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- 43.
- Bribery and corruption are not only damaging to democratic institutions and the governance of corporations, but they also impede efforts to reduce poverty. In particular, the diversion of funds through corrupt practices undermines attempts by citizens to achieve higher levels of economic, social and environmental welfare. Enterprises have an important role to play in combating these practices.
- 44.
- Progress in improving the policy framework and in heightening enterprises' awareness of bribery as a management issue has been significant. The OECD Convention of Combating Bribery of Foreign Public Officials (the Convention) has been signed by 34 countries and entered into force on 15 February 1999. The Convention, along with the 1997 revised Recommendation on Combating Bribery in International Business Transactions and the 1996 Recommendation on the Tax Deductibility of Bribes to Foreign Public Officials, are the core instruments through which members of the anti bribery group co-operate to stop the flow of bribes for the purpose of obtaining or retaining international business. The three instruments target the offering side of the bribery transaction. They aim to eliminate the ``supply'' of bribes to foreign public officials, with each country taking responsibility for the activities of its companies and what happens on its own territory1. A monitoring programme has been established to assure effective and consistent implementation and enforcement of the Convention.
- 45.
- To address the demand side of bribery, good governance practices are important elements to prevent companies from being asked to pay bribes. In addition, governments should assist companies confronted with solicitation of bribes.
- 46.
- Another important development has been the International Chamber of Commerce's recent update of its Report on Extortion and Bribery in Business Transactions. The Report contains recommendations to governments and international organisations on combating extortion and bribery as well as a code of conduct for enterprises that focuses on these issues.
- 47.
- Transparency in both the public and private domains is a key concept in the fight against bribery and extortion. The business community, non-governmental organisations and governments and inter-governmental organisations have all co-operated to strengthen public support for anti-corruption measures and to enhance transparency and public awareness of the problems of corruption and bribery. The adoption of appropriate corporate governance practices is a complementary element in fostering a culture of ethics within the enterprise.
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