Siemens Integrity Initiative Annual Report 2018
siemens.com/integrity-initiative Content
2 Foreword A WORD FROM THE SIEMENS INTEGRITY INITIATIVE STEERING COMMITTEE 4 A WORD FROM THE SIEMENS INTEGRITY INITIATIVE PROJECT OFFICE 8 A. INTRODUCTION 14 Project management and reporting 16 Project organization 18 B. SIEMENS INTEGRITY INITIATIVE 20 Status of the First Funding Round 22 Status of the Second Funding Round 23 Status of the Third Funding Round 24 C. PROJECT PROFILES AND HIGHLIGHTS OF ACTIVITIES IN 2018 36 C1. First Funding Round Projects: Project Profiles and highlights of activities in 2018 38 C2. Second Funding Round Projects: Project Profiles and highlights of activities in 2018 40 D. ANNEX 86 D1. International Center for Collective Action: Conference in Basel 86 D2. Third Funding Round Press Release by Siemens and Eligibility and Selection Criteria 90 D3. Additional Siemens Reports 96
Note: Please refer to the following website for a general overview of the Siemens Integrity Initiative, the selection process for the First, Second and Third Funding Rounds and highlights of activities: www.siemens.com/integrity-initiative. The Siemens Integrity Initiative Annual Report 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 can be found here: www.siemens.com/integrity-initiative/Report2011 www.siemens.com/integrity-initiative/Report2015 www.siemens.com/integrity-initiative/Report2012 www.siemens.com/integrity-initiative/Report2016 www.siemens.com/integrity-initiative/Report2013 www.siemens.com/integrity-initiative/Report2017 www.siemens.com/integrity-initiative/Report2014 www.siemens.com/integrity-initiative/Report2018 Kindly note that the online version of this Annual Report 2018, available at www.siemens.com/integrity-initiative/Report2018, is complemented by numerous hyperlinks which provide a wealth of additional external information on the projects funded under the Siemens Integrity Initiative.
3 A Word from the Siemens Integrity Initiative Steering Committee
A Word from the Siemens Integrity Initiative Steering Committee
A Word from the Siemens Integrity Initiative Project Office Dear Reader, March 2019
After a decade of promoting Collective Action, The Siemens Integrity Initiative was established which is building alliances against corruption in 2009 and is backed by funding in excess of around the world, we are pleased to present to USD 100 million out of settlements with the you the Annual Report 2018 of the Siemens World Bank in 2009 (USD 100 million over 15 Integrity Initiative, which is an important pillar years) and the European Investment Bank in of our Siemens compliance system. 2013 (EUR 13.64 million over 5 years). For us in Siemens, the responsible business Since the first Siemens Integrity Initiative pro conduct we commit to is based on integrity, jects were launched in December 2010, we fairness, transparency and responsibility. This have held to our longstanding commitment builds the core principles for all our compliance of transparency and continuity through eight and anti-bribery, supply chain management Annual Report editions covering the activities, and human rights-related activities. Collective outcomes and status of our First and Second Action is a prominent activity field in our Com- Funding Round projects. pliance System, and through our engagement Once again, we are pleased to show-case the with external stakeholders in the private sec- most recent accomplishments of the Integrity tor, government and civil society, we continue Initiative in this Annual Report 2018, with an to drive and enable sustainable and transpar- exciting and impressive summary of project ent market conditions for the benefit of all. activities and outcomes in Section C based on information provided by our Integrity Partners as of key date March 1, 2019.
4 The narrative of accomplishments once again levels of government and / or with their strate- The Project Office has kept the Steering Com- emphasizes and demonstrates the importance gic local stakeholders in their respective coun- mittee, the World Bank Group and the Euro- of Collective Action in levelling playing fields, tries of implementation, but have also collec- pean Investment Bank up to date on emerging and the ever-increasing aggregation of contri- tively advocated for and placed responsible developments and the status of projects. As butions to the global fight against corruption. business conduct themes on the international before, it has been a pleasure for the Steering agenda through platforms such as the World Committee to provide supervisory and advisory Looking ahead, we are confident that the Third Economic Forum and the G20 / B20 process. support to the Project Office, where needed. Funding Round which we launched on March 13, 2018 will build – with some 25 new pro Secondly, we would like to thank Sabine Zindera Our final sentiment of thanks is to Dr. Klaus jects and up to USD 30 million in funding – and the Munich based Project Office of the Moosmayer, who served as the Chief Compli- on the solid and far reaching accomplishments Siemens Integrity Initiative who at the outset ance Officer of Siemens AG and the Integrity backed with more than USD 70 million to date. in 2010 designed the program and its gover- Initiative Steering Committee member until nance structures. Supported by a motivated November 2018, and who has in addition con- We would like to express the following senti- network of local in-country Mentors on CEO tributed to the global fight against corruption ments of thanks: level and Project Relationship Managers from in various distinguished capacities. Firstly, we wish to acknowledge the commit- our local Compliance Organization, the Project ment and engagement of our Integrity Partners Office has under her leadership maintained who have not only individually addressed the highest standard of professional guidance, important anti-corruption issues at the highest support and oversight.
5 A Word from the Siemens Integrity Initiative Steering Committee
A Word from the Siemens Integrity Initiative Project Office
His strong belief that business can and must Steering Committee make a difference in fighting corruption of the Siemens Integrity Initiative: through clear tone from the top, effective com- pliance systems and constructive collaboration Dr. Andreas Christian Hoffmann with civil society and the public sector has well General Counsel, Siemens AG informed his invaluable contributions to the Dr. Klaus Moosmayer Siemens Integrity Initiative, the Siemens Com- (until November 2018) pliance system and Collective Action. Martina Maier This Annual Report was approved by the (from December 2018) Siemens Steering Committee on March 18, Chief Compliance Officer, Siemens AG 2019 and submitted together with a compre- Dr. Horst J. Kayser hensive presentation to the World Bank Group Corporate Vice President, in Washington on March 20, 2019 and to the Chief Strategy Officer, Siemens AG European Investment Bank in Luxembourg on April 25, 2019.
6 Much of the information available to us is Our very first 2011 edition introduced to you We hope that this will encourage additional transparently accessible to the public and the Siemens Collective Action program, and in allies to sign up to Collective Action and join can be viewed on our dedicated web site Sections A and B of the report provided us in our fight against corruption. The positive www.siemens.com/integrity-initiative. insight into the conceptualization, planning, external and internal feedback received in project selection, award of funds and project response to our reports, and especially to our The information provided relates in particular implementation relating to the First Funding externally conducted Mid-term Review has to the framework conditions for the First, Round tranche of USD 37.7 million. strengthened our resolve to extend our pro- Second and Third Funding Rounds, the appli- gram even further, enabling us to highlight cation and selection process for the projects, Our seventh 2017 edition signaled the half- more and more anti-corruption success stories the brief profiles and the individual funds way mark of the 15-year World Bank settle- across all countries and, in so doing, integrate earmarked for the selected projects from the ment period and featured a Summary Report additional stakeholders and activities. First and Second Funding Round, and the of the external Mid-term Review of the unabridged versions of the Siemens Integrity Integrity Initiative in Section D. The Mid- Initiative Annual Reports for 2011, 2012, term Review was independently conducted by 2013, 2014, 2015, 2016, 2017 and 2018. the Canadian Universalia Management Group Two editions stand out and merit further who found there to be “strong evidence” that mention: projects have “achieved their intended short- term results” and have made “significant con- tributions to change within their respective contexts”.
7 A Word from the Siemens Integrity Initiative Project Office
A Word from the Siemens Integrity Initiative Steering Committee
A Word from the Siemens Integrity Initiative Project Office Dear Reader, March 2019
“Even with a 171-year history, we at Siemens Siemens’ commitment to sustainable practices keep asking ourselves: What kind of company using the United Nations Agenda 2030 and its do we want to be? What is it that drives our 17 Sustainable Development Goals (SDGs) as a 379,000 employees to give their best every guideline measure to the value we create for day? The answers to these questions lie in society. our purpose. We defined that purpose as our Specific to responsible business practices, Joe aspiration to provide innovations that improve Kaeser and Roland Busch emphasize our zero- quality of life and create value for people all tolerance approach to corruption, money laun- over the world. We make real what matters. dering and violations of fair competition, data And every Siemens business will serve this privacy, export control and human rights princi- purpose, for all our stakeholders – for inves- ples, as well as other breaches of applicable law. tors, employees, customers, partners, and societies alike.” They say: “In one area, there’ll be no compro- mises or changes – the area of integrity and This purpose – as stated by Joe Kaeser, compliance. Only clean business is Siemens President and CEO, Siemens AG and Dr. Roland business. Clarity and integrity: These are the Busch, Member of the Managing Board, responsibilities of each and every one of us. Siemens AG in the opening words of their They’re what we stand for as a company. Our foreword to the Siemens Sustainability Infor- integrity will never be negotiable. Compliance mation 2018 – is placed at the center of our with the law will always be the foundation of Vision 2020+ company concept and enforces
8 all our businesses. This also applies to the These principles of integrity and compliance integrity of our accounting processes and guide our way and are well anchored in our related functions. compliance system which includes Collective Action as a central activity field with global Beyond the boundaries of our company, we governance responsibility. are committed to Collective Action, an alliance to fight corruption collectively and promote Looking back over eight years of the Siemens fair competition. In its Mid-term Review in the Integrity Initiative – established in 2009, and summer of 2017, the Canadian Universalia based on the settlements with the World Bank Management Group acknowledged how the in 2009 and the European Investment Bank in Siemens Integrity Initiative has positively pro- 2013, and backed with funding in excess of moted Collective Action agendas against cor- USD 100 million – the Project Office is encour- ruption and fraud around the world by creating aged by the substantial advances made in anti- organizational capacities, enabling knowledge corruption Collective Action initiatives through exchange, expanding alliances, strengthening the 55 projects implemented in over 20 coun- the rule of law and ultimately demonstrating tries with a funding volume of more than USD the business case for Collective Action. 70 million. We will continue to support the Siemens Integ- rity Initiative by executing the Third Funding Round in the spring of 2019.”
9 A Word from the Siemens Integrity Initiative Steering Committee
A Word from the Siemens Integrity Initiative Project Office
All projects of our First Funding Round have Collective Action has come of age as a mean- come to a scheduled end and the final report ingful and effective instrument of change in of activities over the entire project period was the global fight against corruption and the presented in previous Annual Report editions, pursuit of transparent markets and levelled which means that we have focused this year playing fields for all. This was also and very on our active Second Funding Round projects, certainly the consensus at the very engaging which are included in this report. and well represented Collective Action Confer- ence hosted by the Basel Institute on Gover- Of the 24 projects worth USD 35.554 million nance’s International Center for Collective in the Second Funding Round, final reports on Action in November 2018. activities over the entire project period for the Beijing New Century Academy on Transnational Please do read more about the Collective Corporations (NATC) and the Pan African Law- Action Conference 2018 and the encouraging yers Union (PALU) were reported in last year’s comments from anti-corruption champions Annual Report 2017. In this year’s Annual from all around the world in our special feature Report 2018, a further 10 projects as detailed in Section D.1 of this Annual Report. in Section C have submitted their final reports Another significant 2018 highlight was the on activities for the entire project period. long-anticipated launch of the Third Funding When looking at the aggregate accomplish- Round of the Siemens Integrity Initiative with ments we can in many ways proudly say that a targeted volume of up to USD 30 million for
10 approximately 25 new projects. We published into consideration such as regional, global and the call for submissions on March 13, 2018 thematic mix, follow on projects from previous through a Press Release, a copy of which you funding rounds and the ratio of large and small can find in Section D.2, together with all eligi- organizations. bility criteria and focus countries (the so-called For more information on the Status of the “green booklet”, on our website www.siemens. Third Funding Round, please see Section B com/integrity-initiative). of this Annual Report 2018. Having received approval from the Steering The Third Funding Round presents a real and Committee as well as the World Bank non-veto significant beacon of opportunity for a wide and the European Investment Bank no objec- reaching and incremental push to the anti- tion decisions for short-listed projects under corruption agenda by anchoring Collective consideration, followed by a detailed Full Pro- Action as an instrument of change, and by posal due diligence conducted by the Project further elevating the importance of Collective Office together with a global interdisciplinary Action as a driving force for higher level out- team, we are confident that the first Funding comes, more evidence of change and sustain- Agreements will be finalized from around able results. It’s no longer only about “keeping spring 2019. the fires burning”, it’s now all about intensi Naturally, we are faced with a difficult choice fying the dynamics of real and long-lasting in selecting up to 25 projects to achieve a change! balanced portfolio that takes various aspects
11 A Word from the Siemens Integrity Initiative Steering Committee
A Word from the Siemens Integrity Initiative Project Office
A word of heartfelt thanks goes to our Integrity Finally, a very special word of thanks and Partners for their ongoing commitment and appreciation goes to our Steering Committee multi-facetted work, to our Project Relationship who have throughout 2018 received regular Managers for their continuous support on the and detailed updates of the Integrity Initiative, ground, to our high-level Mentors for their and who have continued to support us with local insight and guidance. valuable advice and supervision, which helps us to optimistically think ahead with clear We also would like to thank our outgoing Chief direction and to align our actions accordingly, Compliance Officer, Dr. Klaus Moosmayer, even in stormy times. for his active, sincere and hands-on support of Collective Action and the Siemens Integrity Initiative over the years, and in turn we look very much forward to continuing the Collective Action journey by extending a very warm word of welcome to Martina Maier, the new Chief Compliance Officer in charge.
12 The Collective Action and Strategy Under the terms of the agreement between The Siemens Integrity Initiative is managed by Team is headquartered in Munich, Siemens and the World Bank, the World Bank a global project organization with in-country Germany: has audit rights over the use of funds (USD presence and support where relevant and is 100 million dollars over 15 years beginning in subject to project management rules as Sabine Zindera, Vice President, heads 2009) and veto rights over Siemens’ selection detailed in Section A of this report. the Collective Action and Strategy of projects and organizations to be supported. department in the Siemens Legal The Project Office regularly updates the Furthermore, the agreement between and Compliance Organization and Siemens Steering Committee, the World Bank Siemens and the European Investment Bank is supported by Shawn Teixeira, Group and the European Investment Bank (EUR 13.64 million over 5 years) gives the Stephanie Wagner and Monika Besel, on the status and progress of the Siemens EIB the right to reject proposed projects. as well as the network of Siemens Integrity Initiative. Business Leaders, Siemens Country The projects were chosen according to CEOs, Compliance Officers, Controlling defined selection criteria and focus areas and and Finance and legal and tax experts underwent a detailed cross-functional due all around the world. diligence. More information is available on our dedicated web site www.siemens.com/ integrity-initiative.
13 Introduction
A. The main objective of the Siemens Integrity Initiative is to create fair market Introduction conditions for all market participants by fighting corruption and fraud through Collective Action as well as Education and Training.
The Initiative focuses on supporting projects that have a clear impact on the business environment, can demonstrate objective and measurable results, and have the potential to be scaled up and replicated.
14 The Siemens Integrity Initiative aims to: Economic Forum and, since 2011, our active involvement in the G20 / B20 Task Force on • Raise standards and create awareness of Anti-corruption and the drafting and imple- compliance and business integrity mentation support of B20 Recommendations • Create a common platform for dialog with drawn up in France, Mexico, Russia, Australia, the private and public sectors Turkey, China, Germany and Argentina. • Strengthen the rule of law We remain committed to the 10 principles of the United Nations Global Compact, and sup- Under the umbrella of the Siemens Integrity port the implementation of the United Nations Initiative, Siemens will disburse funds to Convention against Corruption, as well as the support non-profit organizations worldwide OECD Anti-Bribery Convention. These principles that promote business integrity and the fight and conventions guided our thematic consider- against corruption. ations in project designs which were taken up Moving beyond the boundaries of our com- by our Integrity Partners for implementation pany, Collective Action continues as a priority through certain modules in our Siemens Integ- in Siemens Legal and Compliance. This is rity Initiative projects. evidenced by our long-standing involvement in the ICC Commission on Corporate Responsi- bility and Anti-corruption, the Pact Against Corruption Initiative (PACI) of the World
15 A. Introduction
Project management and reporting
• Responsibility for managing the projects • Siemens has set up an internal project struc- funded under the Siemens Integrity Initiative ture for selecting projects and for supporting lies with the respective Integrity Partner; and monitoring projects during the imple- Siemens supports projects financially, moni- mentation phase, as well as set-up a system tors the use of funds in a biannual reporting for capturing and evaluating impact process, and participates in activities where • Siemens supports all projects with a desig- appropriate and requested by the Integrity nated Project Relationship Manager and a Partner Mentor from senior management • The main points relating to the management • Country-specific projects, for example, can of projects are regulated in a Funding Agree- draw on the CEO of the local Siemens com- ment between Siemens and the Integrity pany as their Mentor. All Project Relationship Partners and its Project Partners Managers (PRMs) are coordinated by the • Funds are paid out subject to the achieve- Siemens Integrity Initiative Project Office ment of milestones and on a biannual basis (see also Project Organization) • Integrity Partners report annually on progress, • A project completion process is in place funds used and work plans for the next year. which includes the submission of a Final All Annual Reports must be accompanied by a Report, consisting of a Final Progress Report financial report that has been audited by an and an Audit Report with project financials external audit company. Regular Interim prepared by an independent Auditor, as well Reports help to review progress throughout as the submission of an End of Project Evalu- the year. All Annual Reports must be reviewed ation and a Final Payment Request and approved by the local Siemens Project Relationship Manager, the Siemens Integrity Initiative Project Office and the Siemens Finance Department
16 Roles and responsibilities of Project Relationship Managers and Mentors:
Siemens Integrity Initiative Project Office (PO)
Ensures coherence among portfolio of projects
Project Mentor for projects Relationship Manager (PRM)
Monitoring role Support role • Approval of progress of projects • Representation at local high-level (reporting) events / Project Steering Committee • Approval of external communication Meetings with Corporate Communication and PRM / PO calls upon • High-level communication activities with relevant departments Mentor when needed (use success stories)
Support role Link to Project Office • First contact point for • Project Office calls upon Mentor when Integrity Partner needed • Create success stories • Provide high-level support in resolving • Knowledge sharing of issues / challenges • Participation in project activities • Represent project at global high-level events
17 A. Introduction
Project organization
• The internal Siemens project management • The Project Office is the main link to the structure of the Initiative consists of several World Bank Group with regard to the audit dedicated teams that provide overall supervi- and veto rights as well as reporting obliga- sion and guidance (such as the Steering tions. It is also the main link to the European Committee) and deal with daily operations of Investment Bank (EIB) with regard to their the Initiative (Siemens Project Office, Project rights to reject projects proposed as well as Team and Project Relationship Managers) reporting obligations • To make this Initiative a company-wide effort • The work of the Project Office and Project and ensure engagement and representation, Team is overseen by the Siemens Integrity all relevant business fields of Siemens have Initiative Steering Committee, which consists been integrated into the structure of the of Dr. Andreas Christian Hoffmann, General Initiative Counsel, Siemens AG; Dr. Klaus Moosmayer until November 2018 and Martina Maier from • The main operational contact for this Initia- December 2018, both as Chief Compliance tive is the Siemens Project Office in Munich, Officer, Siemens AG; and Dr. Horst J. Kayser, which comprises four people, and is sup- Corporate Vice President, Chief Strategy ported by an extended Project Team from Officer, Siemens AG various Siemens departments (Legal and Compliance, Finance, Tax, Strategy, Commu- • As the World Bank Group has veto and audit nications and Compliance colleagues in all rights, and the European Investment Bank relevant countries) has the right to reject proposed projects, they have set up a team of experts to liaise with Siemens regarding the Siemens Integ- rity Initiative, as shown in the chart
18 Siemens Integrity Initiative project structure with settlement parties:
World Bank Siemens European Investment Bank
World Bank Working Group Siemens Integrity Initiative Siemens European Investment Bank Siemens Integrity Initiative Steering Committee Managing Board Siemens Integrity Initiative
• Head of Fraud Investigations • Governance Global Practice (GGP) • Dr. Andreas C. Hoffmann, General Counsel • Dr. Horst J. Kayser, Corporate Vice President, • Integrity Vice Presidency (INT) Chief Strategy Officer • Dr. Klaus Moosmayer, Chief Compliance Officer • Legal Vice Presidency (LEG) (until November 30, 2018) • External Communications (ECR) • Martina Maier, Chief Compliance Officer (from December 1, 2018)
Veto rights over the selection Right to reject the projects ✓ ✓ proposed of projects Siemens Integrity Initiative Audit right over the use of funds Project Office Regular reporting on progress ✓ Regions and ✓ Regular reporting on progress and work plans ✓ Divisions and work plans
Siemens Integrity Initiative Finance Project Team and Tax
Legal Strategy Communications
19 Siemens Integrity Initiative
B. On July 2, 2009, the World Bank Group announced a comprehensive settle Siemens Integrity Initiative ment with Siemens. As part of the settlement, Siemens agreed to cooperate to change industry practices, clean up procurement practices and engage in Collective Action with the World Bank Group to fight fraud and corruption.
