Corruption is generally acknowledged as being the abuse of entrusted power for private gain. Although there is no universal definition of corruption, the United Nations Convention against Corruption 2005 highlights various forms of corruption, such as trading in influence, abuse of functions and private sector corruption, which can range from the minor use of influence to institutionalised bribery. The Organisation for Economic Co-operation and Development (OECD) notes that corruption can harm democratic institutions, undermine attempts by citizens to achieve higher levels of economic, social and environmental welfare, and impede efforts to reduce poverty.
The UN Guiding Principles (UNGPs) recognise that corruption can undermine access to remedy for victims of human rights abuse. The Commentary to the Guiding Principle 25 clarifies that States should ensure that “Procedures for the provision of remedy should be impartial, protected from corruption and free from political or other attempts to influence the outcome”. Furthermore, Principle 10 of the UN Global Compact on Anti-Corruption urges businesses to “work against corruption in all its forms, including extortion and bribery”. The OECD Guidelines for Multinational Corporations (MNCs) contains a chapter articulating how enterprises should combat corruption.
Corrupt practices by businesses can directly and indirectly impact human rights. For example, the supply of counterfeit or expired drugs adversely impacts the right to health of vulnerable people. Land acquisitions for business projects, like agribusiness, mining or infrastructure, can involve corruption, which can lead to dispossession and forced displacement of people who are deprived of their property and livelihoods (See the Issue page on Land for more information).
The Office of the United Nations High Commissioner for Human Rights (OHCHR) has highlighted that due to pre-existing inequalities and intersectional discrimination, corruption has a disproportionate impact on women, children, migrants, persons with disabilities and persons living in poverty, as they are often more reliant on public goods and services and have limited means to look for alternative private services. Transparency International also clarifies that corruption hinders progress towards gender equality and presents a barrier for women in gaining full access to their civic, social, and economic rights.
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In its 2020 report on connecting the business and human rights and anti-corruption agenda, the Working Group on Business and Human Rights (Working Group) examined how corruption involving business enterprises can lead to human rights abuses, sometimes with fatal consequences, in various contexts and industries, such as land acquisition, healthcare or extractive industry. In its 2021 report, the United Nations Development Programme (UNDP) analysed the close and expanding link between corruption and various contemporary forms of slavery. Perpetrators engaged in modern slavery often rely on complicit government officials throughout the trafficking chain. For example, in Thailand, an International Labour Office’s 2017 report on the country’s fishing sector documented allegations that a significant number of migrant workers and Thai nationals are victims of human trafficking for the purpose of forced labour on Thai fishing boats. The report further notes that corruption and complicity by government officials have enabled a human trafficking gang to routinely torture and execute migrant workers who attempt to flee. Moreover, trafficked individuals frequently become new targets for corrupt officials seeking to extract bribes (See the Issue page on Forced Labour & Modern Slavery for more information).
States are implementing anti-corruption efforts as a means to promote responsible business conduct. Initiatives to eliminate corruption include the Foreign Corrupt Practices Act of 1977 (FCPA) in the United States and the United Kingdom’s Bribery Act 2010, which criminalise corruption, including acts of corruption abroad. Examples of companies that the US Securities and Exchange Commission has brought enforcement actions against for FCPA violations include: Rio Tinto plc, which agreed to pay a US$ 15 million civil penalty in 2023 to resolve charges that it violated the FCPA by paying bribes to retain mining rights to certain blocks in the Simandou mountain region in Guinea; Novartis, a global pharmaceutical and healthcare company, agreed to pay over US$112 million in 2020 to settle charges that it violated the FCPA by making improper payments or providing benefits to healthcare providers in exchange for prescribing or using Novartis products, or Teva Pharmaceutical, which agreed to pay US$ 519 million in 2016 to settle civil and criminal charges that it violated the FCPA by paying bribes to foreign officials in Russia, Ukraine, and Mexico. Another example under the FCPA involves Ericsson, which paid over US$ 1 billion to the US Department of Justice (DOJ) and the SEC and entered into a deferred prosecution agreement (DPA) with the DOJ in 2016. This resulted from its long-standing scheme, which spanned 17 years, involving bribery and the falsification of books to secure business in Djibouti, China, Vietnam, Indonesia, and Kuwait. In 2023, Ericsson again agreed to plead guilty and pay a criminal penalty of more than US$ 206 million after violating the 2019 DPA. Similarly, the UK Serious Fraud Office takes enforcement actions against UK Bribery Act violations. For example, Glencore Energy UK Ltd was ordered to pay over £280 million in 2022 for paying bribes to secure its access to oil in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria and South Sudan.
Corporate capture is another important aspect of the link between corruption, business, and human rights. Corporate capture is defined as “the undue influence that corporations exert over national and international public institutions, manipulating them to act according to their priorities, at the expense of the public interest and the integrity of the systems required to respect, protect and fulfil human rights, and safeguard the environment”. In its 2020 report, the Working Group acknowledges corporate capture as an emerging issue for business and human rights that deserves more attention, calling for a stronger conflict-of-interest regulation to address lobbying, undue influence, and corporate capture.
Companies have adopted various strategies to exert undue influence, including revolving door practices (meaning the movement of employees from the corporate sector to public regulators and other agencies and vice versa) or judicial, legislative and policy interference. For example, research from the International Corporate Accountability Roundtable and media news from 2022 suggest that Uber exerted strong influence within legislative and regulatory bodies in the US by using political spending and lobbying to keep workers as independent contractors rather than employees. As independent workers, Uber drivers were deprived of worker protections like workers’ compensation and unemployment insurance, as they fell outside the scope of labour laws. Another example is a report by ESCR-Net that notes separate requests from extractive sector companies that the UK Government support their position in litigation before appellate courts in the US over alleged extraterritorial human rights abuses. Notably, released emails show that one of the UK Government’s concerns about taking a position is that such intervention would contravene the State’s obligations with respect to the UNGPs. Ultimately, the UK Government did submit opinions in support of the two companies. The rulings in these cases set important precedents on the ability of victims to seek access to remedy for extraterritorial corporate-related human rights abuse (See the Issue page on Extraterritorial Jurisdiction for more information).
Several civil society initiatives aim to address corruption in various industries. For example, the Publish What You Pay Coalition and the Extractive Industries Transparency Initiative (EITI) aim to promote an open and accountable extractive sector, so as to minimise corruption. States that sign up for EITI must publish what they receive from extractive companies, and extractive companies within their jurisdiction must publish what they pay. In doing so, citizens are empowered to hold their governments accountable for public revenue, and civil society organisations can assess whether spending is going towards priority development areas. States such as Canada and Norway have implemented approaches, namely the Extractive Sector Transparency Measures Act and regulations on reporting and reconciliation of cash flows from petroleum activities, respectively, that require compliance with EITI cash flow reporting standards. Moreover, as the demand for transition minerals continues to rise to support the transition to clean energy, various organisations, such as the World Economic Forum, specifically highlight concerns about the heightened risk of corrupt payments by companies seeking licence approvals amidst the mining booms in transition minerals (See the Issue page on Extractives Sector for more information). Corruption in license approvals for mining transition minerals can significantly undermine the rights of local communities and Indigenous Peoples, particularly their consultative rights. This may lead to the neglect of the crucial principle of Free, Prior, and Informed Consent (FPIC), which ensures that indigenous communities are adequately consulted and agree to projects that affect their lands and lives before they commence (See the IsDosue page on Indigenous peoples for more information).
