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Anti-corruption sanctions and incentives Punishments for violating your anti-corruption standards Commit or attempt corrupt act Lack of commitment to good practice anti-corruption standard Anti-Corruption SANCTIONS for Business Rewards for meeting or exceeding your anti-corruption standards Refrain from corrupt act Demonstrate commitment to good practice anti-corruption standard Anti-Corruption INCENTIVES for Business While not all businesses need specific motivations to adhere to anti-corruption standards, sanctions and incentives are key measures to counter corruption. 4
A combined approach Purpose: Provide sanctions to punish violations of your anti-corruption standards Purpose: Provide incentives to reward meeting or exceeding your anti-corruption standards But, only sanctions … • will likely lead to limited or no self-disclosure (reporting) of corrupt practices • do not provide motivation for companies to cooperate (i.e. don’t signal trust to companies) But, only incentives … • do not punish non-compliance (i.e. companies may consciously and openly operate in violation of the standards) • can lead to free-riding and window dressing • could lead companies to adhere to your standard, but they seldom provide motivation to go further, etc. • can create dependencies for a company, etc. Provide sanctions and offer incentives to mitigate the threatened sanctions to encourage reporting, cooperation and rehabilitation of companies 5
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Page 3: Roles of different stakeholders Bus
Page 7 and 8: Example for context 1 • US Senten
Page 9 and 10: Categorizing anti-corruption sancti
Page 11 and 12: Findings from a global expert surve
Page 13 and 14: Questions? 13
Page 15 and 16: Appendix 15

here - HUMBOLDT-VIADRINA School of Governance

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