International Anti-Corruption Day: Shining light on integrity

To raise awareness on corruption and the role of the United Nations Convention Against Corruption (UNCAC or Convention) in combating and preventing it, the UN General Assembly has designated December 9th as the International Anti-Corruption Day (IACD). For the last 20 years, December 9th is annually observed as a day dedicated to highlight the importance of integrity, transparency and accountability in combating corruption.

This year, the theme for IACD 2023 is “Uniting the World Against Corruption”[1]. Globally, 9 December 2023 seeks to highlight the crucial link between anti-corruption and peace, security, and development. To understand the significance of IACD, the meaning of corruption and a few aspects of corruption have been delved upon below.

Simply, corruption refers to the use of public office for private gain. In other words, it is the abuse of entrusted power, authority or position for personal or private gain often involving dishonest or unethical conduct. It may be defined as the use of public service for personal growth that constitutes a violation of the law or a deviation from the norms of society. The problem of bribery and corruption has significantly plagued the private sector. This includes practices such as supply side of bribery, employees of the private organization abusing/compromising their authority to award procurement contracts in exchange of personal benefits, use of third-parties involving bribery and corruption in supply chains, large corruption such as mergers and acquisitions transactions, acquisition of property or securities by vested interests at over or under valued transactions, etc. Legitimate looking transactions may often be used to hide the underlying illegitimate ones.

Bribery and corruption hampers economic growth, exacerbates inequality, weakens institutions, foster social unrest, compromises security, stifles investment and innovations, erodes public trust and undermines the rule of laws. ?It especially affects the developing countries more.? The Corruption Perception Index (CPI) released by Transparency International in January 2023 indicates that 95 percent of countries have made little to no progress since 2017 to fight against corruption. ?India’s ranking has significantly improved but still much remains to be achieved.

In recent times, the efforts by public and private sectors to combat bribery and corruption have intensified through multifaceted strategies to improve governance such as:

a.??? Enhancement of legal frameworks (e.g., Prevention of Corruption (Amendment) Act, 2018) to strengthen anti-corruption laws;

b.??? Strengthening of anti-corruption agencies such as Central Vigilance Commission (CVC), Central Bureau of Investigation (CBI) and Enforcement Directorate to improve their effectiveness in combating corruption;

c.??? Enactment of whistleblower protection laws, facilitating the investigation and prosecution of corrupt practices;

d.??? Digitization through digital platforms for public service delivery and financial transactions, fostering transparency and reducing corruption vulnerabilities;

e.??? Emphasis on ethical business conduct by organizations implementing stringent compliance policies and corporate social responsibilities.

The private sector has played and continues to play a crucial role through several key aspects:

a.??? Prevention of corruption: organizations are encouraged to have a strong tone at the top for anti-bribery and corruption, implement compliance programs, internal controls, and ethical business practices to prevent corrupt activities within their operations.

b.??? Cooperation and reporting: the UNCAC encourages cooperation between the public and private sectors in preventing and combating corruption. Organizations are encouraged to report instances of bribery, and corruption practices to the relevant authorities.

c.??? Transparency in Business Transactions: organizations should promote transparency in business transactions, encouraging their employees and partners to disclose information about ownership structures, beneficial ownership, and financial records.

d.??? Accountability and Integrity: organizations are urged to adopt integrity measures, such as codes of conduct and whistleblower protection mechanisms, integrity pacts to promote a culture of accountability and ethical behavior.

e.??? International Cooperation: the private sector is encouraged to collaborate with governments, international organizations, and civil society in implementing anti-corruption measures, sharing best practices, and supporting initiatives to combat corruption globally.

While the above are only key aspects, a lot of strong determination, resolve and comprehensive programs are needed to achieve the zero-tolerance policy stated by many organisations towards bribery and corruption.

As the world unites against corruption, on this IACD, our experience says that the private sector stands not merely as a beneficiary but a catalyst for changing the cancer of corruption. By embracing the ethical business practices, investing in integrity, and actively participating in global collaboration, corporations can forge a path towards a future free from the shackles of bribery and corruption. In doing so, private organisations not only safeguard their interests but become architects of a world where ethical business practices are not just a choice but a global imperative. The challenge to further root out this problem is vast, but so is the potential of the private sector to play a transformative role in uniting the world against corruption. The public sector and government has to play its part to create ecosystem conducive to this change.

9 December 2023. Mr Jagvinder S Brar, Head of Forensic at KPMG; Mr Suveer Khanna, Head of Investigations; and Mr Vinit Agarwal, Director, Forensic. Views are personal.?

[1] United Nations Convention against Corruption (unodc.org)