A crucial issue of corruption in the context of business and human rights is the lack of remedies for those harmed by corruption. As the Working Group noted in 2020, enforcement actions against corruption have not generally included reparations for people and communities affected by corruption since they are often not classified as victims. Settlements often result in payment to regulatory authorities but not to the people living with the day-to-day impact of the corruption. As one notable example, the UK Serious Fraud Office introduced the “Compensation Principles to Victims Outside the UK” in 2018 to identify and seek compensation for overseas victims while investigating or prosecuting a case.
As highlighted by the UN Office on Drugs and Crime (UNODC), addressing corruption is also essential in achieving gender parity, as corruption disproportionately affects vulnerable populations. Corruption is not gender-neutral and impacts women disproportionately. It serves as a significant barrier to women’s economic empowerment, heightens the risk of violence and poverty, and constrains their access to public services and natural resources. According to Transparency International, corruption can manifest in gender-specific forms, with sextortion being one prominent example. Transparency International’s report from 2023 also clarifies that although women are disproportionately targeted by this type of corruption, men, transgender individuals, and those who do not conform to traditional gender norms are also reported to be adversely affected. Working Group suggests a gender lens should be applied to all anti-corruption efforts.
Addressing corruption is an important measure in supporting the implementation of the 2030 Agenda for Sustainable Development and its goals. SDG targets 16.5 and 16.6, in conjunction with the Addis Ababa Agenda for Action, call for a “substantial” reduction of corruption and bribery in all their forms and commit States to increase the transparency and accountability of all institutions. The achievement of these targets is important as transparency and accountability enable the successful implementation of all other SDGs. Through efforts that aim to reduce corruption and bribery, companies can also contribute to human rights as well as the full range of SDGs that are dependent on sufficient funding for their achievement. Working Group acknowledges that rights-based approaches to tackling corruption and implementing UNGPs are critical to realising SDGs (See the Issue page on the 2030 Agenda for Sustainable Development for more information).
Linking Human Rights to Anti-Corruption – Address by Ronald Barenbeim, Senior Fellow, the Conference Board, Delivered at the 7th meeting of the UN Global Compact Working Group, 10 December, 2010,
This point briefly presents the issue of corruption in regards to reparation procedures, which “must be neutral, protect against corruption and be free from any attempt, political or other, to influence its outcome.”
Action point 3
Recommendations for improving access to a judicial grievance mechanism
This point mentions that reparation procedures “must be neutral, protect against corruption and be free from any attempt, political or other, to influence its outcome.”
Action point 4
Promote existing qualitative initiatives on human rights and social responsibility
The federal government explains that the Belgian National Contact Point will organize a seminar targeting the fight against corruption for SMEs with the provision of a practical toolbox prepared in partnership with the Belgian Confederation of Enterprises and the International Chamber of Commerce and the Ministry of Justice.
The NAP describes that given the adoption of the European directive 2014/95/EU, major companies, in their annual reporting, are required to include a non-financial statement containing information on the issues of environment, social and human resources, respect for human rights as well as the fight against corruption and bribery.
Action point 19
Promote best practice of SMEs that adopt responsible supply chain management, especially through the « CSR Compass » tool
This is the main action point covering corruption. As Belgium has ratified all related anti-corruption conventions, the federal government explains that the Belgian State has several legal obligations vis-à-vis the prevention and repression of corruption. In the framework of the NAP, engagements will be as followed:
Systematic reference in international and bilateral fora of Belgium’s ratification of the international anti-corruption conventions.
Coordination by the Ministry of Foreign Affairs on the different ministerial techniques involved in the fight against corruption to respond to the periodic evaluations of international organizations in compliance and effectiveness of internal anti-corruption measures.
Follow-up and presence at the working groups of international organizations on anti-corruption issues and development of best practice.
Awareness-raising of Belgian companies on the problem of corruption (Brochure of the Belgian Federal Authorities (NCP, Ministry of Economy and Ministry of Justice) with the Confederation of Belgian Enterprises and the International Chamber of Commerce on the prevention of corruption in companies, the Ministry of Justice: capacity training of investigation and judicial authorities in the field of corruption).
Awareness-raising of Belgian companies abroad to the risk of corruption through the network of Belgian diplomacy through instruction emails sent out to the diplomatic posts in order for the 1999 OECD Convention and the Guide to best practice to reach Belgian companies that are active within their jurisdiction.
Existing plans, initiatives and strategies [page 8]
“The Czech Republic has long set great store by the topic of human rights both generally and in connection with the activities of businesses. Human rights in a business context is covered, for example, by the following strategy documents: …
Criminal liability of legal persons in the field of human rights [page 12]
“Current state of play:
The Czech Republic is party to a number of international treaties on legal assistance and on the prosecution of various types of international criminal activity, including the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.”
External policy [page 28]
“Current state of play:
The Czech Republic has been a party to the OECD Anti-Bribery Convention since 2000, in accordance with which law enforcement agencies prosecute foreign corruption where the perpetrator is a Czech citizen.”
“Tasks:
Provide businesses abroad – through embassies – with advice and assistance to help them navigate the local environment, including the issues of the rule of law, human rights and corruption risks.
Coordinator: Ministry of Foreign Affairs
Deadline: Running, with an assessment in 2020″
Voluntary non-financial reporting [page 38]
“… The application of internationally acknowledged standards for non-financial reporting is recommended. These include: …
Global Reporting Initiative, an independent international organisation specialising in the reporting of the impacts of business operations in the fields of human rights, the environment and corruption”
Protection of human rights through state regulation and policy [page 12]
“Denmark works to ensure that companies involved in Danish development cooperation respect human rights and act responsibly within the areas of worker’s rights, human rights, environment and anti-corruption within the framework of ILO conventions, UN Global Compact, the OECD guidelines for multinational enterprises and work towards implementation of the UN Guiding Principles on Business and Human Rights.” …
Companies owned or controlled by the state [page 13]
“When Danida signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.” …
Providing effective guidance on how to respect human rights [page 14]
“The revised Global Compact Self-Assessment Tool works as a self-Assessment guide to a CSR due diligence going through a questionnaire covering aspects of human rights, worker’s rights, environment and anti-corruption and including a template for a follow-up action plan.” …
Appendix 1, GP 3c
Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 27]
“Companies involved under Danida Business Partnerships are required and guided to undertake a CSR due diligence covering human rights, workers’ rights, environment and anti-corruption and to follow-up with an action plan in order to mitigate adverse impacts of business activities on employees and society at large.”
Appendix 1, GP 4
Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]
“As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights. When Danida signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.”
“On 18 April 2013, the European Commission made a proposal to amend the accounting directive for the disclosure of so-called non-financial information of certain large companies.
The proposal shall be applied to companies of significant public interest with more than 500 employees on average on the account closing date. According to the proposal, such companies should include in their annual report a declaration stating material data related to the environment, social affairs, employees, human rights, and the prevention of corruption and bribery.”
4 Access of victims of human rights violations to legal remedies [page 30]
“Finland cooperates in various ways with human rights defenders and non-governmental organisations exposing corruption. Mainly within the framework of EU cooperation, Finnish representatives are involved in the monitoring of legal processes on a case-by-case basis when monitoring is believed to have a positive impact on the protection of the rule of law.”
