Anti-Corruption Efforts of the Basel Institute on Governance

The Basel Institute of Governance was founded in 2003 in Basel, Switzerland. It works with partners worldwide to raise awareness of the importance of fighting corruption. The Institute aims to promote good governance and anti-corruption efforts to create a more peaceful, just, and sustainable world.

Scarlet Wannenwetsch, Senior Collective Action Specialist at the Basel Institute of Governance, discusses the organization’s activities and goals.

How do you see the role of the University of Basel in promoting anti-corruption principles, especially in cooperation with the private sector?

When working with the private sector on a sensitive issue like corruption, it is essential to involve organizations that understand both the complexities of corruption and the business realities specific to the country, region, or sector in question.

To make progress on these issues, being able to count on organisations dedicated to working with the private sector can be a game changer, empowering the private sector to become a much-needed leader in the fight against corruption.

The Basel Institute on Governance is a leading
voice driving private sector-led collective action against corruption globally.

In addition to the expertise mentioned above, it is crucial to be recognized as an independent and objective actor in the anti-corruption arena when trying to bring together the private sector, governments, and civil society.

The Basel Institute is an independent Swiss foundation affiliated with the University of Basel. Our status as an independent Swiss foundation and our affiliation with the University underscores the independence of our expertise in this area, which enables us to effectively engage with a wide range of stakeholders in many regions of the world.

What have been the most significant developments in collective action against corruption over the past 20 years, and how has the private sector contributed to these initiatives?

The private sector is central to the Collective Action approach to anti-corruption and has been instrumental in its success over the past twenty years. It promotes business integrity and fosters a fair and level playing field for all.

A powerful way to showcase the evolution and impact of collective action is through the B20 Collective Action Hub database.[1] This resource documents over 325 initiatives across 62 countries and 28 sectors, highlighting their diversity and global reach, particularly in high-risk sectors such as oil and gas, infrastructure and construction,etc.

Alongside the increasing number of global initiatives, another key advancement for Collective Action has been its adoption by standard-setting bodies. Although Collective Action has long been regarded as a best practice by governments, in the past few years, it has gained formal recognition in international standards. Notably, the OECD 2021 Recommendations incorporated Collective Action [2]  OECD member countries are required to report on their commitment to and support for Collective Action initiatives as part of their country assessments under the OECD Anti-Bribery Convention.[3]

This inclusion marks an important step toward securing support for Collective Action from governments and regional bodies, helping to shift it from a best practice to a standard practice.

In your experience, what are the biggest challenges private sector companies face in implementing anti-corruption measures, and how can Collective Action help them overcome these obstacles?

A major challenge for companies is to balance centralized anti-bribery and anti-corruption [4] compliance policies with the realities of operating in diverse global contexts, especially when operating globally through complicated supply chains in vastly different contexts.  Corruption remains a moving target, requiring policies to be continually adapted and contextualized to effectively address evolving risks.

Collective Action brings companies together to share, discuss, and identify corruption risks and develop common approaches to address them more effectively. This strengthens the collective voice of business while minimising the potential impact on individual companies that speak out. Collective risk assessment for companies is a precursor to much broader and more profitable value creation.

 How is the fight against corruption evolving with the rise of digital technologies, and what role can private sector collaboration play in harnessing these technologies to improve transparency and accountability?

The emergence of new technologies will help increase the efficiency of businesses across the spectrum and reduce the human component of many interactions and processes. This is likely to have two effects:(1) It will reduce opportunities for corruption, especially in the relationship between the private and public sectors, as transparency and digitization initiatives focused on public procurement and licensing have already demonstrated;(2) It will make it even more important for decision-makers to demonstrate their commitment to doing business in good faith. It is necessary to ensure that algorithms and artificial intelligence are built on the principle of strong integrity and anti-corruption policies, with ethical decision-making upheld by both top and middle management.

Businesses are the driving force behind the development of new technologies, and they are also the stakeholders who are typically at the forefront of their implementation before governments get involved. As such, they need to be involved in discussions about new technologies and their potential to improve transparency and accountability while identifying risks and opportunities for abuse and corruption in their application.

With anti-corruption being a critical part of sustainable development, how do you see the role of education and training in helping business leaders and professionals integrate anti-corruption measures into their sustainability strategies?

The tone set by top and middle management is essential in demonstrating a commitment to doing business with integrity and, as such, is a core building block upon which sustainability strategies are developed. If there is no trust within the company and between the company and its potential customers, the company is likely to experience significantly lower growth rates, which will inevitably affect its sustainable development in the long run.

Training and education are essential tools for embedding and developing a strong culture of integrity within companies, and ensuring that top management is involved in this training is an important signal to employees that management is committed and willing to walk the talk. Corruption and integrity issues cut across all parts of an organisation, so breaking down silos is also critical to formulating and implementing a cohesive strategy aimed at ensuring that no integrity gaps result from siloed approaches between, for example, the compliance function, the audit function, the sustainability function and the way the C-suite operates within an organisation.

[1] B20 Collective Action Hub https://collective-action.com/

[2] Organization for Economic Co-operation and Development (OECD) https://www.oecd.org/en/about.html

[3] OECD Anti-Bribery Convention

[4] Anti-bribery and Corruption Compliance (ABC) Policy/Program