Partnering Against Corruption Initiative (PACI)

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Partnering Against Corruption Initiative
(PACI) Presentation to Organization for
American States Elaine Dezenski, Senior Director
and Head of PACI 12 September 2013

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PACIA Global Strategic Initiative of the Forum

• PACI harnesses the strength of the Forums
  leaders across the globe to collectively work
  towards leveling the playing field. Through
  PACI, the worlds leading businesses work
  together with governments, civil society, and the
  worlds foremost thought leaders to utilize the
  global platform of the Forum to raise visibility,
  promote sound public policy and catalyze action
  across regions, countries and industries.

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PACIBackground

• PACI was launched by CEOs from leading Forum
  member companies in the engineering and
  construction industry at Davos in January 2004.
  They had the aim of
• create a common language for anti-corruption that
  was valid for all industries
• providing a public platform for top-level
  corporate commitment to the fight against
  corruption
• supporting companies in implementing their
  commitment of zero tolerance against corruption
• PACI remains the only global anti-corruption
  initiative driven by the private sector and
  brings together companies from multiple
  industries and global locations to fight bribery
  and corruption
• By becoming a PACI signatory, a company commits
  to
• zero-tolerance policy toward bribery and
  corruption, and
• Implementation of an internal anti-corruption
  program that reflects the PACI Principles

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PACI seeks to create dialogue and experiential
learning opportunities for our community
In addition to the PACI Vanguard comprised of
CEOs, the PACI community consists of many
compliance practitioners who meet at our meetings
and engage in various work streams that support
specific initiatives of interest to the
communities.   The PACI community engages
virtually through Toplink, the PACI Radar, and
our Leading Practices Exchange. Through these
media, we obtain broad-based input into projects,
best practices, community connection and
engagement
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Why does Business, Government and Civil Society
Choose to Engage through the World Economic Forum?
For Governments Forum summits aim to set the
global and regional agenda and senior level
ministerial engagement creates the opportunity to
address issues of critical importance to
governments, showcase government best practices
to stakeholders, and to meet bilaterally with
other government leaders, CEOs and key
stakeholders

• For Businesses
• Partnering with PACI demonstrates a companys
  commitment to improving global, regional and
  industry anti-corruption efforts to employees,
  customers, shareholders and governments. Partners
  engaged with PACI through multiple touch points
• Strategy exposes senior executives to new
  ideas, trends and strategies that affect the way
  businesses respond to corruption challenges
• Government and Corporate Affairs facilitates
  events that have all the right constituents in
  the room, enabling research and activities to be
  conducted with like-minded companies, governments
  and other players
• Public Relations and Communications allows
  senior executives to demonstrate thought leaders
  for industry
• Corporate Social Responsibility allows senior
  executive leadership on issues facing their
  industry

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Recent Regional Events and Activities
PACI Anti-Corruption Roundtable, Ulaanbaatar Held
on 15 Sept to launch advancement of PACI Local
Network as Mongolian Anti-Corruption Alliance
Private Meeting on Anti-Corruption and
Competitiveness, Jordan Held on 24 May at World
Economic Forum Summit on the Middle East
and North Africa
PACI Mongolia Local Network The origins of the
PACI Mongolia Network began in 2011 at a joint
anti-corruption roundtable held by the Mongolian
President and PACI. Today, the Local Network
numbers almost 200 Mongolian companies
High-Level Private Anti-Corruption Meeting, Peru
Held on 23 April, Lima in collaboration with
Peru Government, Comptroller General and
Anti-Corruption Commission of Peru
India Anti-Corruption Workshop Held on 12 April,
New Delhi in collaboration with UNGC,
Transparency International, UNODC and Global
Agenda Council on Anti-Corruption
and Transparency
19th PACI Task Force Meeting, New Delhi Held
10-11 April, facilitating best practice exchange
and action-oriented anti-corruption agenda among
PACI members
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Corruption Context from PACIs Perspective

• Corruption and a level playing field for business
  based on fair markets is now a strategic priority
  for our community
• Corruption is recognized as one of the key
  barriers to economic growth and competitiveness
• Global companies are looking to emerging markets
  for key growth opportunities
• Corporate boards can no longer claim plausible
  deniability
• New global businesses from emerging markets are
  competing in traditional Western-dominated
  markets and integrating into global supply chains
• Many anti-corruption efforts are underway but the
  level of coordination is fragmented, creating an
  opportunity for PACI to play an aligning and
  integrating function of anti-corruption
  initiatives and stakeholders