Siemens subsequently set up the Siemens Integrity Initiative to support projects and organizations fighting corruption and fraud with funding worth USD 100 million over the next 15 years.
This funding was complemented on March 15, 2013 by a separate settlement with the European Investment Bank (EIB), worth EUR 13.64 million over five years.
20 21 B. Siemens Integrity Initiative
Status of the First Funding Round
In the First Funding Round, thirty-one projects from over twenty countries were selected to Key data First Funding Round receive a total funding of up to USD 40 million. Funds committed in the USD 37.7 M As reported in our Annual Report 2016, as at First Funding Round March 3, 2017, all 31 projects had completed Disbursements in year 1 to year 8 USD 34.8 M 1) their scheduled activities. (2010 – June 30, 2018) The final overviews of activities for the entire (release of provision) project period were reported on in various Disbursement for Mid-term Review of USD 0.18 M Siemens Integrity Initiative Annual Reports from the Siemens Integrity Initiative per- 2011 to 2017. formed by Universalia Management Group finalized and presented to the These projects are marked in the table on World Bank on December 6, 2017 cover- page 28 and further information on the ing the First and Second Funding Rounds projects is available on www.siemens.com/ Funds unspent USD ~2.7 M integrity-initiative. www.siemens.com/integrity-initiative/Report2011 No further planned disbursements USD 0.0 M For information on Collective Action, the www.siemens.com/integrity-initiative/Report2012 Siemens Integrity Initiative, the selection process Number of projects 31 www.siemens.com/integrity-initiative/Report2013 and criteria, and funded projects, please visit First Funding Round www.siemens.com/collective-action. www.siemens.com/integrity-initiative/Report2014 Thereof projects that have 31 www.siemens.com/integrity-initiative/Report2015 A detailed description of activities implemented completed their activities www.siemens.com/integrity-initiative/Report2016 during the first to the seventh year (2011 to Thereof ongoing 0 2017) was provided in the Siemens Integrity www.siemens.com/integrity-initiative/Report2017 Initiative Annual Report 2011, 2012, 2013, Countries covered in the 22 www.siemens.com/integrity-initiative/Report2018 2014, 2015, 2016 and 2017. First Funding Round
Note: Siemens fiscal year (October 1 – September 30). Due to rounding, numbers presented may not add up precisely to the totals provided.
22 1) The information provided in this table is based on all approved First Funding Round Final Reports Status of the Second Funding Round
The Second Funding Round applies the same The selection was made on a competitive basis selection criteria and focus areas as the First in two stages (initial Expression of Interest Key data Second Funding Round Round. As the Second Round is also based on phase and the later Full Proposal phase) with a the settlement agreements with the World focus on project applications that demonstrate Funds committed in the USD 35.554 M Second Funding Round Bank Group and the European Investment a clear impact on the business environment Bank, the World Bank Group has audit rights and results in sectors and countries of where Disbursements in year 1 to year 5 USD 31.9 M1) over the use of funds (USD 100 million over Siemens is present. Projects that already sub- (2015 to March 01, 2019) - a period of 15 years beginning in 2009) and mitted an Expression of Interest for the First release of provision veto rights over the selection of projects by Funding Round as well as projects that have Siemens. The agreement between Siemens already been funded were eligible to submit Funds currently unspent USD ~ 3.7 M and the European Investment Bank (EUR 13.64 another proposal in the Second Funding Round. Further planned disbursement USD ~ 2.4 M million over five years) gives the EIB the right The announcement, application process and in year 5 (2019) to reject the projects proposed. selection criteria were made available transpar- The Second Funding Round, with a funding ently on the Siemens Integrity Initiative web- Number of projects 24 volume of approximately USD 30 million for up site. The initial first projects were announced Countries covered More than 20 to 25 projects plus additional projects funded in a joint press release published by Siemens, Second Funding Round on the basis of the settlement with the Euro- the World Bank Group and the European pean Investment Bank, was launched on June Investment Bank on December 10, 2014 Note: Siemens fiscal year (October 1 – September 30). 27, 2013 with a deadline for submission of (see www.siemens.com/integrity-initiative Due to rounding, numbers presented may not add up precisely to the totals provided. proposals in August 2013. or Section D of the Annual Report 2014). 1) The information provided in this table is based on approved The gradual announcement of the selected The final overviews of activities for the entire Annual and Final Reports as at March 01, 2019 projects from the Second Funding Round project period were reported on for 2 of the started in fall 2014 and stretched until spring 24 projects in our Annual Report 2017. These More information on the settlements between 2015. 24 projects were selected for funding projects are marked in the table on page 32 Siemens and the World Bank Group and Siemens in the Second Funding Round with a total com- and further information on the projects is avail- and the European Investment Bank (EIB) is avail- mitted capital of USD 35.554 million. able on www.siemens.com/integrity-initiative. able online as well as on the Siemens Integrity Initiative website: www.siemens.com/integrity- initiative.
23 B. Siemens Integrity Initiative
Status of the Third Funding Round
The Siemens Integrity Initiative announced the linkages between human rights and anti-cor- launch of the Third Funding Round in its Press ruption compliance, linkages between export Release on March 13, 2018. control and anti-corruption compliance, and / or technological advances (e.g. digitalization), As part of the July 2009 settlement between and the extent to which technological Siemens and the World Bank and the March advances could be used in the fight against 2013 settlement between Siemens and the corruption (e.g. Big Data, Social Media). European Investment Bank (EIB), the third funding tranche will ultimately see the selec- Open to applications from legal entities such as tion of some 25 new projects, with funding of non-governmental organizations, international up to USD 30 million in total over a period of organizations, business associations, and aca- three to five years. demic institutions, the Siemens Integrity Initia- tive selection process is made on a competitive The first two funding rounds with 55 projects basis in two stages (initial Expression of Inter- and committed capital totaling more than USD est phase and the later Full Proposal phase), 70 million have at the request of the World and favors project proposals that have a direct Bank undergone an external evaluation by the impact on the private sector and strengthen Universalia Management Group, who conclude compliance standards and legal systems. that “the overall findings of the Mid-term Review are positive”. Detailed information Entities that submitted Expressions of Interest on the external evaluation by Universalia can for the first two funding rounds as well as enti- be found in our Annual Report 2017 at www. ties that received funding in the first two fund- siemens.com/integrity-initiative/Report2017. ing rounds were also eligible to submit propos- als for funding in the Third Funding Round. Although the Third Funding Round applies the same selection criteria and focus areas as in The Project Office was truly encouraged by the first two funding rounds, it also encour- around 140 Expressions of Interest received by ages new themes reflected on in the global the May 8, 2018 deadline. These Expressions anti-corruption discourse, such as systematic of Interest were submitted by local and global
24 organizations dedicated to the fight against corruption and covered a wide range of Collec- tive Action and Education and Training initia- tives with very interesting and relevant activi- ties proposed in over 50 countries. The total funding of more than USD 280 million applied for exceeded available funds by a factor of 9. Siemens conducted a cross functional review and due diligence of all Expressions of Interest with reference to the stated Eligibility and Selection Criteria available at www.siemens. com/integrity-initiative. After receiving approval from the Steering Committee as well as the World Bank non- veto and the European Investment Bank no objection decisions for short-listed projects under consideration, around 30 applicant orga- nizations were invited in November 2019 to submit Full Proposals by January 31, 2019. The outcome of the final selection, award and signing of Funding Agreements will be communicated in a staggered approach from spring 2019. More information on the eligibility and selection criteria as well as the application and selection process is available on our web site at www.siemens.com/integrity-initiative.
25 B. Siemens Integrity Initiative
List of projects funded under the First Funding Round:
Integrity Partner Country of Implementation Total Funding Volume Total Funding Volume under Project Status under the World Bank the European Investment Group settlement in USD Bank settlement in USD
Basel Institute on Governance, Switzerland Global 1.86 M – completed as of September 20153)
Beijing New Century Academy on Transnational Corporations, China China 0.89 M – completed as of March 20144)
Central European University, Hungary in cooperation with Integrity Action, United Kingdom Central and Eastern Europe 3.09 M – completed as of December 20153)
COCIR (European Coordination Committee of the Radiological, Electromedical and Healthcare IT Industry), Belgium Europe, Asia, Russia, South America 0.96 M – completed as of September 20143)
The Convention on Business Integrity, Nigeria Nigeria 1.1 M – completed as of December 2014 3)
completed as of September 2016 (Angola)2); The Ethics Institute, South Africa Angola, South Africa 1.5 M – completed as of September 2015 (South Africa)
Federation of Korean Industries-International Management Institute in cooperation with Global Competitiveness South Korea 0.81 M – completed as of March 20144) 1) Summary of Project Activities was reported in Empowerment Forum, South Korea Annual Report 2017 (1) = University of Cairo Foundation for the Global Compact, USA in cooperation with the UN Global Compact and PRME (Principles for Global 1.48 M – completed as of January 20153) Responsible Management Education), USA 2) Summary of Project Activities was reported in Annual Report 2016 (4) = Ethics Angola, IACA, Foundation for the Global Compact, USA in cooperation with the UN Global Compact and its local networks Brazil, Egypt, India, Nigeria, South Africa 2.87 M – completed as of January 20153) Ethos, Maala Fundación Universidad de San Andrés (FUdeSA), Argentina Argentina 0.73 M – completed as of September 20143) 3) Summary of Project Activities was reported in Annual Report 2015 (9) = Basel, CEU, COCIR, Humboldt Viadrina School of Governance, Germany Global 1.3 M – completed as of May 20144) CBI, PRME, UNGC, San Andres, Makati, UNDP International Anti-Corruption Academy (IACA), Austria Global 2.02 M – completed as of December 20152) 4) Summary of Project Activities was reported in International Business Leaders Forum (IBLF), United Kingdom in cooperation with the School of Public Administra- Annual Report 2014 (14) China, Russia 1.5 M – completed as of December 20135) tion of Renmin University, China 5) Summary of Project Activities was reported in Instituto Ethos – Ethos Institute for Business and Social Responsibility, Brazil Brazil 3.11 M – completed as of June 20162) Annual Report 2013 (2) Maala Business for Social Responsibility, Israel Israel 0.48 M – completed as of September 20152) 6) Summary of Project Activities was reported in
Annual Report 2012 (1) Makati Business Club, Philippines in cooperation with the European Chamber of Commerce Philippines Philippines 1.04 M – completed as of March 20153) = Total number of all summaries 31 Organisation for Economic Co-operation and Development (OECD), MENA-OECD Investment Programme, France Middle East and North Africa 0.75 M – completed as of September 20135)
26 Integrity Partner Country of Implementation Total Funding Volume Total Funding Volume under Project Status under the World Bank the European Investment Group settlement in USD Bank settlement in USD
Basel Institute on Governance, Switzerland Global 1.86 M – completed as of September 20153)
Beijing New Century Academy on Transnational Corporations, China China 0.89 M – completed as of March 20144)
Central European University, Hungary in cooperation with Integrity Action, United Kingdom Central and Eastern Europe 3.09 M – completed as of December 20153)
COCIR (European Coordination Committee of the Radiological, Electromedical and Healthcare IT Industry), Belgium Europe, Asia, Russia, South America 0.96 M – completed as of September 20143)
The Convention on Business Integrity, Nigeria Nigeria 1.1 M – completed as of December 2014 3)
completed as of September 2016 (Angola)2); The Ethics Institute, South Africa Angola, South Africa 1.5 M – completed as of September 2015 (South Africa)
Federation of Korean Industries-International Management Institute in cooperation with Global Competitiveness South Korea 0.81 M – completed as of March 20144) Empowerment Forum, South Korea
Foundation for the Global Compact, USA in cooperation with the UN Global Compact and PRME (Principles for Global 1.48 M – completed as of January 20153) Responsible Management Education), USA
Foundation for the Global Compact, USA in cooperation with the UN Global Compact and its local networks Brazil, Egypt, India, Nigeria, South Africa 2.87 M – completed as of January 20153)
Fundación Universidad de San Andrés (FUdeSA), Argentina Argentina 0.73 M – completed as of September 20143)
Humboldt Viadrina School of Governance, Germany Global 1.3 M – completed as of May 20144)
International Anti-Corruption Academy (IACA), Austria Global 2.02 M – completed as of December 20152)
International Business Leaders Forum (IBLF), United Kingdom in cooperation with the School of Public Administra- China, Russia 1.5 M – completed as of December 20135) tion of Renmin University, China
Instituto Ethos – Ethos Institute for Business and Social Responsibility, Brazil Brazil 3.11 M – completed as of June 20162)
Maala Business for Social Responsibility, Israel Israel 0.48 M – completed as of September 20152)
Makati Business Club, Philippines in cooperation with the European Chamber of Commerce Philippines Philippines 1.04 M – completed as of March 20153)
Organisation for Economic Co-operation and Development (OECD), MENA-OECD Investment Programme, France Middle East and North Africa 0.75 M – completed as of September 20135)
27 B. Siemens Integrity Initiative
Integrity Partner Country of Implementation Funding Volume under Total Funding Volume under Project Status the World Bank Group the European Investment settlement in USD Bank settlement in USD
Oživení, Czech Republic in cooperation with Transparency International Slovakia and the Economics Institute of Czech Republic, Slovakia 0.6 M – completed as of March 20144) the Academy of Sciences of the Czech Republic
Partnership for Governance Reform – Kemitraan, Indonesia Indonesia 1.5 M – completed as of December 20144)
POLMED (The Polish Chamber of Commerce of Medical Devices), Poland Poland 0.46 M – completed as of September 20144)
Sequa gGmbH, Germany in cooperation with German Agency for International Cooperation (GIZ), Chengdu China 1.49 M – completed as of March 20144) General Chamber of Commerce (Province of Sichuan), China, and Hunan Provincial Chamber, China
Transparency International Bulgaria Bulgaria 0.45 M – completed as of February 20144)
Transparency International Italy Italy 0.6 M – completed as of March 20144)
Transparency International Mexico Mexico 0.23 M – completed as of May 20144) 1) Summary of Project Activities was reported in Transparency International USA in cooperation with Social Accountability International, USA USA, Global 0.66 M – completed as of September 20144) Annual Report 2017 (1) = University of Cairo United Nations Development Programme Regional Bureau for Arab States, USA Arab States Region 1.78 M – completed as of December 20143) 2) Summary of Project Activities was reported in Annual Report 2016 (4) = Ethics Angola, IACA, United Nations Office on Drugs and Crime (UNODC), Austria in cooperation with the International Anti-Corruption India, Mexico 1.12 M – completed as of September 20144) Ethos, Maala Academy (IACA), Austria – Incentives to Corporate Integrity
3) Summary of Project Activities was reported in United Nations Office on Drugs and Crime (UNODC), Austria – UNCAC Outreach and Communication Global 0.75 M – completed as of September 20144) Annual Report 2015 (9) = Basel, CEU, COCIR, United Nations Office on Drugs and Crime (UNODC), Austria in cooperation with the International Anti-Corruption CBI, PRME, UNGC, San Andres, Makati, UNDP India, Mexico 1.22 M – completed as of September 20144) Academy (IACA), Austria – The 6P’s 4) Summary of Project Activities was reported in University of Cairo, Center for Economic and Financial Research and Studies (CEFRS), Egypt Egypt 0.85 M – completed as of February 20171) Annual Report 2014 (14) Vietnam Chamber of Commerce and Industry (VCCI) in cooperation with the International Business Leaders Forum 5) Summary of Project Activities was reported in Vietnam 0.5 M – completed as of September 20126) (IBLF), United Kingdom Annual Report 2013 (2) Total funding volume in USD 37.7 M 0 M 6) Summary of Project Activities was reported in Annual Report 2012 (1)
= Total number of all summaries 31
28 Integrity Partner Country of Implementation Funding Volume under Total Funding Volume under Project Status the World Bank Group the European Investment settlement in USD Bank settlement in USD
Oživení, Czech Republic in cooperation with Transparency International Slovakia and the Economics Institute of Czech Republic, Slovakia 0.6 M – completed as of March 20144) the Academy of Sciences of the Czech Republic
Partnership for Governance Reform – Kemitraan, Indonesia Indonesia 1.5 M – completed as of December 20144)
POLMED (The Polish Chamber of Commerce of Medical Devices), Poland Poland 0.46 M – completed as of September 20144)
Sequa gGmbH, Germany in cooperation with German Agency for International Cooperation (GIZ), Chengdu China 1.49 M – completed as of March 20144) General Chamber of Commerce (Province of Sichuan), China, and Hunan Provincial Chamber, China
Transparency International Bulgaria Bulgaria 0.45 M – completed as of February 20144)
Transparency International Italy Italy 0.6 M – completed as of March 20144)
Transparency International Mexico Mexico 0.23 M – completed as of May 20144)
Transparency International USA in cooperation with Social Accountability International, USA USA, Global 0.66 M – completed as of September 20144)
United Nations Development Programme Regional Bureau for Arab States, USA Arab States Region 1.78 M – completed as of December 20143)
United Nations Office on Drugs and Crime (UNODC), Austria in cooperation with the International Anti-Corruption India, Mexico 1.12 M – completed as of September 20144) Academy (IACA), Austria – Incentives to Corporate Integrity
United Nations Office on Drugs and Crime (UNODC), Austria – UNCAC Outreach and Communication Global 0.75 M – completed as of September 20144)
United Nations Office on Drugs and Crime (UNODC), Austria in cooperation with the International Anti-Corruption India, Mexico 1.22 M – completed as of September 20144) Academy (IACA), Austria – The 6P’s
University of Cairo, Center for Economic and Financial Research and Studies (CEFRS), Egypt Egypt 0.85 M – completed as of February 20171)
Vietnam Chamber of Commerce and Industry (VCCI) in cooperation with the International Business Leaders Forum Vietnam 0.5 M – completed as of September 20126) (IBLF), United Kingdom
Total funding volume in USD 37.7 M 0 M
Due to rounding differences, the figures as presented in the table above may not add up exactly to the total Funding Amount of USD 37.7 M for the First Funding Round. 29 B. Siemens Integrity Initiative
List of projects funded under the Second Funding Round:
Integrity Partner Country of Implementation Total Funding Volume Total Funding Volume under Project Status under the World Bank the European Investment Group settlement in USD Bank settlement in USD
Al Akhawayn University in Ifrane (AUI), Morocco Morocco 0.55 M – completed as of May 20182)
Basel Institute on Governance, Switzerland, in cooperation with the Organisation for Economic Co-operation Global 4.00 M – ongoing and Development (OECD), France, and the Foundation for the Global Compact, USA
Beijing New Century Academy on Transnational Corporations (NATC), China China 1.50 M – completed as of September 20171)
Confederation of Indian Industry (CII), India India 0.70 M – ongoing
Ethics and Reputation Society / Etik ve Itibar Dernegi (TEID), Turkey Turkey 1.76 M – completed as of November 20172)
The Ethics Institute, South Africa, in cooperation with the Institute of Directors Mozambique, Mozambique (IoDMZ) Mozambique 0.55 M – ongoing
The Ethics Institute, South Africa South Africa 0.80 M – ongoing
Foundation for the Global Compact, USA, in cooperation with the Egyptian Junior Business Association, Egypt Egypt 1.40 M – completed as of June 20182)
Global Compact Network India (GCNI), India India 0.73 M – ongoing
Global Compact Network Korea (GCNK), Korea, in cooperation with the Global Competitiveness Empowerment Republic of Korea (South Korea) 0.90 M – completed as of March 20182) Forum (GCEF), South Korea
International Anti-Corruption Academy (IACA), Austria Global – 4.98 M ongoing 1) Summary of Project Activities was reported in Annual Report 2017 (2) = NATC, PALU MedTech Europe3) (formerly Eucomed), Belgium Middle East and North Africa 0.85 M – completed as of May 20182)
2) Completion process ongoing: Annual Report Organisation for Economic Co-operation and Development (OECD), France Morocco – 0.70 M ongoing shows activities of Year 4 or summary Organisation for Economic Co-operation and Development (OECD), France Russia 1.55 M – completed as of June 20182) for entire project period depending on information available = Al Akhawayn University, MedTech, OECD Russia, POLMED, TEID, TI Italy, TI Secretariat, UNGC Egypt, UNGC Korea, WU Vienna (10)
3) Transfer from Eucomed to MedTech effective January 1, 2017
30 Integrity Partner Country of Implementation Total Funding Volume Total Funding Volume under Project Status under the World Bank the European Investment Group settlement in USD Bank settlement in USD
Al Akhawayn University in Ifrane (AUI), Morocco Morocco 0.55 M – completed as of May 20182)
Basel Institute on Governance, Switzerland, in cooperation with the Organisation for Economic Co-operation Global 4.00 M – ongoing and Development (OECD), France, and the Foundation for the Global Compact, USA
Beijing New Century Academy on Transnational Corporations (NATC), China China 1.50 M – completed as of September 20171)
Confederation of Indian Industry (CII), India India 0.70 M – ongoing
Ethics and Reputation Society / Etik ve Itibar Dernegi (TEID), Turkey Turkey 1.76 M – completed as of November 20172)
The Ethics Institute, South Africa, in cooperation with the Institute of Directors Mozambique, Mozambique (IoDMZ) Mozambique 0.55 M – ongoing
The Ethics Institute, South Africa South Africa 0.80 M – ongoing
Foundation for the Global Compact, USA, in cooperation with the Egyptian Junior Business Association, Egypt Egypt 1.40 M – completed as of June 20182)
Global Compact Network India (GCNI), India India 0.73 M – ongoing
Global Compact Network Korea (GCNK), Korea, in cooperation with the Global Competitiveness Empowerment Republic of Korea (South Korea) 0.90 M – completed as of March 20182) Forum (GCEF), South Korea
International Anti-Corruption Academy (IACA), Austria Global – 4.98 M ongoing
MedTech Europe3) (formerly Eucomed), Belgium Middle East and North Africa 0.85 M – completed as of May 20182)
Organisation for Economic Co-operation and Development (OECD), France Morocco – 0.70 M ongoing
Organisation for Economic Co-operation and Development (OECD), France Russia 1.55 M – completed as of June 20182)
31 B. Siemens Integrity Initiative
Integrity Partner Country of Implementation Total Funding Volume under Total Funding Volume under Project Status the World Bank Group the European Investment settlement in USD Bank settlement in USD
Pan African Lawyers Union (PALU), Tanzania Africa 0.93 M – completed as of September 20171)
GCC countries (United Arab Emirates, Pearl Initiative, United Arab Emirates Kingdom of Saudi Arabia, Bahrain, Qatar, 0.88 M – ongoing Kuwait, Oman)
The Polish Chamber of Commerce of Medical Devices (POLMED), Poland Poland 0.65 M – completed as of September 20182)
Transparency International Secretariat (TI-S), Germany Global 3.06 M – completed as of September 20182)
Transparency International España (TI-España), Spain Spain 1.27 M – ongoing
Transparency International Italia (TI-It), Italy, in cooperation with the Centro Ricerche e Studi su Sicurezza e Criminalità (RiSSC), Fondazione Centro Studi Investimenti Sociali (CENSIS), Istituto per la Promozione dell’Etica Italy 1.12 M – completed as of September 20182) in Sanità (ISPE-Sanità), Italy
United Nations Office on Drugs and Crime (UNODC), Austria Colombia 1.20 M – ongoing
United Nations Development Programme (UNDP), USA Arab Region including Egypt, Morocco – 2.27 M ongoing and Tunisia
United Nations Development Programme (UNDP), USA Arab Region including Iraq and Libya 1.52 M – ongoing
1) Summary of Project Activities was reported in Wirtschaftsuniversität WU, Vienna University of Economics and Business Administration, Austria Africa 1.70 M – completed as of March 20182) Annual Report 2017 (2) = NATC, PALU Total Funding Volume in USD 27.62 M 7.95 M 2) Completion process ongoing: Annual Report shows activities of Year 4 or summary for entire project period depending on information available = Al Akhawayn University, MedTech, OECD Russia, POLMED, TEID, TI Italy, TI Secretariat, UNGC Egypt, UNGC Korea, WU Vienna (10)
3) Transfer from Eucomed to MedTech effective January 1, 2017
32 Integrity Partner Country of Implementation Total Funding Volume under Total Funding Volume under Project Status the World Bank Group the European Investment settlement in USD Bank settlement in USD
Pan African Lawyers Union (PALU), Tanzania Africa 0.93 M – completed as of September 20171)
GCC countries (United Arab Emirates, Pearl Initiative, United Arab Emirates Kingdom of Saudi Arabia, Bahrain, Qatar, 0.88 M – ongoing Kuwait, Oman)
The Polish Chamber of Commerce of Medical Devices (POLMED), Poland Poland 0.65 M – completed as of September 20182)
Transparency International Secretariat (TI-S), Germany Global 3.06 M – completed as of September 20182)
Transparency International España (TI-España), Spain Spain 1.27 M – ongoing
Transparency International Italia (TI-It), Italy, in cooperation with the Centro Ricerche e Studi su Sicurezza e Criminalità (RiSSC), Fondazione Centro Studi Investimenti Sociali (CENSIS), Istituto per la Promozione dell’Etica Italy 1.12 M – completed as of September 20182) in Sanità (ISPE-Sanità), Italy
United Nations Office on Drugs and Crime (UNODC), Austria Colombia 1.20 M – ongoing
United Nations Development Programme (UNDP), USA Arab Region including Egypt, Morocco – 2.27 M ongoing and Tunisia
United Nations Development Programme (UNDP), USA Arab Region including Iraq and Libya 1.52 M – ongoing
Wirtschaftsuniversität WU, Vienna University of Economics and Business Administration, Austria Africa 1.70 M – completed as of March 20182)
Total Funding Volume in USD 27.62 M 7.95 M
Due to rounding differences, the figures as presented in the table above may not add up exactly to the total Funding Amount of USD 35.554 M for the Second Funding Round.
