A rising global norm against bribery
Amid world pacts against corruption, one practice stands out: companies adopting an international standard to build a culture of integrity.
Ukraine officials met Jan. 18 with officials of various countries in Davos, Switzerland, to discuss the postwar reconstruction of Ukraine.
AP
Construction firms around the globe took note last month when the World Bank estimated that postwar reconstruction of Ukraine will cost upwards of $630 billion. Yet even before any “Marshall Plan” for Ukraine begins – and after Russian bombing ends – those companies also know this: Standards against bribery are rising and favoring firms that can prove an internal culture of integrity.
One reason is that international agreements on preventing corruption have increased in recent decades. Law enforcement agencies are cooperating more closely across borders. New rules on transparency in company ownership have opened “more opportunities for effective detection and investigation of abuses by shady actors,” according to watchdog Transparency International in a 2022 report. Two years ago, the United States designated corruption as a top national security priority – with special attention on Ukraine.
The latest Bribery Risk Matrix, which measures bribery risk across 194 jurisdictions, reports “encouraging signs of decreasing tolerance for corruption.” A 2021 global survey of compliance and risk professionals by consulting firm Kroll found 78% say their organization is meaningfully committed to a culture of integrity.
One gold standard to help a company prevent, detect, and respond to a bribery situation is to obtain a special outside audit and earn a certification known as ISO 37001 under standards set in 2016 by the Geneva-based International Organization for Standardization, which is known as ISO. It sets benchmarks for best practices and a common language for transparent and accountable corporate governance.
The ISO, a body better known for establishing agreements on units of measurement and information security, recently found the ISO 37001 accreditation to be one of its most widely accepted standards. “Transparency and trust are the building blocks of any organization’s credibility,” states the ISO. “Nothing undermines effective institutions and equitable business more than bribery, which is why there’s ISO 37001.”
One example is the recent certification by the Brazilian company Novonor, which owns the giant construction firm OEC. Formerly known as Odebrecht, the firm has a history of bribing to get contracts, which led to scandals across Latin America and felled dozens of elected officials. By adopting the new standard, the reformed company has tried to make a comeback. Like many other construction firms, perhaps eager to rebuild Ukraine, it sees integrity as a better path to prosperity.