PACI 2008 Highlighting Achievers Survey

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The “Highlighting Achievers Survey” of the World Economic Forum Partnering Against Corruption Initiative (PACI), first introduced in 2007, provides valuable insights into the measures that companies leading the global fight against corruption are taking.

The 2008 “Highlighting Achievers” survey self-assessments reveal to date that:

- PACI three-stage process (implementation, self-evaluation, external verification):

1. 100% of the signatory companies had an anti-corruption programme in place by end of 2008 compared to 90% in 2007. 20% of the companies did not have an anti-corruption programme in place when signing PACI. 
2. 90% of the PACI signatory companies continuously evaluate their anti-corruption programmes.
3. 40% of PACI signatory companies have received external assurance/verification/third-party certification of their anti-corruption programme elements.

- PACI 2008 Highlighting Achievers milestones for sound anti- corruption programme implementation, developed by PACI signatory companies:

• LEADERSHIP: 98% of the PACI signatory companies continuously evaluate their anti-corruption programmes group-wide. 95% have their executive management and board review such evaluations.
• SEEKING GUIDANCE AND RAISING CONCERN: In 98% of the PACI signatory companies, employees have access to a mechanism to raise concern in confidence or anonymously about potential corruption cases in their companies (where local law permits), compared to 87% in 2007.
• EDUCATION: 93% of the PACI signatory companies educate employees on their anti- corruption programme, who operate in functions with high exposure to corruption risks, i.e. those handling contracts, like in procurement, finance and sales/marketing.
• RISK ASSESSMENTS: 63% of the PACI signatory companies have undertaken a risk assessment on the nature of corruption risks in high-risk countries in which they operate. 70% of the PACI signatory companies have identified high-risk business partners in the area of corruption.
• BUSINESS PARTNERS: 80% of the PACI signatory companies’ anti-corruption programmes address legal entities authorized to act on behalf of their companies, i.e. agents, distributors and the like. 79% of the PACI signatory companies’ anti- corruption programmes address new joint ventures with majority ownership, and 64% of the companies’ programmes address new joint ventures with minority ownership. 55% of the PACI signatory companies’ anti-corruption programmes address legal entities handling customs clearance on behalf of their companies, i.e. handling agents.
• EXTERNAL COMMUNICATION: 80% of the PACI signatory companies publish their anti- corruption commitment externally, i.e. on their website and/or in their annual reports, compared to 72% in 2007. In 78% of the companies, senior management has communicated externally about their companies’ anti-corruption efforts. 64% of the PACI signatory companies have externally published their commitment to the PACI principles and the PACI framework.

The 2008 findings of the PACI “Highlighting Achievers Survey” reflect PACI’s ongoing work in the fight against corruption, the substantial progress made in achieving public corporate leadership commitment to a zero-tolerance towards bribery, and in implementing a sound and effective anti-corruption programme within the company along the lines of the PACI principles. The survey results also signal that international businesses increasingly recognize the importance of having an anti-corruption programme in place.

For reference: full list of PACI signatory companies, including information on which ones provided input into the 2008 “Highlighting Achievers Survey”

The findings of the 2008 PACI “Highlighting Achievers Survey” are based on the comprehensive self-assessments/progress reports of 60 PACI signatory companies. The survey is conducted based on the PACI three-stage process (implementation, self-evaluation, external verification) and six Highlighting Achievers milestones for sound anti-corruption programme implementation developed by PACI signatory companies.

PACI STAGE 1: Developing an internal anti-corruption programme and putting it in place
PACI STAGE 2: Self- monitoring/evaluation of anti-corruption programme
PACI STAGE 3: External assurance/verification/third-party certification of anti-corruption programme

MILESTONE 1:  LEADERSHIP: The executive management continuously evaluates its anti-corruption programme by the end of 2008.
MILESTONE 2:  SEEKING GUIDANCE AND RAISING CONCERN: The company has a focal point in place that allows employees to seek guidance and raise concern in confidence about potential corruption cases by the end of 2008.
MILESTONE 3:  EDUCATION: The company provides specific education to high-risk employees in the area of anti- corruption by the end of 2008.
MILESTONE 4:  RISK ASSESSMENTS: The company continuously assesses its corruption risks by the end of 2008.
MILESTONE 5:  BUSINESS PARTNERS: The company's anti-corruption programme addresses risks throughout its value chain by the end of 2008.
MILESTONE 6:  EXTERNAL COMMUNICATION: The company, in alignment with the PACI principles, has published a clear anti-corruption commitment externally, by the end of 2008.

What is meant by “anti-corruption programme”?
Specific corporate policies (or parts of policies or a code of conduct), management systems, processes and/or procedures that outline a company’s stand on corruption, i.e. the nature of corruption, rules, employee rights and responsibilities, and measures in place to prevent, detect or sanction corruption.

Findings of the 2007 PACI “Highlighting Achievers Survey”
For reference: findings of "2007 PACI Highlighting Achievers Survey” 




1. PACI three stage process

PACI STAGE 1: Developing an internal anti-corruption programme and putting it in place

• 100% of the signatory companies had an anti-corruption programme in place by end of 2008 compared to 90% in 2007. 20% of the companies did not have an anti- corruption programme in place when signing PACI.
• 83% of the PACI signatory companies have benchmarked their anti-corruption programmes against the PACI principles.