33 B. Siemens Integrity Initiative
Siemens Integrity Initiative covers all major growth regions and high-risk countries: around 55 projects with more than USD 70 M
12.0 M 8.4 M The chart illustrates the regional spread and balance of the First Funding portfolio and the port Global Projects (9 Projects, 20.4 M) folio of the Second Funding Round 1.2 M
6.4 M
+ 4 Projects are divided into local Sub-Projects Americas (5 Projects and 3 Sub-Projects, 7.6 M) Region / Country of implementation (number of project proposals)
First Funding Round
Second Funding Round
Bubble size = Approximate value of funding
Note: Schematic illustration. Due to rounding, numbers presented may not add up precisely to the totals provided; Status: September 10, 2015 (unchanged in March 2017 and November 2017 and March 2019)
34 Central Eastern Europe (6 Projects, 7.0 M)
2.4 M 100 % 4.6 M 0.9 M 1.5 M
Russia (1 Project and 1 Sub-Project, 2.4 M) 0.6 M 0.9 M 0.8 M 2.4 M 4.4 M 7.0 M 1.5 M 2.9 M South Korea South Europe (2 Projects, 1.7 M) (3 Projects, 3.0 M) China Middle East (3 Projects and (9 Projects and 1 Sub-Project, 4.4 M) 1.4 M 1 Sub-Project, 11.4 M) 1.7 M
India (2 Projects and 3 Sub-Projects, 3.1 M) 3.0 M
4.0 M Asia-Pacific 5.2 M (3 Projects, 3.0 M)
Africa (8 Projects and 3 Sub-Projects, 9.2 M)
35 Project profiles and highlights of activities in 2018 C. The following pages contain project objectives and funding volumes as Project profiles and highlights of agreed with Integrity Partners in the respective funding agreements. activities in 2018 For ongoing projects under the Second Funding Round the descriptions of activities undertaken in this year (2018) were provided by the Integrity Partners in their respective Annual Progress Report 2018 and approved by the relevant Integrity Partners for external use.
Integrity Partners submitted the following For Integrity Partners that have completed documentation, which was the basis for the their activities, a Final Report including the review of progress: following information was provided and used as the basis for review: • Annual Progress Report, which provides an overview of activities undertaken and an • Final Progress Report, which provides an assessment of progress made overview of activities undertaken and an assessment of progress made • Annual Financial Report, which shows the utilization of funds per activity and in com- • Final Financial Report, which shows the utili- parison to the original budget set in the zation of funds per activity and in compari- Funding Agreement son to the original budget set in the Funding Agreement • Audit Statement by an external audit com- pany, which verifies the Financial Report and • Audit Statement by an external audit com- provides an unqualified audit opinion on the pany, which verifies the Financial Report and use of funds provides an unqualified audit opinion on the use of funds • Updated Work Plan and Updated Budget for 2019 • Payment and expense overview • External evaluation of impact
36 All 31 Siemens Integrity Initiative First Fund- Compact (UNGC / 5 countries), Fundación Uni- Siemens Integrity Initiative Second Funding ing Round projects were completed by March versidad de San Andrés (FUdeSA), Humboldt Round projects that were completed before 3, 2017. Key activities over the entire project Viadrina School of Governance, International 2018 and / or for which key activities over the period were reported on in one of our previous Anti-Corruption Academy (IACA), Austria, Inter- entire project period were reported on in one Annual Reports and therefore no First Funding national Business Leaders Forum (IBLF), Insti- of our previous Annual Reports are not Round Projects are included in this Annual tuto Ethos – Ethos Institute for Business and included in this Annual Report 2018. Report 2018. Social Responsibility, Brazil, Maala Business for To obtain information on the two (2) fully Social Responsibility, Israel, Makati Business To obtain information on the thirty-one (31) completed projects please refer to the Annual Club (MBC), Organisation for Economic Co- fully completed projects please refer to the Report 2017 of the Siemens Integrity Initiative. operation and Development (OECD) – MENA, previous Annual Reports 2012, 2013, 2014, Oživení, Partnership for Governance Reform The respective projects are: Beijing New Cen- 2015, 2016 and 2017 of the Siemens Integrity (PGR) – Kemitraan, The Polish Chamber of tury Academy on Transnational Corporations Initiative. Commerce of Medical Devices (Polmed) I, (NATC) and Pan African Lawyers Union (PALU). The respective projects are: Basel Institute on Sequa, Transparency International Bulgaria, Further information is provided on Governance, Beijing New Century Academy on Transparency International Italy, The Ethics www.siemens.com/integrity-initiative Transnational Corporations (NATC) I, Central Institute, South Africa, Transparency Interna- European University (CEU), COCIR, Convention tional Mexico, Transparency International USA, For all projects the Project Profiles in Section C on Business Integrity (CBI), Federation of United Nations Development Programme were provided by the Integrity Partners and Korean Industries-International Management (UNDP), University of Cairo, three UNODC I approved by them for external use. Institute (FKI-IMI), Foundation for the Global projects, and VCCI. Compact (UN PRME), Foundation for the Global
37 First Funding Round Projects: Project profiles and highlights C1. of activities in 2018
For projects under the First Funding Round the descriptions of activities undertaken over the entire project period were provided by the Integrity Part ners in their respective Final Progress Reports and approved by the relevant Integrity Partners for external use.
All 31 First Funding Round projects have been fully completed and reported on in the Annual Reports of 2011, 2012, 2013, 2014, 2015, 2016 and 2017.
No First Funding Round projects are covered in this Section C1.
38 39 Second Funding Round Projects: Project Profiles and highlights C2. of activities in 2018
For projects under the Second Funding Round the descriptions of activities undertaken in year 4 (2018) were provided by the Integrity Partners in their respective Annual Progress Report 2018 or Final Report as the case may be, and approved by the relevant Integrity Partners for external use.
Of the twenty-four (24) Second Funding Round projects, two (2) have been fully completed and reported on in the Annual Report of 2017.
22 remaining projects are covered in this Section C2.
40 41 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER Al Akhawayn University in Ifrane Al Akhawayn University in Ifrane is an independent, public, not-for-profit, coeducational Moroccan university committed to educating future citizen- leaders of Morocco and the world through a globally oriented, English- PROJECT: language, liberal-arts curriculum based on the American system. The university Center for Business Ethics (CBE) enhances Morocco and engages the COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: world through leading-edge educational and research programs, including con- Morocco 3 years 0.55 M Morocco tinuing and executive education, upholds the highest academic and ethical stan- dards, and promotes equity and social responsibility. The university is composed of three schools: School of Business Administration, School of Science and The main objective of this project is to enhance adopt good governance practices through Engineering and School of Social Sciences integrity in the Moroccan business environment seminars and training courses for executives through the creation of a center for business and Humanities. Al Akhawayn University • Curricula Development and Seminars: Inte- ethics. The mission of the center is to raise has approximately 2100 undergraduate grate business ethics into undergraduate and awareness and promote clean business in and graduate level students in a residen- graduate programs. Offer training dedicated different sectors, namely energy, healthcare, tial campus environment. to how to integrate business ethics in differ- industry and infrastructure and cities. The ent disciplines Center for Business Ethics will constitute a major player in the fight against corruption • Research: Conduct relevant applied research through training of professionals, students, in the areas of business ethics. The goal of and educators as well as conducting research these research projects is to advance knowl- projects and developing teaching case studies. edge and best practices The Center’s activities will revolve around the • Auditors training: Develop and deliver train- following objectives: ing dedicated to auditors and compliance officers • Good Governance Practices: Help businesses to implement anti-corruption initiatives and
42 PROJECT AT A GLANCE: • Over 200 professionals were reached • An online Business Ethics course was devel- through 3 seminars and panel discussions oped as well as 7 case studies addressing The project aims to create a center for on the importance of ethics and integrity in ethical issues in local organizations business ethics to enhance Moroccan fostering clean business • News coverage of CBE’s event on national TV business environment (Energy, Indus • 73 professionals were trained on the devel- and 10 press releases in print and digital media try, Healthcare, Infrastructure and opment of effective codes of conduct were received Cities sectors) through training, • 7 companies developed and presented their Impact executive education and research codes of conduct at a workshop and several • Ethical concepts are now covered in more others have started the process business courses through various institutions KEY ACTIVITIES OVER THE ENTIRE PROJECT • Two papers were published, one titled than before, with more students exposed to PERIOD (APRIL 2015 – MAY 2018): “Framework for developing effective codes of ethical dilemmas in the classroom, leaving conduct” which was downloaded 745 times, them better prepared than before to deal • 9 guest lectures were organized on ethics and another titled “Adoption of e-procurement with such dilemmas and ethical conduct in 8 higher education in the health sector: the role of transparency” institutions in 8 different cities reaching • This project has helped to place Al Akhawayn over 600 students • CBE research was presented to an international University and the Center for Business Ethics audience at a Scopus indexed international as a key contributor to the Moroccan National • 50 faculty members from 12 institutions conference Anti-Corruption strategy 2016 across the country committed to including business ethics concepts in their respective • The award winning Ethics Curriculum “Giving courses after participating in 5 workshops Voice to Values” was translated into Arabic teaching business ethics and developing • A Center for Business Ethics (CBE) web site ethics case studies was launched with information about CBE’s • An estimated 1000 students were reached activities and to improve CBE’s outreach through awareness seminars and courses delivered by faculty who benefited from the faculty Development program
43 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER Basel Institute on Governance in cooperation with the United Nations Global The Basel Institute on Governance is an independent not-for-profit competence Compact (UNGC) and the Organisation for center working worldwide with the public and private sectors to counter corruption Economic Co-operation and Development (OECD) and other financial crimes and to improve the quality of governance. PROJECT: Through its International Centre for Col- Scaling up the B20 Collective Action Hub lective Action (ICCA), the Institute works with companies and other stakeholders COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: to develop and facilitate anti-corruption Collective Action initiatives in a variety of Global 3 years 4.00 M Switzerland industry sectors. The ICCA also supports research and analysis on Collective Action. In 2014, the B20 awarded the ICCA with the mandate, together with the UN Global Compact, to establish the In support of the mandate of the Basel Institute parties to take stock of current policy B20 Collective Action Hub as a know on Governance and the UN Global Compact to and research and discussions surrounding ledge platform and advisory center on develop and maintain the B20 Collective Action Collective Action anti-corruption Collective Action in the Hub, this project aims to assist interested • The project will continue to develop and G20 countries and beyond. The ICCA, stakeholders in employing the Collective Action provide guidance for new Collective Action together with OECD, further leads the methodology to reduce corruption risks and to initiatives, and expand the scope and remit global promotion and implementation consistently and coherently apply anti-corrup- of existing initiatives moderated by the B20 of High Level Reporting Mechanisms tion compliance programs throughout their Hub. This also includes enhanced promotion (HLRMs). global operations. A three-pronged strategy is of the High Level Reporting Mechanism employed: (HLRM) in collaboration with the OECD • The project will document existing initiatives • The project will address the dissemination of on the B20 Hub website and analyze these to Collective Action research, best practices and gain information about factors that may initiatives globally by enhancing the capacity influence the effectiveness of Collective of selected UN Global Compact Local Net- Action initiatives. The website will also works to support Collective Action initiatives, enable moderated interactive discussions with the aim of reaching substantive regional (e.g. webinars, blogs) to allow interested coverage 44 PROJECT AT A GLANCE: Promoting Collective Action in the Promoting Collective Action through the Global Policy Arena UN Global Compact (UNGC) The goal of the project is to improve • Numerous inputs provided by the Basel • UNGC provided support to Local Networks the business environment by enabling Institute were integrated into the recommen- in Brazil, Japan, Kenya, and Nigeria, resulting companies to engage proactively and dations of the B20 Argentina Integrity & in enhanced knowledge of anti-corruption jointly tackle bribery and corruption by Compliance Task Force and other global Collective Action among the networks and initiating, promoting and supporting policy forums their business members Collective Action Initiatives Engaging Companies in Collective Action • 4 Roadmap Reports were developed where the Local Networks established a strategy to • Four industry-specific Collective Action continue efforts towards Collective Action at KEY ACTIVITIES OVER THE ENTIRE PROJECT initiatives facilitated by the Basel Institute local level PERIOD (OCTOBER 2017 – SEPTEMBER 2018): made progress; a growing number of other initiatives reached out for advice Impact Promoting Collective Action Research and Peer-Learning High-Level Reporting Mechanism (HLRM) • The B20 Argentina Integrity & Compliance Policy Paper recommends Collective Action • The Basel Institute was invited to explain • The Basel Institute and OECD advanced the and the HLRM in infrastructure projects Collective Action at 12 international confer- HLRM through technical advice to Argentina ences and led a global peer learning process (pilot HLRM); Colombia (signed a Memoran- • The UK Anti-Corruption Strategy (2017-2022) to analyse Collective Action success factors dum of Understanding and advised on that was published in December 2017 expanding the HLRM); Peru (ongoing gov- includes the UK’s commitment to promote • The Collective Action Hub website was used ernment consultations); and published a anti-corruption Collective Action and the extensively and resources were further comparative paper analysing these recent HLRM expanded HLRM developments
45 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER Confederation of Indian Industry (CII)
Confederation of Indian Industry (CII), founded over 123 years ago, is India’s premier business association and has played a proactive role in the country’s developmental process. CII is a non- government, not-for-profit, industry-led PROJECT: and industry-managed organization, Promotion and Adoption of Responsible Business Practices playing a proactive role in India's deve by Corporates in India lopment process. CII charts change by working closely with Government on COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: policy issues, interfacing with thought leaders, and enhancing efficiency, com- India 4 years 0.70 M India petitiveness and business opportunities for industry through a range of special- ized services and strategic global linkages. The abundant potential of the Indian domestic The project is aimed at increasing awareness CII set up the Environmental Division market, driven by its emerging middle class, of current anti-corruption laws and regulations in the year 1992, which was renamed cost-competitiveness and large talent pool, and promoting healthy business practices that CII-ITC Centre of Excellence for Sustainable continues to make the country one of the most are sustainable and replicable. Also, increasing Development (CESD) in 2006. CESD is a preferred destinations for investments and the scope of the effective implementation of not-for-profit, industry-led institution businesses. Nevertheless, instances involving existing legislations may prevent problems for that helps business become sustainable multibillion dollar irregularities have tarnished the payer and businessmen. organizations. It is on a mission to cata- India’s public image in the international busi- Strong law enforcement and a zero tolerance lyze innovative ideas and solutions, in ness community. India, and globally, to enable business, approach toward unethical business practices and its stakeholders, in sustainable value A comprehensive framework is required to help is the most effective way to combat corruption. creation. curtail corruption at higher levels. Promotion Since the global environment is rapidly changing, and Adoption of Responsible Business Practices it will only be a matter of time before Indian by Corporates in India will aid understanding regulations align themselves with internation- of how corruption and unethical business ally acceptable ethical business practices and practices are corroding not only the economy anti-corruption laws and practices. but also the corporate environment.
