Combating corruption

Sarah Davidson

This article was published in Living Ethics: issue 86 summer 2011

The United Nations Global Compact Network Australia has established an Anti-Corruption Leadership Group to help Australian businesses combat bribery and corruption. At the same time the Australian Government has initiated a public consultation process on proposed changes to Australia’s anti-bribery laws.

Principle 10 of the United Nations Global Compact states that businesses should work against corruption in all forms including extortion and bribery. In commitment to this Principle, the Group aims to increase awareness of the anti-bribery laws that apply in Australia and overseas and to improve the capacity of Australian business to take a leading role in combating corruption.

Bribery and corruption are estimated to cost the Australian economy $15 billion annually. Under Australian criminal law, individuals and companies can seek to raise a defence against claims of bribing or offering a benefit to foreign public officials if the money paid constitutes a ‘facilitation payment’ where the value of the benefit is minor, the main purpose is to secure a routine government action of a minor nature and a record of the conduct is kept.

Addressing the Anti-Corruption Leadership Group’s inaugural meeting in Melbourne on 15 November 2011, the Hon Brendan O’Connor MP, Minister for Home Affairs, Minister for Justice and Minister for Privacy and Freedom of Information said:

“Corruption is a serious global problem, which has devastating impacts for individuals, families, communities and regions. It discourages investment and distorts markets, leading to a depletion of resources for important community services like schools, hospitals and roads.”

At the meeting Minister O’Connor launched a public consultation paper that proposes changes to Australia’s anti-foreign bribery laws by removing the facilitation payments’ defence. Submissions were encouraged until the consultation period closed on 15 December 2011.

Meeting participants observed that good intentions of policies and compliance programs to combat bribery often fall short when individuals are faced with critical real world tests and unfamiliar environments. In this context, the Group acknowledged that strong leadership underpinned by a sound ethical framework, values and principles is essential.