Reputational risks: companies whose policies and practices fail to meet high ethical standards, or that take a relaxed attitude toward compliance with laws, are exposed to serious reputational risks.
legal risks: not only are most forms of corruption illegal where they occur but it is also increasingly becoming illegal in a company’s home country to engage in corrupt practices in another country.
All companies, large and small, are vulnerable to corruption, and the potential for damage is considerable. Their anti-corruption systems are increasingly being extended to a range of ethics and integrity issues, and a growing number of investment managers are looking to these systems as evidence that the companies undertake good and well-managed business practice.īusinesses face high ethical and business risks and potential costs when they fail to effectively combat corruption in all its forms. The rapid development of rules of corporate governance around the world is also prompting companies to focus on anti-corruption measures as part of their mechanisms to express corporate sustainability and to protect their reputations and the interests of their stakeholders. Companies are learning the hard way that they can be held responsible for not paying enough attention to the actions of their employees, associated companies, business partners and agents. Confidence and trust in business among investors, customers, employees and the public have been eroded by recent waves of business ethics scandals around the globe. There are many reasons why the elimination of corruption has become a priority within the business community. Transparency International's Business Principles for Countering Bribery define bribery in the following way: "Bribery: An offer or receipt of any gift, loan, fee, reward or other advantage to or from any person as an inducement to do something which is dishonest, illegal or a breach of trust, in the conduct of the enterprise's business." It becomes extortion when this demand is accompanied by threats that endanger the personal integrity or the life of the private actors involved." The OECD Guidelines for Multinational Enterprises define extortion in the following way: "The solicitation of bribes is the act of asking or enticing another to commit bribery. This can mean not only financial gain but also non-financial advantages. Transparency International's definition of corruption is "the abuse of entrusted power for private gain". Corruption can take many forms that vary in degree from the minor use of influence to institutionalized bribery. The UNCAC is the underlying legal instrument for the 10th Principle. With the entry into force of the UN Convention Against Corruption (UNCAC) in 2005, an important global tool to fight corruption was introduced. Companies are also challenged to work collectively and join civil society, the United Nations and governments to realize a more transparent global economy. The tenth principle against corruption was adopted in 2004 and commits UN Global Compact participants not only to avoid bribery, extortion and other forms of corruption, but also to proactively develop policies and concrete programmes to address corruption internally and within their supply chains. More information on understanding the Charter may be obtained through the research guide linked below.Businesses should work against corruption in all its forms, including extortion and bribery.
#WHAT IS THE GOAL OF THE UNITED NATIONS FULL#
The full text of the UN Charter is available online.
To be a center for harmonizing the actions of nations in the attainment of these common ends.
To achieve international co-operation in solving international problems of an economic, social, cultural, or humanitarian character, and in promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion and.
To develop friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, and to take other appropriate measures to strengthen universal peace.
To maintain international peace and security, and to that end: to take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace, and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace.
5 Commission on the Status of Women(CSW)Īrticle 1 of the UN Charter states the following purposes:.