46 PROJECT AT A GLANCE: topics such as the India Supply Chain • A MoU was signed with Niti Aayog to promote The goal of the project is to sensitize, Transparency Initiative, Transparency in the integration of Sustainable Development capacitate and help large companies to the Construction Sector, Business Ethics and Goals (SDG) - including SDG 16.5 on anti- adopt responsible business practices and Sustainability Disclosures, the Role of Risk corruption - into corporate business models influence their supply chains as well as Management in Promoting Business Ethics, and the government action plan and the Ethical Dimension of responsible involve local stakeholders and govern • Companies such as Adani Ports and Special business mental agencies to create awareness Economic Zone Ltd (APSEZL), POWERGRID, • The CII Model Code of Conduct - Ethical Hindustan Zinc Limited (HZL), GMR, and Business Practices was signed by 100 more Reliance Cement Company Private Limited KEY ACTIVITIES OVER THE ENTIRE PROJECT companies with over 400 companies having (RCCPL) were trained on the Global Reporting PERIOD (OCTOBER 2017 – SEPTEMBER 2018): signed in total Initiative (GRI) standard for disclosures on ethics and integrity • Over 200 participants were reached through • Interaction and meetings were held with the sessions on Business Ethics at the 13th Bureau of Indian Standards (BIS) to promote • 3 newsletters were distributed i.e. editions Sustainability Summit, 2018. A session on the adoption of ISO 37001 as an Indian Stan- VII (Oct-Dec), VIII (Jan-Jun) and IX (July-Sep) Promoting Business Ethics for Sustainable dard, and a separate guidance document for Impact Businesses was organized and included a implementation of ISO 37001 in India was panel discussion with representatives from drafted • Engagement with the Bureau of Indian the International Anti-Corruption Academy, Standards resulted in the acceptance of • Advocacy work with Ministry of Corporate Nokia India, Hindustan Coca-Cola, and ISO 37001 as national standard in India Affairs (MCA), the Government of India, Mahindra & Mahindra and the Indian Institute of Corporate Affairs • Over 100 participants were reached in 5 (IICA) focused on incorporating ethics and Webinars on the subject of the ‘Promotion responsible business practices in National and Adoption of Responsible Business Prac- Guidelines tices by Corporates in India’ which covered
47 C2. Project profiles and highlights of activities in 2018
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DESCRIPTION OF INTEGRITY PARTNER Ethics and Reputation Society / Etik ve İtibar (TEID) The Ethics and Reputation Society Derneǧi “TEID” is a non-profit organization which was founded in May 2010, and which aims to develop and encourage adherence to universally recognized business ethics principles in the Turkish business PROJECT: environment. Leveling the playing field with Turkish Integrity Center of Excellence – TICE TEID acts as a point of reference for the private sector companies, assisting them COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: in incorporating the principles of busi- ness ethics. It also works closely with the Turkey 3 years 1.76 M Turkey legislator in the pursuit of a more ethical socio-economic environment in which companies are enabled to act in compliance with those ethical principles, without losing their competitiveness, and instead The project addresses the needs and possible Much of the existing research material shows thereby gaining advantages. actions required to effectively manage integrity that companies often lack expertise to imple- TEID acts as a platform for sharing knowl- risks in Turkey, and to fight corruption in the ment internationally developed anti-corruption edge, experience and best practices. private sector, while enhancing the country’s and good governance guidelines and standards. It also assists its members in preparing potential to implement the existing interna- It is currently almost impossible to conduct an training courses for their local partners tional ethics standards. objective assessment of improvements in this area since there is a lack of coherent data regard and suppliers to ensure that they share a Within the scope of the project, the Turkish ing the socio-economic effects of corruption common understanding and language as Integrity Center of Excellence (TICE) will be on leading sectors of the local economy in far as compliance with codes of ethics, created to conduct regular sectoral and cross- Turkey. integrity risk management and reputation sectoral surveys relating to the effects of cor- risk management systems are concerned. ruption on the economy on the basis of coher- Many companies have ethical standards but no ent data. The Center will serve as body to compliance program for integrating these stan- certify and train compliance officers and to dards into their corporate culture or guidelines facilitate and lead Collective Action initiatives. on how to manage integrity risks efficiently. It will also serve as a knowledge-sharing plat- Consequently, particularly for family-owned form for professionals working in integrity risk companies and SMEs in Turkey, business ethics management-related areas. remain a soft skill rather than a value and an asset to be measured, reported, communicated 48 and effectively managed. PROJECT AT A GLANCE: • Annual private sector corruption perception • As part of the Turkish B20 Anti-Corruption surveys were conducted in 2015, 2016, Taskforce, TEİD co-wrote the Combatting The project aims at leveling the and 2017 Corruption in Customs with Collective Action playing field, by inclusion of the Toolkit and the Combatting Corruption in • Publications such as INmagazine, INbooks, SMEs Toolkit private sector into combating and INguide were distributed free of charge corruption through actions set to more than 1 500 stakeholders • Various cross-sectoral Collective Action forth by the “Turkish Integrity initiatives were initiated with and through • The Annual International Ethics Summits - Center of Excellence” the Ethical League of NGOs, the Turkish INsummit - secured the participation of Business Network Dialogue, the Declaration of more than 1 000 delegates and 6 500 online Integrity, the professional ethics standards of followers over 3 years, with international KEY ACTIVITIES OVER THE ENTIRE PROJECT the Investors Relations professionals, and the speakers from the public sector, private PERIOD (NOVEMBER 2014 – NOVEMBER 2017): Sectoral Collective Action on Customs Brokers, sector, NGOs and academia with the latter cited as best practice in the • Since the start of the Ethics and Compliance • 16 Awareness raising and professional UN Global Compact Guide on Collective Action Managers’ Certification Program - INscuola - networking events such as the Compliance in November 2016, two editions with Istanbul Impact Officers’ roundtables - INplatform - attracted Bilgi University have seen the certification of more than 500 attendants over 3 years With strengths in local and international 40 Ethics and Compliance Managers in Turkey. advocacy and influence, TICE has become the The third edition with the well-known Boğaziçi • TICE contributed to the Combatting Corrup- Centre of Excellence on Ethics and Compliance public university started in March 2018 tion in SMEs and Combatting Corruption in in Turkey and had success in raising awareness, Customs work streams of the B20 Anti- • Together with the Turkish Republic’s Profession building skills and capacity, and promoting Corruption Taskforce, and the preparation Standardization Institution, standards of the professional standards and recognition over of policy recommendations 18 and 19 under Ethics and Compliance Manager profession 3 years through the project activities the B20 Turkish presidency in 2015 were drafted. On ratification, the Ethics and Compliance Manager will be recognized as a profession by the Turkish authorities
49 C2. Project profiles and highlights of activities in 2018
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DESCRIPTION OF INTEGRITY PARTNER MedTech Europe The European Medical Technology MedTech Europe is the European trade association representing the medical technology industries, from diagnosis Industry Association to cure. It represented Diagnostics and Medical Devices manufacturers operating in Europe. MedTech Europe started as an PROJECT: alliance in October 2012 of Eucomed, representing the European medical devices Extension of the Conference Vetting System to Middle East industry and EDMA, the European in vitro COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: Diagnostic Manufacturers Association. Middle East and Its mission is to make innovative medical 3 years 0.85 M Belgium North Africa Region technology available to more people, while helping healthcare systems move towards a sustainable path.
The project’s goal is to adapt and replicate the Practice (the “Codes”) to determine the appro- Conference Vetting System, which was initiated priateness for companies which are members in Europe, within the Middle East and North of MedTech Europe and Mecomed to provide Africa region and to promote this system as a financial support to such events in the form gold standard among internal and external of educational grants or commercial activities stakeholders. (booths, advertising, satellite symposium). The decision is binding on MedTech and Mecomed Two years after its inception in Europe in 2012, corporate and national association members. the Conference Vetting System is recognized as a compliance standard for the industry and a Through this initiative, MedTech expects to quality label for third-party conferences in reinforce general understanding of compliance Europe. and associated competences in the Middle East & North Africa region. Furthermore, it will The Conference Vetting System is an indepen- contribute to harmonization across and beyond dently managed system which reviews the its membership as well as to greater knowledge compliance of third-party educational events and adoption of ethical and compliance-oriented with MedTech Europe Code of Ethical Business behaviors and standards. Practice and Mecomed Code of Business
50 PROJECT AT A GLANCE: how Industry supports medical education of which formalized CVS as the gold compliance Healthcare Professionals reference for any kind of support provided by The project’s aim is to create a level the industry to third-party education events, • Since its inception in the Middle East region, playing field in the healthcare sector regardless of their magnitude and outreach. the CVS received the full endorsement of the The United Arab Emirates, The Kingdom of with an ethical gold standard for Mecomed Board, who decided to formalize Saudi Arabia and Pakistan adopted Codes of medical technology companies’ spon the CVS in their Code of Business Practice Ethics and Guidelines on transparency sorship of Healthcare Professionals adopted in May 2017, making it a mandatory to third-party educational conferences reference tool for Mecomed members. This • The impact of the CVS in the region is in the Middle East means that all Mecomed members and their tremendous. It has helped in shaping the third-party intermediaries would need to take Compliance landscape and in establishing into account all CVC decisions prior to making common jargon and methodology with any financial commitments to support a stakeholders. Mecomed will capitalize on KEY ACTIVITIES OVER THE ENTIRE PROJECT third-party educational event the increased awareness and interest of PERIOD (FEBRUARY 2015 – MAY 2018): authorities in raising Compliance standards • The second implementation year focused on • The Conference Vetting System (CVS) is a to develop other initiatives such as a disclo- outreach to external stakeholders such as self-regulatory initiative of the Medical sure platform professional conference organizers (PCOs) Devices industry which applies the principles and scientific societies. Both stakeholder • With over 5000 people and 200 organizations of the Mecomed Code of Ethics and assesses groups are directly impacted by the industry trained on the principles of the Mecomed the risks inherent to the support by industry self-regulation, adhere to the Mecomed Code Code and the CVS, this project has helped manufacturers of Healthcare Professionals of Ethics principles, and total 50% of all CVS in raising stakeholder knowledge about and through the financial support of third-party users adherence to self-regulatory initiatives at educational conferences and training the same level as that in other regions • In its last implementation year, CVS submis- • Over the last 3 years, the establishment and sions increased by 130%, which is beyond development of the CVS in partnership with the direct stakeholder base of the industry. Mecomed in the Middle East region has Mecomed released a new Code of Ethics shaped compliance and ethical rules on
51 C2. Project profiles and highlights of activities in 2018
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DESCRIPTION OF INTEGRITY PARTNER Foundation for the Global Compact in cooperation with the United Nations Global The Foundation for the Global Compact was established in 2006 and registered Compact and the Egyptian Junior Business as a 501(c) (3) non-profit organization under New York State law. The Foun Association (EJB) dation is based on the principle that transparency, integrity and public-private PROJECT: collaboration is essential to finding last- ing solutions to pressing global problems. Developing a corporate anti-corruption ecosystem in Egypt
The Foundation supports the activities COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: of the United Nations Global Compact (www.unglobalcompact.org) including Egypt 3 years 1.40 M USA fundraising, outreach and engagement with business stakeholders. This is a policy and engagement platform for businesses that are committed to aligning their operations and strategies with the Global The goal of the project is threefold: through awareness raising, tailored training Compact’s ten universally accepted for senior management and the Ethics & • Establish a sustainable multi-stakeholder principles in the areas of human rights, Compliance officers, as well as the provision and business-led Integrity Network in Egypt. labor, environment and anti-corruption. of a central support function with regard to The Integrity Network will engage in multi- the implementation of the Integrity Pledge. stakeholder dialog and provide public policy An independent assessment process will recommendations on major anti-corruption also be developed for participating SMEs issues in Egypt. Information about the Integ- to assess their performance in connection rity Network in Egypt will be disseminated with anti-corruption programs and global outreach will be undertaken by means of a well-designed communications • Provide tangible business advantages and strategy incentives to SMEs in Egypt which demon- strate ethical leadership and to motivate • Encourage Egyptian small and medium-sized them to join the fight against corruption. enterprises (SME) to commit to advancing Efforts will be made to convince SMEs that their anti-corruption practices and sign an fighting corruption has business value. This Integrity Pledge which takes into account will not only motivate individual enterprises their needs and challenges. Signatories will to establish anti-corruption practices within be provided with capacity-building training their operations, but also increase the rele- 52 on anti-corruption. This will be carried out vance of the Integrity Network PROJECT AT A GLANCE: itself. One guideline was produced out of (e.g. at the American University in Cairo, The aim of the project is to establish a sus the workshops and a further document is in Cairo University, OECD Integrity Week, UNDP tainable multi-stakeholder, business-led development ACIAC Project, Basel Institute of Governance, Integrity Network in Egypt, build capacity Conference of the State Parties to the UN • 129 participants from 62 individual SMEs and of SMEs to implement anti-corruption Convention against Corruption, UNGC’s other stakeholders attended 10 Introductory Making Global Goals Locals Business event) compliance programs and link their efforts Sessions in Cairo, Alexandria and Port Said with tangible business incentives • An Assessment Process (self-assessment • 57 participants from 42 SMEs attended and external assessment) to monitor SME’s 8 Senior Management Training sessions in compliance with the Integrity Pledge was Cairo and Port Said KEY ACTIVITIES OVER THE ENTIRE PROJECT developed and is being piloted PERIOD (MAY 2015 – JUNE 2018): • Another 375 participants from 290 individual Impact SMEs and other stakeholders attended 20 • 108 SMEs and 22 Supporting Partners joined combined sessions of introduction and • 108 SMEs have adopted the Integrity Pledge, the Integrity Network Initiative (Initiative) as Senior Management Training in Cairo, appointed Ethics & Compliance Managers, members Aswan, Mansoura, Alexandria and Hurghada and submitted Anti-Corruption Policies • Around 500 attendees participated in 5 • 117 Participants of 102 companies attended • Over 500 SMEs are equipped with knowledge conferences and signing ceremonies aimed 11 Ethics & Compliance Manager Training about the core concepts of corruption and at raising awareness on the importance of Sessions with the capacity to mitigate key corruption countering corruption, and to showcase risks the commitment of members and partners • A Procurement Training Tool for SMEs was of the Initiative and to grow its outreach developed and a first training session was • Attendees at public events, media attention, attended by 21 SME representatives and social media engagement have grown • In addition to the high-level events, content- substantially. Members use these events and focused workshops and expert roundtables • The Initiative continued its outreach and platforms to spread awareness, to network, were held on relevant topics in the field of communication activities by presenting at a and to encourage others to join anti-corruption and to advance the Initiative variety of national and international events
53 C2. Project profiles and highlights of activities in 2018
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DESCRIPTION OF INTEGRITY PARTNER Global Compact Network India (GC Network India) Global Compact Network India is the Local Network of United Nations Global Compact (UNGC) operating in India. The UNGC is a global policy and engage- ment platform for businesses that are PROJECT: committed to aligning their operations and strategies with the ‘ten universally Center of Excellence for Strengthening Transparency and Ethics in Business: accepted principles’ in the areas of Scaling Up the Collective Action Agenda in India human rights, labor, environment and COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: anti-corruption. At present, the Local Network in India India 3 years 0.73 M India ranks among the top three out of the 102 Global Compact Local Networks in the world, and has emerged as the largest corporate citizenship and social responsibility organization in the country The Indian business community practices a • Improve organizational decision making with a pan-Indian membership. multitude of anti-corruption initiatives in silos. through a stakeholder management frame- The Center of Excellence would encourage a work that integrates transparency and Comprising 182 member organizations shared focus among the business stakeholders integrity and 338 signatories, including some of in India and provide a platform for greater The Center of Excellence will be developed the most prominent industries in the coordination, thereby increasing the reach and on a collaborative model and develop new country, GCN India provides a forum to impact of business transparency initiatives. support the ‘ten principles’ of the UNGC approaches and techniques by engaging a and promote these among its various Essentially, the Center aims to: diverse range of stakeholders, focusing on both the supply and the demand side of members in India. It also aims to build • Develop pragmatic approaches around UNGC corruption. strong interconnected networks to foster Principle 10 to challenging business decisions sustainable and positive corporate citi- zenship within its own milieu. • Provide enabling platform to businesses, policy makers, civil society, industry associa- tions, UN agencies and academia
54 PROJECT AT A GLANCE: • Risk Assessment and Mitigation Toolkits were • The Smart Republic 2018 Conference was developed to assist government and busi- organized in collaboration with the World The aim of the project is to establish a pre nesses in assessing their individual risks in Bank and other partner agencies in February mier knowledge repository that conducts the infrastructure sector, and to ascertain 2018 where around 200 delegates from innovative research and training, provides strategies for mitigating risks in infrastruc- 9 countries and Smart City leaders of India a platform for dialogue, and facilitates ture projects shared knowledge, innovation and best practices policy initiatives for strengthening • A Business Roundtable for smart cities was transparency and ethics in business held in Delhi in September 2018 with the Impact National Institution for Transforming India • The Project has improved transparency in (Niti Aayog) – a policy think tank of the the bidding process of Pune Smart City and KEY ACTIVITIES OVER THE ENTIRE PROJECT Government of India – to facilitate a Collec- has contributed to a more level playing field PERIOD (OCTOBER 2017 – SEPTEMBER 2018): tive Action platform to address city chal- in procurement lenges and sustainable business solutions • The Framework for Governance of Smart • The Project was able to identify a cluster of Cities was launched in December 2017 and • Knowledge Partnership MoUs were signed cities with needs and a cluster of businesses it was shared with the relevant government with the International Bank for Reconstruc- with solutions, and is now able to explore agencies and smart city leadership. This tion and Development (IBRD) and the UN Collective Action strategies to facilitate framework establishes a business case for Global Compact Cities Program (UN-GCCP) appropriate interventions the governance of smart city projects, and • Collaboration efforts were formalized with it lays down a roadmap for a sustainable • The Project‘s publications are well appreciated UN Habitat, Niti Aayog, NIUA and RCUES to process in the long run and vetted by businesses, and are being enhance, scaleup and sustain the project’s applied in cities like Pune, Dharamshala, • A Public Private Partnership handbook (PPP) intervention in the Smart City Mission of and Chennai was developed to assist businesses and India policy makers in the selection of a suitable model of PPPs for individual projects
55 C2. Project profiles and highlights of activities in 2018
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DESCRIPTION OF INTEGRITY PARTNER Global Compact Network Korea (GC Network Korea) in cooperation with the The Global Compact Network Korea (GCNK), the Local Network of the United Nations Global Competitiveness Empowerment Forum Global Compact (UNGC) operating in Korea, aims to promote the UNGC Ten Principles in (GCEF) the areas of human rights, labor, environment and anti-corruption. The GCNK has played a PROJECT: key role in disseminating those values to the UNGC participants in Korea from the public, Fair Player Club private and non-profit sectors by holding vari- ous workshops, symposiums and conferences, COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: conducting CSR projects, translating UNGC & CSR related materials, and promoting social South Korea 3 years 0.90 M South Korea dialogue since 2007. The GCNK specializes in developing coopera- tive partnership among various stakeholders, especially companies, industry associations, embassies and local and foreign chambers of The Fair Player Club endeavors to provide The project also raises awareness and compe- commerce. One of the key activities of GCNK business participants and stakeholders with tence of companies on business integrity, eth- is to gather, shape and develop collective knowledge, skills, strategies, and resources to ics, and compliance system through the vari- voices of private and public sector organiza- promote anti-corruption dialogue and Collective ous activities on workshops, Fair Play Pledge, tions for further collaborative dialog to advance corporate responsibility in the areas Action as well as to advance ethical practices Fair Play Competence Assessment as well as of human rights, labor, environment and and transparency in business operations within dissemination of the unified codes of conduct, anti-corruption. their industry, region, and country by engaging Fair Play guidelines and case studies. with industry associations, local and foreign The Project Partner Global Competitiveness chambers of commerce, central and metropoli- Empowerment Forum (GCEF) is a nonprofit tan city governments, and foreign embassies in organization to promote corporate social South Korea throughout the three-year project. responsibility, creating shared value, sustain- ability and business integrity of public, private and social enterprises, specialized in research, education, seminar, policy analysis and multi- stakeholder dialogs by nurturing Collective Action and cross sector cooperation.
