Businesses face increasing pressure, from regulators, investors and civil society to conduct business responsibly. Top level company commitment to engaging in Collective Action demonstrates to law enforcement and regulatory authorities a company’s serious commitment to improving not only their internal anti-corruption programs but also making a difference in the wider business environment.

The business case for Collective Action and the importance of management buy-in

• A common solution to commons problems. Collective Action provides opportunities for leveraging the power of the group to effect real change, and to engage with the public and private sectors to kick-start new initiatives to tackle systemic corruption and related issues. ‘Going it alone’ has often been a hurdle for firms to overcome when persuading boards and business managers as to why they should take a proactive approach to tackling bribery: Engaging in Collective Action affords companies the benefits of a group approach, decreasing concerns of being out of sync with other players in the market.

• Demonstrating commitment and improving reputation. There are long-term reputational benefits of strengthening commitments to anti-corruption compliance and reducing risks and costs associated with corruption. Engaging in Collective Action is itself an indicator of good governance for investors, consumers, law enforcement and regulatory authorities, by signaling a transparent and collaborative approach to anti-corruption compliance, as well as a strong commitment to improving your business environment.

• A more stable, transparent, and profitable business environment. Collective Action promotes a better investment climate in high-risk markets by offering companies a pathway to adapt international standards to local contexts and develop tailored local approaches (as there is no one-size-fits-all approach to Collective Action). Doing business in a clean environment therefore offers many advantages for companies, such as widening access to business opportunities, and attracting foreign customers and investors. Collective Action also enables an open dialogue to share and compare standards and policies amongst competitors and other stakeholders, which can create positive peer pressure to level the playing field and help make better decisions.

How to bring management on board:

• Demonstrate the benefits of engaging in a Collective Action initiative

Getting top-management buy-in is one of the key elements to ensuring the sustainability and credibility of a successful Collective Action initiative. To get management buy-in and allocate resources to take part in an initiative, it is essential to demonstrate the tangible benefits in terms of financial impact, reputation, and long-term sustainability, in short speaking the business language. Being actively engaged in Collective Action initiatives is also a way for management to externalize their Compliance programme and demonstrate their commitment and tone from the top.

This can be done through presenting successful examples of similar companies (or even competitors) that have implemented or joined a Collective Action initiative, sharing statistics on the prevalence of corruption in your industry, and explaining the competitive advantages of being seen as an ethical leader by your investors and end-consumers.

You can find concrete examples of successful initiatives on our B20 Hub database.

• Involve top management as early as you can

It is also critical to engage the senior management early in the process and involve them in the development and implementation of the Collective Action initiative. Clear communication and a strong cost benefit analysis are key factors to secure management buy-in and commitment to allocating resources for a Collective Action initiative.

We offer tailor-made guidance to companies on how to improve their business environment through anti-corruption Collective Action.

To find out more please reach out to: liza.young@baselgovernance.org