COVID-19 Impact Briefs

Anti-Corruption

IN BRIEF

The COVID-19 crisis has increased financial pressures as well as disrupted operations and corporate compliance programmes. Businesses are faced with heightened fraud and corruption risks throughout the organization and supply chain, including risks related to illicit financial flows, organized crime, conflict of interests, price gouging, fraudulent financial reporting, counterfeit goods and bribery among other criminal practices.

KEY STATISTICS

89 per cent of companies that responded to the UN Global Compact annual survey report having corporate policies that address anti-corruption

55 per cent of companies that responded to the UN Global Compact annual survey have a specific anti-corruption code

51 per cent of companies that responded to the UN Global Compact annual survey have a zero-tolerance policy

Open Contracting Partnership estimates that one in every three dollars spent by Government is on a contract with the private sector

The World Bank estimates that 24.3 per cent of businesses worldwide are expected to give gifts to secure Government contracts

CHALLENGES

Companies are under pressure to meet financial and performance targets and maintain adequate levels of cash flow.

New and increased risks of fraud and corruption may emerge, including in the public procurement of medical goods and services.

Anti-corruption compliance programmes are being tested for their ability to adapt to changes in operations while appropriately addressing corruption risks.

Compliance officers, auditors and investigators must learn how to maintain oversight and conduct audits and investigations remotely.

Companies may have to secure contracts quickly and potentially without proper third-party due diligence.

Possible insufficient oversight and accountability in emergency economic rescue packages.

ACTIONS

Perform an anti-corruption risk assessment to identify and mitigate fraud and corruption risks associated with COVID-19.

Enhance anti-corruption compliance programmes and practices and consider running virtual training courses for employees and business partners.

Strengthen third-party due diligence and maintain robust oversight mechanisms.

Promote a strong culture of ethics and integrity to build trust with consumers, employees, investors, suppliers and other stakeholders by communicating and applying policies in a consistent, inclusive and transparent manner.

Establish or strengthen whistleblower policies and protections to increase the detection and reduce the opportunity for illegal and inappropriate conduct, including whistleblower retaliation.

Voluntarily publish beneficial ownership information to promote transparency and reduce the corruption risks associated with illicit financial flows.

Ensure products and services are manufactured, distributed and sold (or donated) in compliance with relevant policies, laws and regulations and in a manner that upholds core values and ethical practices.

Re-evaluate financial targets and incentive structures given potential changes in company and employee performance due to COVID-19 to decrease pressure and motivation for fraud and corrupt behaviour.

Engage in anti-corruption collective action initiatives to help ensure fair competition and a level playing field for all stakeholders and to consolidate knowledge and financial and technical resources to achieve greater impact.

TOOLS & RESOURCES

News

Events

04-Dec-2024

Office Hours: Communication on Progress

Academy