UN Convention AgainstCorruption The Role of Business Tim Martin Vice President Nexen Inc.
UN Convention Against CorruptionBusiness Implications • Potential for truly global anti-corruption movement • Too early to assess long term impact • Convention lacks effective monitoring process • Domestic laws important to business vs Convention • Concern of little consistency amongst countries’ laws • For both defined offences & enforcement • Conflicts make business more complex & uncertain • Requires political commitment & financial resources
Example of Domestic Law ConflictsOECD Convention Against Corruption Countries allowing Facilitating Payments • United States/Canada Countries not allowing Facilitating Payments • England/France/Italy Host Country Laws • Do not provide for Facilitating Payments • Rarely address expenses for officials Conflict of Corruption Laws • Dilemma for companies in many jurisdictions • Are facilitating payments allowable or not? • Some companies have eliminated them, others not
UN Convention Against CorruptionBusiness Response • Be proactive rather than reactive • Strength in numbers vs acting alone • Engage in sectoral initiatives • Consider forming alliances with IGO’s and NGO’s • Develop best business practices • Do not expect single solution or rule • Accommodate different cultures & laws • Base strategy on your corporation’s values
Initiatives on Combating Corruption • UN Global Compact • International Chamber of Commerce • World Business Council • Conference Board • TI Integrity Pact • TRACE for Agents • Extractive Industry Transparency Initiative • International Assoc. of O&G Producers (OGP) • Assoc. of Int. Petroleum Negotiators (AIPN)
Combating CorruptionBusiness Challenges & Rewards • Fitting into crowded corporate agenda • Conflicting demands from many groups • Figuring out what is right & doing it • Tough challenge but doable • Value to shareholders & other stakeholders • Business can make a difference
Business Making A DifferenceYemen Scholarship Initiative Scholarship Program • 60 Yemeni students awarded scholarships • Studying in Canada at post-secondary institutions • Rigorous & transparent selection process • Selection of recipients merit-based • 100% success rate at university programs • 10 Students graduated (6 returned to Yemen & 4 in post graduate) Business Purpose • Nexen initiated program voluntarily • It received no tax or financial benefits in Yemen • Nexen insisted on transparent process • Helping build infrastructure good for business • People are most important investment in a country • It builds institutions and transparency
ThankYou Tim Martin Vice President Nexen Inc.