ACTIONS FOR COMPANIES
Report on the whole of your ethics and anti-corruption programme publicly. For the 85 companies in Bans D to F, we suggest analysing why there is such limited evidence of ethics and compliance systems, and putting in place substantive improvement plans.
Encourage your Board Chair, the rest of the Board, the CEO and senior executives to speak up strongly on your zero tolerance of corruption in the company and the sector. There is much scope for more visible external leadership and for multi-country collaboration. We recommend that all defence companies actively support and join IFBEC, the new global defence forum for good business and ethical conduct.
Improve how your Board reviews the effectiveness of the overall anti-corruption programme. This includes instituting both internal and external review of company-wide ethics and compliance performance.
Strengthen your corruption risk assessment process, and test it against the good practice examples found in the Part II TI report on good practice.
Ensure your company has robust processes for flowing down the ethics and anti-corruption programme to all third-party representatives including partners, sub-contractors and agents.
Review and improve your training practices, especially for staff in exposed positions like sales and government relations. Refer to the good practice examples found in Part II of the TI report on good practice.
- Improve your processes for following up whistle-blowing complaints – the experience of many is that they work well on paper but not in practice. Further, staff should be encouraged to raise matters before the offence takes place.
ACTIONS FOR GOVERNMENT DEFENCE PROCUREMENT CHIEFS
Make this good practice report available to your current and prospective defence contractors. Require that the contractors see if they can incorporate these practices into their own anti-corruption policies and processes.
Consider using these seven questions—and related model answers—as a requirement for bidders to respond to as part of their pre-qualification.
- Give consideration to applying the Defence Companies anti-Corruption Index (CI) methodology to all their national defence contractors.
ACTIONS FOR INSTITUTIONAL INVESTORS
Investors desire to protect their investment. It is in their interest to assess the companies in which they invest.
Encourage all the defence companies in whom they invest to be public about their anti-corruption measures, and to sign up for public reporting vehicles such as the Global Reporting Initiative.
Insist that the companies adopt independent external review of their anti-corruption programmes, and to publish the results of the findings.
- Ask the CEO and the Chair of the Board to explain personally what their ethics and compliance systems are, and why they do not rank higher in this assessment.
ACTIONS FOR CIVIL SOCIETY
Civil society has the opportunity to use this study to drive change and improvement across the industry.
Campaign for better public disclosure by all defence companies in your country. Use this study as the evidence base for what should be expected of all defence companies.
- Meet the CEOs of the defence companies active in your country and discuss this report with him/her; suggest a collaborative campaign to make this sector the most transparent industry sector in the country.
Assess corruption risks in countries of operation
Companies can use tools such the 2013 Governments Defence Anti-Corruption Index (GI) to assess corruption risks in 82 countries. The GI focuses on those risks which are directly related to defence and security.
Good practice in defence companies
In an effort to raise anti-corruption standards in the industry TI-DSP has launched a good practice report which illustrates over 100 examples of good practice present in defence companies around the world. We encourage companies to utilise this study to institute positive change.