PACI STAGE 2: Self-monitoring/evaluation of anti- corruption programme

• 90% of the PACI signatory companies continuously evaluate their anti-corruption programmes. Whereas internal audits are the most common means of evaluation, other means include internal questionnaires and risk assessments, assessments of reporting to whistle-blowing mechanisms, peer-to-peer benchmarking and annual compliance assessments by managers.

PACI STAGE 3: External assurance/verification/third- party certification of anti-corruption programme

• Although an acknowledged international framework for anti-corruption assurance is not yet in place, 40% of PACI signatory companies have received external assurance/verification/third-party certification of their anti-corruption programme elements, and 17% of PACI signatory companies have received external assurance/verification/third-party certification of evaluations of their anti- corruption programme. Assurance measures include peer reviews and assessments by external control committees, experts, NGOs or accounting companies, i.e. within the AA1000 assurance framework.

2. PACI 2008 highlighting Achievers milestones for sound anti-corruption programme implementation, developed by PACI signatory companies

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• 98% of the PACI signatory companies continuously evaluate their anti-corruption programmes group-wide. 95% have their executive management and board review such evaluations.
• 34% of the PACI signatory companies publish the overall results of their evaluations of their companies’ anti-corruption programmes, either for employees and/or externally for investors.

• In 96% of the PACI signatory companies, employees have access to seeking guidance in confidence or anonymously on their companies’ anti-corruption programme (where local law permits).
• In 98% of the PACI signatory companies, employees have access to a mechanism to raise concern in confidence or anonymously about potential corruption cases in their companies (where local law permits), compared to 87% in 2007.
• 86% of the PACI signatory companies translate relevant documents into other relevant languages to allow all employees to read what is expected of them in the area of anti-corruption.
• 89% of the PACI signatory companies have processes in place for investigating concerns raised on potential corruption cases, while 93% have processes in place for handling corrective actions in case of corruption cases.
• 52% of the PACI signatory companies receive assurance on their processes for handling concerns raised by employees.
  

• 93% of the PACI signatory companies educate employees on their anti-corruption programme, who operate in functions with high exposure to corruption risks, i.e. those handling contracts, like in procurement, finance and sales/marketing.
• 86% of the PACI signatory companies educate managers, who operate in countries with high corruption risks on their anti-corruption programme. 88% educate executive management and 84% educate Board members on their anti-corruption programme.
• 63% of the PACI signatory companies encourage or support legal entities authorized to act on behalf of their companies to educate their employees on anti- corruption, i.e. employees of agents, distributors and the like, who operate in countries considered as high-risk in the area of anti-corruption and employees in functions with high corruption risks like those handling contracts, i.e. procurement, finance and sales/marketing personnel.

• 88% of the PACI signatory companies monitor relevant laws and regulations on corruption in the countries where they operate.
• 63% of the PACI signatory companies have undertaken a risk assessment on the nature of corruption risks in high-risk countries in which they operate. 70% of the PACI signatory companies have identified high-risk business partners in the area of corruption.
• 77% or more of the PACI signatory companies continuously reassess their corruption risks. 78% have developed plans and processes to mitigate their corruption risks.
• 63% of the PACI signatory companies communicate internally, who/which the high- risk business partners and countries are in the area of corruption.

• In 93% of the PACI signatory companies, all subsidiaries are subject to their parent companies’ anti-corruption programmes, compared to 86% in 2007.
• 80% of the PACI signatory companies’ anti-corruption programmes address legal entities authorized to act on behalf of their companies, i.e. agents, distributors and the like. 79% of the PACI signatory companies’ anti-corruption programmes address new joint ventures with majority ownership, and 64% of the companies’ programmes address new joint ventures with minority ownership. 55% of the PACI signatory companies’ anti-corruption programmes address legal entities handling customs clearance on behalf of their companies, i.e. handling agents.
• 77% of the PACI signatory companies carry out anti-corruption due diligence before engaging in business with high-risk business partners in the area of corruption. 61% of the PACI signatory companies’ new contracts with high-risk business partners in the area of corruption explicitly address the issue.
• 80% of the PACI signatory companies encourage or support their business partners, i.e. suppliers, agents, distributors, service providers and customers, in developing and implementing anti-corruption programmes.

• 80% of the PACI signatory companies publish their anti-corruption commitment externally, i.e. on their website and/or in their annual reports, compared to 72% in 2007. In 78% of the companies, senior management has communicated externally about their companies’ anti-corruption efforts. 64% of the PACI signatory companies have externally published their commitment to the PACI principles and the PACI framework.
• 57% of the PACI signatory companies publish the elements of their companies’ anti-corruption programmes externally, i.e. internal rules on anti-corruption and/or measures in place to prevent, detect or sanction corruption.
• 25% of the PACI signatory companies externally publish overall information on employees’ use of channels for seeking guidance/raising concern and/or corruption cases investigated internally. 20% of the PACI signatory companies publish plans for their anti-corruption efforts externally, i.e. implementation plans on their anti- corruption programmes.
• 7% of the PACI signatory companies publicly communicate the results of external anti-corruption assurance (note figures on the PACI stage 3 above, e.g. that although an acknowledged international framework for anti-corruption assurance is not yet in place, 40% of PACI signatory companies have received external assurance/verification/third-party certification of their anti-corruption programme elements, and 17% of PACI signatory companies have received external assurance/verification/third-party certification of evaluations of their anti- corruption programme).