… France also played a key role in developing transparency obligations for companies at the European level. It was the main supporter of the draft directive on non-financial reporting obligations, published on 22 October 2014, which requires large European listed companies to publish reports on their social, environmental, human rights and corruption policies. France encouraged the European Commission to take an ambitious approach when adopting the guidelines discussed in the directive. The directive is currently in the final stages of being transposed into French law. This will reinforce existing non-financial reporting requirements for companies …
11. The Inter-Ministerial Exemplary Administration Action Plan and the National Action Plan for Sustainable Public Procurement
Public Procurement Policy [page 25]
The new legal framework for public procurement gives purchasers several ways of addressing social and environmental impacts. Having transposed Article 57 of Directive 2014/24/EU of 26 February 2014 on public procurement, French law now states that public contracts may not be awarded to economic operators that have been found guilty of fraud, corruption or the trafficking or exploitation of human beings (Article 45 of Ordinance 2015-899).
The Extractive Sector [page 34]
… France helps monitor and finance the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. This document is an international reference in the field of good practices for businesses seeking to identify and manage non-financial risks in their mineral supply chains (… corruption, etc.).
II- Businesses’ Responsibility to Respect Human Rights
3. Risk Analysis and Impact Assessment
Existing Tools and Responsible Practices – At the European level [page 42]
…
The Business Anti-Corruption Portal for recruitment agencies, oil and gas industries and ICT.
…
5. Employee Representatives [pg. 43]
… A number of different laws contain provisions on whistleblowers: Article L 1161-1 of the Labour Code applies to corruption;
III – Access to Remedy
1. Judicial Mechanisms – At the National Level
1.4 Proceedings
The Jurisdiction of French Courts to Hear Criminal Matters [page 49]
Generally speaking, unless otherwise stipulated in legislation, companies and legal entities are liable for the criminal offences they commit, provided that these offences can be attributed to one of the company’s “organs” or representatives, and the offences were committed on their behalf.
More specifically, French legislation is strict in combating human rights violations by legal entities. Under French law, it is a criminal offence for companies to engage in activities that breach … equality laws (… corruption) …
1.6 Whistleblower Rights [page 53]
The Act 2016-1691 of 9 December 2016 on transparency, fighting corruption and modernizing the economy replaced earlier sector-specific provisions on whistleblowers. Under the new Act, a single framework was created to protect whistleblowers who now share a common status regardless of the field concerned.
4.1 Access to justice and the courts for injured parties
Measures [page 38]
“The IRZ Foundation established by the Federal Government will include in its consultancy programmes advice for partner states on the areas of procedural and substantive law with a significant bearing on business and human rights, focusing on the need to ensure access to justice. At the Fifth International Conference of the Parliamentary Committees on Legal Affairs of IRZ partner states, held in October 2016, issues of CSR and anti-corruption efforts were among the subjects discussed under the Conference theme of “Politics, business and human rights”.”
Section 2: Current legislative and Regulatory Framework
Anti-Corruption [page 13]
“In recent years, United Nations and regional organisations have increasingly recognised the negative impacts of corruption on the enjoyment of human rights. Moreover, the treaty bodies and special procedures of the united Nations human rights system have regularly identified corruption as a critical factor contributing to the failure of States to satisfy their human rights obligations.
The most recent peer review of Ireland’s implementation of the OECD anti-Bribery Convention made a number of specific recommendations around awareness raising and reporting. Since that report, the Government has introduced the Protected Disclosures Act 2014 which provides a robust statutory framework within which workers can raise concerns regarding potential wrongdoing in the workplace. Ireland will continue to follow up the recommendations of the report to ensure that we fulfil our Convention commitments.”
Supply Chain [page 15]
“Exploitation or corruption along the supply chain can have major negative reputational impacts for companies and States.”
Non-financial reporting [page 15]
“The EU Directive on disclosure of non-financial and diversity information (2014/95/EU) 9 entered into force in December 2014. Iit requires certain companies known as ‘public interest entities’ to include a declaration in their annual management report containing information stating material data related to the environment, social affairs, human rights, and prevention of corruption. This Directive will shortly be transposed into Irish law.”
Section 3: Actions
II. Initial priorities for the Business and Human Rights Implementation Group [page 18-19]
“ii. Ensure that relevant public servants are made aware of their obligation to report suspected cases of bribery under the OECD Convention on Foreign Bribery.
xii. Create a fact sheet on the OECD Anti-Bribery Convention, the criminal offences in Irish law on bribery, the reporting systems in place for reporting suspicions of foreign corruption and the protections provided by the Protected Disclosures Act to be distributed by Enterprise Ireland to all Irish companies engaged in trade missions.”
IV. Italian ongoing activities and future commitments
Administrative liability of companies
“Furthermore to enhance the tool, a targeted collaboration between the Antitrust Authority and the National Anti-Corruption Authority has made it possible to increase the guarantee of the level of protection of human rights by businesses by configuring an additional tool of the business rating. With respect to this tool, ruled between June and August 2020, more than 200,000 applications were submitted by Italian businesses for recognition of the standard.” (p. 17)
Public Procurement
“In addition, ANAC is working with other stakeholders in the project “Measuring the risk of corruption at territorial level and promoting transparency” (funded by the National Operational Programme Governance and Institutional Capacity 2014-2020 – ERDF, ASSE 3 – Specific Objective 3.1 Action 3.1.4), to identify quantitative indicators of the effectiveness of anti-corruption measures implemented by the administrations (so-called contrast indicators). The project also intends to create inter-institutional collaboration networks to 50 guarantee transparency in every sector of the Public Administration. The intent is to raise awareness of the private sector, academia and civil society on the need to overcome the current approach, based on exclusively subjective corruption indicators, and to promote a further approach to measuring corruption, based on reliable data in line with the principle of “leading by example”. As suggested by the OECD “investing in improving data quality to enhance risk assessments can provide a context for organizations to address broader issues along the value chain, improving the use of data within decision-making processes” (OECD, 2019).” (p. 49)
Fight against corruption
“The Italian legal framework on anti-corruption has been strengthened by Law No. 3/2019 (“Measures to combat crimes against the public administration, as well as on prescription and transparency of political parties and movements”), which consolidates a process regulated by Law No. 190/2012 and Law No. 69/2015 (strengthening the anti-corruption system). This most recent legislative measure is an important step towards a more comprehensive anti-corruption regime, in particular with regard to the fight against corruption in the public sector. Its main features are as follows: – the law introduces a dual approach: it strengthens the prosecution and (criminal) sanctioning of the act of corruption as well as the (administrative) prevention of the act itself in the public and private sector; – it encourages coordination between the public institutions involved; – it promotes a multi-stakeholder approach, calling on the private sector to play an active role in preventing corruption; – it demonstrates the relevance of the impact of multilateral conventions, recommendations and standards developed in the relevant forums (G20, OECD, Council of Europe), against which there is now an important alignment of the national anti-corruption system. In Italy Whistleblowing was introduced by the anti-corruption law (Law No. 190 of 6 November 2012, “Provisions for the prevention and repression of corruption and illegality in public administration”), adopted in compliance with recommendations and conventional obligations emanating from the UN, OECD, Council of Europe and European Union. This law provides for a system of enhanced protection for public employees who report