56 PROJECT AT A GLANCE: Empowering companies for capacity • 228 corporate and non-corporate representa- building – Research, Workshop, Assessment tives from various sectors signed the Fair Play Pledge in their commitment to fair play The project aims to create fair and • Research work resulted in the development principles clean market conditions in South of 5 anti-corruption guidelines specific to Korea as a public-private platform larger businesses and SMEs, and specific to Reaching out to various stakeholders in for anti-corruption by mobilizing the different regions such as Europe, Asia / China, Korea and abroad – Outreach ASEAN / Vietnam, and Indonesia commitments of all market players • The Fair Player Club featured as one of • 21 workshops on compliance and business the best Collective Action practices in the ethics targeted various industries, regions Responsible Business Conduct and Anti- and countries with over 1 100 attendees. Corruption policy recommendation paper KEY ACTIVITIES OVER THE ENTIRE PROJECT These workshops facilitated the sharing of under the German presidency of the B20 PERIOD (MARCH 2015 – MARCH 2018): compliance system best practices from and in 2017 Developing a public-private sector platform between 21 Korean and international experts Impact for collaboration building – Council and 28 corporate executives and managers • The Fair Player Club is acknowledged by part- • The strong endorsement from government • Assessment questions for compliance system ner organizations and participants as having and various ministries has stimulated active analysis were developed and 2 reports were provided the most comprehensive and effec- support from and engagement with 7 indus- published tive public-private platform on compliance try associations, 7 metropolitan cities and Commitment to creating fair playing busi- and business ethics in Korea. It has brought chambers of commerce and industry, and ness environment and consensus building – together a wide range of market players in 7 foreign embassies and chambers of com- Pledge and Summit Collective Action initiatives, and has demon- merce strated how public-private platforms can • Annual Fair Player Club Summits and Pledge effectively promote anti-corruption culture Ceremonies were held with support from the by raising corporate awareness and building Office for Government Policy Coordination, capacity the Ministry of Trade, Industry & Energy and the Anti-Corruption & Civil Rights Commission
57 C2. Project profiles and highlights of activities in 2018
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DESCRIPTION OF INTEGRITY PARTNER International Anti-Corruption Academy (IACA) The International Anti-Corruption Academy (IACA), an international organi- zation based in Laxenburg, Austria, is a pioneering institution that aims to over- come current shortcomings in knowledge and practice in the field of anti-corruption PROJECT: and compliance. The organization intends Professorship on Collective Action, Compliance and (Private Sector) Anti-Corruption & to empower and enable professionals for grants for IACA participants from Least Developed Countries and Emerging Markets the challenges of tomorrow. The Academy provides a new, holistic COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: and collective approach to anti-corruption Global 4 years 4.98 M International Organizaton, Austria education and research, delivers and facil- itates anti-corruption training courses for practitioners from all sectors of society, and provides technical support and assis- tance to a wide variety of stakeholders. The IACA is dedicated to overcoming current and offer an academic two-year Master’s IACA became an international organiza- shortcomings in knowledge and practice in the degree program, seminars and conferences tion on March 8, 2011. To date, it com- field of compliance and anti-corruption. The focusing on the needs of the private sector in prises a constituency of 70 parties, organization’s holistic and collective research order to promote fair market conditions. and training programs for the private and including 67 states and three interna- Grants for students and participants from least public sectors as well as civil society strive to tional organizations. In addition, IACA developed countries and emerging markets: seeks broad partnerships with private enhance the understanding of each other’s sector institutions, international and approaches, intentions, and methodologies, In accordance with the inter-regional approach non-governmental organizations, while also providing the opportunity to explore of IACA, students and participants from all over as well as civil society. common problems from different angles with the world should have the opportunity to study joint academic rigor. and work at the Academy. In order to be able to provide training to those participants who Compliance, private sector anti-corruption would otherwise not be able to afford it and programs, and especially Collective Action are enable them to attend courses, grants and relatively new areas in the fight against corrup- tuition fees will be provided. tion. The “Professorship on Collective Action, Compliance and (Private Sector) Anti-Corruption” will contribute to meeting the demand for in- depth analysis in these fields. It will develop 58 PROJECT AT A GLANCE: • 2 seminars were conducted for compliance Impact professionals and also received a very • Academic activities by the PCAC team, such IACA’s “Professorship on Collective positive evaluation from participants as lecturing, conference contributions, com- Action, Compliance and (Private Sec • The benchmarking study was reoriented in pliance seminars, and article publications, tor) Anti-Corruption” will research, 2018 toward systematization of guidelines reached a large audience. Research fellows lecture, train, and provide technical and standards, and the definition of a new are sharing their research outcomes in aca- assistance in these fields in order to data collection approach demic and professional fora. These activities promote fair market conditions raise awareness and provide practical • The project continued to provide scholarships insights to students from Least Developed Countries or Emerging Markets. These scholarships • Participants of IACA’s programs are using KEY ACTIVITIES OVER THE ENTIRE PROJECT have far-reaching outcomes in reducing their newly acquired skills to prevent corrup- PERIOD (OCTOBER 2017 – SEPTEMBER 2018): corruption tion, and to generate positive initiatives towards clean business environments in • The Professorship on Collective Action, Com- • 2 research fellowships were awarded. Fel- their home countries pliance and (Private Sector) Anti-Corruption lows are disseminating their research find- (PCAC) team carried out several academic ings at prestigious conferences and other activities, published 5 articles, and reached professional events around 1 100 professionals • The Regional Summer Academy – East and • 3 modules of the International Master in Southeast Asia program took place in Beijing. Anti-Corruption Compliance and Collective The program increased understanding of Action (IMACC) 2017 class were implemented compliance systems, anti-corruption policies, and received a highly positive evaluation and implementation from students • The IMACC 2019 program is open for applications
59 C2. Project profiles and highlights of activities in 2018
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DESCRIPTION OF INTEGRITY PARTNER Organisation for Economic Co-operation and Development (OECD) The Organisation for Economic Co- operation and Development (OECD) is an inter-governmental organization bringing together 36 countries that seek PROJECT: to promote economic growth, prosperity Business Integrity in Morocco: and employment through co-operation Creating an alliance between private sector and government and policy dialogue. The OECD provides a forum in which governments can work COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: together to share experiences and seek International Morocco 3 years 0.70 M solutions to common problems. The Organization, France Organisation benchmarks best practice and develops binding and non-binding standards promoting common rules in To fight corruption in Morocco, government and statement committing both sides to designing areas where multilateral agreement is business associations declared their will to and implementing integrity measures, including necessary to ensure the correct function- implement obligations under the United Nations pilot Collective Action projects. ing of markets. Convention against Corruption (UNCAC). Capacity-building through training for Moroccan The project will assist government, business officials, will be key to implementing the The OECD has considerable experience in partners and civil society in Morocco in enabling commitments initially endorsed. This training business integrity and gives high priority change and promoting business integrity in will focus on public procurement. to the issue, ensuring for example the selected sectors by: effective implementation and enforce- Round tables will be organized to identify pro- ment of the OECD Principles of Corporate • Building policy and institutional framework posals for pilot Collective Action projects. Indi- Governance, Guidelines for Multinational for promoting integrity vidual coaching, tailor-made advice and support from consultants will be provided. Enterprises and the Convention on Com- • Strengthening government processes by bating Bribery of Foreign Public Officials introducing anti-corruption measures in The project will build political support for the in International Business Transactions. procurement implementation of practical business integrity measures and influence the practice of decision- • Facilitating the development of Collective makers in procurement in both the public and Action initiatives against corruption private sector. The gained practical experience The project will bring together senior govern- will enable reform-oriented experts in govern- ment and business representatives to identify ment, the private sector and civil society to sources of and measures against integrity risks replicate this experience in other sectors. in selected sectors and to adhere to a policy 60 PROJECT AT A GLANCE: • Proposals were made for the implementation Impact of the recommendations of the OECD Integ- The project aims to promote clean • OECD and Moroccan stakeholders held exten- rity Scan and the OECD Baseline Sector Study, business and fair market conditions in sive consultations on furthering integrity in both launched on the occasion of the High Morocco through supporting an anti- Morocco. The government, including the Level Integrity meeting. In addition, the need corruption policy framework, Collective Head of Government, expressed a keen inter- to establish adequate criminal anti-corruption Action and integrity training in public est to enhance knowledge with the longer- legislation was highlighted procurement term view of moving closer to the OECD • A draft manual on integrity and public anti-bribery standards procurement prepared and developed in KEY ACTIVITIES OVER THE ENTIRE PROJECT • The CGEM is determined to benefit from this project was presented at the High Level PERIOD (OCTOBER 2017 – SEPTEMBER 2018): OECD’s support in enhancing the institution- Meeting, and covers a wide range of topics alization of public-private dialogue • Anti-corruption support in procurement as including transparency, risk management, well as the facilitation of the development of controls, remedies system, sanctioning • Businesses from the Energy, Health and Collective Action initiatives was organized as system, e-procurement, and exceptions to Transport sectors are seriously contemplating planned, with satisfactory feedback received competitive tendering the establishment of Collective Action frame- from participating representatives works • Political momentum was achieved with the High Level Integrity meeting, held in July 2018 in Rabat. High ranking delegates from the OECD, the Ministry for Public Administra- tion, and La Confédération Générale des Entreprises du Maroc (CGEM) addressed over 120 participants and reaffirmed the critical importance of fighting corruption for Morocco’s development, and the need for further action in this regard
61 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER Organisation for Economic Co-operation and Development (OECD) The Organisation for Economic Co- operation and Development (OECD) is an inter-governmental organization bringing together 36 countries that seek PROJECT: to promote economic growth, prosperity and employment through co-operation OECD Russia Corporate Governance Roundtable and policy dialogue. The OECD provides a COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: forum in which governments can work International together to share experiences and seek Russia 3 years 1.55 M Organization, France solutions to common problems. The Organisation benchmarks best practice and develops binding and non-binding standards promoting common rules in The project aims to strengthen the corporate integrity within large companies in Russia, areas where multilateral agreement is governance framework of Russian companies thereby underpinning the accountability and necessary to ensure the correct function- in line with international compliance standards transparency needed for enhanced business ing of markets. in order to promote good practices of corpo- integrity. This is achieved mainly through rate governance and business integrity. OECD-driven policy dialogue and sharing of good practices, culminating in large annual The OECD has considerable experience in A robust and accountable corporate governance meetings involving Russian and international business integrity and gives high priority system with sound risk management, trans- high-level policy makers, experts and repre- to the issue, ensuring for example the parency requirements and control mechanisms sentatives from key companies in Russia effective implementation and enforce- helps to prevent corrupt behavior by and ment of the OECD Principles of Corporate within corporations. • To build the capacity of managers and board Governance, Guidelines for Multinational members of large Russian companies to fos- Good corporate governance and cleaner Enterprises and the Convention on Com- ter the implementation of good corporate business will contribute to economic efficiency bating Bribery of Foreign Public Officials ethics practices in International Business Transactions. through risk reduction and increased investor confidence, promoting value creation, jobs • To enrich the corporate governance and busi- and growth. ness integrity debate through the production of high-quality reports and training materials The objectives of the project are threefold: developed for this project and disseminated • To promote international standards and good to a wide audience practices of corporate governance and business
62 PROJECT AT A GLANCE: • Hosted an international consultation on the Impact development of new international guidance The aim of the project is to work • The OECD standards and good-practice for states as enterprise owners. The Round- with businesses, policy makers and approaches of OECD countries that were table and business integrity seminars were stakeholders to sustainably improve consistently shared in annual events and thus not only an opportunity for experts to seminars have been used in the development Russian corporate governance promote business integrity and equal market of individual company codes of corporate practices so as to promote business conditions in Russia, but also for Russian governance and in the practices established integrity and prevent misconduct experts to lend their expertise to the devel- to monitor the implementation of the 2014 opment of new international guidance on Russian Corporate Governance Code KEY ACTIVITIES OVER THE ENTIRE PROJECT the subject PERIOD (FEBRUARY 2015 – JUNE 2018): • The topic of business integrity was sustain- • Provided capacity-building beyond the Russian ably integrated into discussions on corporate • Organised three annual high-level Corporate capital. In addition to hosting the business governance in Russia that have continued Governance Roundtable events with the integrity seminars in Moscow, four seminars beyond the project close with respective Moscow Exchange and the Bank of Russia that were held in Kazan and St Petersburg to project partners streamlined the topic of business integrity. ensure that key messages, background mate- Each Roundtable gathered 300-400 rials and engagement opportunities were • The dialogues were used to encourage com- participants offered to a wide range of practitioners and panies to implement good practices in busi- experts. Many participants registered their ness integrity. Companies’ sharing of good • Hosted 10 business integrity seminars in attendance as part of their training on integ- practices has helped to raise expectations for collaboration with Deloitte CIS and the rity and compliance the collective group. Further, the exchanges Federal Antimonopoly Service of Russia. between companies, policy-makers, regula- In total, the seminars gathered over 450 • Background materials, including OECD tors and associations or organisations that participants. Seminar themes included, standards and new research, were provided monitor company compliance and disclosure but were not limited to, strengthening of during the events in English and in Russian, has helped to cultivate a greater collective internal control and audit, reporting and and were subsequently made available on sense of accountability for corporate gover- whistleblowing, antimonopoly compliance the dedicated websites along with summaries nance and business integrity and integrity in state-owned companies of event proceedings
63 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER Pearl Initiative
The Pearl Initiative is the only, indepen- dent, not-for-profit, by-business for- business organization working across the Gulf Region of the Middle East to improve corporate accountability, governance and transparency. PROJECT: With over 40 regional and international Implementing integrity practices in GCC private and public businesses partners, the Pearl Initiative brings together business, government, and civil COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: society decision-makers to share best United Arab Emirates, United Arab Kingdom of Saudi Arabia, 3 years 0.88 M business practices and to help maximize Bahrain, Qatar, Kuwait, Oman Emirates the economic opportunities available to companies within the region. The Pearl Initiative also supports Gulf-based univer- sity students to identify and embrace strong ethics as they embark on their The project aims to influence the behavior of The project has three key objectives: careers. business leaders, government representatives • Develop a Gulf Region focused Integrity and students across the Gulf Region through Founded in 2010, the Pearl Initiative Measure and publish it widely to provide education, and Collective Action. Knowledge carries out its objectives through: businesses with a tool to measure integrity sharing is a key means to meeting this objec- and thereby foster integrity and transparency • Regional Insights, Case Studies and tive, and the Pearl Initiative is building a local within businesses in the region Research-based Reports community that is sharing and promoting good • Task Force Initiatives and Interactive integrity practices, while actively encouraging • Facilitate the creation of a Collective Action Roundtable Forums others to lead the way in the implementation community, and enhance dialogue between of improved standards. the business community, civil society and • University Collaborations to enhance government, highlighting and promoting the To facilitate higher levels of integrity and trans- the capabilities of future business business benefits to aligning interests in parency in businesses in the Gulf Region, prac- leaders implementing higher standards tical tools are being developed as part of the project to support companies, in benchmarking • Engage future business leaders by encouraging their policies against best practices, while also universities in the region to include the practi- facilitating the implementation of higher levels cal angle with respect to the implementation of of integrity and transparency. integrity practices in their curricula and by actively reaching out to students with activities 64 such as projects and case study competitions PROJECT AT A GLANCE: • A profiling tool was developed to assess key benefits, progress to date and potential chal- integrity metrics within organizations and lenges with respect to improving integrity The aim of the project is to incen ensure a consistent and objective scoring practices in Gulf firms tivize and support business leaders framework within the GII that reduces per- • The Gulf Region Wide Student Case Study (and future leaders) in the Gulf sonal discretion when scoring organizations Competition was completed and it engaged Region towards implementing • The public phase of the GII was rolled out 3 761 students across 35 universities, building more rigorous integrity practices, across the Gulf Region case studies on 123 companies. The students while recognizing the direct promoted the best practices of these organi- • The overall media engagement in relation to business benefits for doing so zations through the case studies the program and the roll out of the GII and program was increased through various • The Gulf Region Wide Student Case Study events, print and online press releases and Competition Awards Ceremony was held at KEY ACTIVITIES OVER THE ENTIRE PROJECT social media posts Sultan Qaboos University in Muscat, Oman PERIOD (OCTOBER 2017 – SEPTEMBER 2018): • 4 roundtable events were held in Khobar Impact • The pilot phase of the Gulf Integrity Indicator and Riyadh, Saudi Arabia, and Abu Dhabi • Through its activities, events and engagement (GII) across the United Arab Emirates and the and Dubai, United Arab Emirates with over of students, the program has been able to Kingdom of Saudi Arabia was completed and 100 business professionals and media agen- convene like-minded business professionals valuable input and feedback on potential cies in attendance areas of improvement and key incentives to initiate a dialogue and share knowledge to bring companies on board was obtained • ‘Volume 1: The Company’s Integrity Frame- on integrity best practices while also educat- work’ was published, which focuses on the ing students and executives alike around the • The GII assessment methodology was revis- main elements to be considered when practical application of integrity practices ited to ensure scalability and applicability developing an integrity framework, and for different organizations operating within the ‘Business Case for Integrity Practices’ diverse sectors and industries with multiple was published, which seeks to identify the operating models
65 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER The Polish Chamber of Commerce of Medical Devices (POLMED) POLMED is one of the largest and most highly recognized chambers of commerce in Poland which represents manufactur- ers and distributors of medical devices in Poland. It acts as a source of information PROJECT: for members, protects their interests and conveys their views to decision-makers MedKompas Poland II in the industry and the government. POLMED aims to ensure that members COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: operate in a business-friendly, ethical and fair market environment. Poland 4 years 0.65 M Poland POLMED provides training courses and consultations necessary for their mem- bers’ business operations. It focuses on promoting the rules and advantages of professional ethics and honesty in busi- In the framework of the MedKompas II project, activities among the medical device system ness practices among its members. The the anti-corruption activities of the previous participants (e.g. decision makers, doctors, ‘Code of Business Practice’ has led to a MedKompas I project toward clean business hospital directors, representatives of medical significant improvement in the quality and fair market conditions in the medical device device companies) market will continue in addition to the intro- of its members’ interactions within the • Build the first model compliance system duction of new and more advanced activities medical environment. for public healthcare institutions in Poland which will enhance the impact achieved so far. Up until September 2014, POLMED was and implement this in three selected Polish successfully implementing the forerunner During the MedKompas II project, POLMED hospitals intends to: project MedKompas I, which aimed to POLMED believes that if the gap between the promote ethical cooperation between • Educate the Polish healthcare system partici- legislation and people’s values and social norms representatives of the medical devices pants (e.g. medical doctors, hospital directors is too large, then even the most restrictive legal market and healthcare professionals. and management staff, etc.) about ethical regulations will not help to fight corruption. business conduct and how to set up transpar- This is why the activities are geared towards ent relations between doctors and medical shaping ethical values in the public and private companies, combined with awareness raising healthcare sectors.
66 PROJECT AT A GLANCE: • The MedKompas training was organized in • 2 press conferences were held with prominent The project concentrates on reducing 68 different hospitals and healthcare facili- speakers, such as the Director of Business corruption risk in the Polish healthcare ties. In some hospitals training was organized Ethics & Social Innovation Centre at Kozminski sector through education, promotion of twice due to high employee interest in the University and a Fraud Investigation and subject matter Dispute Services partner from EY, Poland compliance policy, development and The www.medkompas.pl website saw a total • The first set of model documents for the popularization of anti-corruption tools of 28 150 page views with around 13 149 implementation of compliance systems suit- tailored to the needs of Polish health visitors care facilities able for healthcare facilities were developed Impact • MedKompas experts carried out the full implementation of compliance systems in • Thanks to the Project a substantial number of KEY ACTIVITIES OVER THE ENTIRE PROJECT 5 hospitals using the model documents healthcare institutions recognized the need PERIOD (OCTOBER 2014 – SEPTEMBER 2018): to educate their employees on the benefits • 70 press and internet publications were used • The MedKompas team organized 81 training of ethical cooperation and the dangers of to provide information about the project sessions on ethical business conduct and corrupt behavior. With so many individuals activities and ethical business conduct transparent doctor – medical company rela- trained on ethical business conduct, POLMED tions in the healthcare sector (MedKompas • At 24 healthcare conferences and medical has made a huge step towards changing the training map available here) exhibitions, the project and ethical coopera- mindset of many people, which can lead to a tion was promoted though panel sessions change in social norms and plays an important • 2 374 healthcare employees including hospi- and the distributing of promotional materials role in shaping values and business practices. tal directors, hospital management, public This can been seen in the interest that hospi- procurement staff, medical doctors, and • 9 public debates on ethical business conduct tals have shown in implementing and institu- nurses participated in the above mentioned in the healthcare sector were organized tionalizing the model compliance system training
67 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER The Ethics Institute in cooperation with the Institute The Ethics Institute is a not-for-profit, public benefit organization, which has been active since August 2000. The of Directors Mozambique (IoDMZ) vision of The Ethics Institute is to ‘build an ethically responsible society’ in South Africa and other African countries, such PROJECT: as Mozambique, within the scope of this project. The organization achieves its Collective Action for fighting corruption in Mozambique mission by forming partnerships with the COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: public and private sectors, and serving as a resource through: Mozambique 5 years 0.55 M South Africa • Thought leadership when setting ethical standards • Research in the field of organizational ethics management The project aims to reduce corruption and as the private sector in Mozambique. The • Assessment of organizations' ethics facilitate clean business and fair market capacity-building approach of The Ethics Insti- programs conditions in Mozambique. tute vis-à-vis its partner organization IoDMZ in Mozambique will enhance the sustainability of • Training of ethics skills, including In an initial phase, the project focused on the this Initiative even once the project has come certification of Ethics Officers provision of technical assistance in the imple- to an end. • Support and advisory services to clients mentation of corporate ethics standards within the private sector in Mozambique. Initial activi- Ultimately, a Collective Action approach is most • Project management on ethics / anti-cor- ties built upon and extend the scope of the suitable when addressing corruption problems ruption for the public and private good governance standards already in existence, which cannot be tackled by one party alone as sectors for example, the Code of Corporate Governance there are always two or more parties involved and the Code of Ethics for Business. when corrupt practices occur. This is why The Ethics Institute will engage with a number of Based on the anti-corruption training experi- companies who are concerned about cross-bor- ence gained during the work carried out in der corruption when entering the Mozambique South Africa, The Ethics Institute will create a market, as well as with companies deterred similar local ethics, anti-corruption training and from conducting further business in advisory capacity for the public sector, as well Mozambique.
