1. Companies’ Assessments of Anti-Corruption Compliance

The paper stresses that over the last decade companies across the world have been actively implementing compliance programs trying not only to meet the legal requirements but also to mitigate the risks associated with corruption offences. However, the adoption of these programs as such is only the first step that should be followed by assessment of effectiveness of their implementation so as to make sure that compliance programs actually do contribute to preventing offences.

The outcomes of assessments can serve as :

• Grounds for mitigating sanctions against the organization in case it commits an offence or even exemption from liability and, as a consequence, for mitigating the reputational damage;
• Justification of the economic expediency of compliance programs as a means for a proactive and consistent fight against corruption;
• A way for showcasing the effectiveness of the effort to prevent offences;
• Foundation for amending compliance programs with the aim to enhance their effectiveness.

The authors of the document stress that the assessment of compliance programs is a complex task that requires:

1. Defining the objectives of implementation of compliance programs (for example, to mitigate corruption risks, change the behavior of the staff) and expected results;
2. Using behavioral approach implying the analysis of not only of the respect for formal rules but also of the actual attitudes and behavior of the employees;
3. Assessing the degree of engagement of the management, both at the top and middle tiers in fostering anti-corruption culture of the employees of different units;
4. Collecting raw data also through surveys and behavioral research (for example, in order to track progress in ethics, Novartis undertakes an annual global survey among its employees);
5. Using quantitative (for example, the number of the employees who have undergone anti-corruption training) and qualitative (for example, change of attitudes) indicators;
6. Using modern technologies, in particular, artificial intelligence (AI)  the employment of which in analysis can facilitate the detection of latent risks and trends: for example, Anheuser-Busch InBev uses the platform BrewRIGHT based on AI to analyze transactions, and  Ericsson employs its own application to monitor compliance indicators in real time;
7. Conducting internal and external audits;
8. Exchanging experience, expertise and knowledge among companies, participating in collective initiatives and analyzing the best anti-corruption practices in the industry.

However, the document stresses that in conducting assessments, companies encounter certain challenges such as lack of resources, including human ones, and difficulties in measuring the results. In this regard, the authors of the document recommend:

• Strengthening cooperation among the business community, the State and civil society organizations that can include the measures for exchanging experience, expertise and knowledge, conducting training for the experts in the field of assessment of compliance programs, developing common assessment criteria etc.;
• Developing scientifically based assessment criteria that would provide opportunities for objectively assessing compliance programs;
• Using modern technologies that make it possible to enhance both the effectiveness and transparency of assessment.

2. Governments’ Assessments of Corporate Anti-Corruption Compliance

The document highlights that the State does not only expect that companies simply adopt compliance programs but that their effectiveness is ensured with the aim to mitigate corruption risks and promote the principles of integrity.

However, the authors of the report stress that, as of now, only four countries (Brazil, France, the United Kingdom and the United States) have developed the nation-wide guiding principles for companies’ compliance with anti-corruption legislation, as well as the methodology of assessment of the compliance programs implemented by them. It is the assessment of compliance programs that allows public bodies not only to make sure that they are actually implemented but also to incentivize those companies that demonstrate their real commitment to the principles of integrity.

As per the document, an effective compliance program should have the following characteristics:

• Be implemented with the support of the top management;
• Stem from the outcomes of risk assessments;
• Cover such areas as: measures for preventing and detecting corruption offences, policy for eliminating and mitigating corruption risks, procedures for investigating corruption offences, mechanisms for disclosing information about violations, procedure for repairing the damage inflicted, interaction with third parties etc.;
• Provide for due supervision of respect for the provisions of the compliance program;
• Take account of the need to implement the incentives for the respect for anti-corruption provisions, reports of violations;
• Provide for training and awareness- raising initiatives on anti-corruption and promotion of the principles of integrity;
• Establish the rules of monitoring of effectiveness of the compliance program.

Public bodies often lack resources, including human ones, for independent assessment of corporate compliance programs. In order to build their capacities in the area, the authors of the paper suggest:

• Engaging independent experts in conducting assessments;
• Creating dedicated units for assessing corporate compliance programs in the authorized public bodies;
• Using digital technologies, including AI, to analyze bid data.

Additionally, in order to enhance the effectiveness of compliance programmers the authors of the report recommend that governments:

• Align the norms and guiding principles on compliance, as well as relevant criteria and methods of assessment of compliance programs with each other, ensure their standardization and homogeneity also in close cooperation with other jurisdictions;
• Oversee the enforcement of domestic anti-corruption laws applicable to the private sector;
• Provide organizations with incentives to implement effective compliance programs, in particular, tax benefits, reduced loan interest rates, facilitated access to public procurement, mitigation of responsibility in case of commission of offences;
• Strengthen the mechanisms of public-private partnership for 1) developing jointly innovative approaches towards compliance though the use of digital technologies, 2) drafting guidance taking account of the feasibility of the requirements to compliance programs; 3) providing guidance on and raising awareness about developing, adopting and assessing compliance programs in line with the expectations of the public regulators among the representatives of the private sector;
• Normalizing the exchange of information about the fight against corruption both between the public regulators and the public and private sectors;
• Analyzing the potential of monitoring, other assessment initiatives, and measurement of the impact for assessment of compliance programs;
• Provide the small and medium enterprises with individual support in assessing their compliance programs;
• Promote public awareness-raising in general also by launching curricula on ethics and anti-corruption, fostering the principles of integrity among the population.