unlawful conducts. Law No. 179 of 30 November 2017 strengthened the pre-existing whistleblower protection for public employees and partially extended the same protection to the private sector. With regard to the public sector, the law provides that a public employee who reports illegal or unethical conduct in the public interest cannot be retaliated against through sanctions, dismissal, demotion, transfer to other offices or other measures that have a negative effect on his/her working conditions. The protection is guaranteed to: employees of public administrations; employees of public economic entities; employees of private law entities subject to public control; employees and collaborators of private companies that provide goods, works or services to the public administration. Employees can report a violation : – to the person responsible for the prevention of corruption and transparency, – the National Anti-Corruption Authority (ANAC), and – to the judicial or accounting authority. The law covers misconduct and ethical errors, including (but not limited to): criminal conduct; violations of codes of conduct; mismanagement of public resources; nepotism; 51 accounting irregularities; violations of environmental and occupational safety regulations, etc. The protection entails, albeit within certain limits, the confidentiality of the whistleblower’s identity. The main protection mechanisms also include: the reversal of the burden of proof on retaliation on the administration, the reinstatement of the employee whose dismissal has been found to be retaliatory, and a financial penalty against the author of the retaliatory act or conduct ranging from € 5,000 to €30,000 imposed by ANAC. A desk service is available to whistleblowers who report cases of unlawful conduct in their workplace. The reports are acquired through a dedicated software, which guarantees confidentiality, security and reliability of whistleblowers. ANAC has made the computer application used for the acquisition and management of reports of wrongdoing by employees (“Whistleblower” software) available for re-use by administrations and companies with a European Union Public License (EUPL), which allows free use without further authorization from ANAC. Focusing on the private sector, the law provides some mandatory whistleblowing requirements for those companies that have chosen (or choose) to implement a “231 Model”. In particular, companies must provide communication channels that allow the submission of reports based on precise and factual elements connected with crimes as listed in Legislative Decree No. 231/2001. These communication channels must guarantee the confidentiality of the whistleblower in the management of the report; in addition, at least one alternative reporting channel must be provided which guarantees – using ad hoc software – the confidentiality of the whistleblower’s identity; the 231 model must also prohibit acts of retaliation, direct or indirect discriminatory actions against the whistleblower for reasons connected to the report/alert. Sanctions must be introduced in the disciplinary system adopted with the 231 model, both for those who violate the whistleblower protection measures and for the whistleblowers themselves who make malicious or seriously negligent reports that turn out to be unfounded; discriminatory measures may be reported to the Labour Inspectorate and to the competent trade union organizations. In addition, discriminatory dismissals, job changes and any discriminatory measures taken against the whistleblower will be void unless the company can demonstrate that they are in no way related to the whistleblowing activity. EU Directive 2019/1937, which regulates the “protection of persons who report breaches of Union law”, is currently being transposed in Italy, introducing common rules aimed at ensuring the protection of employees who report wrongdoing or breaches (“Whistleblowers”) in the Member States’ legal systems. It should be noted that some large Italian companies, announcing a policy of “zero tolerance” towards fraud and corruption, have been pioneers in this field, having created protected channels of reporting with a guarantee of anonymity even before the entry into force of the above-mentioned law. With the support of Transparency International – Italy, they have recently voluntarily adopted an online whistleblowing platform that is more advanced than the tools currently in use and that conforms to the highest standards of confidentiality” (p. 50)
Internationalization of companies
“Formal adherence to the principles of the UN Global Compact such as those relating to respect for human rights, workers, environmental protection and the fight against corruption, is a necessary requirement not only for sustainable economic growth, but also for the affirmation of democratic and participatory principles and the elimination of discrimination and inequality” (p. 55)
ANNEX 1 – Accountability Grid and Assessment Tools for the Implementation of the NAP
“35. continuing the promotion and protection of human rights, with a proactive role of the Inter-ministerial Committee for Human Rights, in correlation with the priority lines introduced in the framework of the PNRR and the SNSVS, including – among others – issues such as anticorruption, non-financial information disclosure , supply chain, environmental issues, decent work and non-discrimination in favour of competing companies in public calls for tender and within contracts stipulated with companies for the purchase of goods and services, with particular regard to (i) Italian companies operating abroad; (ii) Italian companies using foreign suppliers; (iii) foreign companies” (p. 66)
(2) Measures of the Government as an Actor regarding State Duty to Protect Human Rights
A. Public Procurement
(Future measures planned）
(…)
Continue to promote measures to exclude organized crime groups from public works, etc in accordance with the Initiative on Exclusion of Organized Crime Groups from Public Works, etc. (Agreement by the Working Team on Comprehensive Measures, Including the Control of Organized Crime Groups dated December 4, 2009). [All Ministries]
CHAPTER TWO: SITUATIONAL ANALYSIS AND THEMATIC AREAS OF FOCUS
2.4 Revenue Transparency [Page 9-10]
Tax justice and the regulation of financial behaviour of companies can no longer be treated in isolation from the corporate responsibility to respect human rights, outlined in the UNGPs and business commitments to support the SDGs. Indeed, the SDGs include specific targets on reducing illicit financial flows (IFFs), returning stolen assets, reduction of corruption, and strengthening domestic resource mobilisation. In this respect, Goal 16 on the promotion of peaceful and inclusive societies includes specific targets on reducing illicit financial flows (target 16.4) [and] corruption (target 16.5). […]
The 2017 amendments to the Proceeds of Crime and Anti-Money Laundering Act, 2009 establish the Financial Reporting Centre (FRC), an independent financial intelligence agency charged with combating money laundering and identifying proceeds of crime including tax evasion. The Ethics and Anti-Corruption Commission Act, 2012 creates the Ethics and Anti-Corruption Commission (EACC) whose mandate is to combat and prevent corruption and economic crimes set out in the Anti-Corruption and Economic Crimes Act. The Bribery Act, 2016 seeks to address the supply side of corruption by placing a duty on businesses to put in place appropriate measures relative to their size, scale and nature of operations towards the prevention of bribery and corruption, and also requires any person holding a position of authority in a business to report any knowledge or suspicion of bribery within twenty-four hours. Kenya is also party to international and regional initiatives on combating bribery and corruption.
Despite the above efforts, the NAP consultations identified several challenges that affect revenue transparency:
Corruption in the process of revenue collection and the management of public revenue. Stakeholders identified corruption in the business licensing process, the process of tax collection and public procurement attributed to both public and private sector actors.
Lack of disclosure of contracts particularly those that have significant economic and social consequences.
Lack of transparency in administration and management of revenues from the exploitation of natural resources including from mining and oil and gas activities.
The absence of legal beneficial ownership disclosure aids the veil of secrecy in determining who owns and controls business entities inhibiting law enforcement’s ability to ‘follow the money’.
Objective 1: ensuring State’s duty to protect, defend and respect human rights [page 1]
“The Government has the obligation to ensure the above mentioned human rights in these areas. Government’s actions and measures include legislative instruments aimed at the development of a legislative framework providing for responsible business practices and elimination of corruption in the public sector.”
B. Anticorruption measures [page 2]
1. “Effective implementation of coordinated anti-corruption policy. The aim is to ensure proactive and effective fight against corruption, thus reducing the overall scope of corruption.