68 PROJECT AT A GLANCE: • A cross-border anti-corruption round table on • A total of 54 delegates successfully completed identifying critical corruption related issues the Ethics Officer Training Program in April The main aim of the project is to was held in May 2018 in Maputo and August 2018 in Maputo reduce corruption and facilitate the • Ordem dos Contabilistas e Auditores de Impact ease of doing business in Mozam Moçambique (OCAM) delivered 4 ethics • Requests to The Ethics Institute for engage- bique by building ethics management management training sessions to 179 ments related to ethics and anti-corruption capacity in both the public and accountants and auditors in Beira and interventions by key Mozambican institutions private sectors Nampula in July 2018 increased significantly • A forum addressing identified cross-border • Cross-border stakeholders, Mozambican Tax corruption challenges with 28 key stakehold- KEY ACTIVITIES OVER THE ENTIRE PROJECT Authority and Cross-Border Road Transport ers was hosted in Manzini, Eswatini in July PERIOD (OCTOBER 2017 – SEPTEMBER 2018): Agency (South Africa) have actively demon- 2018 strated their commitment to address anti- • An ethics investigations workshop was • Ethics training for Mozambican Tax Authority corruption issues hosted in October 2017 in Maputo with 51 representatives was held in Maputo in delegates in attendance • OCAM included an Ethics Management mod- August 2018 ule in nationwide compulsory professional • At the annual ethics awareness event hosted • An Ethics and Compliance Conference was training for accountants and auditors during in October 2017 in Maputo, a former first co-hosted in collaboration with Associação 2018 lady of Mozambique addressed 106 delegates de Comércio, Indústria e Serviços (ACIS) in as keynote speaker • Mozambican Universities committed to Maputo in August 2018 with 128 business include business ethics in their curriculum • A business ethics workshop was presented in representatives in attendance. Mozambique’s Maputo in October 2017 with 14 delegates Chief Justice served as plenary speaker and in attendance attended all sessions • A 3-hour ethics awareness training session • TEI reviewed and provided commentary to was held in March 2018 in Maputo with 38 the Confederation of Trade Association (CTA) business representatives in attendance regarding their new Code of Ethics
69 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER The Ethics Institute
The Ethics Institute is a not-for-profit, public benefit organization, which has been active since August 2000. The vision of The Ethics Institute is to ‘build an ethically responsible society’ in South Africa and other African countries, such PROJECT: as Mozambique, within the scope of this project. The organization achieves its Collective Action for fighting corruption in Gauteng Province (South Africa) mission by forming partnerships with the COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: public and private sectors, and serving as a resource through: South Africa 5 years 0.80 M South Africa • Thought leadership when setting ethical standards • Research in the field of organizational ethics management The project aims to address corruption in the ing the municipalities during the first few years • Assessment of organizations' ethics Gauteng Province of South Africa in three of implementation of their ethics management programs ways: programs. Various projects will be undertaken, from the development of leadership involvement • Training of ethics skills, including Firstly, The Ethics Institute will provide ongoing to the setting up of an ethics-based policy envi- certification of Ethics Officers thought leadership to the Gauteng Anti- ronment and the institutionalizing of ethics Corruption Forum – a newly launched Collec- • Support and advisory services to clients programs. A key outcome is the development tive Action anti-corruption initiative involving of a technically competent and dedicated cadre • Project management on ethics / anti- government, business, civil society and labor. of Ethics Officers to drive these programs corruption for the public and private Its purpose is to explore synergies to consoli- forward. sectors date anti-corruption efforts across the various sectors, focusing on specific risk areas. Lastly, The Ethics Institute will create informa- tion and training resources to address “ethics Secondly, The Ethics Institute will collaborate and anti-corruption issues in supply chain man- with nine municipalities in the province to agement” in the South African procurement strengthen their ethics and anti-corruption environment. The resources will be aimed at management capacity. This will include setting SME suppliers of large companies in South up necessary governance structures and assist- Africa.
70 PROJECT AT A GLANCE: • An Ethics Champion Learning Forum in • The content for the Supply Chain Ethics and partnership with the Gauteng Provincial Anti-corruption Program piloted in November The project aims to fight corruption in Government, and a Rules and Ethics Com- 2018 was developed Gauteng Province by providing thought mittee workshop in partnership with the • The project received the gold award in the leadership to the existing provincial anti- Gauteng Provincial Legislature were hosted Integrity Category at the 2018 Premier of corruption Collective Action initiative, • Ethics Risk Assessments and Ethics Manage- Gauteng’s Service Excellence Award Cere- capacitating municipalities to fight corrup ment Maturity Assessments for 8 municipali- mony, which further heightened awareness tion, and developing an anti-corruption ties were completed of the project training platform for small and medium- sized enterprises (SMEs) in supply chains • Findings of the Ethics Risk Assessments and Impact Ethics Management Maturity Assessments • There are now more formalized ethics were presented to leadership structures in management structures and a strong group 7 municipalities of ethics champions and ethics officers in KEY ACTIVITIES OVER THE ENTIRE PROJECT • Ethics strategy planning sessions were Gauteng municipalities PERIOD (OCTOBER 2017 – SEPTEMBER 2018): facilitated in 3 municipalities • Provincial Government is increasingly • The Ethics Institute’s CEO was appointed • A further 17 officials were trained on involved in municipal ethics ensuring to the Gauteng Ethics Advisory Council, the train-the-trainer program. These (and informed oversight by them in future established by the Gauteng Premier in previously trained trainers) independently December 2017 trained 1218 municipal officials • Relationships with, and between, ethics • A further 228 Councilors were trained, bring- role-players in the Gauteng Provincial ing the total number of trained Councilors to Government and 9 Gauteng municipalities 417 (40% of all Councilors) were strengthened • The 2018 Public Sector Ethics Survey was • An additional 14 ethics officers were trained conducted with 8,713 respondents through the Ethics Officer Certification Program
71 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER Transparency International Secretariat (TI-S) As part of the global Transparency International movement leading the fight against corruption, the Transparency International Secretariat tackles corrup- tion on a regional and global stage. PROJECT: Based in Berlin, the Secretariat provides leadership for the movement’s interna- Collective Action for Clean Business tional initiatives, supports national chap- ters and coordinates the regional work COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: through knowledge sharing, advocacy and building coalitions. Global 3 years 3.06 M Germany In collaboration with the more than 100 national chapters and national contact groups, the Secretariat produces numer- ous research tools and policy positions. It serves as a knowledge centre, offering The Transparency International Secretariat This involves: promotes business integrity at three levels valuable insight into the dynamics of cor- • Developing evidence bases for Collective (individual businesses, groups of businesses, ruption and new approaches to tackling Action at national level through ‘Transpar- and the business environment), all of which this. ency in Corporate Reporting Assessments’ are underpinned by Collective Action. (TRAC) and ‘Business Integrity Country In order to achieve the objective of facilitating Assessments’ (BICA) change at scale, the project aims to improve • Evaluating the effectiveness of and providing the capacity of Transparency International to support for the replication of Integrity Pacts work as a catalyst for Collective Action at for procurement at a new scale national level in multiple countries and advo- cate improved standards, norms and practices • Disseminating learning and expertise within within international fora and initiatives. the Transparency International Movement on Collective Action for clean business • Increasing international advocacy to help strengthen the development, promotion and enforcement of global standards in existing and new areas relating to business integrity 72 PROJECT AT A GLANCE: • Results of BICA Brazil were fed into the • As concept partner of the B20 Integrity and “Novas Medidas”, currently the most compre- Compliance Taskforce, Transparency Interna- hensive package of anti-corruption laws tional ensured that the topics of SOEs and The overall goal is reduced corruption worldwide, developed by TI Brazil in a Collec- Beneficial Ownership Transparency were through improved transparency, tive Action process. The chapter sees high included as B20 policy priorities, and signifi- integrity and accountability in busi potential for the implementing of these mea- cantly contributed to advanced policy recom- ness practices around the world sures in the coming legislative period. TI Bra- mendations on both. In addition, for the first zil launched its BICA report in August 2018 at time, the B20 and C20 published three joint the International Chamber of Commerce policy statements (ICC) Brazil in São Paulo and reached 78 par- Impact ticipants, of which 53 were companies, rais- KEY ACTIVITIES OVER THE ENTIRE PROJECT ing significant interest among communities • A total of 68 companies in three countries PERIOD (JANUARY 2015 – SEPTEMBER 2018): of both auditors and investors improved their public reporting practices on 68 companies in Russia, Lithuania and Brazil anti-corruption, some of them considerably, • As a result of BICA Stage 2, advocacy activities improved their public reporting practices on from no disclosure to good practice. focusing on political financing in the run-up to anti-corruption the Italian elections in March 2018 saw 33 MPs • BICAs in four countries have led to business • As part of an assessment of transparency in publish information on the funds they received and public-sector interest, and encouraged public reporting on anti-corruption, accom- and spent on the electoral campaign. TI Italy stakeholders to work with Transparency panied by exchanges between Transparency was also invited to Parliament to participate in International in Collective Action on different International chapters and companies, and a public hearing on a new anti-corruption law, issues of business integrity by raising public awareness about the impor- and presented the BICA findings on political • Integrity in State-Owned Enterprises and tance of transparent reporting and account- financing Transparency in Beneficial Ownership feature ability, 8 companies in Russia, 23 companies For the first time, the B20 calls for public high on the global anti-corruption agenda in Lithuania and a record 43 companies in registers on beneficial ownership and integ- thanks to Transparency International and Brazil improved their practices rity of State Owned Enterprises (SOEs) other partners’ activities in international fora Advocacy activities around BICA results in such as the B20 Brazil and Italy were integrated in election campaigns in both countries 73 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER Transparency International España (TI-España) Transparency International España is the Spanish national chapter of the global Transparency International move- ment of non-governmental organizations devoted to combating corruption. The movement brings civil society, private PROJECT: sector and governments together and Implementing and evaluating corporate integrity policies in the Spanish forms a global coalition against private sector: A holistic approach corruption. COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: The work of Transparency International España is in line with the overall Transpar- Spain 4 years 1.27 M Spain ency International strategy and is based on the assumption that transparency constitutes a major goal of modern society. It is a powerful tool for fighting both political and corporate corruption The project aims to prevent corruption and • Promoting integrity in public contracting and thereby also inherently linked to create fair market conditions in Spain by through ‘integrity pacts’ as a way to prevent the ‘Right to know’ of citizens in Spain. improving corporate governance in the private corruption and increase transparency in pub- Transparency International España is an sector and enhancing transparency in public lic procurement, starting with a pilot project organization committed to promoting services and procurement. The expected relating to certain public tenders impact of this project is an improvement in and increasing the level of information • Fostering transparency in the delivery and quality of the corporate governance system. and openness of information of the vari- management of contracted public services Throughout implementation, the project will ous Spanish public institutions, fighting through the promotion and monitoring of look at: all types of corruption, generating knowl- the new Transparency Law edge and promoting good practices in • Improving corporate governance in target the public and private sectors. companies, through the design and imple- mentation of a Compliance and Ethics Program, including a model report, based on the obligations and recommendations set out in Spanish and international legislation and best practices
74 PROJECT AT A GLANCE: • This year a program of workshops was Outreach opened to external participants with over • Over 340 people participated in project activ- The project aims to improve corporate 70 participants in attendance governance in the private sector ities through events such as presentations of • Training sessions on Integrity Pacts for public the compliance Guide (257 participants) and and enhance transparency in public officials in Valencia were organized, and the the new report on the Transparency Law and services and procurement, to prevent Compliance Guide was presented in Madrid, Spanish companies (40 participants), and the corruption and create fair market Barcelona and Bilbao training workshop on Transparency Portals conditions Integrity Pacts (40 participants) • TI Spain is the appointed monitor of 4 public • Further information is available on TI Spain’s tenders from administrations in Madrid City, webpage, the Integrity Project’s webpage, KEY ACTIVITIES OVER THE ENTIRE PROJECT Valencia region, and Castilla La Mancha YouTube, LinkedIn, Twitter, and Facebook PERIOD (OCTOBER 2017 – SEPTEMBER 2018): region Impact Tools and Publications Collaboration • The Compliance Guide is being implemented • The ‘Guide to implement Integrity Pacts in • Collaboration continues with public bodies by several companies Spain’ and the ‘Transparency Law and large such as the National Commission on Markets • TI Spain is the only institution that has raised listed companies in Spain – 2018’ report and Competition, the Council for Transparency awareness on the obligations set out in the were published and Good Government, the General Comp- Transparency Law for the private sector, with • An online version of the Compliance Guide troller of the State Administration, and the many institutions using TI Spain’s guidelines was created together with an interactive plat- Spanish Federation on Municipalities and and implementing their recommendations form to consult to companies on the Trans- Provinces. • The public institutions involved in Integrity parency Law, and to public administrations • 3 companies were supported by TI Spain in Pacts are interested in continuing with this Courses and Training their implementation of the Compliance instrument to improve integrity in public Guide procurement • 25 students participated in the 3rd edition of TI Spain’s Expert Diploma
75 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER Transparency International Italia (TI-It) in cooperation with the Centro Ricerche e Studi su Sicurezza e Criminalità Transparency International Italia (TI-It), the Italian chapter of Transparency (RiSSC), Fondazione Centro Studi Investimenti Sociali (CENSIS), Istituto per International, founded in Milan in 1996, la Promozione dell’Etica in Sanità (ISPE-Sanità), Italy promotes transparency, integrity, accountability and the fight against corruption. PROJECT:
TI-It interacts with the public and private Healthcare Integrity Action sectors, academia, and researchers. Its main activities are: COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: • Promotion of improved laws and practices for preventing corruption Italy 3 years 1.12 M Italy and misuse of resources • Raising awareness in public opinion on the urgency of fighting corruption and related crimes The project aims to enforce a “Healthcare • To improve the legal and cultural framework • Increased focus on ethics in schools Integrity System” in the Italian healthcare sec- through Collective Action and engagement and universities, encouraging the pub- tor to improve the national healthcare sector’s of all relevant stakeholders in the healthcare lic and private sectors to fix and imple- efficiency and to reduce the risk of corruption sector, to promote good practices of trans- ment ethics principles and codes through transparency, integrity and account- parency, accountability and integrity and to ability. The project will increase the awareness raise awareness in order to increase civil soci- • Support of Italian whistleblowers of corruption, educate and train, and imple- ety’s understanding of the phenomenon of through the specific ‘ALAC’ online ment and test innovative anti-corruption tools corruption platform and organizational models through Collective • To enhance competences and skills in the Action initiatives with hospitals, Local Health field of anti-corruption through specific train- Authorities (LHA), civil society and companies. ing courses and coaching for executives and The main objectives of the project are: other staff • To develop specific and innovative measure- • To test and implement tools, practices, pro- ment, monitoring and assessment tools to cedures and organizational models designed identify structural and geographical vulnera- for the Italian healthcare sector in five bilities selected Local Health Authorities (LHA) in order to reduce the risk of corruption 76 PROJECT AT A GLANCE: • On the National Healthcare Anticorruption online campaign with 1 600 signatories to Day of April 6 at the Adriano Templum in the online petition, 1 333 followers and 421 Rome, public conferences took place in 2016 150 interactions on Facebook, and 320 fol- The project aims to strengthen fair with around 400 participants and 2017 with lowers and 144 470 interactions on twitter market rules in the Italian healthcare around 300 participants. In 2018, a public Impact sector through enforcing a healthcare social campaign was organised • 65 irregularities were reported through integrity system • 2 comprehensive research papers which ana- the whistleblowing platform during the lysed the perception of corruption and pilot phase assessed risk and economic waste in Italian health authorities were published in April • TI-Italy was approached by government for KEY ACTIVITIES OVER THE ENTIRE PROJECT 2016 and 2017 consultation on a national reform on trans- PERIOD (APRIL 2015 – SEPTEMBER 2018): parency of funding in the health sector (Sun- • Whistleblowing platforms were implemented shine Act), and Assobiomedica reformed the • 6 private-public round table meetings were in 13 local Health Authorities in Trento, code of ethics of its members to strengthen convened with 28 stakeholders who contrib- Melegnano, Bari, Siracusa, Catania, Catan- the prevention of conflict of interests uted to Policy Statements and the drafting zaro, Ragusa, Salerno, Sardegna, Brotzu / between sponsors and professionals of a Policy Paper on integrity in the health Cagliari, Pavia, Toscana and Orbassano sector which was presented at a public event • The quality of anti-corruption plans has • An online access to information tool was in Rome in December 2017 and signed by 9 increased significantly, with only 13.7% of made available to the 3 local Health Authori- stakeholders Healthcare Units receiving negative assess- ties in Melegnano, Bari and Siracusa ment scores in 2017 compared to 39.9% in • 25 training sessions on integrity were held • Communication activities during the project 2016 with around 700 executives and managers saw 35 posts on the website, 241 posts on and 1070 staff members from 5 local health Facebook and 142 posts on Twitter. Civil authorities and 3 regional areas in attendance society has increasingly engaged in the
77 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER United Nations Development Programme (UNDP) UNDP is the UN's global development network. It operates in 170 countries and territories, helping to develop policies, leadership skills, partnering abilities and institutional capabilities and build resilience in order to sustain development results. UNDP is the lead agency on democratic PROJECT: governance in the UN system supporting Anti-Corruption and Integrity in the Arab Countries - efforts to advance related results in four Phase II - Egypt, Morocco and Tunisia main areas: • Expanding people's opportunities to COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: participate in political decision-making, Arab Region including 3 years 2.27 M International particularly those of women and the poor Egypt, Morocco, Tunisia Organization, USA • Making democratic institutions more accountable and responsive to citizens, supporting national parliaments, public administrations and rule of law The project will support non-governmental the impact would be increased levels of trans- • Promoting the principles of democratic parties, including businesses, in Egypt, parency and accountability in the two targeted governance – in particular, anti-corruption, Morocco and Tunisia to participate in formulat- sectors and enhanced effectiveness of anti- human rights, women's empowerment ing and monitoring national anti-corruption corruption authorities. As such, the project will and equal opportunity reforms by providing them with specialized strengthen the capacity of 60 non-governmental • Supporting country-led democratic gover- training programs and specific tools to: stakeholders in Egypt, Morocco and Tunisia nance assessments that help countries to to disseminate information and monitor anti- assess their needs, monitor their progress • Advance concrete action to reduce corrup- corruption in healthcare and customs by June and achieve their goals tion risks in healthcare and customs 2018 and support the development of related UNDP’s activities in the Arab States region • Integrate Collective Action concepts and actionable regional declarations, enabling build on UNDP’s five thematic priorities, practices into programs of national anti- these to be incorporated in the national action with additional emphasis placed on address- corruption authorities plans of at least two of the three project coun- ing the main impediments to human devel- tries by March 2019. It will also seek to inte- opment in the region as identified by the The objective is to facilitate the generation of grate Collective Action tools in programs of Arab Human Development Report series, actionable knowledge and the transfer of new national anti-corruption authorities in at least namely freedom and good governance, skills that will help stakeholders to foster inno- two of the three project countries by December knowledge, and women’s empowerment. vative anti-corruption solutions. Ultimately, 2018.
