Business Ethics Rotary Club of Toronto Eglinton Bronwyn Best President, Heiwa Business International Senior Associate, InterPraxis 6 December 2017

Why business ethics matters to your bottom line Chartered Accountants Australia and New Zealand “…argues that ethical conduct has moved front and centre as corporations are increasingly exposed to the glare of public scrutiny. In particular, there has been a fundamental shift over the past few years that requires a complete rethinking of the functions of compliance, governance and social accountability, putting ethics into the daily vocabulary of mainstream management ….Effective management of business ethics requires an organizational strategy that is in tune with wider societal values and the public’s new expectations of business.” Walter Wells – Are there good ways of dealing with situations where the lack of ethics prevails?

Transparency International (TI) Global Coalition against Corruption Created in 1993; International Secretariat in Berlin; 100 Chapters (TI-Canada – 1996) Corruption = abuse of entrusted power for private gain – grand, petty, looting, money laundering, private-to-private The Vision of Transparency International = a world in which government, politics, business, civil society and the daily lives of people are free from corruption Coalition of private, public, civil society, academia and media $1.5 trillion per year lost through bribery

Anti-Corruption Conventions OECD Convention on Combating Bribery of Foreign Public Officials, a.k.a. OECD Anti- Bribery Convention, 15 February 1999 Inter-American Convention against Corruption – 1997; Follow-up Mechanism for the Implementation of IACAC (MESICIC) – 2002 UN Convention against Corruption - 2005

Anti-Corruption Legislation Foreign Corrupt Practices Act – US – 1977 Corruption of Foreign Public Officials Act – Canada – 14 February 1999; amended 2013 UK Bribery Act - 2010

CFPOA Every person commits an offence who, in order to obtain or retain an advantage in the course of business, directly or indirectly gives, offers or agrees to give or offer a loan, reward, advantage or benefit of any kind to a foreign public official or to any person for the benefit of a foreign public official Up to 14 years in jail; unlimited fines

Canadian Cases Hydro Kleen – 2005 Niko Resources – 2011 Griffiths Energy – 2013 SNC-Lavalin – 2015 Nazim Karigar - 2014

TI-Canada Anti-Corruption Compliance Checklist One-stop shop, providing tools to enhance risk management process of corporation of any size, in line with the CFPOA Elements of an anti-bribery/corruption management system Creates value for businesses and for governments that work with them ensure Transparency, Accountability, Integrity - TAI In PDF format, easily downloadable, with live links: http://www.transparencycanada.ca/wp- content/uploads/2014/09/2014-TI-Canada_Anti- Corruption_Compliance_Checklist-Third_Edition- 20140506.pdf

Business Integrity Toolkit – Six steps for building an effective anti-corruption programme: transparency.org/whatwedo/tools/business_integrity_toolkit/0/ Transparency International's Business Integrity Toolkit is a six-step process for building an effective corporate anti-corruption programme. 1. Commit to an anti-corruption programme ‘from the top’ 2. Assess the current status and risk environment 3. Plan the anti-corruption programme 4. Act on the plan 5. Monitor controls and implementation 6. Report internally and externally on the programme 9 9

ACT - DBWB Doing Business Without Bribery – e-learning tool (TI – UK) Learning outcomes: What is bribery and why is it important? Case scenarios – how to prevent and resist bribery Bribery laws and the consequences of bribery for you How to report cases of bribery Canadian English version/Canadian French version: http://dbwb.e-learningportal.com/untracked/Doing_Business_Without_Bribery_CA/start.htm http://dbwb.e-learningportal.com/untracked/Doing_Business_Without_Bribery_CAFR/start.htm Free, unless track/brand/adapt

ACT - DBWB

MONITOR – TI Self-Evaluation Tool (SET) is a checklist that enables companies to examine and assess the design of their anti-bribery programme comprised of an in-depth and extensive range of 241 core indicators identifies the policies, procedures and reporting indicators that companies should consider for their anti-bribery programmes help companies to determine where they stand, identify improvements and prepare reports for management, assurers and stakeholders can assist companies to manage risks more effectively and improve their operational efficiency

MONITOR – TI Self-Evaluation Tool Consistency with anti-bribery laws It is usual for a company to state publicly a policy to comply with the laws and regulations in all the countries in which the company and any subsidiaries operate. Thus it should be made clear to employees and intermediaries that they should make it their business to understand what the local laws provide, the risks and sanctions that apply as well as alerting them to the extra-territorial reach of anti-bribery laws of the OECD and other countries. Before introducing policies and procedures the company should make sure they are consistent with local laws. Strengths, Improvements Areas, To Do, Comments Y N N/A Un-clear In plan? Plan date Rating Comment Evidence reference 21 Is there a policy that the Programme should be consistent with all relevant anti-bribery laws in all the jurisdictions in which the company transacts its business?         22 Is there a procedure to ensure the Programme is consistent with all relevant anti-bribery laws in all the jurisdictions in which the company transacts its business?

ISO 37001 – Anti-Bribery Management Systems - 2016 Specifies a series of measures to help organizations prevent, detect and address bribery These include adopting an anti-bribery policy, appointing a person to oversee anti-bribery compliance, training, risk assessments and due diligence on projects and business associates, implementing financial and commercial controls, and instituting reporting and investigation procedures

REPUTATION “True ethical leaders do not compromise their standards for material gain.” ---Auditor General of South Africa