Draft amendment to the National Anti-corruption Programme for 2011-2014 was drafted by the Ministry of Justice of the Republic of Lithuania and adopted through the Resolution of the Seimas of the Republic of Lithuania of 3 December 2013. The revision and updating of this programme focussed particularly on key problems in certain areas of the public sector.”
E. Measures related to international obligations [page 4]
2. “Accession to the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. The aim is to create conditions for the ratification of the Convention following Lithuania’s accession to the OECD. To successfully accede to this Convention, criminal legislation must contain a special rule providing for the liability of natural and legal persons for the bribery of foreign public officials in international business transactions. The legislation must also prohibit tax deductions from money obtained as bribes, irrespective of this money being accounted for in accordance with applicable legal requirements.”
Objective 2: promoting corporate responsibility and respect in the field of business and human rights
B. Government measures encouraging business enterprises to secure respect for human rights [page 7]
2. “Competition of business initiatives on anticorruption. With regard to the fact that in 2003 on the initiative of the UN 9th of December was declared the International Anti-Corruption Day, in order to support anti-corruption initiatives each year the Ministry of Economy announces the competition of business initiatives on anti-corruption and subsequently awards the initiators for the most effective business initiatives on anti-corruption.”
‘Luxembourg’s NAP does not explicitly address this issue’
The 2020-22 NAP states the second edition of the National Action Plan complements the first NAP. Additional information about the first NAP can be found here.
“Criminal law includes penal provisions for the violations of specific RBC norms such as corruption, soil pollution, human trafficking and money laundering, as well as specific penalties for infringements of environmental legislation. In all cases the company’s duty of care is relevant to determining whether criminal liability has been incurred.” p. 73.
The Nigeria NAP provides a list of existing constitutional obligations, domestic legislation, internation obligations, and police and administrative steps. This breakdown only looks at the list of challenges and the implementation of the 3 pillars of the UNGPs.
PILLAR 3 – ACCESS TO REMEDY A. STATE BASED-JUDICIAL MECHANISM “State-Based Judicial Mechanism are faced with a number of challenges associated with general justice delivery in Nigeria. These challenges include, delay in the judicial process, overbearing political interference, lack of judicial independence, judicial corruption, low level of judicial awareness of the UNGPs etc. To address these challenges, the NWAGBHR shall carry out intensive advocacy to the Judiciary in order to effect the issuance of ‘Practice Directions’ that will facilitate speedy resolution of cases of human rights violations by businesses. There will also be a continues sensitization of judges and magistrates on the Action Plan. In addition, Alternative Dispute Resolution approaches will be encouraged.” (p.164)
1.1 Developing an International Framework for CSR [pages 12-13]:
There is an increasing trend for international organisations, individual countries and civil society to establish partnerships and cooperation with companies. The UN Global Compact is one such initiative. This is a network-based organisation that works with business enterprises. The enterprises are committed to aligning their strategies and operations with 10 principles in the areas of human rights, labour, environment and anti-corruption….
…The UN Guiding Principles are intended to promote more sustainable, socially beneficial economic development. Promoting human rights is directly and indirectly linked with environmental protection, climate and anti-corruption efforts.
2.2 The State as adviser [page 20]:
Many Norwegian enterprises operate in new markets in weak states with poorly developed legislation or a poor capacity to enforce human rights legislation. Such companies are requesting advice and cooperation on CSR and related subjects such as security, risks and corruption.
The NAP provides examples of measures taken to address this risk, which includes: [page 21]: “strengthen guidance and dialogue with companies on human rights, business ethics, security and corruption in especially demanding markets.”
…
Due Diligence by GIEK, Export Credit Norway and Innovation Norway [page 24]:
The information on the company and the project for which support has been requested is assessed on the basis of a red flag checklist and a checklist based on the 10 principles of the UN Global Compact and adapted to Innovation Norway’s mandate and target groups. The red flags are: risk of corruption, the nature of the company’s activities in low-cost countries, ethical dilemmas and environmental pressure from commercial activities. CSR scores reflect the level of CSR-related risk connected with the project or whether CSR may be a reason for giving the case priority. One of the conditions laid down in the contract with the client is that the enterprise must have high ethical standards and avoid contributing to corruption, human rights violations, poor working conditions or adverse impacts on local communities or the environment.
2.6 Human Rights in Conflict Affected Areas [page 26]:
Companies themselves have a responsibility to identify serious risks connected with areas that have been or are affected by conflict. There is an increasing demand from the business sector for dialogue and cooperation with the public authorities on security, risk assessment and corruption in conflict areas and demanding markets in these areas.
The NAP then provides examples of measures to address human rights in conflict affected areas [page 26], namely: “strengthen the dialogue with the business sector through the missions abroad on the risks associated with human rights violations, security concerns and corruption in conflict areas” and “strengthen project cooperation with the business sector on ethics, security and corruption.”
…
Responsible Business Conduct [page 32]:
Political unrest and conflict entail a particularly high risk of human rights abuses. Companies that operate in such areas should therefore exercise particular due diligence if they are to avoid becoming involved in such abuses. A typical example is abuses perpetrated by security personnel hired to protect the company. There is also a higher risk of corruption, illegal transactions, sexual abuse and other forms of violence against civilians.
CHAPTER 1: National Action Plan on Business and Human Rights
1.4. Coherence between the National Action Plan, Other Government Policies, and Pakistan’s International Commitments (Page 10)
‘Pakistan’s GSP+ Status […] was granted in light of and to support Pakistan’s efforts at strengthening compliance with the 27 core international conventions pertaining to human rights, labour, corruption and the environment […] and will be further strengthened through the protection of human rights in business activity. The NAP provides a strong framework to support Pakistan’s commitments under schemes such as GSP+.’
Chapter 2: Protect, Respect, Remedy Framework
Pillar I | State Duty to Protect Human Rights (page 12)
‘There are several other laws that specifically deal with the human rights of citizens with regards to protection from environmental degradation, corrupt practices, unlawful land arrangements, tax evasion, etc.’
Pillar II | Corporate Responsibility to Respect Human Rights (page 13)
‘Pakistan also has in place laws relating to corruption & bribery, protection of the environment, taxation, land arrangements, consumer protection and the right to information in the context of business activity.’
CHAPTER 3: National Action Plan Priority Areas and Proposed Actions
3.2. NAP Priority Areas
3.2.1 | Financial Transparency, Corruption and Human Rights Standards in Public Procurement Contracts (page 18)
‘As established during the NBA and consultative process, lack of financial transparency especially in relation to corruption and bribery are prevalent in Pakistan. These have a direct correlation with human rights as the lack of financial transparency contributes to money laundering, terror financing and tax evasion, which negatively impact social development programmes and human rights. Additionally, the nexus between corruption and the adverse impact on human rights needs to be explicitly highlighted in legislation and policies, and in the working of law enforcement bodies.
Various laws and regulations have been introduced by the State of Pakistan to curb corrupt practices and activities involving bribery. Similarly, enforcement mechanisms have also been established to ensure the effective implementation of the laws and regulations prohibiting corruption and activities involving bribery. […]’
Proposed Actions
Federal (page 18)
‘9. Pass the Whistleblower Protection and Vigilance Commission Bill 2019 to ensure protection of whistle-blowers disclosing information related to financial discrepancies and corruption.