78 PROJECT AT A GLANCE: • The project focused its efforts this year in • An anti-corruption Collective Action process Morocco where it organized a national work- is established in Morocco to promote anti- The project aims to support shop and two trainings on anti-corruption corruption in the health and customs sectors non-governmental actors including in health, as well as a national workshop as part of the national strategy, with the businesses to integrate their and training on anti-corruption in customs participation of the business community perspectives in national anti- • In June 2018 in Marrakesh, UNDP organized corruption strategies emphasizing a high-level regional conference on anti- action on healthcare and customs corruption in the health sector that was attended by concerned governmental and non-governmental practitioners in the KEY ACTIVITIES OVER THE ENTIRE PROJECT three countries facilitating peer learning and PERIOD (OCTOBER 2017 – SEPTEMBER 2018): leading to the development of policy and program recommendations that will inform • The project finalized the development of related reforms at the country level training packages for Egypt, Morocco and Tunisia on corruption risk management Impact including implementation guides for the • Transparency and accountability increased in health and customs sectors. It also set up the health sector in Tunisia through the and trained a regional team of trainers who establishment of a national committee that can rapidly deploy across the three countries brought together key stakeholders, produced to enhance related national capacities in the corruption risk assessments and proposed two sectors responses, and successfully implemented selected measures
79 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER United Nations Development Programme (UNDP) UNDP is the UN's global development network. It operates in 170 countries and territories, helping to develop policies, leadership skills, partnering abilities and institutional capabilities and build resilience in order to sustain development results. UNDP is the lead agency on democratic PROJECT: governance in the UN system supporting Anti-Corruption and Integrity in the Arab Countries - efforts to advance related results in four Phase II - Iraq and Libya main areas: • Expanding people's opportunities to COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: participate in political decision-making, Arab Region including 3 years 1.52 M International particularly those of women and the poor Iraq, Libya Organization, USA • Making democratic institutions more accountable and responsive to citizens, supporting national parliaments, public administrations and rule of law The project will support non-governmental the impact would be increased levels of trans- • Promoting the principles of democratic parties, including businesses, in Iraq and Libya parency and accountability in the two targeted governance – in particular, anti-corruption, to participate in formulating and monitoring sectors and enhanced effectiveness of anti- human rights, women's empowerment national anti-corruption reforms by providing corruption authorities. As such, the project will and equal opportunity them with specialized training programs and strengthen the capacity of 40 non-governmental • Supporting country-led democratic gover- specific tools to: stakeholders in Iraq and Libya to disseminate nance assessments that help countries to information and monitor anti-corruption in assess their needs, monitor their progress • Advance concrete action to reduce corrup- healthcare and customs by June 2018 and and achieve their goals tion risks in healthcare and customs support the development of related actionable UNDP’s activities in the Arab States region • Integrate Collective Action concepts and regional declarations, enabling these to be build on UNDP’s five thematic priorities, practices into programs of national anti- incorporated in the national action plans of at with additional emphasis placed on address- corruption authorities least one of the two project countries by March ing the main impediments to human devel- 2019. It will also seek to integrate Collective opment in the region as identified by the The objective is to facilitate the generation of Action tools in programs of national anti- Arab Human Development Report series, actionable knowledge and the transfer of new corruption authorities in at least one of the namely freedom and good governance, skills that will help stakeholders to foster inno- two project countries by December 2018. knowledge, and women’s empowerment. vative anti-corruption solutions. Ultimately,
80 PROJECT AT A GLANCE: • The project provided advisory support and • The Presidential Council in Libya endorsed technical assistance throughout a series of a decision to establish an Integrity and Trans- The project aims to support country missions to Iraq and Libya leading parency Office to coordinate the implemen- non-governmental actors including to the conceptualization and endorsement tation of the UN Convention against Corrup- businesses to integrate their of new platforms for Collective Action in the tion in the country and promote Collective perspectives in national anti- two countries Action to this effect corruption strategies emphasizing • In June 2018 in Marrakesh, UNDP organized action on healthcare and customs a high-level regional conference on anti- corruption in the health sector that was attended by concerned governmental and KEY ACTIVITIES OVER THE ENTIRE PROJECT non-governmental practitioners in Iraq and PERIOD (OCTOBER 2017 – SEPTEMBER 2018): Libya facilitating peer learning and leading to the development of policy and program • The project finalized the development of recommendations that will inform related training packages for Iraq and Libya on reforms at the country level corruption risk management including imple- mentation guides for the health and customs Impact sectors. It also set up and trained a regional • The Commission of Integrity began to revise team of trainers who can rapidly deploy its national anti-corruption strategy to gear across the two countries to enhance related it towards Collective Action and stronger national capacities in the two sectors engagement with non-governmental part- • The project organized two training sessions ners, including 3 new initiatives that are on anti-corruption in health in Iraq and already underway in this regard one training session in Libya, as well as one training session on anti-corruption in customs in each of the two countries
81 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER United Nations Office on Drugs and Crime (UNODC) UNODC is mandated to assist Member States in their efforts to fight illicit drugs, crime and terrorism through: • Field-based technical cooperation projects to enhance the capacity of Member States • Research and analytical work to increase PROJECT: knowledge and understanding of drugs and crime issues and expand the evidence On the level: Business and Government against Corruption in Colombia base for policy and operational decisions • Normative work to assist States in the COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: ratification and implementation of the Colombia 3 years 1.20 M Austria relevant international treaties, the devel- opment of domestic legislation on drugs, crime and terrorism, and the provision of secretariat and substantive services to the treaty-based and governing bodies In its resolution 58 / 4 of October 31, 2003, The project is enhancing public and private sector anti-corruption efforts in Colombia through the UN General Assembly adopted the UN dialogue and knowledge sharing, with a view to establishing a working group consisting of Convention against Corruption. The Con- strengthening the development and implementa- public and private sector stakeholders as an vention entered into force on December 14, tion of corruption prevention, criminalization and ongoing forum for anti-corruption issues 2005 and to date has been ratified by 186 enforcement measures in line with the United • Strengthening the legal regime relating to Member States and the European Union. Nations Convention against Corruption (UNCAC). A Conference of the States Parties has been private sector corruption by providing input established by the Convention to promote The project is also strengthening the legal from relevant private and public sector stake- and review its implementation. UNODC is framework for the prevention of and fight holders to the new legislation on corporate the guardian of the Convention and the against corruption in Colombia, with particular liability and supporting its implementation Secretariat of the Conference of the States emphasis on corporate liability and corruption • Holding capacity building workshops for Parties. The Convention is the legal instru- in the private sector. Finally, the project is ment underlying the UN Global Compact’s stakeholders from the public and private sec- empowering companies to identify processes 10th Principle against Corruption. tors, based on concrete cases of corruption susceptible to corruption and implement actions to protect themselves from corruption. • Establishing a network of trainers who work with Small and Medium Enterprises (SMEs) This is achieved by: to promote the use of the tools developed by • Improving public-private sector dialogue and the project and the UN Global Compact introducing a more coordinated approach to (UNGC) in Colombia 82 PROJECT AT A GLANCE: • 7 Train-the-Trainer (ToT) workshops were Impact held in 6 cities (Bogotá, Cartagena, Medellín, The project aims to reduce oppor • Increased awareness of private sector actors Cali, Barranquilla & Bucaramanga) to estab- tunities for corruption by enhancing in Colombia, including SMEs, of their key role lish and train a network of compliance offi- public-private sector dialogue, in preventing and fighting corruption cers and practitioners who will promote anti- improving government´s anti- corruption policies and training within their • Enhanced capacity of SMEs to support the fight corruption frameworks and companies and supply chains. The resulting against corruption through preparing UNGC legislation, and creating a culture nation-wide network currently includes 166 COPs and adhering to UNGC principle 10 of integrity in the private sector business representatives and is growing • Deeper knowledge and abilities of companies • To strengthen the project’s network of to implement tools for managing corruption KEY ACTIVITIES OVER THE ENTIRE PROJECT compliance officers and provide a space risks PERIOD (OCTOBER 2017 – SEPTEMBER 2018): for dialogue and sharing of good practices, two expert webinars were delivered under • In February 2018, at a public event attended the project in August and September 2018 by over 60 SME representatives, the project launched a Strategy for SMEs. The Strategy • As part of the website visibility strategy, and seeks to build SMEs’ capacity to identify cor- to encourage public and private sector experts ruption and implement Principle 10 of the to exchange ideas about anti-corruption, the UNGC opinion space ‘Reflections for Integrity’ was launched in August 2018, and has so far • In May 2018, a technical round-table with featured 4 articles 55 SME representatives was held to assess the assistance SMEs need for developing UNGC Communications of Progress (COPs). Based on the needs identified, three capacity building workshops were held in July 2018 in Bogotá and Medellin, and were attended by 57 SME representatives
83 C2. Project profiles and highlights of activities in 2018
Name of Integrity Partner:
DESCRIPTION OF INTEGRITY PARTNER WU Vienna University of Economics and Business Administration The Wirtschaftsuniversität Wien (WU) (Vienna University of Economics and Business) based in Vienna, Austria is PROJECT: one of Europe's biggest, most modern Universities of Economic Sciences with Tax and Good Governance high quality standards in research and education approved by international COUNTRY OF IMPLEMENTATION: DURATION: USD (MILLION): REGISTERED IN: quality seals. Focus on Nigeria, Ghana, South Africa (and other 3 years 1.70 M Austria African countries) The Institute for Austrian and Interna- tional Tax Law is one of the world’s larg- est academic institutions engaged in the research and teaching of tax law. It has a long-standing tradition in organizing The project aims to identify links between cor- the effectiveness of tax administrations in international conferences and training ruption, the lack of business and political integ- undertaking controls and audits, and to courses for tax administration practitio- rity and tax crimes. In this context, it will also foster better cross-border cooperation ners and professionals alike. The Institute try to explore the reasons why the relationship between tax authorities between tax administrations and multination- for Austrian and International Tax Law • Build up institutional capacity in the three als is often confrontational. was responsible for running this project focus countries and other African countries together with research support from the The project will promote the concepts of good and ensure sustainability by creating a net- African Tax Institute (ATI) at the University tax governance and the importance of a corrupt- work of “ambassadors” of key institutions in of Pretoria’s Faculty of Economic and free and transparent tax system in achieving Africa apt to disseminate and promote the Management Sciences. The ATI is one of economic development. It will also cover how acquired knowledge on the role of tax the leading tax research centers in Africa. law enforcement agencies and tax authorities authorities in detecting corrupt practices can cooperate to counter corruption and To achieve these objectives, a research and bribery. training agenda is planned which, together In particular, the project aims to: with high level conferences, will raise awareness of the crucial role of tax administrations in • Identify and mobilize stakeholders in countering corruption. While the geographical national tax administrations and the focus of the project is on Ghana, Nigeria and private sector South Africa, the material developed during • Draft model national tax legislation and the project could be replicated throughout the international tax agreements to improve entire African continent. 84 PROJECT AT A GLANCE: The project aims at improving law The main achievements include: • getting an unanimous agreement from governments, business, non-governmental enforcement and cooperation • raising the awareness of the need for African organisations, regional and international between law enforcement agencies countries to reinforce the efforts to counter organisations that the project needed to all forms of illicit financial flows and tax administrations in Ghana, continue Nigeria and South Africa to counter • developing a truly whole of government Each of the conferences produced an agreed corruption, bribery, money launder approach to countering money laundering, communique and at the final conference held ing and tax crimes bribery, corruption and other financial crimes in Vienna, Austria in February 2018 an over- • getting governments to accept that solutions view report on the outcomes from the project KEY ACTIVITIES OVER THE ENTIRE PROJECT to these issues requires a dialogue with busi- was presented. PERIOD (APRIL 2015 – MARCH 2018): ness Impact Over the 3 year period of the program there • building up a community of committed offi- The project established more effective detec- were 9 conferences, workshops and researchers cials from different law enforcement agen- tion tools of illicit financial flows, thereby meetings held in South Africa, Nigeria, Ghana cies and breaking down the legal, regularity discouraging businesses and governments and Austria. These events brought together and cultural barriers to better cooperation from engaging in such schemes. It contributed over 300 participants from governments, busi- between these departments to a more informed debate on the issue of ness, international and regional organizations • providing best practice guidelines on how to transfer pricing, with a clearer and acceptable and academia representing 35 African countries. use tax and anti-money laundering treaties distinction between what is acceptable or unac- Representation from governments were made to achieve international cooperation ceptable. It also changed the nature of the up of politicians (members of Parliament), dialogue between business and tax administra- heads of tax and customs administrations, • putting the issue of identifying ultimate ben- tions, with 3 African countries committing to heads of financial intelligence units and other eficial ownership at the centre of the debate implementing pilot studies on cooperative law enforcement agencies, senior judges and and initiating the process of eliminating compliance. representatives from Central Banks. barriers to achieve this
85 Annex – International Center for D1. Collective Action (ICCA) Collective Action Conference 2018: Annex – International Center for Collective Action (ICCA) Collective Action Conference Evolution to Revolution 2018: Evolution to Revolution
Over 200 business leaders and representa- More than 200 participants from 40 countries tives from government, civil society, interna- across five continents came to share their wide- tional organisations and academia came ranging experience in using Collective Action to together in November 2018 for the Basel tackle corruption and prevent bribery. Despite Institute's 3rd International Collective Action the diverse participant mix, there was strong Conference: Evolution to Revolution. agreement around several key themes. The diverse panels and presentations First, there was strong consensus around the confirmed that companies worldwide are compelling business case for Collective Action increasingly engaging in Collective Action against corruption. Of the 95 business repre- to tackle shared corruption challenges and sentatives present, several speakers supported raise standards of integrity through creative, the idea that Collective Action can help compa- multi-stakeholder efforts. The conference nies “go above and beyond” regulations to raise demonstrated the growing evidence base standards of integrity across a sector. For the of Collective Action’s effectiveness in driving CEO of one multinational company, the value tangible and lasting change in the global of doing business with integrity – and so main- fight against corruption. It also highlighted taining the trust of customers, employees and various ways Collective Action can evolve governments – far surpasses any short-term as a global norm and reach its full potential. gains from participating in problematic tenders. This positive revolution in Basel, Switzerland, Stakeholders from outside the private sector on 14–15 November 2018, came alive and was also displayed growing openness towards evident in plenty of lively discussion during the working with businesses in the context of panel sessions and on the margins of the Basel various forms of Collective Action initiative. Institute's 3rd International Collective Action Conference.
86 The audience heard spirited discussions on top- authorities to demonstrate political will to set a from Integrity Partner workshops, featuring ics ranging from how to facilitate collaboration high standard of integrity for all bidders in examples of Collective Action initiatives devel- between law enforcement agencies in different important high-risk public tenders. The success oped with support from the Siemens Integrity countries to how new insights from behavioural of the HLRM concept in Colombia and Argen- Initiative in Brazil, South Korea, Mauritius and ethics might be implemented in corporate anti- tina was discussed, as well as its adaptation in Egypt, emphasised the importance of clearly corruption systems. Speakers from international Ukraine. Another session explored the benefits mapping the issues, stakeholders and risks in organisations and NGOs emphasised how they and challenges of using Integrity Pacts in Spain any new project. are working to understand the specific needs and other European Union countries to raise During the Conference, short interviews were of SMEs and support these through Collective integrity standards in public procurement and filmed with leading voices in the field of anti- Action initiatives around training and outreach. new social science research on factors contrib- corruption Collective Action. Their insights uting to “islands of integrity” in public gover- Several sessions cast light on how Collective were collated into five short YouTube videos on nance to the benefit of all. Action is helping to solve corruption and brib- different aspects of Collective Action. The vid- ery issues in challenging regional contexts. Technology’s role in supporting anti-corruption eos are embedded on the B20 Collective Action Presentations on Collective Action initiatives Collective Action and related initiatives was Hub with subtitles and transcripts in English, from India, China, Nigeria, Ghana and other also very much on the agenda. A joint presen- German, Spanish and French. countries revealed promising developments in tation by Microsoft and the World Bank illumi- See www.collective-action.com/confer- this area, from the drafting of industry stan- nated how artificial intelligence and big data ence2018/videos. dards and guidelines to creative pilot projects could help predict potential corruption issues around collaborative social accountability and in public procurement. As well as a breakout The conference was funded by the Siemens e-government. These on-the-ground examples session focused on the potential of emerging Integrity Initiative with support from KPMG were given deeper resonance with a panel dis- technologies such as blockchain, there was a and Hughes, Hubbard & Reed. Full information, cussion on how fighting corruption is funda- live demonstration of the new Basel Open photos, videos and a summary of the proceed- mental to mitigating risks around human rights Intelligence tool for streamlining open-source ings are available on the B20 Collective Action and achieving the Sustainable Development searches in corruption-related due diligence. Hub, www.collective-action.com. Goals. With anti-corruption Collective Action still a Several sessions addressed how Collective movement in evolution, participants were Action can be used to address both demand eager to exchange experiences and explore and supply-side bribery. One panel reported on strategies for creating sustainable and success- the expansion of the High Level Reporting ful initiatives. A session on lessons learned Mechanism (HLRM) as a tool for procurement
87 International Center for Collective Action (ICCA) D1. Collective Action Conference 2018: Evolution to Revolution
“Collective Action increases the effectiveness of compliance and helps businesses to flourish. Healthy businesses are good for this world. Fighting corruption will improve economic growth and prosperity.” Gretta Fenner, Managing Director, Basel Institute on Governance
“A success strategy for any new Collective Action initiative is to prepare the groundwork thoroughly. That means closely analysing and Panel discussion on Compliance and Collective Action in emerging markets, mapping the issues, stakeholders and risks in that particular context.” featuring (left to right) Stephen Zimmermann, Senior Adviser to the Gover Gemma Aiolfi, Head of Compliance, nance Global Practice Group, World Bank, Guan Fu, General Manager, Legal & Corporate Governance and Collective Action, Basel Institute on Governance Compliance, China Communications Construction Company International; Liu Yuyang, Beijing New-Century Academy on Transnational Corporations, China; and Soji Apampa, CEO, Convention on Business Integrity.
88 “The beauty of this conference is that it brings together public sector, private sector and civil society to talk about how we can all come together through a Collective Agenda to find new and innovative ways to tackle corruption.” Stephen Zimmermann, Senior Adviser to the Governance Global Practice Group, World Bank Group
“Collective Action seems to have come of age. It's not a fad. It's not a nice-to-have. It's putting the private sector bang in the middle of anti-corruption work.” Soji Apampa, CEO, Convention on Business Integrity
Gemma Aiolfi, Head of Compliance, Corporate Governance “In order to have a level playing field, you need to have all the and Collective Action at the Basel Institute on Governance, relevant actors playing by the same rules. And that's where opens a panel discussion on success factors in Collective Collective Action can come in.” Action initiatives. Lisa Miller, Head, Integrity Compliance Office, World Bank Group
89 Annex – Third Funding Round Press D2. Release by Siemens Annex – Third Funding Round Press Release by Siemens Press Munich, March 13, 2018
Siemens Integrity Initiative enters Third Funding Round
• Latest funding round backed with US$30 million • Siemens Integrity Initiative promotes projects seeking to prevent and combat corruption and fraud
The Siemens Integrity Initiative promotes projects around the world that seek to combat corruption and fraud, supporting educational and training programs as well as Collective Action, which is building alliances against corruption in a joint effort between business and institutions to establish clean markets and ensure fair competition. The selection process favors projects that have a direct impact on the private sector and strengthen compliance standards and legal systems.
The Siemens Integrity Initiative is open to applications from legal entities including non-governmental organizations, international organizations, business associations, and academic institutions. The Siemens Integrity Initiative is part of the July 2009 settlement between Siemens and the World Bank and the March 2013 settlement between Siemens and the European Investment Bank (EIB). The third tranche will see the selection of some 25 new projects receiving around US$30 million of funding in total over a period of three to five years.
"We have made good progress with the Siemens Integrity Initiative. The projects from the first two funding rounds have demonstrated visible success, and have been assessed by an external evaluator, the "Universalia Management Group". I've been particularly heartened to see more and more committed and well-connected supporters joining us in our fight against corruption by rallying to the banner of "Collective Action". The external study has shown that commitment to clean markets
Siemens AG Werner-von-Siemens-Straße 1 Communications 80333 Munich Head: Clarissa Haller Germany
Reference number: PR2018030198COEN Page 1/3
90 Siemens AG Press Release Siemens AG Press Release
pays off in economic terms, too. It's the key to success for sustainable business", said Sabine Zindera, who heads the Initiative within the Compliance organization at Follow us on Twitter at: www.twitter.com/siemens_press Siemens.
Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for 170 years. The company is active around the globe, focusing on The World Bank has audit rights over the use of these funds (US$100 million over the areas of electrification, automation and digitalization. Siemens is one of the world’s largest producers of energy- 15 years, beginning in 2009). It also has veto rights over Siemens' selection of efficient, resource-saving technologies. The company is one of the leading providers of efficient power generation projects and organizations receiving funds. The agreement between Siemens and and power transmission solutions, and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry. The company is also a leading provider of medical imaging equipment – such as the European Investment Bank (€13.5 million over five years, beginning in 2013) computed tomography and magnetic resonance imaging systems – and a leader in laboratory diagnostics as well as gives the EIB the right to review and provide “no-objection” to the projects proposed. clinical IT. In fiscal year 2017, which ended on September 30, 2017, Siemens generated revenue of €83.0 billion and profit after tax of €6.2 billion. At the end of September 2017, the company had some 377,000 employees worldwide. Further information is available on the internet at www.siemens.com. The first two funding rounds with 55 projects and committed capital totaling more than US$70 million have at the request of the World Bank undergone an external evaluation by the Universalia Management Group, who conclude that “the overall findings of the Mid-term Review are positive”.
The Third Funding Round will give preference to projects with activities in countries such as the Adriatic Region, Angola, Argentina, Brazil, China, Colombia, Egypt, India, Indonesia, Iran, Iraq, Ivory Coast, Kenya, Korea, Libya, Morocco, Mozambique, Myanmar, Nigeria, Pakistan, Russia, Saudi Arabia, Spain, South Africa, Syria, Tunisia, Turkey, United Arab Emirates, and the Ukraine in order to enhance the portfolio. Projects will be selected with a view to achieving a balanced portfolio of topics and ensuring the regional distribution of funding.
