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Pension funds ask for bribery data from companies

2010

A $1.7trillion (£1.1tn, €1.3tn) coalition of investors is trying to force companies to come clean on their bribery and corruption management policies following a string of bribery scandals among multinationals.

The 20 pension fund investors and fund managers, which are all signatories to the UN Principles for Responsible Investment, have asked 21 firms from eight sectors, including defence and construction, to explain whether their anti-corruption management systems follow international frameworks developed by the International Corporate Governance Network (ICGN) and UN Global Compact.

Organizations including Hermes, Henderson Global Investors and Sweden’s AP government pension funds, want the businesses to reveal the measures they have in place to combat corruption in their operations. The companies have not been named.

George Dallas, director of corporate governance at F&C Management, a member of the coalition, said: ‘As investors we believe that bribery and corruption are incompatible with good corporate governance and harmful to the creation of value. Therefore we expect the companies that we invest in to have robust programmes to manage corruption in their firm and supply chains, and to ensure those programmes measure up to respected international standards.

‘The absence of such a programme or the failure to regularly monitor the management of these risks has the potential to create financial, operational and reputational risks.’



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