In Berlin with Transparency International

by admin on November 22, 2007

in Featured,General,Tax and Ethics

I’ve been in Berlin this week, visiting with Transparency International, SAP’s CSR team including James Farrar, Redmonk’s James Governor and SAP solutions architect Thomas Otter. ‘Our’ side of the team presented on the value that using Web 2.0 technologies might bring this NGO. Since I know they have a stronger focus on government than business, I was keen to emphasize the role Richard Murphy has played in shaping opinion around the non-dom tax issue and how that has changed since he started blogging (as an example.) I also spoke about the question of relevance in the wider conversations around topics of importance and especially the ethical debate which I believe is a central issue for the profession. James Governor did an admirable job explaining the value of ‘going open’ with content.

To give you a flavour of what this means, James Farrar recently reported on a meeting he had at the House of Lords and which he entitled Corruption in the UK not UK and WIKILEAKS:

I see corruption as the sharp end of the sustainability debate and a huge, clear and present governance risk for business under current law mostly oriented around the US Foreign Corrupt Practices Act and nation states ratifying the 1997 OECD Convention. Actually, if the corruption problem can be understood and fixed from both demand and supply perspectives a lot of other good things start to fall into place.

Powerful stuff. Cobus de Swardt, TI’s managing director attended. That was a welcome surprise for me because I take it as an indication of how important TI sees new technology in the context of communicating its message and maintaining its influence in the world.

I also met Jermyn Brooks, TI’s director of private sector programmes and who in a past life was with PwC. Jermyn and I had an interesting discussion about one of my pet issues: the Big Four’s litany of failure to exercise their proclaimed public duty as auditors. Jermyn questioned whether the current levels of Big Four partner income are commensurate with the value they deliver. As you might imagine – those were lively conversations.

While I am not entirely aligned with TI’s position on corruption, (I don’t see them as taking as tough a position on business as I’d like) the people I met are first class thinkers making powerful arguments. These topics are intellectually challenging but have the potential to make a huge impact on business and civil society in general. Regardless of our differences, there is no way I was going to pass up the opportunity to share my opinions. TI was gracious in listening and I found the discussions both useful and stimulating.

SAP’s involvement? There are no standard business processes for managing issues around corruption. Working alongside NGOs like TI provides SAP with the necessary insights to do something about that and deliver to some of the world’s most important companies. Regardless of the commercial considerations, that has the potential to be win-win-win for everyone.

TI will now consider what we said. I hope they will choose to act upon the ideas we presented because the issues we skated over are some of the most difficult yet important the profession has to face. Bringing those debates to a wider audience yet being brave enough to risk the inevitable exposure will not be an easy decision.

Technorati Tags: , , ,

Comments have been disabled for this post.
Sort: Newest | Oldest

Dennis - you are totally right. There is one very famous and open example of a company very publicly taking such a decision based on risk alone . ...'' the US acquisitions had to be made in cash as GEC was not compliant with the US Foreign Corrupt Practices Act and so could not list in the US. We had to ensure that Marconi's business practices were absolutely beyond reproach and it's accounting records were compliant before we could list in the US and offer securities to US Investors''. John Mayo, CEO GEC Marconi, Financial Times, Dec 24, 2001.

I don't think Jermyn will mind me recalling his ready reckoner:10% will do the wrong thing no matter what you say, 10% will always do the right thing, 80% stumble around not knowing really how to manage the issue properly and so need information, peer support, tools etc.

Even getting another 10% into the 'always do the right thing' margin is a significant achievement andworth the incremental effort.

@James: with regards to the TI Business Principle - sure - and yes, penalties can be severe. However, as we both know, signing up for something and doing something about it are 2 very different things. It seems companies often take deliberate risk based decisions that reflect the extent to which they're prepared to 'push' what is right and what is wrong. Having processes in place adds business value.

James

If TI would like to meet Tax Justice Network to dsicuss our concerns on the CPI it would really help.

I was in Brussels yesterday addressing Concord, the EU NGO coalition. The idea that Switzerland is the 8th cleanest country in ther world caused some amusement, and much concern.

On the ground in Africa and elsewhere there is considerable concern that the CPI is giving out the wrong message - that corruption is an African problem. Of course there is a corruption problem in Arica. But the supply side is in London, Switzerland, Luxembourg, Jersey, Cayman, and so on. And the supplires can be named - they're bankers, lawyers, accountants.

We desperately need an index that looks at the supply side of corruption as well as the demand side.

Can we discuss this with you?

Please call. +44 (0) 1366 383500 or richard.murphy(at)taxresearch.org.uk

Richard Murphy

Thanks again coming to Berlin and sharing your insights - you were really inspirational . You helped to shape ideas that will reverberate and hopefully lead to huge impact from future TI campaigning efforts. The only point you made in your post that I question is the lack of business processes for managing corruption. Civil and criminal penalties are very severe, under US Foreign Corrupt Practices Act most notably. In deciding whether to prosecute and in deciding penalty, management system track record, and thereby business process, matters. Under Jermyn Brooks' leadership, the TI Business Principles signatories and it's steering group have done great work to design risk management processes and self evaluation tool kits. There is also ongoing collaborative work between the corporate community together with TI, World Economic Forum, UN Global Compact and the International Chamber of Commerce. (such efforts BTW in humble opinion just cry out for web 2.0 open collaboration)

But I will leave that to the TI team to tell us about all these great efforts and their significance as they set up their own community and use social media to move this topic further into general business and IT management discourse.

Meanwhile another interesting and lively debate on corruption has emerged on Spend Matters. http://www.spendmatters.com/index.cfm/2007/11/28/... I tried to link you but failed.

@Richard: thanks - appreciated.

@alan: thanks for your comments and glad to hear our discussions have stimulated fresh thought and action.

This morning I shared breakfast with Peter Wilkinson and it's now clear to me there is a communications gap in the way *I* perceive TIs stance on corruption in business and my own position. I'm sure that will get fixed over time and open up ways through which we can each learn something new.

The joy of this media is that *if we choose,* we can use it to find pathways through which to navigate differences. Yay!

My novice blogger-ness, here's the right link; www.corruptionandtechnology.blogspot.com
alan

Dennis
Nice to read your perspective on the meeting yesterday. I can't speak on behalf of TI or those others present, but I found the discussion interesting and invigorating.

Conrad and I started kicking around some ideas last night as to how TI can start "going open”, and the young guns of TI are meeting next week to try and gather all of the ideas that flow from the meeting.

Certainly, the discussion gave me the confidence to go back to a cruddy auld blog I started ages ago at www.corruptionandtechnology.blogspot.com. I noticed that there was almost nothing on the use of technologies and new ways of working to tackle corruption. I only managed to get as far as two posts and then fell back under the kosh of the day job…I’ll start again looking for those 15 people (not the 15 minutes).

On your alignment with our work...I suspect that maybe you are aligned with our position on corruption (i.e. it is terribly bad), just that you question the "constructive engagement" way we work with business. You won't be surprised to hear that in ahe TI movement as a whole, debate and conversations continue on that subject.

Anon.
alan

Dennis

You're a star!

Thanks for the work you're doing, and for having the courage of your convictions

Cheers

Richard

Previous post:

Next post: