You are here
Indicators
Anticorruption
Publicly committing to a zero-tolerance stance on bribery and corruption is an important aspect of an organisation’s communication of its ethical standards to external stakeholders - including shareholders, contractors and the public - and bolsters an internal organisational culture of integrity. Various Transparency International anti-bribery and anti-corruption guides advise that organisations make public commitments against corruption and bribery, for example, both guidelines No. 5 of ‘Business Principles for Countering Bribery: A Multi-Stakeholder Initiative led by Transparency International’ and No. 5 of TI’s ‘State-Owned Enterprise Healthcheck’.
This commitment to a zero-tolerance stance on bribery and corruption must have been available through the organisation’s website during the online research phase, either posted on a webpage or published in corporate governance documents/publications such as annual reports and investor relations material.
The organisation was either partially compliant with the indicator during the online research phase or provided TI Ireland researchers during the feedback window with documentary evidence that this zero-tolerance to bribery and corruption commitment had been made in documents available internally during the research phase.
The ‘tone from the top’ is a ‘critical driver’ of an organisation’s anti-corruption programme. It demonstrates a high-level commitment to the organisation’s anti-corruption efforts, which builds staff confidence in implementing the organisation’s anti-corruption measures and provides reassurance that acting in line with anti-corruption policies and procedures will be supported.
A statement from the Board or senior management committing to support measures against corruption and bribery and/or evidence that a senior executive has responsibility for the anti-corruption and anti-bribery programme must have been available through the organisation’s website during the online research phase, either posted on a webpage or published in corporate governance documents/publications such as annual reports and investor relations materials.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence that relevant material available internally during the online research phase demonstrated high-level support for the anti-corruption and anti-bribery programme.
A publicly available anti-bribery and anti-corruption programme, with concrete provisions for controls and monitoring, gives substance to an anti-corruption and anti-bribery commitment. Such a programme should articulate clearly and in detail all the organisation’s anti-corruption efforts, including its values and detailed policies and procedures around governance, risk management, internal and external communications, training and guidance, advice and whistleblowing channels, internal accounting controls, monitoring, evaluation and improvement efforts, in line with Principle 1.3 of TI’s ’10 Anti-Corruption Principles for State-Owned Enterprises’.
A comprehensive anti-corruption and anti-bribery programme must have been available through the organisation’s website during the online research phase and should include details of how it is monitored. The programme may form part of an overall risk management plan or code of conduct, but must contain concrete provisions sufficiently addressing corruption and bribery risks specifically.
The organisation was either partially compliant with the indicator during the online research phase or provided TI Ireland researchers during the feedback window with documentary evidence that an anti-corruption and anti-bribery programme meeting the criteria outlined was in place during the research phase.
By explicitly requiring all employees and directors to adhere to its anti-corruption and anti-bribery programme, an organisation makes clear that it expects compliance at all levels and in all activities and transactions, regardless of scale. This requirement sends a strong message about the organisation’s commitment to embedding a culture of ethics and integrity throughout the organisation.
The organisation must have included a specific requirement that all employees and directors adhere to its anti-corruption and anti-bribery programme in relevant material available through its website during the online research phase.
The organisation was either partially compliant with the indicator during the online research phase or provided TI Ireland researchers during the feedback window with documentary evidence showing that relevant material available internally during the online research phase required employees’ and directors’ adherence to an anti-corruption and anti-bribery programme.
The anti-corruption context is dynamic, with, on the one hand, changing levels and types of corruption risk and, on the other, increasing expectations around corporate integrity and more stringent regulations on activities. A commitment to ongoing monitoring of an anti-corruption programme, based on internal and external reviews and risk assessments, provides confidence that an organisation takes these issues seriously and is prepared to face new challenges with up-to-date, effective measures. Principle No. 10 of TI’s ’10 Principles for State-Owned Enterprises’ outlines steps organisations can take to implement effective monitoring and review of their anti-corruption programmes.
Information published by the organisation must outline how the anti-corruption programme is monitored and reviewed for effectiveness in countering evolving corruption risks on a regular basis.
The organisation was either partially compliant with the indicator during the online research phase, or provided TI Ireland researchers during the feedback window with documentary evidence showing that material available internally during the online research phase outlined procedures for the regular monitoring and review of the anti-corruption programme.