A summary of the results of the external evaluation will be included in the Siemens Integrity Initiative annual report 2017, and detailed information about the criteria for selecting and supporting projects are available via the following link: www.siemens.com/integrity-initiative
This press release is available at: www.siemens.com/press/PR2018030198COEN
Contact for journalists Yashar N. Azad Phone: +49 89 636 37970; E-mail: [email protected]
Felix Sparkuhle Phone : +49 89 636 35180 ; E-mail : [email protected]
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91 Annex – Eligibility and Selection Criteria for the Third Funding Round D2. (“Green Booklet”) as published together with the Press Release Annex – Eligibility and Selection Criteria for the Third Funding Round (“Green Booklet”) as published together with the Press Release
92 mum amount of US$ 500,000. Appli- ciations, and academic institutions that industry-specific codes of conduct and cants may submit several projects, support projects or other initiatives compliance pacts, as well as joint although Siemens may introduce a promoting good governance and the measures implemented as part of a funding limit per organization in the fight against corruption. The EIB has the long-term initiative to raise a country’s course of the selection process. right to reject the projects proposed. public awareness and tighten up its regulatory system and procurement Why Siemens supports Please see page 3 for eligibility criteria. guidelines. Ideally, such action should Collective Action involve competitors, authorities, Application for funds from the Sie- Collective Action – building alliances non-governmental organizations mens Integrity Initiative is generally against corruption (NGOs) and other interest groups open to non-profit organizations, such In the face of the widespread and working jointly for the common good. as non-governmental organizations deep-rooted corruption problem that It is also crucial to examine the anti- (NGOs), international organizations, affects society in general, govern- trust aspects in each individual case. business associations and academic ments and their procuring entities and institutions. the private sector in equal measure, it seems highly unlikely that individual The Siemens Integrity Initiative and activities alone will be sufficient to the World Bank Group bring about significant ethical changes Further information On July 2, 2009, the World Bank Group and improve the transparency of announced a comprehensive settlement as separate PDFs for business processes. with Siemens. As part of the settlement, download Siemens agreed to co-operate to change This is precisely where Collective industry practices, clean up procure- Action methods become important FAQs Third Funding Round ment practices and engage in Collective Collective Action enables corruption to Action with the World Bank Group to be fought collectively, with various Expression of Interest (EOI) Form for submitting applications fight fraud and corruption. As a result of interest groups, working together and for the Third Funding Round this commitment, Siemens has set up building an alliance against corruption
the Siemens Integrity Initiative and so that the problem can be approached Supporting documentation committed to fund projects and organi- and resolved from multiple angles. Annex 3 “Project Budget” to the zations fighting corruption and fraud The ultimate aim of these joint efforts Expressions of Interest (EOI) through Collective Action, education is to create fair and equal market of the Third Funding Round and training with US$ 100 million over conditions – a “level playing field” – for 15 years. The World Bank Group has all market players and to eliminate the Term sheet audit rights over the use of these funds temptations of corruption for all of them. Key terms and conditions of the Third Funding Round: and veto rights over the selection of Standard Funding Agreement anti-corruption groups or programs Collective Action promotes a fair • “Education & Training”: Build capac- receiving funds. competitive situation in which a trans- parent process based exclusively on All you need to know. ity, foster a culture of integrity and Siemens and the European market economic criteria (such as promote knowledge sharing between Investment Bank (EIB) quality, price, innovation and service) institutions and stakeholders On March 15, 2013 the European ensures that the contract is awarded to Investment Bank (EIB) and Siemens The Siemens Integrity Initiative aims to the best bidder. It prevents competi- announced that they had entered into support a mix of global, regional and tion from being distorted and de- a settlement agreement. As part of this country-specific projects and projects stroyed by corruption, and ensures settlement, Siemens has committed of various sizes. At least two-thirds that companies acting honestly and itself to providing funds, totaling 13.5 of the funds will be allocated to the morally are not disadvantaged. Important Information on sub-theme “Collective Action”. During million euros over five years to interna- the First Funding Round an initial tional organizations, inter-governmen- The available methods range from the Siemens Integrity Initiative tranche of around US$ 40 million was tal organizations, non-governmental integrity pacts for individual procure- committed to about 30 projects from organizations (NGOs), business asso- ment transactions right through to more than 20 countries. The Second Siemens has launched a global the business environment, can demon- Funding Round covered 24 projects Siemens Integrity Initiative that strate objective and measurable re- with a funding volume of US$ 35,554 supports organizations and projects sults, and have the potential to be million. The Third Funding Round fighting corruption and fraud through scaled up and replicated. Siemens will foresees a funding volume of up to Collective Action, education and consider those projects in the busi- US$ 30 million for up to 25 projects. training with over US$ 100 million. ness sectors and countries in which Siemens is active. The Siemens Integrity Initiative seeks Objective and project categories to attract proposals that include a Project proposals can be submitted for The main objective of the Siemens portfolio of activities rather than the following two sub-themes and Integrity Initiative is to create fair one-time activities, and proposals with must demonstrate a clear link to the market conditions for all market partici- a time horizon of 3 to 5 years. The fight against corruption and fraud. pants by fighting corruption and fraud maximum funding per project proposal through Collective Action, education • “Collective Action”: Raise compli- is US$ 5 million. Applications from and training with over US$ 100 million. ance standards and create awareness projects for amounts below this maxi- by creating alliances between the mum are welcome provided that the The Initiative focuses on supporting public and the private sector requested funding exceeds the mini- projects that have a clear impact on
Version as of November 18, 2018 1 siemens.com/integrity-initiative 2
93 Content fit I. Collective Action Eligibility and Main objective SiemensI. Collective Integrity Action Initiative • Creating fair market conditions for all market participants selection criteria • Fighting corruption and fraud through Collective Action I. Collective Action and education and training
Category Main objective
I.I. Collective Collective Action Action Raising compliance standards and creating awareness by establishing alliances between the public and the private sector Eligibility criteria – Who can apply? between those participating At least two-thirds of the funds will be The Siemens Integrity Initiative is open in this joint application/project. allocated to the sub-theme “Collective Projects in the Collective Action category can cover one, several to applications from legal entities that Action”. or all sub-categories described hereunder. All the projects must In the case of joint applications Sie- fulfill the following eligibility criteria: be based on a collective approach. mens retains the right to make any pay Siemens will consider those projects in • Recognized non-profit organizations, out of funds conditional upon all countries where Siemens has a local including, but not limited to: partners of the project meeting the office to ensure effective in-country Sub-categories Type of project we support non-governmental organizations relevant milestones. project support and monitoring, and (NGOs), international organizations, which complement Siemens’ business Selection criteria a)I. CollectiveCreating alliances Action Establishment of platforms for ongoing dialogue between the in particular inter-governmental fields, in order to enable projects to Siemens intends to award funds to the public and the private sector on the fight against corruption and organizations, business associations, draw on Siemens’ expertise during the most promising and innovative project fraud with the aim of and academic institutions implementation phase. proposals submitted. The quality of the • strengthening national legal systems and voluntary standards, • Ability and willingness to sign the project proposals and the capacity of The Siemens Integrity Initiative aims to • creating incentives for good performers, Standard Funding Agreement the applicant organization to perform support a mix of global, regional and the proposed activities will be assessed country-specific projects and projects • identifying the need for reforms and capacity building. • Experience in combating corruption against a set of predefined selection of various sizes. and fraud criteria, as outlined below. The assess- b) Strengthening the rule of law Strong anti-corruption laws which follow internationally accepted Therefore, in order to achieve an • Capacity to implement projects of a ment will be based on the information frameworks such as the UN Convention Against Corruption and overall geographically balanced portfo- similar size (start-up organizations provided in the Expression of Interest the OECD Anti-Bribery Convention help to create a level playing lio of projects in the Third Funding field. Projects will be supported are eligible for funding if the indi- form, and further due diligence in the Round, preference will be given to viduals acting on behalf of such course of the selection process. • that help to strengthen and coordinate anti-corruption laws projects with activities in the following organizations can demonstrate that relating to the private sector, countries: Adriatic Region, Angola, they have the relevant experience) The Siemens Integrity Initiative seeks Argentina, Brazil, China, Colombia, • that provide incentives to the business community to cooperate project proposals that with law-enforcement authorities, such as measures by govern- Individuals and for-profit organizations Egypt, India, Indonesia, Iran, Iraq, Ivory ments to mitigate penalties for such cooperation and for or organizations with no established • can demonstrate a clear fit with the Coast, Kenya, Korea, Libya, Morocco, adopting anti-corruption programs, legal entity, and political and religious objective of the Initiative, Mozambique, Myanmar, Nigeria, organizations, including churches are Pakistan, Russia, Saudi Arabia, Spain, • that support the inclusion of anti-corruption standards and the • have a direct impact on the business concept of Integrity Pacts into procurement laws. not eligible for funding from the Sie- South Africa, Syria, Tunisia, Turkey, environment, mens Integrity Initiative. Any organiza- United Arab Emirates, Ukraine. tion pertaining or closely related to • can demonstrate objective and c) Strengthening voluntary standards • Strengthening of existing efforts to develop anti-corruption The Third Funding Round foresees a and compliance standards and promote coherence between Siemens or institutions of the World measurable results, and funding volume of up to US$ 30 mil- standards; Bank Group or the EIB will not be con- • have the potential to be scaled up lion for up to 25 projects. sidered for funding. • Development of new industry-specific standards on and replicated. The Siemens Integrity Initiative seeks anti-corruption and compliance; Applicants may submit joint applications Project proposals can be submitted for to attract proposals that include a • Strengthening of standards for Integrity Pacts and their use with other organizations that also fulfill the following two sub-themes and must portfolio of activities rather than in public procurement; the eligibility criteria, provided that demonstrate a clear link to the fight one-time activities, and proposals with • Development of monitoring and certification systems for • one organization assumes a leading against corruption and fraud. Please a time horizon of 3 to 5 years. The voluntary standards. position, refer to the table below (content fit) for maximum funding per project proposal further details of the project categories. is up to US$ 5 million. Applicants from • the merit of the joint application is projects for amounts below this maxi- clearly described and compelling, • “Collective Action”: Raise compli- mum are welcome provided that the ance standards and create awareness • the partnership does not introduce requested funding exceeds the mini- by creating alliances between the unnecessary complexity into the mum amount of US$ 500.000. Appli- public and the private sector project, cants may submit several projects, • “Education & Training”: Build capac- although Siemens may introduce a • if funding is awarded, this organiza- ity, foster a culture of integrity and funding limit per organization in the tion assumes responsibility for ad- promote knowledge sharing between course of the selection process. ministering the distribution of funds institutions and stakeholders
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94 Impact on business environment
Sub-categories Type of project we support Sub-categories Description d) Creating incentives for good performers To encourage more companies to invest time and resources in BusinessI. Collective sectors Action and countries To ensure effective in-country project support and monitoring, fully functioning anti-corruption and compliance systems, we will Siemens will consider those projects that support projects that work towards the creation of incentives for • have activities in countries where Siemens has a local office good performers, e.g. • have activities in business fields where Siemens has experience • Integration of anti-corruption standards into investment and expertise decisions and evaluation of companies by financial institutions; Preference will be given to projects with activities in the follow- • Creation of tax incentives; ing countries: Adriatic Region, Angola, Argentina, Brazil, China, • Consideration of corporate anti-corruption programs and Colombia, Egypt, India, Indonesia, Iran, Iraq, Ivory Coast, Kenya, compliance systems in bidding processes. Korea, Libya, Morocco, Mozambique, Myanmar, Nigeria, Paki- stan, Russia, Saudi Arabia, Spain, South Africa, Syria, Tunisia, Turkey, United Arab Emirates, Ukraine. Category Main objective Impact on business environment Projects I. Collective Action II. Education & Training Build capacity, foster a culture of integrity and promote • should have a clear impact on the business environment, and knowledge sharing between institutions and stakeholders • aim to contribute to the creation of fair market conditions. Projects in the category “Education & Training” should cover at least two sub-categories, include provisions for students from emerging markets and developing countries and, most impor- tantly, aim to reach a maximum number of students. Quality of projects and implementing organizations
Sub-categories Type of project we support Selection Criteria Description a)I. CollectiveCurricula development Action • Development of curricula on measures to prevent, detect, investigate and prosecute corruption and fraud and measures InnovationI. Collective Action The approach and project to foster a culture of integrity, • should demonstrate a new and innovative way of countering • Incorporation of such curricula into standard courses of corruption and fraud academic educational institutions such as business, law and • should go beyond existing efforts in its respective field engineering schools. • should take into account new technologies where possible b) Capacity building Education and training of future and current managers, • should consider, if and where possible, topics reflected on in the engineers, government officials and civil society leaders global anti-corruption discourse, such as systematic linkages through short-term and long-term courses. between human rights and anti-corruption compliance, linkages between export control and anti-corruption compliance, and/or c) Platform for dialog Facilitation of an exchange of knowledge between technological advances (e.g. digitalization), and the extent to practitioners from all sectors with the aim of advancing which technological advances could be used in the fight against knowledge in the area of anti-corruption and of enriching corruption (e.g. Big Data, Social Media). curricula and training courses. Sustainability • Applicants must describe how they intend to achieve long-term d) Knowledge sharing • Support for students from emerging markets and developing financial and organizational sustainability beyond the funding countries or students from low-income backgrounds through received through the Siemens Integrity Initiative, and how outputs the establishment of scholarship funds or special financing and outcomes in and of themselves can remain sustainable. schemes to enable them to attend courses or studies related • For organizational sustainability, proposals should outline how the to anti-corruption; organization’s capacity and the capacity of potential partner organi- • Support of knowledge exchange and standardization of zations will be built in order to sustain the results of the project. curricula between universities and training institutions • For financial sustainability, projects should outline how they intend to attract additional funds or develop financing schemes to cover the future costs of the project; this should include a realistic strategy for sustaining the project’s results after termi- nation of support from the Siemens Integrity Initiative.
Growth potential A premium is put on projects • that have the potential for large scale impact, and • can be replicated in other areas and regions.
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95 Selection Criteria Description Third Funding Round: Objective & measureable results • The project should have clear and measurable results that will have a direct impact on the business environment. Application and selection process • The planned results should be supported by relevant and measurable baseline data relating to the higher level (‘bigger’) issue(s) that project achievements are likely to contribute to, and relevant and measurable baseline data relating to the specific immediate issue(s) that the project is aiming to address. • The project should clearly describe what it will do to address the higher level (‘bigger’) and immediate issue(s). • The expected results/outcomes should be achievable within the time frame of implementation of the funding from the Siemens Integrity Initiative. • The quality of proposed indicators to measure results/out- Summary of the application process Timetable for the Third Funding Round – Siemens Integrity Initiative* comes and project success will be examined. Siemens intends to award funds to the *Dates are subject to change most innovative and promising project Project design and organizational capacity • The project should set out a basic theory of change concept proposals submitted. The selection and 1. Call for Expressions of Interest (EOI) explaining how the project activities plan to bring about me- review process comprises two steps: dium to long-term change and how the project will measure this change against the baseline data at the start of the project. 1. Call for the submission of Expres- March 13, 2018: Call for EOIs sions of Interest (EOI) including sup- May 8, 2018: Deadline for submission of EOIs (12 noon CET) • The project should have a realistic plan with concrete steps/ porting documentation; performance activities to achieve the project objective within the implemen- of a thorough due diligence on the tation timespan of 3 to 5 years. applicants’ implementation capabili- • The organization’s, and if applicable, its partner’s capacity and ties, their financial management 2. Review and due diligence phase characteristics to implement the project will be assessed. capabilities, their legal structure and May - July 2018 their compliance background.
Selection Criteria Description The short-listed projects will be pre- sented to the World Bank Group, 3. World Bank non-veto process / EIB Decision Type of funding • No indirect funding: Organizations that are interested in which has a veto-right over the selec- funding must apply directly for funds (no intermediaries) tion of projects, and to the European Investment Bank, EIB, which has the August - October 2018 • The maximum amount an organization can apply for per right to reject proposed projects. project is US$5 million. Proposals with lower funding require- ments are welcome provided that the requested funding 2. Thereafter, invitation by Siemens to exceeds the minimum amount of US$ 500,000. short-listed applicants to submit a 4. Invitation to submit Full Proposal • For applicants submitting more than one project/application, more detailed Full Proposal; review Siemens may introduce a funding limit per organization in the and assessment of documents. November 2018: Invitation to short-listed applicants to submit a Full Proposal course of the selection process January 31, 2019: Deadline for submission of Full Proposals The applicants selected for funding • The Siemens Integrity Initiative seeks project proposals that will be invited to enter into a Standard Review and due diligence: February - April 2019 include a portfolio of activities rather than one-off activities Funding Agreement with Siemens. and proposals with a time horizon of 3 to 5 years • Project proposals may not include funding of general expens- 3. Funding decisions are communi- es or general administration of entities, unless these are cated in a staggered approach starting 5. Award and signing of Funding Agreements clearly linked to the project and do not exceed 10% of the from spring 2019. total cost of activities proposed for financing through the Spring 2019: Announcement of first selected projects Siemens Integrity Initiative.
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96 Siemens reserves the right to involve obliged to state reasons for any selec- required information and supporting third parties, and in particular the tion decision, including but not limited documentation. World Bank Group and the EIB, in the to the grounds for its decision not to Please note that the deadline for review and selection process at any move forward with any particular submitting applications for the time. The World Bank Group has audit applicant organization at any stage of Third Funding Round is May 8, 2018, rights over the use of the funds and the selection process. 12 noon CET via e-mail only. veto rights over the selection of anti- Participation in the selection process The EOI form includes an overview of corruption groups or programs receiv- and/or successful review does not the project goals, a baseline assess- ing funds. The EIB has the right to entitle the applicant to be selected for ment, a theory of change, a summary reject project proposals. the award of any funds. Successful of activities, a budget plan and time To avoid any uncertainty, Siemens participation in prior funding rounds frame for the project as well as back- reserves full discretion in the selection and the award of funds to any appli- ground information on the applicant of the organizations that will be award- cant does not entitle or qualify such and on project partners, if any, in the ed funds from the Siemens Integrity applicant to be awarded further funds case of joint applications. For details, Initiative until the Standard Funding in any subsequent funding round. please refer to the EOI form. Agreement is signed. The decision The selection process is governed whether or not to move ahead with exclusively by German law, excluding any of the applicants in the selection any conflict of law provisions. Judicial process is therefore not subject to any review of the selection process or judicial review or scrutiny of any kind. Siemens’ decisions during the selection Siemens may decide at its sole discre- process is excluded. tion to fund proposed projects at lower amounts than those asked for, or only Expression of Interest (EOI) selected parts of a project and the Applicants must submit the EOI form proposed activities. Siemens is not filled out in full, in English, with all the
Next steps (Third Funding Round):
Step 1: Fill in Expression of Interest form and gather supporting documentation All applicants must fill in the EOI form in English and provide the required supporting documentation; where two or more organizations intend to submit a joint application, Annex 1 to the EOI form as well as the information and documentation outlined in Annex 1 must be submitted for EACH project partner organization.
Step 2: Send signed EOI form to Siemens The EOI form, including its annexes, must be signed by an authorized representative of the applicant organization and sent – via e-mail only – together with the required supporting documentation to the following e-mail address: [email protected] by 12 noon CET, May 8, 2018.
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97 D3. Annex – Additional Siemens Reports Annex – Additional Siemens Reports Annual Report 2018
Siemens has published the Annual Report for the fiscal year 2018. It pro vides detailed information about the business development of the company, its earnings, assets, and finances.
98 Sustainability Information 2018 as addendum to the Siemens Annual Report
Improved governance is one of the goals for sustainable development, and a key to success is the fight against corruption.
The ‘Sustainability Information 2018 as addendum to the Siemens Annual Report’ describes the strategy, organization, initiatives and goals for ensuring sustainability.
Guided by the GRI G4 reporting guidelines it sums up our performance with regard to the 10 principles of the United Nations Global Compact and serves as our annual progress report on implementing the United Nations CEO Water Mandate.
99 Siemens AG Legal and Compliance LC CO GR CAS Werner-von-Siemens-Str. 1 80333 Munich Germany Email: [email protected]
More information on Collective Action is available on www.siemens.com/collective-action
In addition to this report, Siemens publishes information on its activities in this field in its comprehensive Annual Report at the end of the fiscal year. This Siemens Integrity Initiative Annual Report 2018 has been compiled to the best of our knowledge and includes information that has been submitted to the Siemens Integrity Initiative Project Office through March 01, 2019. Information provided in Section C is created and approved for external use by each Integrity Partner, and in Section D.1 is created and approved for external use by the Basel Institute on Governance. This document contains links to other websites. Siemens is not responsible for the privacy practices or the content of other websites or information provided by its Partners. Copyright Notice © Siemens AG 2019, all rights reserved, without prior written consent of Siemens AG, Legal and Compliance, LC CO GR CAS, it is in particular, but not limited to, prohibited to modify, copy, reproduce, republish, upload, post, transmit or distribute in any way any material, including graphics of this Annual Report 2018. About Siemens Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reli- ability and internationality for more than 170 years. The company is active around the globe, focusing on the areas of electrification, automation and digitalization. One of the largest producers of energy-efficient, resource-saving technologies, Siemens is a lead- ing supplier of efficient power generation and power transmission solutions and a pioneer in infrastructure solutions as well as auto- mation, drive and software solutions for industry. With its publicly listed subsidiary Siemens Healthineers AG, the company is also a leading provider of medical imaging equipment – such as com- puted tomography and magnetic resonance imaging systems – and a leader in laboratory diagnostics as well as clinical IT. In fiscal 2018, which ended on September 30, 2018, Siemens generated revenue of €83.0 billion and net income of €6.1 billion. At the end of September 2018, the company had around 379,000 employees worldwide. Read more about Siemens at www.siemens.com/about-siemens