Corruption is identified as the top impediment to conducting business in 22 out of 144 economies, as measured in the World Economic Forum's Global Competitiveness Report. The fight against corruption is strategically crucial for business. Citizens across the world have taken to the streets to demand decisive action from their governments. Corruption is widely recognized as a major obstacle to the stability, growth and competitiveness of economies. Business has a unique opportunity to join forces with governments and other stakeholders to find lasting solutions to problems of corruption and to create a level playing field for today’s globalized markets. Taking a leadership role is not only a matter of ensuring organizational compliance. It is a strategic imperative for every CEO.
|"Corruption cannot be addressed solely by Governments and NGOs. We believe international business must play a decisive role, which is why the company is a global leader in battling the bribery and corruption that unfortunately still permeate much of the engineering and construction industry.”|
David Seaton, Chairman and Chief Executive Officer, Fluor Corporation, USA
Founded by a group of CEOs in 2004, the Partnering Against Corruption Initiative (PACI) is a global platform allowing companies and business leaders to maximize their collective impact in the fight against corruption. Historically focused on improving compliance practices, PACI has been devoting growing efforts to foster a high-level dialogue between business and governments on key corruption challenges.
Through PACI’s leading role in the B20 process, PACI members have been able to share their insights with G20 leaders to strengthen the international legal framework and to craft innovative approaches to achieve a corruption-free global economy. PACI is connecting its members with governments from emerging markets, where corruption continues to be a drag on productive investment as reported by numerous business surveys.
Regional and local engagement is critical to making an impact on the ground. Building on PACI’s pioneering work in Vietnam and Mongolia, PACI members will identify and launch new collective-action activities to address the specific corruption challenges of a country or a region, such as Latin America and the Middle East.
To serve companies in- and outside the PACI community, compliance practitioners from PACI companies are pooling their experience to develop tools and services which will shape the evolving corporate practice for preventing and managing corruption risks.
To join PACI, CEOs from Forum Member companies sign the PACI Signatory Application, thereby committing to a zerotolerance policy towards bribery and corruption and agreeing to establish an internal anti-corruption programme. Today, more than 80 PACI signatories have joined the initiative, including industry leaders from multiple sectors and global locations.
|"It is vital to raise awareness that the fight against corruption is an issue that the global community must be discussing– and the PACI Principles serve as the basis for engaging companies locally to improve their own efforts towards anti-corruption and transparency.”|
Tsakhiagiin Elbegdorj, President of Mongolia
The PACI Task Force meets twice a year. Smaller working groups connect throughout the year to advance key initiatives and projects.
As an institutional priority anti-corruption is on the agenda of the World Economic Forum’s regional meetings, the Annual Meeting of New Champions in China and the Annual Meeting in Davos.
In the first half of 2013, the PACI will hold sessions at the World Economic Forum Annual Meeting in Davos-Klosters, Switzerland, 23-27 January, and at the World Economic Forum on Latin America in Lima, Peru, 25-27 April.
“Growth is inextricably linked to the well-being of our ecosystem – clients, employees, investors, business partners, local communities and the environment.
Corporations need to earn the right to operate, and to earn this right, they need to operate in an ethical, legal and socially responsible manner. The onus of driving this business responsibility lies with the business leaders who need to lead from the front, by example”.
S.D. Shibulal, Chief Executive Officer and Managing Director, Infosys, India
Dialogue at the highest level:
Impact on the ground:
Three reform areas identified by PACI to address the challenge of facilitation payments at customs were integrated in the Vietnam Customs and Reform Modernization Plan 2020.
Through the new local PACI chapter in Mongolia, government and business leaders from the country formed an unprecedented partnership to jointly address local corruption challenges and support private-sector integrity efforts.
Tools and services for business:
The PACI Principles, which were first issued in 2004, have a set a globally recognized benchmark to track and encourage compliance efforts by companies. PACI’s Good Practice Guidelines on conducting 3rd Party Due Diligence, to be launched in January 2013, will assist companies in mitigating the risk of being involved in corruption through their third parties (e.g. agents, suppliers, joint-ventures).
New virtual spaces, TopLink and the PACI Radar, will facilitate information-sharing among PACI members and encourage greater interaction with other Forum communities with an interest in the fight against corruption.
Please contact Elaine Dezenski, Senior Director and Head of PACI, at firstname.lastname@example.org.