Training on an organisation’s anti-corruption and anti-bribery programme is a key means of communicating corruption risks and procedures to guard against them to staff. To foster an anti-corruption culture that is responsive to changing circumstances, this training should be delivered periodically (annually or biannually), either internally or externally. Given resource constraints, not all staff may be afforded in-depth training. In such cases, TI Ireland recommends incorporating a risk profile assessment to the process of providing training to employees.
The organisation must have made details of an anti-corruption and anti-bribery training programme for its employees and directors, or a specific reference to its implementation, available through its website during the online research phase.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that, during the online research phase, the organisation had in place a training programme on countering corruption and bribery for management and relevant staff.
Although often a legitimate aspect of relationship-building and business courtesy, gifts, hospitality and expenses can also be used to circumvent prohibitions against bribes and corruption and to gain undue competitive advantage or favours. A policy and procedures prohibiting the offering, giving, soliciting or receiving of gifts or other benefits where they could influence, or reasonably be perceived to influence, transactions or activities is therefore an important aspect of an organisation’s anti-corruption and anti-bribery measures. It should set out appropriate thresholds and approval processes to ensure that gifts are legitimate, and outline consequences for non-compliance. Such a policy not only provides guidance for employees but, when publicly disclosed, demonstrates to bidders and other stakeholders that the highest standards of probity are expected and enforced.
The organisation must have had, available through its website during the online research phase, a policy and procedures to ensure that gifts, hospitality and expenses are reasonable and legitimate and prohibiting the offering, giving, soliciting or receiving of gifts, hospitality or expenses whenever they could influence, or could reasonably be perceived to influence, the outcome of transactions or activities.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that it has in place at the time of the online research phase an internally
Conflicting interests can arise in any business situation. The impact of conflicts of interest, and perceived conflicts of interest, is all the more significant where an aspect of the public interest is at stake. Having a policy that defines conflicts of interest and procedures to identify, declare and manage them can provide direction to employees and others; protect an organisation’s reputation; ensure compliance with legislation; and reinforce stakeholder and public trust. According to Guideline 5.1 of Transparency International’s Business Principles for Countering Bribery, these policies and procedures should apply to directors, officers and employees as well as contracted parties such as agents, lobbyists and other intermediaries.
The organisation must have had, available through its website during the online research phase, a policy and procedures outlining how conflicts of interest are managed.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that it had in place at the time of the online research phase an internally circulated policy and procedures to manage conflicts of interest.
Third parties engaged to carry out activities on behalf of, or to provide services or goods to, the semi-state and public sector may not always be bound by to the same standards as public bodies and these transactions can present a corruption risk due to opportunities for money laundering, manipulation of bids, false invoicing or kickbacks. Semi-state and public sector organisations should have in place procedures to carry out thorough, transparent due diligence on all contracted third parties to ensure that their anti-corruption standards and controls are sufficiently robust, and to safeguard against any corruption vulnerabilities.
The organisation must have had, available through its website during the online research phase, details of its due diligence measures in respect of third-party contracts/transactions.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that it had in place at the time of the online research phase sufficiently robust third-party due diligence measures.
Financial Transparency
As noted by the Code of Practice for the Governance of State Bodies (p. 31), ‘The publication of an annual report and audited financial statements is a primary expression of public accountability’, which holds true across all sectors and organisations. Audited financial statements are an important tool for stakeholders, including the public, to monitor the organisations’ activities, both in terms of their commitment to furthering the public interest and, where relevant, their use of public funds.
The organisation must have published its audited financial statements for the previous financial year on its website.
The organisation was partially compliant with the indicator during the online research phase.
Budget transparency is critical to enabling the public to see that public resources and, where relevant, public funds are being managed in the public interest. In addition to budget figures themselves, supporting commentary provides vital context as to the aims and objectives of the organisation. The publication of budget details also provides a benchmark against which stakeholders can monitor actual performance and any deviation from planned expenditure.
The organisation’s budget and budget commentary for this financial year must have been available through its website during the online research phase.
The organisation was partially compliant with the indicator during the online research phase.
Asset disposal can pose a high corruption risk to state-owned enterprises and other public sector bodies. Values may be manipulated and assets bought or sold at non-market values to favour officials’ associates or officials themselves. Bribes and benefits may be offered to officials, politicians or political parties with perceived influence over transactions. Any perception of such activities erodes public trust in institutions and enterprises that are supposed to be handled for the public good. This perception and the risks themselves can be countered by implementing a robust and transparent set of procedures around asset disposal, including requirements for rigorous business cases, ringfencing of functions, due diligence on interested parties, and independent monitoring and review.