Performance indicator(s): Enactment of the Whistleblower Bill
UN Guiding Principle(s): 1, 3
Relevant SDG(s): Goal 16 – Peace, Justice and Strong Institutions’
This information is also covered under Appendix I: Implementation Plan, Proposed Action 9 designating the Ministry of Human Rights and the Ministry of Law and Justice as Leading Entities (page 46).
’12. Further strengthen judicial processes and create awareness on issues related to Anti-Money Laundering/Counter Terror Financing (AML/CTF) to encourage financial transparency.
Performance indicator(s): Number of trainings on AML/CTF
UN Guiding Principle(s): 1, 2, 3, 25
Relevant SDG(s): Goal 16 – Peace, Justice and Strong Institutions’
This information is also covered under Appendix I: Implementation Plan, Proposed Action 12 designating the Ministry of Human Rights, the Ministry of Law and Justice and the Anti-Corruption and Economic Crime Wing (Federal Investigation Agency) as Leading Entities, and designating the National Accountability Bureau, the Securities and Exchange Commission of Pakistan, the State Bank of Pakistan, the Provincial Home Departments, the Provincial Law Departments, the Supreme Court of Pakistan, the High Courts, the District Courts, the Federal and Provincial Judicial Academies, the Federal and Public Service Commissions, the Anti-Narcotics Force, the Anti-Terror Courts, the Provincial Anti-Corruption Bodies as Additional Entities (page 46).
ANNEX II | Actions Already Undertaken by Pakistan
B. Measures Relevant to the NAP Priority Areas
i. Financial Transparency, Corruption and Human Rights Standards in Public Procurement Contracts (page 73)
‘Corruption in the public sector has been criminalised under various legislative instruments such as the Pakistan Penal Code 1860 and the Prevention of Corruption Act 1947.
The Local Government Acts and Ordinances, which apply at both Federal and Provincial levels, also provide guidance to public officials to ensure that their actions do not constitute corruption or misuse of authority.
The Eradication of Corrupt Business Practices Ordinance 1998 has also been promulgated to enforce anti-corruption laws against companies. This law criminalises any act of corruption carried out during business activity.
The National Accountability Bureau (NAB) has been established to ensure the enforcement of laws and to investigate and prosecute crimes of corruption. In recent years, the independence of NAB has been strengthened to ensure that all cases of corruption and financial misrepresentation are thoroughly investigated. In this regard, the Federal Investigation Agency, and the Federal Board of Revenue supplement the work of the NAB to ensure that criminal actions involving corruption are adequately addressed.
The Provincial Anti-Corruption Establishments have also been set up to investigate offences of corruption by public servants.’
CHAPTER II: THE BUSINESS AND HUMAN RIGHTS SITUATION IN PERU
In terms of transparency and integrity, it is necessary to have specific trade union instruments on the implementation of integrity and anti-corruption policies in the value chains. In this regard, the initiative to adopt codes of ethics and the explicit anti-corruption commitment adopted by associations such as Confiep should be highlighted. – page 37
CHAPTER III DIAGNOSIS AND BASELINE: ACTION AREAS
3.2. Conclusions of the specific issues
Transparency, integrity, and fight against corruption
In recent years, the conviction has been established that corruption cuts across different areas and has a direct and unacceptable impact on human rights. For this reason, the State has signed the main treaties on the subject, which it has been implementing in its internal regulations through a National Policy and a National Integrity and Anti-Corruption Plan. It has also created integrity offices or units at the central government level, which has made relative progress at the sub-national level. In terms of transparency, progress has been made with measures such as the mandatory presentation of the declaration of interests. On the other hand, it is also necessary to strengthen the autonomy and effectiveness of the National Transparency Authority. Likewise, it is necessary to strengthen the public procurement model to include incentives for companies that meet integrity standards, as determined by the evaluation of the state of the art of the GP-RBC approach in the public procurement system, which will be carried out within the framework of the implementation of the NAP.
From the business sector, there is an explicit commitment of the unions to articulate their efforts with public policy on the matter. Proof of this are measures such as the Technical Secretariat of the Global Compact, the incorporation of SDGs in business work, the Private Anti-Corruption Council, the Ethics Committee, the Code of Conduct, the participation of important business associations in the High-Level Anti-Corruption Commission, the Transparency Initiative in the Extractive Industry, among others. Regarding reparation mechanisms, progress has been made in incorporating the ad- ministrative responsibility of companies for corruption offenses, which should be complemented with expeditious and accessible reparation procedures and a system of precautionary measures or guarantees of non-repetition. – page 43
Table 8: NAP strategic guidelines and objectives, and alignment with the axes of the Peru Vision 2050
Strategic guideline No. 4: Promotion and design of due diligence procedures to ensure the respect of human rights by companies
Objective 2: Establish mechanisms for companies to report on their human rights due diligence processes.
74.
Action: Promote the implementation of compliance and corruption prevention mechanisms, considering the GP- RBC approach.
Background: It consists of generating spaces for discussion on the benefits of corporate compliance, as well as providing support to the business sector, both private and public, for the implementation of these corruption prevention schemes.
Indicator: Number of activities to disseminate and promote the measure. – page 109
Strategic guideline No. 5: Design and strengthening of mechanisms to ensure that those affected by human rights violations have access to judicial, administrative, legislative, or other means of redress.
Objective 1: Strengthen mechanisms at the state level to redress human rights violations in the corporate sphere.
90.
Action: Promote and encourage expeditious and accessible procedures for the redress of persons directly affected by serious acts of corruption or when their commission involves legal persons, incorporating the GP-RBC approach and, therefore, evaluating the inclusion of guarantees of non- repetition, apologies, and non-judicial mechanisms based on mediation
Background: Peru has made significant progress focused on sanctions, through the incorporation of administrative liability of companies for corruption offenses, as well as the establishment of a legal framework to ensure that companies involved in corruption cases comply with the payment of civil reparations.
Indicator: Number of activities to promote and encourage the aforementioned procedures. – page 121
Protection of whistleblowers. Implementation of Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law
[page 22]
“Pursuant to Order No 229 of the Prime Minister of 1 December 2020, (Official Journal of the Republic of Poland ‘Monitor Polski’, item 1112), the Minister responsible for labour has been appointed to carry out legislative work at the governmental stage to implement Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law. The following measures are planned: … 3) The need to change the status and definition of a whistleblower, mirroring the solutions adopted in the European legislations. The status of a whistleblower should be granted by virtue of the law itself, eliminating the need for the prosecutor to grant the status of a whistleblower (resulting in the creation of a quasi-witness institution in the proceedings). The primary function of a whistleblower should consist in acting in the public interest by disclosing – in good faith – all irregularities and threats in the workplace (not only corruption-related), while enjoying statutory legal protection for such activity.”
