Anti-corruption policy

A set of measures for internal operations, external relationships and corruption in the wider sector.

DESCRIPTION

An anti-corruption policy consists of a set of measures that are designed based on diagnostics and are implemented, monitored and evaluated with the aim to reduce integrity risks. An anti-corruption policy is more comprehensive than, and can complement, a code of conduct. It covers both internal operations (e.g. rules for staff etc), as well as the external relationships of the organisation and how it deals with corruption in the wider sector. The policy can also set standards for what an organisation does as regards to due diligence when they hand out contracts (e.g. not awarding contracts to corrupt companies).

PURPOSE & LINK TO INTEGRITY

Developing and implementing anti-corruption policies and strategies are essential elements of good governance. Good governance is the basis for managing and operating water sector organizations effectively and efficiently.

Anti-corruption policies are not only useful for public institutions, but also for companies. A properly communicated and enforced anti-corruption policy sends a clear message that your business is founded on honesty and integrity.

KEY REQUIREMENTS

• Are you aware of international and national anti-corruption policies? Does your organisation’s anti-corruption policy comply with these?
• Do you have adequate communication channels in place to disseminate your anti-corruption policy? (Also check tool Communication of integrity)
• Do you have control mechanisms in place to ensure compliance with your anti-corruption policy?
• Do you possess sufficient bargaining power to enforce an anti-corruption policy vis-à-vis external partners?

HOW TO

In general, the UN Guide for Anti-Corruption Policies recommends that anti-corruption policies are based on the following principles. Anti-corruption policies and strategies should be:¹

• Comprehensive and inclusive. Inclusiveness in terms of elements of the anti-corruption policy (i.e. must address all significant aspects of the problem), as well as the inclusion of all relevant stakeholders in the process, such as the organisation´s employees but (in the case of public organisations) also civil society members.
• Integrated to ensure that each part of the strategy and each party to it will work together harmoniously, avoiding inefficiencies and inconsistencies. It is also important that anti-corruption strategies be integrated with other major relevant policies, frameworks and initiatives.
• Transparent. Transparency is a necessary condition for good governance, public vigilance and the rule of law. The incorporation of transparency as a basic principle also helps to protect anti-corruption measures from being corrupted themselves.
• Non-partisan. Anti-corruption efforts will generally transcend the normal succession of political governments (and directors in the case of private actors), and therefore requires multi-partisan commitment and support.
• Evidence-based. The success and credibility of strategies will depend to a large degree on the ability of advocates to demonstrate concrete results, not only in reductions in corruption, but against social, political, economic and other criteria. This requires that strategies be based on concrete evidence, both in assessing the needs and setting goals, and in assessing whether those goals have been achieved.
• Impact-oriented. Clear objectives should be set for overall strategies and their constituent elements. Also measurable criteria against which progress can be tested are essential. These criteria may need to be reviewed periodically.

The anti-corruption policy must be clearly communicated to all officials, employees, agents, clients, customers, and business partners. Employees also need to be assured that they will not be penalised for losing a sale or contract as a result of their refusal to pay a bribe . The anti-corruption policy should also be enforced consistently. If exceptions are made, employees become confused and the credibility of the policy is undermined.²

The Kenya Anti-corruption Commission drafted specific guidelines for the preparation of anti-corruption policies for public institutions.^3,4 The following are suggested as core elements of any anti-corruption policy for public organisations:

• Statement of recognition of corruption risk in the organisation and acknowledgement that corruption can occur
• Statement confirming that the responsibility of addressing corruption rests with management,
  staff and stakeholders
• Structures put in place to prevent, detect, investigate and punish corrupt officers
• A summary of possible corrupt practices in an organisation to guide public servants
• A breakdown of corruption risk areas and corrupt practices in the organisation
• Composition of corruption prevention committee, its mandate and operations
• Guidelines that indicate how to report corruption internally and externally
• Confidentiality of information and protection of informers and whistleblowers.

KEY GUIDING DOCUMENTS

Kenya Anti-Corruption Commission, 2007b, Guidelines for the Preparation of an Anti-Corruption Policy for Public Institutions, Kenya Anti-Corruption Commission, Kenya

UNODC, 2003, United Nations Guide for Anti-Corruption Policies, United Nations Office on Drugs and Crime (UNODC)

Del Rosario, 2011, Anti-Corruption Manual for SMEs, Asian Institute of Management Program of Governance

FURTHER  READINGS

Hussmann, K., 2007, Anti-corruption policy making in practice: What can be learned for the implementation of Article 5 of UNCAC? Report of six country case studies: Georgia, Indonesia, Nicaragua, Pakistan, Tanzania and Zambia, U4 Anti-Corruption Resources Centre, Norway

TI, 2008, Business Principles for Countering Bribery tailored to SMEs, Transparency International (TI), www.transparency.org/whatwedo/tools/business_principles_for_countering_bribery_sme_edition/1/, accessed 02.12.2015

UNIDO & UNODC, 2007, Corruption prevention to foster small and medium-sized enterprise development: Providing anti-corruption assistance to small businesses in the developing world, UN Industrial Development Organisation (UNIDO) and United Nations Office on Drugs and Crime (UNODC), http://www.unodc.org/documents/corruption/Publications/2012/UNIDO-UNODC_Publication_on_Small_Business_Development_and_Corruption_Vol1.pdf, accessed 02.12.2015

International Chambre of Commerce, Commission on Corporate Responsibility and Anti-corruption, www.iccwbo.org/about-icc/policy-commissions/corporate-responsibility-anti-corruption/, accessed 02.12.2015

Kenya Anti-Corruption Commission, 2007a, Framework for Mainstreaming Corruption, Kenya Anti-Corruption Commission, Kenya

Asís, M. G. De, Leary, D. O., Ljung, P. & Butterworth, J., 2009, Improving Transparency, Integrity, and Accountability in Water Supply and Sanitation, World Bank Institute & Transparency International

WASREB, 2009, Corporate Governance Guidelines for the Water Services Sector, Water Services Regulatory Board (WASREB), Kenya

Institute Of Business Ethics, 2012, Anti-Bribery & Corruption (ABC) Standards and Frameworks, Institute Of Business Ethics, UK

Hanna et al., 2011, The effectiveness of anti-corruption policy, The Evidence for Policy and Practice Information and Coordinating (EPPI) Centre, UK

UNODC, 2004, United Nations Convention Against Corruption, United Nations Office on Drugs and Crime (UNODC)

Veenman, 2012, Anti-Bribery and Anti-Corruption Policy

Council of Europe, no year, Anti-corruption instruments, Council of Europe, www.coe.int/t/dghl/cooperation/economiccrime/corruption/default_en.asp , accessed 02.12.2015

TI, 2008, Business Principles for Countering Bribery tailored to SMEs, Transparency International (TI) www.transparency.org/whatwedo/tools/business_principles_for_countering_bribery_sme_edition/1/, accessed 02.12.2015

Elekta, 2011, Elekta anti-corruption policy, Elekta, Sweden

FULL REFERENCES

1. UNODC, 2003, United Nations Guide for Anti-Corruption Policies, United Nations Office on Drugs and Crime (UNODC)
2. Del Rosario, 2011, Anti-Corruption Manual for SMEs, Asian Institute of Management Program of Governance
3. Kenya Anti-Corruption Commission, 2007a, Framework for Mainstreaming Corruption, Kenya Anti-Corruption Commission, Kenya
4. Kenya Anti-Corruption Commission, 2007b, Guidelines for the Preparation of an Anti-Corruption Policy for Public Institutions, Kenya Anti-Corruption Commission, Kenya