stifled by the highly corrupt environment. Such companies are not waiting for the government to clean up its act and instead are taking the initiative to limit corruption through setting up or strengthening internal compliance procedures.

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A Guide for Anti-Corruption Compliance: The New Imperative in Global Value Chains

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This post originally appeared on Corporate Compliance Trends.

In many countries, fighting corruption seems to be an impossible battle, especially for mid-sized companies with limited resources. While there is a broad global consensus that corruption suppresses competition and innovation, thus hampering entrepreneurship and economic growth opportunities, countering it presents a challenging task due to resistance to reform in corruption-tainted business environments. In many cases anti-corruption rules and regulations may be weak or unevenly enforced, government-led steps to fight corruption remain insufficient or ineffective, and bribes are a widely accepted part of doing business.

Yet businesses committed to anti-corruption are not helpless. They can lead by example by improving their own safeguards against corruption and act together to create a movement for integrity that makes clean business conduct the norm, not the exception.

In today’s globalized world, where international value chains stretch across borders and continents, anti-corruption compliance provides a vital competitive advantage. Ethical companies tend to have higher valuations, are more attractive to potential investors and employees, and are more likely to be engaged in long-term arrangements with their business partners. Increasingly, companies are expected to ensure not just the integrity of their own operations but also the conduct of their suppliers, distributors, and agents wherever they may be. Evidence of this comes from high-profile prosecutions of multinational firms that are not only subject to significant fines but also risk loss of share value and reputation.

CIPE’s newest publication, Anti-Corruption Compliance: A Guide for Mid-Sized Companies in Emerging Markets, is meant to help local companies around the world think about anti-corruption compliance as a strategic investment and take concrete steps to introduce or strengthen their internal compliance programs. Going forward, the guidebook will serve as the basis for CIPE training and capacity building initiatives for businesses in countries ranging from Kenya to Pakistan and Ukraine where, despite persistent challenges, many companies already are a part of global value chains or aspire to join them. In order to be competitive, they need tools outlined in the CIPE guidebook to translate their commitment to integrity into the day-to-day business operations. Stay tuned for the country updates!

Click here to get the guidebook.

Anna Nadgrodkiewicz is Director of Multiregional Programs at CIPE.

The Future of the U.S.-Africa Economic Relationship

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Last week Washington hosted nearly 50 African heads of state at the first-ever U.S.-Africa Leaders Summit. Countless meetings and conversations that took place not just among government officials but businesses, international organizations, and non-profits (including CIPE and Freedom House) brought Africa into the spotlight. Yet the most important aspect of the Summit is still ahead: what did we learn and how can this knowledge guide the way forward?

One of the most informative outcomes of the Summit to me was the launch of a report Africa and the United States: A defining relationship of the 21st century at the U.S. Chamber of Commerce’s Presidential Plenary. The report was jointly produces by the U.S. Chamber and Investec Asset Management (IAM), a global investment management firm founded in 1991 in South Africa. Hendrik du Toit, Investec’s CEO, unveiled the report and discussed its findings with a panel of corporate leaders.

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