Appendix 2 (information of the Ministry of Foreign Affairs)
Recommendations
[page 47] “In their activities supporting Polish entrepreneurs, public procurement and development aid projects implementation, Polish foreign missions are guided by the following principles requiring them to: …. – avoid corruption-generating situations and regularly train employees in this area, particularly with regard to acceptable practices for maintaining social relations with business partners and accepting gifts in accordance with Polish and local laws and customs in the host country;”
Principle 1 – State’s duty to protect human rights
In accordance with its international commitments and national legislation, Slovenia will strive for the effective implementation of policies and measures…combating corruption. (pg. 9)
Principle 2 – States sets expectation for respecting human rights
Respect for human rights in the business sector is also required by the laws governing…the fight against corruption. (pg. 10)
Principle 3(d) – Non-financial reporting
In accordance with the Act Amending the Companies Act, which transposed Directive 2014/95/EU into the Slovenian legal order, large companies which are public-interest entities exceeding the average number of 500 employees must include a non-financial statement in the management report, containing information…relating to the fight against corruption and bribery. (pg. 23)
Principle 9 – Adequate domestic policy to meet HR obligations
Channeling development cooperation towards ensuring human rights is indirectly reflected in the…fight against corruption, endeavours to achieve responsible management of public finance. (pg. 31)
1 The State duty to protect human rights [page 11]
Criminal law provisions to protect human rights
“Sweden has a number of criminal law provisions for the protection of human rights regardless of the context in which an offence is committed, including in the business context. Through these criminal provisions Sweden also fulfils its international commitments in relevant respects. Examples include: …
Protection of property, against corruption, etc., through criminal liability for offences such as theft, robbery, fraud, extortion, receiving stolen goods, bribery, dishonesty to creditors and infliction of damage (Chapter 8–12, Penal Code).”
Annex: Measures taken [page 22-24]
The State as actor
“Corruption is a global problem and often plays a significant role in human rights abuses. International cooperation against corruption has become more intense and several important agreements have been entered into, including the United Nations Convention against Corruption, the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, and two Council of Europe conventions. Sweden attaches great importance to international cooperation against corruption and works actively to implement the conventions and spread knowledge about their contents to relevant parties. In 2010, Sweden took over the chair of the management group of the Business Anti-Corruption Portal. It has developed the Portal, in part through cooperation with the European Commission, to cover approximately 100 countries since the beginning of 2014. The information, which mainly targets the business community, is available in English, German, Russian, Chinese and Arabic. Sweden provides support to the Extractive Industries Transparency Initiative (EITI), which works to combat corruption in the mining industry. …
Like other state-owned companies, Swedfund International AB (Swedfund) and the Swedish Export Credit Corporation (SEK) are required to comply with the government state ownership policy for CSR, as described above. Moreover, Swedfund and SEK have social mandates specially adopted by the Riksdag. Swedfund is required to ensure that its investments comply with international standards and CSR principles, within clear and sound corporate structures that do not contribute to tax evasion, money laundering or terrorist financing. SEK is required to take account of conditions such as the environment, corruption, human rights and working conditions in its credit assessments.
Action by government agencies
“The Swedish Export Credits Guarantee Board (EKN) has been instructed in its appropriation directions to pursue continuous development of its work on human rights, working conditions, the environment, corruption and internet freedom, based on OECD recommendations in these areas (‘Common Approaches’ and ‘Bribery and Officially Supported Export Credits’). EKN also has instructions to ensure that its activities comply with, and information has been provided about, the OECD Guidelines for Multinational Enterprises, the principles of the UN Global Compact and the UN Guiding Principles on Business and Human Rights.”
Annex: Measures planned [page 27]
Regulations and legislation
“The interim report Implementation of the EU’s new accounting directive (Swedish Government Official Reports 2014:22) proposes enhanced transparency regarding payments made by some companies active in the extractive industry and in the logging of natural forests. The provisions will require companies to publish annual reports on payments made to authorities in the countries in which they operate. The aim is to combat corruption.
The EU has adopted a Directive amending the Accounting Directive on disclosure of non-financial and diversity information. Corporate disclosure of sustainability and diversity policy (Ministry Publications Series 2014:45) proposes that certain companies prepare a sustainability report providing information on, for example, respect for human rights and anti-corruption activities. It is also proposed that the corporate governance reports of certain listed companies disclose the diversity policy that applies to their board.”
2 National Action Plan on Business and Human Rights 2020-23
2.2 Pillar 2: the corporate responsibility to respect human rights
The growing interdependence of businesses resulting from their involvement in global value chains has pushed issues such as working conditions, human rights, corruption and the environment to the top of the political and social agenda.
Guiding Principles 1 to 3
Measure 5: Multi-stakeholder initiatives on business and human rights
The federal government also backs multi-stakeholder initiatives that focus on human rights issues in sectors such as textiles, cocoa and gold. As these initiatives cover other subjects such as corruption and the environment, they are dealt with in Measure 10 of the 2020–23 CSR [Corporate Social Responsibility] Action Plan.
Objective
Indicator
Responsibility
Support multi-stakeholder initiatives on business and human rights
Federal government support for at least two projects launched as part of multi-stakeholder initiatives.
FDFA [Federal Department of Foreign Affairs],
EAER [Federal Department of Economic Affairs, Education and Research]
Voluntary commitment to implementation of international covenants (page 6)
‘The Taiwan government has committed to fully implement human rights both at home and abroad. […] although Taiwan is not a member of the United Nations, it has nevertheless signed and ratified important United Nations human rights covenants in recent years, including the […]”Convention against Corruption.”’
Business-related human rights safeguards in Taiwanese legislation (page 7)
The Taiwan government has already incorporated the […] “Convention against Corruption,” and other such UN covenants and conventions into domestic legislation, so they can be directly applied as Taiwan law.’
V. Access to remedy
B. Actions taken
Actions taken
Extraterritorial jurisdiction (page 18)
‘With respect to any human rights abuses that occur overseas, Taiwan already has laws and regulations which provide that such abuses are subject to the jurisdiction of Taiwan’s judicial authorities no matter where the abuses have taken place. For example, if a responsible person or an employee of a company […]offers a bribe to a public servant from Taiwan or a foreign nation in connection with cross-border trade, investment, or other business activities (as referred to in Article 11 of the “Anti-Corruption Act”), the offense will be subject to the jurisdiction of Taiwan’s judicial authorities regardless whether the offense is punishable or not under the law of the land where the crime is committed.’
Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect
Taiwan’s commitment to human rights and international participation (pages 23-24)
‘The “Act to Implement the United Nations Convention against Corruption,” which entered into force on 9 December 2016, was enacted in response to international trends and challenges in the fight against corruption. Our government issues periodic reports on the state of Taiwan’s implementation of the UN Convention against Corruption.’
Appendix 3: Concrete actions taken by Taiwan to provide effective remedy systems
Extraterritorial jurisdiction
Article 11 of the “Anti-Corruption Act” provides that a public servant who offers (in connection with cross-border trade, investment, or other business activities) to bribe a public servant from Taiwan, the Chinese mainland, Hong Kong, or Macao shall bear criminal liability, and the offender will be dealt with according to the provisions of the “Anti-Corruption Act” regardless whether the offense is punishable or not under the law of the land where the crime is committed.
Uganda has been consistently attracting the highest foreign direct investment (FDI) in East Africa by attracting between $250 – 300 million in FDI annually between 2010 and 2016 – largely due to its stable and consistent macro-economic policies including liberalization of business environment and tax incentives to investors in selected sectors like manufacturing, oil and gas and Energy (URA, 2019; a Guide on Tax Incentives/Exemptions Available to the Uganda Investors).
