what is corruption

www.transparency.org

Is any Invitation corrupt? Transparency International GGGS-Workshop Cyprus

December 1, 2012

Overview

What is Corruption?

Conflicts of interest

Undue Advantages

Cases

What is Corruption? Definition

Transparency International:

Corruption is the abuse of entrusted power for private gain.

Ethical behavior is more than not committing a criminal offence

Any decision shall be based on objective criteria – not on personal interests/advantages

What is Corruption? henomenon

Bribe payer and bribe taker

Two different actions and spheres

Difficult to detect and to prove

No obvious victim/damage

No sensibility for harm done by corruption

Peccadillo („Kavaliersdelikt“)

What is Corruption? Phenomenon

Slow development

Step by step into dependence

Be aware of risky behavior

Discussion started but in the 90ies

The Siemens case 2006 and

VIP-Tickets World Cup Germany 2006 as example

Perception of „corrupt behaviour“ has changed

Sport organizations have to take that into account

Conflict of Interest

Definition:

Conflict between personal interest (material or immaterial) and interest of the organization

Can happen as well between interest of two different organizations represented by the same person

Can happen quite frequently

Even impression can damage reputation

Decisive: Policy to deal with it – Avoid any mixing of interests


Guidelines conflicts of interest

Clear regulation re – Transparency

– Information (disclosure to whom?)

– Documentation

– How to deal with decision making (abstain)

Avoid any impression of undue influence onto decision-making process


Guidelines Conflicts of interest The decision-making process shall be free from any personal

/private interests. Even the impression of mixing personal /private interests of volunteers or paid staff with the interests of the „XXX“ can harm the reputation and shall be avoided.

A potential conflict of interest shall be disclosed towards the respective body or the subordinated body/representative.

If a conflict of interest exists the conflicted person cannot take part in the decision including the discussion beforehand.

The handling of a - potential - conflict of interest has to be documented in the minutes/files.


Example FIFA:

Joseph Blatter - FIFA-President

Philippe Blatter (Nephew) - CEO Infront Sports & Media AG

FIFA approves contract on TV-rights with Infront

Conflict of interest?

Who?

What is needed?

Undue Advantages

Corruption is not just giving/accepting money to influence a decision but

Any advantage that can influence a decision or

At least give the impression of influencing

Even an advantage without any impact or

An advantage just causing a positive opinion or

Accelerating a decision (where one has a right to)

Establishes corrupt behaviour

Undue Advantages

Guidelines undue advantages

Clear regulations re – Gifts and invitations

– Discounts and others

– Non-material advantages

Limit of value

Distinguish – Representation

– Conflict of Interest

Undue Advantages

Guidelines undue Advantages To prevent any undue impact , or even the impression thereof, on

decisions within as well as outside of „XXX“ caused by the acceptance or offering of advantages the following shall apply:

Invitations, gifts and other – also non-material – advantages in connection with any function in „XXX“ shall only be accepted or offered in a transparent way.

Any gift of money is prohibited.

Gifts, invitations and any - also non-material - advantages linked to a concrete decision are prohibited.

Undue Advantages

Guidelines undue Advantages Gifts and invitations (except for representative duties) shall not

exceed a limit of 35 €/year. Discounts have to be rejected unless all members of „XXX“ can profit from such a discount (for example as part of a cooperation contract with a sponsor).

Any immaterial advantage (for example appointment to a body of „XXX“, awarding of an honorary membership) shall only be granted in a transparent way according to clear internal rules (for example election and appointment regulations) and shall not be linked to decisive functions with high importance for „XXX“ (especially public officials, for example from the municipality)

Any Questions?

Thank You!

what is corruption

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