You are here: Home » PTI Stories » National » News
Business Standard

Norway wealth fund tells companies to fight corruption

Business Finance

AFP  |  Oslo 

Norway's sovereign wealth fund, the world's biggest, today told the 9,000 firms that it owns stakes in to boost their anti-corruption measures, including by offering whistleblowers better protection against reprisals.

"We expect all companies we are invested in to have effective anti-corruption measures in place," fund chief Yngve Slyngstad said in a statement.

"Companies should have a whistleblowing mechanism that provides a separate and confidential escalation route when reporting through a line manager is not appropriate, or if the whistleblower wishes to remain anonymous," the fund said.

The Norwegian wealth fund, which has more than $1 trillion under management, regularly pushes companies in its portfolio to adopt more ethical practices, and often divests if they fail to do so.

Corruption costs the world around two percent of its wealth each year and hampers fair income distribution, the International Monetary Fund said in a 2016 report.

Kickbacks total between $1.5 and $2 trillion per year, the IMF said, the equivalent of the gross domestic product (GDP) of Italy or India.

The Norwegian sovereign fund, tasked with managing the country's oil wealth, is currently worth 8.128 trillion kroner ($1.028 trillion).

It is managed by the Norwegian central bank and follows ethical guidelines that prevent it from investing in companies that are guilty of serious human rights violations, make nuclear or other "particularly inhumane" weapons, produce coal or make tobacco products.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 13 2018. 16:30 IST