The organisation must have had, available through its website during the online research phase, a comprehensive procedure outlining how asset disposal is handled and protected from corrupt intervention.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that it had in place at the time of the online research phase an internally circulated procedure on prevention of corruption in asset disposal.
Procurement carries a significant corruption risk, with the possibility of bribes and kickbacks offered to officials and politicians to award inflated tenders or overlook siphoning of funds. The costs of corruption in procurement are not only financial: It can mean reduced quality and sustainability and poor value for the taxpayer in the goods and services delivered, all of which erodes public confidence in institutions. State-owned enterprises and public sector bodies should proactively disclose their procurement procedures so that all stakeholders, from bidders to members of the public, can have confidence that the mechanisms in place for selecting contractors and suppliers are legitimate and conform to requirements and good practice. In line with this, the organisation should publicise forthcoming opportunities, including details of the tendering procedure, transparently and in good time. Such practice indicates that it is committed to open competition and equal treatment of potential bidders. At a minimum, the website should direct those seeking information to details on how to access tendering documents, the timeline of the procedure and relevant contact information.
The organisation must have had, available through its website during the research phase, a comprehensive procurement policy and procedures.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that it had in place at the time of the online research phase a procurement policy and procedures that meets the criteria outlined.
As well as being transparent about procedures at the tendering stage, state-owned enterprises and public sector bodies should subsequently disclose details of contracts awarded, including information such as the name of the contractor, the value of the contract, date awarded, signing date, delivery timeline/milestones, and a public version of the contract itself, insofar as possible given commercial sensitivities. This allows stakeholders to scrutinise procurement procedures and their outcomes in a concrete way and to identify the ultimate beneficiaries of public contracts.
The organisation must have published, through its website during the online research phase, comprehensive information on contracts awarded.
he organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland of contracts awarded.
Transparency regarding tendering procedures and contracts awarded, as outlined in respect of indicators FT4 and FT5, allows for public accountability at the tendering and awarding stages, but disclosing information on progress and payments made allows stakeholders to monitor the actual performance of contractors and demonstrates accountability through to the completion of a project.
The organisation must have published, through its website during the online research phase, information on the progress of contracts awarded, including dates for milestones and deliverables and details of payments made, including amounts and dates.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland regarding the progress of contracts awarded.
Charitable donations and community contributions, although often a legitimate and important aspect of corporate social responsibility, can be used as a means of bypassing prohibitions on contributions to gain undue advantages. To guard against such activities, or the perception of such activities, all semi-state and public sector organisations should publicly disclose any charitable contributions and sponsorships. Although this information is sometimes given in narrative or aggregate format in annual reports or dedicated webpages, a specific data table detailing specific charitable donations and/or community contributions provides greater transparency and concrete information.
The organisation must have disclosed on its website at the time of assessment specific data on its charitable donations and/or community contributions.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland of its charitable donations and/or community contributions.
Open Governance
There should be clarity regarding structures of ownership and relationships between institutions and organisations. The more opaque these structures are, the less the organisation’s stakeholders are able to hold it to account. Semi-state and public sector organisations should therefore disclose details of their respective relationships with the State, e.g. the government minister or department under which they operate; funding etc. As well as this ‘upstream’ relationship, organisations should be fully transparent about their ‘downstream’ operations, i.e. disclose full details of any subsidiaries, associated undertakings etc, allowing stakeholders to identify relationships between different entities and their operations.
The organisation must have disclosed on its website at the time of assessment details regarding the nature of its relationship with the State, as well as comprehensive information on any subsidiaries or other related entities.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland of its relationship to the State and subsidiary/related undertakings
Most fundamentally, the public should know who is serving on the Board of an organisation, as well as relevant details of each member’s background and affiliations. In Beyond the Balance Sheet: IFC Toolkit for Disclosure and Transparency, the World Bank Group’s International Finance Group recommends that organisations ‘concisely present the relevant work experience, education, and other board positions currently held by each board member’, emphasising elements ‘that are particularly relevant in their board roles’. This allows stakeholders to assess whether there may be any conflicts of interest but equally can be an opportunity to provide assurances that board members are suitably qualified. The IFC advises that best practice is to link each board members skills to the functions of the board and the ‘wider strategy and purpose’ of the organisation (p. 62).
