Business Ethics: Transparency International Latvia perspective Tallinn, April Agris Varpins, Development Director Sabiedrība par atklātību DELNA / Transparency International Latvia

Presentation Road-Map TI Latvia contribution to a better business environment Integrity Pact a tool for government and businesses TI Latvia business survey:major findings

TI Latvia activities in the area of business integrity TI Business ethics club Integrity Pact with the Ministry of Culture

TI Latvia Business Ethics Club (Concept) Informal and open TI Business principles, UN Global Compact Resource in implementation of anti-corruption strategies Developing reputation through demonstration of values New marketing instrument Synergie of competences

Integrity Pact Ministry of Culture, Agency Three New Brothers, TI Latvia The National Library: 230 million EUR Museum of Contemporary Art: 27 million EUR Concert Hall: 45 million EUR

Integrity Pact main principles Public administration, business and NGO cooperation for corruption prevention Agency procedures streamlined Mandatory anti-corruption declaration TI Latvia right to participate in decision-making before the final decision is taken

Main Conditions of Integrity Pact Grace period given to agency/ministry to remedy situation Bidders not complying with Anti- corruption declaration excluded from the process Agency has the right to withdraw the contract if there is reasonable doubt about a contractor involvement in corrupt behavior.

Benefits for Businesses Encouragement to implement anti-corruption programmes and codes of conduct More competitive industry Access to free-of-charge expertise Whistle blowers mechanism Building integrity alliances

Merko Ehitus/Merks case Excluded from competion Reasonable doubt about corruption Information from Estonia’s Prosecutor General Office Initial wihdrawal from submitting a bid Accusation of TI Latvia being biased

German business in Latvia (2007) ‏ 19 responses out of 32 95% - precise definition of corruption 84% “have heard” about corruption in their sector 11% have used corrupt methods

US business in Latvia (2008) ‏ Originally 37 businesses Answers from 12 Refused to participate 8

US business in Latvia (2008) ‏ 75% - have codes of conduct 16% - anti-corruption programmes 91% - would bribe if companies existance was in question 36% - does not extend requirements of code of conduct or anti-corruption programme to partners

Businesses and anti- corruption policies Corruption is declared as unacceptable, however, there is no active anti- corruption stance Discrepancy between level of corruption in the country and high ethical standards of companies Not willing to speak openly about business ethics

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