There is a business case for anti-corruption regulations: Martin Kreutner

Anti-corruption measures need ownership and participation by the corporate business sector

Austria-based International Anti-Corruption Academy (IACA) is a United Nations-recognised intergovernmental organisation that specialises in providing anti-corruption education and is doing research in the field. Martin Kreutner, dean and executive secretary, IACA, discusses with Sudipto Dey recent trends in anti-corruption regulations across countries.

Edited excerpts:

How have anti-corruption regulations evolved globally in recent years?

The international anti-corruption movement is relatively young and became more or less established in the 1990s. It became commonly accepted that there was a need for international cooperation to address this issue. This led to the United Nations Convention Against Corruption (UNCAC), the only legally binding anti-corruption agreement, which become effective from 2005. This created a global (anti-corruption) constituency, to which 181 (of the 193 members of the United Nations) are parties. The UNCAC is a globally accepted international framework that has provisions for corruption in both the public and private sectors. It calls upon member states to recover assets. This is the only convention in the entire UN family that has the mechanism to allow members to review and scrutinise each other.

Often there is this question about whether the glass is half full or half empty. When it comes to raising international awareness about anti-corruption measures, I feel the glass is half-full. We have achieved a lot in the past 20 years. We need to gain ownership of the corporate sector as eventually anti-corruption has a business case also. 

How do you build this business case around anti-corruption regulations and measures?

That anti-corruption has a business case is a feeling that may not be common but is growing. A corruption-free business model has a market (among corporations). A few years ago the corporate world was involved in drafting and accepting the Sustainable Development Goals (SDGs) for 2030. Of the 17 goals, one of them is to fight and combat corruption and bribery in all their forms. I would argue all the 17 goals will be severely undermined if we don’t challenge corruption. The SDGs open a business case of more than $20 trillion globally over the next 15 years.

There is a global demand for a corruption-free environment. What we have to do is to address the supply side. There is a growing awareness that corruption undermines public trust, public service and even businesses. However, we cannot expect results in a few months. This is something we have to work on for years, or even decades. How long did it take the human rights agenda to be more or less commonly accepted? 

What is your impression of Indian business’ buy-in on the anti-corruption agenda? 

We had a meeting with members of the Confederation of Indian Industry (CII). My understanding is they know the problems and the necessity to do something about them. Compliance (with anti-corruption measures) should not be seen as a cost. It needs ownership and participation by the corporate business sector.

Two anti-graft laws, the US Foreign Corrupt Practices Act, 1977, and the UK Bribery Act, 2010, have had a profound effect on many businesses globally. Would it help India’s anti-bribery agenda to have similar over-arching legislation with an international outreach?  

The impact of the US and UK laws has been very big. Over the past three to five years several countries — most recently Brazil — have come up with similar legislation with an international outreach. My understanding is that India is also thinking on those lines. It sends a message and creates a level playing field. However, the downside is that the international community has not been able to come up with a piece of legislation that sets a global standard. Transnational corruption cases follow national legislation. 

Will the rise of protectionist forces have any impact on the global anti-corruption agenda?

I am afraid it will. Some call it the upcoming crisis of international cooperation, and this may impact the global anti-corruption agenda.