The organisation must have disclosed on its website at the time of assessment the names and relevant background details of each Board member.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland of its Board composition.
Semi-state agencies and other public sector bodies should be operated in accordance with the highest standards of governance and with procedures in place to ensure effective and responsible management of the organisation’s affairs in the public interest. They should be transparent about the rules governing Board activities and decisions, to demonstrate public accountability, appropriate autonomy, and a commitment to ethical practices.
The organisation must have disclosed the rules by which the Board of Directors operates on its website at the time of assessment.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland of the rules by which the Board of Directors operates and that they were in effect at that time.
The credibility of an Audit and Risk Committee as a safeguard against corruption and other misconduct in an organisation’s operations rests on its independence from the executive functions of the organisation. The Audit and Risk Committee should be sufficiently independent to be able to challenge management and highlight corruption risks and other deficiencies or vulnerabilities, without the interference (or perception of interference) of any conflicting allegiance or interest. The Code of Practice for the Governance of State Bodies stipulates that the Audit and Risk Committee should be composed of ‘at least three independent non-executive Board members, or in the case of smaller State bodies (less than 20 employees) two independent non-executive Board members’.
The organisation must have disclosed through its website at the time of assessment sufficient details regarding the composition of the Audit and Risk Committee to indicate that enjoys operational independence.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that it had at that time measures in place to ensure the independence of the Audit and Risk Committee.
Transparency means not just making information available, but making it readily available to the average person, who may not have the frame of reference or expertise to search for information in a wide range of documents and online locations. A dedicated webpage that shows how the organisation operates, including its procedures and policies, reports, Code of Conduct etc., is not only valuable for external stakeholders, but is a useful resource for the organisation’s own staff and directors, as well as a clear statement of the organisation’s commitment to transparency and high ethical standards.
The organisation must have had a page dedicated to ethics or governance as part of its website during the online research phase.
The organisation partially compliant with the indicator during the online research phase.
Political Engagement
Although corporate political engagement can be a legitimate activity, it carries clear risks of corruption and undue influence over public policy. This risk is all the more acute in the case of semi-state and public sector organisations, which are especially vulnerable due to access to and close relationships between government, politicians, boards and senior management. Organisations should demonstrate their commitment to responsible political engagement by disclosing a comprehensive policy outlining their procedures on such engagement, including but not limited to lobbying and funding of think tanks and/or contributions to sectoral interest associations, as well as a prohibition on political contributions (made directly or indirectly).
The organisation had disclosed on its website at the time of assessment a comprehensive policy and procedures on responsible corporate political engagement, addressing the elements outlined.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland of a responsible political engagement policy that was internally available at that time.
The Regulation of Lobbying Act 2015 sets out mandatory registration and disclosure requirements for any business with more than ten employees (exempting certain specified ‘public service bodies’), and the Standards in Public Office Commission publishes returns to the Register of Lobbying on lobbying.ie. Organisations should nonetheless disclose information on lobbying through their own channels for reasons of transparency and accessibility, as outlined elsewhere in this report.
The organisation had disclosed on its website at the time of assessment details of its lobbying activities.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence of its lobbying activities to TI Ireland.
As noted in connection with indicator AC6, training is a key means of communicating corruption risks and procedures to guard against them to staff and helps to foster a culture of adherence to high ethical and anti-corruption standards. Given the complex nature of engagement between semi-state and public sector bodies and the State, as well as between other parties and these organisations, any employees or third parties engaged in lobbying activities should be trained on responsible political engagement, above and beyond the basic level of statutory reporting obligations. This will equip people lobbying on an organisation’s behalf with the tools to navigate this complex area in a way that is not only compliant with legislation but in line with best practice.
The organisation must have disclosed through its website at the time of assessment details of responsible political engagement awareness/training provided to those engaged in lobbying on its behalf.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that it had at that time implemented responsible political engagement awareness or training measures for those engaged in lobbying on its behalf.
Membership of trade associations or similar groups can be used as a way to conceal lobbying or other special interest activities, or to make political donations or other contributions. Full transparency about affiliations with any such groups allows stakeholders to monitor these activities and hold organisations accountable for activities carried out on their behalf.
The organisation had disclosed on its website at the time of assessment details of membership of any trade or similar special interest associations.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland of membership of any trade or similar special interest associations.
In semi-state and public sector bodies, there may be movement between the organisation and the State administration, or movement between the organisation and the private sector. In either case, procedures should be put in place to avoid actual or perceived conflicts of interest and to prevent an individual from leveraging her previous position and access to the untoward advantage of any party. These may include ‘cooling-off’ periods or provisions prohibiting the relevant individual from working on projects that overlap with previous roles. Section 22 of the Regulation of Lobbying Act addresses restrictions on post-term employment as a lobbyist, but solely in relation to designated public officials under the legislation.
The organisation had disclosed on its website at the time of assessment a policy and procedures in place to manage revolving-door movements.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland that there was at the time of assessment an internal policy and procedures managing revolving-door movements.
Whistleblowing
Transparency International defines whistleblowing as ‘the disclosure of information related to corrupt, illegal, fraudulent or hazardous activities being committed in or by public or private sector organisations – which are of concern to or threaten the public interest – to individuals or entities believed to be able to effect action’ (A Best Practice Guide for Whistleblowing Legislation, 2018). Whistleblowers are invaluable in exposing corruption, fraud and mismanagement, but blowing the whistle can carry personal and professional risks. The organisation’s whistleblowing policy should therefore, inter alia, include assurances that whistleblowers will not suffer penalisation of any kind as a result of raising concerns in the workplace; that action will be taken in response to those concerns where warranted; as well as information on their rights and responsibilities consistent with Irish law. In particular, organisations should take care not to link protections for whistleblowers to a ‘good faith’ requirement. Although the Protected Disclosures Act 2014 requires that a person making a protected disclosure have a ‘reasonable belief’ that it is true, the term ‘good faith’ is distinct and is not used in the legislation. ‘Good faith’ has been interpreted in case law as referring to a person’s motivation, which the Act states is irrelevant.
The organisation had publicly disclosed on its website a whistleblowing policy that includes all employees and relevant third parties and undertakes to protect whistleblowers from any reprisal for speaking up.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland researchers that during the online research period a whistleblowing policy meeting the criteria was in place internally.
Placing the burden on a concerned party to judge which internal reporting channel is most appropriate, or requiring that contact first be made with another section of the organisation to receive contact details, may have a chilling effect on the making of protected disclosures. Whistleblowing policies should therefore provide information on the channels available to report wrongdoing. Furthermore, details of how to make protected disclosures through external channels (including contact details), which is allowed for under the Act (‘a procedure the use of which by the worker is authorised by the worker’s employer’), shows a real commitment to facilitating the reporting of concerns. Sharing details of internal and external channels publicly should ensure that relevant third parties, contractors etc. have access to the necessary details. It also demonstrates that an organisation actively encourages a culture where the highest ethical standards are prioritised.
The organisation had publicly disclosed on its website details of internal and external channels available to make protected disclosures.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland researchers that during the online research period information on channels available to make protected disclosures was available internally.
Whistleblowing policies should commit to taking appropriate action in response to concerns raised, demonstrating that the organisation takes reports seriously and will not brush legitimate concerns under the carpet. One aspect of transparency in this area is the annual report on protected disclosures that is required under the Protected Disclosures Act 2014. Recording and disclosing the number of reports and actions taken in response to them, as outlined in Section 22 of the Act, provides an objective measure of an organisation’s willingness to act on information received through whistleblowing.
The organisation had publicly disclosed on its website by 30 June an annual report on the number of protected disclosures received and actions taken during the preceding year, as required under Section 22 of the Protected Disclosures Act 2014.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland researchers that it had kept statistics on protected disclosures received and action taken during the preceding year.
Organisations should train relevant staff on the receipt, investigation and handling of whistleblowing reports. Such a training programme should be delivered regularly, either internally or externally, and ideally be tailored to accommodate different lines of business within the organisation.
The organisation had disclosed on its website at the time of assessment a commitment to training relevant management and employees on how to process, assess and, where relevant, investigate whistleblowing reports as well as any legal responsibilities arising from them.
The organisation was either partially compliant with the indicator during the online research phase or provided documentary evidence to TI Ireland researchers regarding its commitment to train relevant staff on how to handle, process, assess and, where relevant, investigate whistleblowing reports as well as any legal responsibilities arising from them, at the time of assessment.