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Corruption is also interlinked to the Global Risk
Context

• Corruption is closely interlinked to other global
  risks. By distorting markets, stifling economic
  growth and sustainable development, it also
  undermines democracy and the rule of law.
• Estimates of the cost of corruption equate it to
  more than 5 of global GDP (US 2.6 trillion)
  with more than US 1 trillion paid in bribes each
  year

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PACI A Short History of PACIs Evolution
Started as Compliance Platform
Evolution Beyond Compliance to Best Practices
Places Corruption as Strategic Business Risk at
heart of Global Agenda
2010
2012
2014
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From Compliance to Strategic Business RiskThe
changing debate on corruption

• Bribery, money laundering and other forms of
  corruption have long been a staple of everyday
  news
• But, the public perception about corruption and
  the approach of governments and business is
  changing fundamentally
• And we are endeavoring to shift the narrative

• Fighting corruption is done because it causes
  harm to businesses and society in broad terms
• Defensive, reactive measures to prevent
  non-compliance are put in place
• Mistrust of partners fuels reluctance to share
  information and concern about reputational risk

• Fighting corruption is done because it creates
  value for businesses and society, opening up new
  opportunities
• Proactive, innovative measures to attract good
  behaviour are encouraged
• Trust and openness amongst partners facilitates
  information sharing, collaboration and innovation

Narrative of loss and risk
Narrative of value-creation
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With this changing debate is a changing strategic
focus on CEO leadership

• Transforming responses to corruption to address
  the strategic business risks faced by the PACI
  community has meant refocusing PACI as an
  integrated agenda-setting platform that is
  carried out in collaboration with World Economic
  Forum partners
• Our members invest, do business and grow in
  difficult, emerging markets
• A true level playing field drives their success
  and drives proactive measures to design
  corruption out of the system

CEO-level leadership is provided by the PACI
Vanguard
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PACI Vanguard
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• The PACI Vanguard is a group of the most
  committed CEO champions of anti-corruption
  selected from PACI signatory companies
• Representing the views of business, the overall
  purpose is to contribute to the global, regional
  and industry agenda on new models for
  transparency and anti-corruption
• Greater visibility and exposure is given to these
  anti-corruption champions to collectively engage
  in business-government-civil society dialogue
  wherever corruption is an issue impeding growth,
  investment and competitiveness

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PACI Strategy 2013-14
We are endeavouring to establish the foremost
global multi-stakeholder community combatting
corruption through the PACI Vanguard

• The PACI Vanguard will comprise a highly engaged
  group of stakeholders leading the way in new
  developments and ideas in global anti-corruption
• We intend to support the visibility and
  interaction of the group to serve as strategic
  core of the PACI community and driving
  cross-industry and cross-market level-the-playing
  field anti-corruption agenda

We use a blend of formal and informal,
face-to-face and virtual interaction

• PACI creates experiential learning opportunities
  for the PACI community, shaping interaction and
  technology platform to the needs of PACI
  signatories and the strengths of the World
  Economic Forum

We aim to be a trusted partner, serving as a
catalyst and integrator

• We do this through a variety of projects,
  including a new initiative on Designing
  Corruption out of the System that would serve as
  a high-level map to guide transformation and
  alignment of stakeholders and initiatives in
  anti-corruption, catalysing new regional and
  collective action initiatives

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PACI Strategy 2013-14
We are endeavouring to establish the foremost
global multi-stakeholder community combatting
corruption through the PACI Vanguard

• The PACI Vanguard will comprise a highly engaged
  group of stakeholders leading the way in new
  developments and ideas in global anti-corruption
• We intend to support the visibility and
  interaction of the group to serve as strategic
  core of the PACI community and driving
  cross-industry and cross-market level-the-playing
  field anti-corruption agenda

We use a blend of formal and informal,
face-to-face and virtual interaction

• PACI creates experiential learning opportunities
  for the PACI community, shaping interaction and
  technology platform to the needs of PACI
  signatories and the strengths of the World
  Economic Forum

We aim to be a trusted partner, serving as a
catalyst and integrator

• We do this through a variety of projects,
  including a new initiative on Designing
  Corruption out of the System that would serve as
  a high-level map to guide transformation and
  alignment of stakeholders and initiatives in
  anti-corruption, catalysing new regional and
  collective action initiatives

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