Dr. Caroline King Vice President Public Affairs, SAP AG

1
SAP and the Convention on Business Integrity

• Dr. Caroline KingVice President Public Affairs,
  SAP AG

2
Summary of SAP Today

• SAP AG in 2002 Revenues 7.4 billion
• 64,500 installations
• More than 20,000 companies run SAP
• Providing 23 Industry Solutions
• 28,961 SAP employees (June 2003)
• 12 million users in 120 countries team with us
  to
• Integrate their business processes
• Extend their competitive capabilities
• Get a better return on information at a lower
  total cost of ownership
• Unique Partner Ecosystem
• More than 1,500 partners
• Overall more than 120,000 SAP partner certificates

3
Transparency Activities at SAP

• 1997
• INTEGRITY, a Nigerian NGO is founded by Soji
  Apampa, today an SAP employee.
• 2002
• SAP signs the Convention on Business Integrity in
  Lagos, Nigeria and provides funds for the
  establishment of a secretariat.
• SAP becomes a member of the German chapter of
  Transparency International.
• SAP funds the first international symposium for
  scholars on Corrupt Transactions, initiated by
  Graf Lambsdorff.

4
Transparency Activities at SAP

• 2003
• SAP becomes a member in the Business Principles
  Steering Committee with Transparency
  International UK.
• SAP develops and introduces a Business Code of
  Conduct.
• Cooperation with TI chapters in Nigeria, Kenya
  and South Africa, USA.
• SAP becomes a member in the Business Principles
  Steering Committee with Transparency
  International UK.
• CBI accepted as a case study in the Global
  Compact.

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Why is SAP engaged in the fight against
corruption?

• The costs for everybody involved are too high.
• Everybody suffers from the consequences also
  those who play by the rules.
• Corruption doesnt stop at the border.
• Emerging markets suffer in particular and in a
  global village no company interested in growth
  can afford to ignore the issue.
• The responsibility has to be shared by the public
  AND the private sector.
• A fight against corruption which is built on a
  strong alliance of different forces will be more
  efficient since risks and costs can be shared.
• Competitors and companies reluctant to join the
  fight have to be convinced and integrated.
• It is the responsibility of such an alliance to
  educate and support all initiatives which prove
  to be successful.

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Why CBI?

• SAP believes that it is the private sector which
  will play a vital role in supporting the African
  continent in its development.While SAP supplies
  the African market with solutions to help the
  economy join the global marketplace, we also
  support promising initiatives that strengthen the
  society as well as the private sector.
• SAP believes that self-imposed solutions have a
  much better chance of succeeding than guidelines
  imposed externally.
• Since CBI was developed locally Nigerians know
  what is necessary to win the fight against
  corruption in their country.
• It is a firm belief of everybody involved with
  CBI that what works in Nigeria will also work in
  other communities and countries threatened by
  corruption.

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What is the CBI?

• Founded in 1997 in Lagos, Nigeria by Integrity,
  an organization of Nigerian business people,
  national and international companies operating in
  the country a s well as Transparency
  International Nigeria.
• CBI is a covenant among businesses operating in
  Nigeria to build a private sector coalition
  against corruption and corrupt practices.
• It does not impose a legal obligation but
  represents a moral contract among signatories to
  promote integrity in the conduct of business.
• CBI was the first initiative of its kind to make
  responsible governance an issue of focus in the
  Nigerian business world.

SAP is signatory and supporting member of the
Convention on Business Integrity, an initiative
for more transparency and integrity in the
African business community.
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Founding Signatories

• Accenture
• Cadbury
• Dunlop
• Pfizer
• SAP
• Omolayole Associates
• Prominent Securities
• Denham Management
• Agusto Co.
• Diamond Bank
• Risk Watch Insurance Re-Insurance Brokers

• Nigerian Institute of Management
• Lagos Chamber of Commerce Industry
• The Lagos Business School
• Mr. Akintola Williams
• Dr. Christopher Kolade
• INTEGRITY
• Transparency Nigeria
• PENDING SIGNATORIES
• 5 major Nigerian corporations to sign-up in
  November (e.g. Shell Nigeria)

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CBI The Rating System

• Fitness For PurposeHow do the processes in a
  particular entity work?
• Ethics MoralsWhich credos, codes or policy
  statements are made by the organization?
• Transparency AccountabilityHow are the
  disclosure processes to stakeholders organized?
• Will Power to do The Right ThingEnsuring an
  audit of organization compliance.
• A Proven Track RecordChecking Anecdotal behavior
  to check on the commitment of an organization.

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CBI Components

• PEER PRESUREE
• Self policing of the members is an important
  element in compliance!
• Sanctions Appeals
• The Website
• OVERSIGHT MECHANISMUS
• The General Assembly of Signatories
• The Core Group
• The Secretariat

• ADVOCACY FOCUS
• Stakeholders as whistleblowers
• Pull strategy first
• (Through Nigerian Diaspora, Trade Diplomatic
  Bodies, Chambers of Commerce Industry,
  Development Agencies etc.)
• Push Strategy
• (Quarterly Signing Ceremonies, Publication of
  Success Stories, Direct Marketing)

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CBI Achievements in 2003

• In Nigeria
• Increasing partnerships with local and regional
  bodies such as .....
• Minister of Federal Capital Territory wants to
  use his ministry as a test case for CBI (is
  successful implementation in the Federal
  Government of Nigeria)
• Enugu State Government interest in CBI

• International
• Trade and Industry Minister of Kenya wants to
  sign CBI and establish it.
• Other countries, such as Uganda and Rwanda,
  interested
• Enquiry from TI Slovakia for CBI
• Commonwealth Business Council article for
  Modernizing Governments Reports
• Case Study UN Global Compact

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CBI Challenges Opportunities

• OPPORTUNITIES
• DFID
• Concept Test
• Business Plan Funding
• Nigeria British Consulative
• The Swedish Embassy and SIDA
• Kenya Minister for Trade Industry
• Requests for collaboration by Nigerian and other
  African Governments.

• CHALLENGES
• Capacity Issues
• Funding
• Leadership The Core Group

13
SAP Transparency Challenges and Opportunities
in 2004

• Draft company ethics code.
• Create education tools for employees.
• Ongoing support of Transparency International.
• Campaign for alliance on the issue with other IT
  companies.