8 <strong>Business</strong> <strong>Against</strong> <strong>Corruption</strong>Understanding the 10th PrincipleThe UN Global Compact’s10th PrincipleFollowing the United Nations General Assembly’s2003 adoption of the United Nations Conventionagainst <strong>Corruption</strong> (UNCAC), the UN GlobalCompact added its 10th Principle in 2004:“<strong>Business</strong>es should work againstcorruption in all its <strong>for</strong>ms, includingextortion and bribery.”Objectives of the 10th PrincipleThe adoption of the 10th Principle commitsUN Global Compact participants not only toavoid bribery, extortion and other <strong>for</strong>ms ofcorruption, but also to proactively developpolicies and concrete programmes to addresscorruption internally and within their supplychains. Companies are challenged to join civilsociety, the United Nations and governmentsto realize a more transparent global economy.With the entry into <strong>for</strong>ce of the UNCACin 2005, an important global tool to fightcorruption became law. The UNCAC is theunderlying legal instrument that inspired the10th Principle.■■How is corruption defined?<strong>Corruption</strong> is defined by Transparency <strong>International</strong>as “the abuse of entrusted power<strong>for</strong> private gain.” This convenient shorthand,encompassing myriad illegal and illicitacts, recognizes the breadth of the conceptbut does not attempt to enumerate orprecisely delimit. During the negotiations ofthe UNCAC, United Nations Member Statescarefully considered the opportunity <strong>for</strong>the global anti-corruption treaty to providea legal definition of corruption. Concludingthat any attempt at a comprehensivedefinition inevitably would fail to addresssome relevant <strong>for</strong>ms of corrupt behaviour,the international community reached globalconsensus on a large number of manifestationsof corruption while leaving each Statefree to go beyond the minimum standardsset <strong>for</strong>th in the Convention.The Convention calls <strong>for</strong> ratifying Statesto outlaw, at a minimum, bribery of publicofficials; embezzlement, trading in influence,abuse of function, and illicit enrichmentby public officials; and bribery andembezzlement in the private sector, as wellas money-laundering and obstruction ofjustice. These corrupt actions are spelled outunder the chapter of the Convention devotedto criminalization and law en<strong>for</strong>cement,denoting that corruption—which is a notionwider than bribery and extortion—is a crime.In consonance with this approach, the UNGlobal Compact’s 10th Principle calls <strong>for</strong>companies to work against corruption in allits <strong>for</strong>ms, including extortion and bribery.■■What is extortion?The OECD Guidelines <strong>for</strong> Multinational Enterprisesdefines extortion: “The solicitationof bribes is the act of asking or enticing anotherto commit bribery. It becomes extortionwhen the demand is accompanied bythreats that endanger the personal integrityor the life of the private actors involved.”■■And what is bribery?The UNCAC Articles 15 and 21 definebribery of public officials and in the privatesector, respectively:(a) The promise, offering or giving, to apublic official, directly or indirectly,of an undue advantage, <strong>for</strong> the officialhimself or herself or another personor entity [or any person who directs orworks, in any capacity, <strong>for</strong> a privatesector entity], in order that the official[or person] act or refrain from acting inthe exercise of his or her official duties[or that he or she, in breach of his orher duties, act or refrain from acting](b) The solicitation or acceptance by a publicofficial [or by any person who directsor works, in any capacity, <strong>for</strong> a privatesector entity], directly or indirectly, of anundue advantage, <strong>for</strong> the official himsel<strong>for</strong> herself or another person or entity, inorder that the official act or refrain fromacting in the exercise of his or her officialduties [or that he or she, in breach of hisor her duties, act or refrain from acting]The <strong>Business</strong> Principles <strong>for</strong> Countering Briberyinitiated by TI defines the term “bribery”:“An offer or receipt of any gift, loan, fee,reward or other advantage to or from any personas an inducement to do something whichis dishonest, illegal or a breach of trust, in theconduct of the enterprise’s business.”
9Practical steps to fight corruption: The Management ModelThe UN Global Compact suggests to itsparticipants that they consider using the UNGlobal Compact Management Model 3 infighting corruption and implementing the10th Principle, as well as <strong>for</strong> each of the otherthree Global Compact issue areas. Publishedin partnership with Deloitte, an internationalaccounting and consulting firm, it guidescompanies through the process of <strong>for</strong>mallycommitting to, assessing, defining, implementing,measuring and communicating acorporate sustainability strategy based on theGlobal Compact and its Ten Principles.Companies are encouraged to constantlyrefine their management processes and proceduresand to view their actions as a cycle ofcontinual improvement, in addition to settingtheir sights on an end goal of eliminatingcorruption. The Management Model embodiesthis idea in its presentation as an unbrokencircle, rather than as a more linear path. Inother words, companies should, yearly ormore regularly, re-commit themselves to theprocess and follow each of the steps: Circumstancesmay change and company leadershipmay change, but the commitment to fightingcorruption should never flag.Details on each of the six steps as appliedto anti-corruption measures are found on thefollowing pages. The following section coverscollective action, in which companies join<strong>for</strong>ces with industry peers and other stakeholdersas part of the fight against corruption.For more in<strong>for</strong>mationon the ManagementModel, pleasevisit the UN GlobalCompact website.UN Global Compact Office and Deloitte, UN Global Compact Management Model (2010)
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