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THE TEN PRINCIPLES OF THE UN GLOBAL COMPACT

Sustainability begins with a principled approach to doing business.

In this section


THE TEN PRINCIPLES

 * Principle 1
 * Principle 2
 * Principle 3
 * Principle 4
 * Principle 5
 * Principle 6
 * Principle 7
 * Principle 8
 * Principle 9
 * Principle 10


PRINCIPLE TEN: ANTI-CORRUPTION

--------------------------------------------------------------------------------

BUSINESSES SHOULD WORK AGAINST CORRUPTION IN ALL ITS FORMS, INCLUDING EXTORTION
AND BRIBERY.

--------------------------------------------------------------------------------


WHAT DOES IT MEAN?

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. Companies are also
challenged to work collectively and join civil society, the United Nations and
governments to realize a more transparent global economy.


With the entry into force of the UN Convention Against Corruption (UNCAC) in
2005, an important global tool to fight corruption was introduced. The UNCAC is
the underlying legal instrument for the 10th Principle. Corruption can take many
forms that vary in degree from the minor use of influence to institutionalized
bribery. Transparency International's definition of corruption is "the abuse of
entrusted power for private gain". This can mean not only financial gain but
also non-financial advantages.


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. It becomes extortion when this demand is accompanied
by threats that endanger the personal integrity or the life of the private
actors involved."
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."



WHY SHOULD COMPANIES CARE?


There are many reasons why the elimination of corruption has become a priority
within the business community. 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. 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.

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. 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.

Businesses face high ethical and business risks and potential costs when they
fail to effectively combat corruption in all its forms. All companies, large and
small, are vulnerable to corruption, and the potential for damage is
considerable. Business can face:


 * 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;
 * 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. Often it is enough to be
   accused of malpractice for a company’s reputation to be damaged even if a
   court subsequently determines the contrary;
 * Financial costs: there is clear evidence that many countries lose close to $1
   trillion due to fraud, corruption and shady business transactions and in
   certain cases, corruption can cost a country up to 17% of its GDP, according
   to the UN Development Programme in 2014. This undermines business performance
   and diverts public resources from legitimate sustainable development;
 * Erosion of internal trust and confidenceas unethical behaviour damages staff
   loyalty to the company as well as the overall ethical culture of the company.


WHAT CAN COMPANIES DO?


The UN Global Compact suggests that participants consider the following three
elements when fighting corruption and implementing the 10th principle:


 * Internal: As a first and basic step, introduce anti-corruption policies and
   programmes within their organizations and their business operations;
 * External: Report on the work against corruption in the annual Communication
   on Progress; and share experiences and best practices through the submission
   of examples and case stories;
 * Collective Action: Join forces with industry peers and with other
   stakeholders to scale up anti-corruption efforts, level the playing field and
   create fair competition for all. Companies can use the B20 Collective Action
   Hub to create a company profile, propose projects, find partners and on-going
   projects as well as resources on Anti-Corruption Collective Action. Learn
   more on Collective Action and see our Uniting against Corruption: A Playbook
   on Anti-Corruption Collective Action to understand how to apply the
   Collective Action methodology to address identified corruption challenges and
   mitigate potential business risks;
 * Sign the “Anti-corruption Call to Action”, which is a call from Business to
   Governments to address corruption and foster effective governance for a
   sustainable and inclusive global economy. Your company’s participation in
   this Call to Action underscores your continued efforts to integrate
   anti-corruption into your strategies and operations. Learn more about the
   Call to Action and how to sign.

Join the UN Global Compact Sign up for Our Bulletin


FROM OUR LIBRARY


 * UNITING AGAINST CORRUPTION: A PLAYBOOK ON ANTI-CORRUPTION COLLECTIVE ACTION
   
   Report


 * GLOBAL COMPACT FOR THE 10TH PRINCIPLE: CORPORATE SUSTAINABILITY WITH
   INTEGRITY
   
   Report


 * BUSINESS AGAINST CORRUPTION – A FRAMEWORK FOR ACTION
   
   Report

News Events Academy


NEWS

 * 18-Jun-2024 New York, United States of America
   
   
   BUSINESS PROFESSORS RECOGNIZED BY PRME FOR INNOVATIVE PEDAGOGY THAT CHAMPIONS
   SUSTAINABLE DEVELOPMENT

 * 04-Jun-2024 New York, United States of America
   
   
   UN SECRETARY-GENERAL APPOINTS NEW MEMBERS TO UN GLOBAL COMPACT BOARD

 * 22-May-2024 Bridgetown, Barbados
   
   
   UN GLOBAL COMPACT LAUNCHES REGIONAL CARIBBEAN NETWORK IN BARBADOS

 * 22-May-2024 Bridgetown, Barbados
   
   
   UN GLOBAL COMPACT LAUNCHES SUSTAINABLE SUPPLIER AND SME PROGRAMME

 * 16-May-2024 New York, United States of America
   
   
   UN GLOBAL COMPACT LAUNCHES CMO THINK LAB TO DRIVE SUSTAINABLE GROWTH

 * 16-May-2024 Kigali, Rwanda
   
   
   AFRICAN BUSINESS LEADERS PLEDGE TO TACKLE GENDER INEQUALITY AT THE AFRICA CEO
   FORUM

 * 17-Apr-2024 Brussels, Belgium
   
   
   UN GLOBAL COMPACT MEETS AT THE EU PARLIAMENT TO ADVANCE CORPORATE
   SUSTAINABILITY

 * 03-Apr-2024 New York, United States of America
   
   
   UN GLOBAL COMPACT LAUNCHES 2024 SDG PIONEERS CAMPAIGN TO RECOGNIZE
   OUTSTANDING BUSINESS LEADERS DRIVING SUSTAINABLE DEVELOPMENT

 * 02-Apr-2024 New York, United States of America
   
   
   GLOBAL AFRICA BUSINESS INITIATIVE ANNOUNCES PLANS FOR UNSTOPPABLE AFRICA 2024
   FLAGSHIP EVENT IN NEW YORK

View All News


EVENTS

 * 20-Jun-2024
   
   
   SUSTAINABILITY TRENDSWATCH: HOW CAN BUSINESSES BUILD SUSTAINABLE SUPPLY
   CHAINS?

 * 03-Jul-2024
   
   
   OFFICE HOURS: COMMUNICATION ON PROGRESS

 * 09-Jul-2024
   
   
   CHINESE WEBINAR FOR COMMUNICATION ON PROGRESS

 * 16-Jul-2024
   
   
   SDG GLOBAL BUSINESS FORUM

 * 17-Jul-2024
   
   
   OFFICE HOURS: COMMUNICATION ON PROGRESS

 * 24-Jul-2024
   
   
   OFFICE HOURS: COMMUNICATION ON PROGRESS

 * 20-Sep-2024 New York, NY, United States of America
   
   
   UN GENERAL ASSEMBLY EVENTS

 * 23-Sep-2024 UN Headquarters, New York, NY , United States of America
   
   
   PRIVATE SECTOR FORUM

 * 23-Sep-2024 620 Loft & Garden, United States of America
   
   
   THE 20TH ANNIVERSARY OF THE UN GLOBAL COMPACT PRINCIPLE TEN

View All Events


ACADEMY

View All Academy Events


HELP US TRANSFORM THE WORLD THROUGH BUSINESS

Contribute Today
Sign Up for Our Bulletin


HAVE A QUESTION?

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QUICKLINKS

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