ICGN Statement and Guidance on Anti-corruption Practices

The international Corporate Governance Network (ICGN) released this document as a guide for businesses and investors; broadly, it highlights the importance of combatting corruption.

From the outset, the guide makes compelling and clear arguments why businesses and investors must - and do - see corruption as a real threat. Not only is it a legal risk, a reputational concern and an operational problem, it also has important negative macroeconomic impacts. The guide very successfully highlights the impact that corruption has on the value of a company- linking a business' action in this area directly to the investment community. An area of particuar focus is effective reporting on anti-corruption measures and systems and the key role this can play in influencing investors.

In the final section of the guide, the ICGN list 26 questions that an investor (or a company themself for that matter) should ask when assessing the whether a business is well-equipped to prevent corruption. Amongst them are:

• Does the company consider corruption to be a risk? How material is this risk, and in what areas of the company's operations is it most likely to arise?
• Does the company have comprehensive systems and procedures to ensure the effective implementation of its anti-corruption policy?
• Do senior management encourage a culture of transparency and interity through their own behaviour?
• Does the company have an internal reporting process to the board or appropriate board committee on the number and types of relevant incidents that have been detected and remedial actions taken?