Stakeholders, particularly national business owners’ and private providers, noted that tax exemptions were not provided transparently and they were provided to large or foreign companies, making the State to lose needed revenue and causing unfair competition between those who receive and those who do not. The participants also noted that if tax exemptions/ tax incentives are to be granted, the business owners should demonstrate that the exemptions/ tax incentives are justified and their implementation will ensure deliberate, concrete and targeted steps to guarantee protection and fulfilment of human rights, particularly through employment creation and delivery of social services thus improving lives of the Ugandans. In addition, the exemptions should be monitored, their social benefits and the human rights compliance periodically assessed. The assessments should be informed by broad public participation, especially of individuals that are directly affected.
Revenue transparency particularly revenue in the extractives sector has become an increasing concern to the public. There has been a wider call for resources justice through arrangements such as Publish What You Pay (PWYP), the Natural Resources Charter, Extractives Industries Transparency Initiative among others. The NAP consultations enlisted several challenges that affect revenue transparency. There is an inflow of investors opera ng in the districts but without licenses from the district authorities. This was typically raised in Karamoja region where many business owners in the mining sector emerge with mining licenses purportedly from Kampala and do not contribute any taxes to the local government authorities. This has led to reduction in local revenue collection as well as affected social service delivery to the communities.
Corruption is one of the major challenges leading to violation of human rights in business operations in Uganda. Many business operators reported corruption in procurement, acquisition of licenses and tax collection. Imprudent utilization of tax and other resources through corruption undermines positive outcomes of businesses in Uganda. This weakens the economic and social efforts of the government to provide services and even further discourages transparency in matters of business operations.
The UK 2016 Updated NAP refers to corruption in the section on Actions Taken to Support Business Implementationof UNGPs [page 16]:
“To help businesses to fulfil their responsibility to respect human rights the Government has: (…) (viii) continued to provide financial support to the UN Global Compact, a global mechanism that encourages and enables companies to align their operations and strategies with ten universally accepted principles in the area of human rights, labour, environment and anti-corruption.”
Section III:Additional National Action Plan Commitments
…
Table 1: Expanding Engagement and Coordination on Responsible Business Conduct Commitments
“Under the Global Initiative to Galvanize the Private Sector as Partners in Combating Corruption (GPS), State’s Bureau of International Narcotics and Law Enforcement (INL) will develop tools for increasing integrity in due diligence. These tools will support harmonization and streamlining of anti-corruption, human rights, labor, and environmental due diligence processes.” (p.17)
Anti-Corruption (p.37-39)
“Globally, corruption saps economic growth, hinders development, destabilizes governments, undermines democracy, and provides openings for dangerous groups such as criminals, traffickers, and terrorists. The USG coordinates across the globe to prevent graft, strengthen investigation and prosecution of corruption, promote transparency and accountability, and empower civil society and independent media to expose corruption and advance reforms. This makes it harder for criminality and terrorism that affect U.S. security to take root and spread; promotes more democratic, stable governments as partners for the United States; and levels the playing field for U.S. businesses to compete internationally. The following commitments reflect the U.S. whole-of-government approach in addition to those detailed in the U.S. Strategy on Countering Corruption.
Table 7: Anti-Corruption Commitments
Treasury’s Financial Crimes Enforcement Network (FinCEN) will advance a rulemaking effort to increase the transparency of the U.S. real estate sector. On February 7, 2024, FinCEN issued a Notice of Proposed Rulemaking that aims to address the systemic money laundering vulnerabilities associated with the U.S. real estate sector and, consequently, the ability of illicit actors to launder, store, or move criminal proceeds through purchases of real estate. This effort aims to increase the transparency of the U.S. real estate sector, making it more difficult for illicit actors – including corrupt officials, criminal organizations, drug and human traffickers, and others – to launder, move, or store ill-gotten gains through the misuse the U.S. real estate sector.
Treasury will continue to implement the Corporate Transparency Act (CTA) to enhance beneficial ownership transparency for legal persons in the United States. The continued implementation of the FinCEN rule on beneficial ownership information reporting provisions and the revision of FinCEN’s 2016 Customer Due Diligence Rule will aid in the implementation of the CTA and strengthen beneficial ownership transparency for legal persons, such as shell and front companies, in the United States to prevent their misuse by illicit actors. On January 1, 2024, FinCEN launched a beneficial ownership filing system pursuant to the CTA. Under this new framework, many companies operating in the United States are now required to report information to FinCEN about their beneficial owners – in other words, the real people who own or control them. This effort will make it more difficult for illicit actors – including corrupt officials, terrorist financiers, criminal organizations, and drug and human traffickers – to misuse opaque corporate structures like shell companies to launder the proceeds of crime.
State, in partnership with OECD and under the GPS, will hold a Trusted Dialogue Series on Getting Influence Right. This effort aims to identify core principles of responsible corporate political engagement and produce a set of guidelines, Principles on Responsible Political Engagement for the Private Sector, which will clarify what policies could be implemented to manage and prevent conflict of interest, ensure integrity in lobbying practices and political financing, and uphold the transparent and neutral use of data to inform advice to policymakers.
State, in partnership with the OECD and CoST – the Infrastructure Transparency Initiative and under the GPS, will support the implementation of a new Infrastructure Anti-Corruption Toolbox (IACT) containing a wide range of tools and activities to prevent and detect corruption in infrastructure. The toolbox focuses on four areas: knowledge creation, capacity building, public-private cooperation, and enhancing accountability. With IACT, State will advance the Blue Dot Network to help infrastructure project stakeholders, including those in government, private sector, and civil society, to better comply with anti-corruption standards. In addition to the work with OECD, State will use the GPS platform to better integrate private sector input on anti-corruption challenges and potential solutions to inform the work of the USG in foreign assistance as well as policy and multilateral priorities.
Treasury will assess and address the illicit finance risks associated with key financial gatekeepers – such as accountants, lawyers, real estate professionals, investment advisers, and trust and company service providers – and consider potential steps to address these risks. Certain types of financial intermediaries, gatekeepers, and other professions or sectors are not covered by comprehensive and uniform Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) obligations and face varying levels of illicit finance risk exposure. This assessment and subsequent action are meant to address the uneven application of AML/CFT measures to key gatekeeper professions and sectors and work to address those risks. On February 7, 2024, Treasury released its 2024 Money Laundering, Terrorist Financing, and Proliferation Financing Risk Assessments, which discuss these issues. In addition, on February 13, 2024, Treasury issued a sectoral risk assessment of the investment adviser sector.
Under the GPS initiative, State will support a peer learning community on incentivizing compliance. The community will discuss the challenges faced when governments incentivize anti-corruption compliance programs and identify good practices and other solutions that both governments and companies can use to improve corporate compliance efforts.
In partnership with the UN Office on Drugs and Crime (UNODC), State will leverage regional anti-corruption hubs in Mexico, Colombia, Kenya, and Thailand to support anti-corruption reforms. Through the hubs, UNODC and State will provide technical assistance for implementing the UN Convention Against Corruption and other reforms that will level the playing field for businesses operating with integrity.
Under GPS, State will support a new effort, Tech Connect for Integrity. The effort matches data or information technology expert(s) from the private sector with their counterparts in the integrity, anti-corruption, or accountability community (e.g., anti-corruption agencies, supreme audit institutions, or internal audit functions). Together, the peers will identify opportunities to strengthen data-driven approaches for preventing, detecting, and mitigating the risks of fraud and corruption.”
