Time has come for emerging market companies to fight corruption

Study highlights major gaps in anti-corruption reporting by emerging market multinationals

Issued by Transparency International Secretariat



Translations: ZH | AR | RU | ES | PT


Rapidly-expanding companies in emerging economies such as China and India must become more publicly accountable, anti-corruption group Transparency International said today.

The 52-page report, Transparency in Corporate Reporting: Assessing Emerging Market Multinationals, scored 100 of the fastest-growing, companies based in 16 emerging markets.

Three quarters of the emerging market companies scored less than 5 out of 10, where 0 is the least transparent and 10 is the most transparent. Scores were based on publicly available information about anti-corruption measures, transparency in reporting, on how the companies structure themselves and the amount of financial information they provide for each country they operate in.

Chinese companies, which account for more than a third of the assessed companies, had the weakest overall performance among the BRICS (Brazil, Russia, India, China and South Africa) countries, highlighting the need for China and its business community to take immediate action to raise their standards.

“The time has come for emerging markets to play their part in the global fight against corruption,” said Transparency International chair Huguette Labelle. “As emerging market companies expand their influence they should seize the opportunity to play a bigger role stopping corruption internationally.”

Publication of corporate anti-bribery measures should become standard

Emerging market companies should communicate to the public what they are doing to prevent corruption and their relations with governments, Transparency International said. The study shows that about 60 per cent of the companies evaluated do not even disclose information about political contributions.

Furthermore, governments in emerging markets should pass new laws obliging companies to publish what they pay to governments in every country where they operate, Transparency International said.

The report points out that publicly-listed companies performed better than state-owned and privately-held companies, illustrating the positive impact on transparency of the disclosure requirements imposed on publicly-traded companies. 

Thanks to national laws obliging publication of key financial information on their subsidiaries, Indian firms perform best in the BRICS with a result of 5.4 out of a maximum of 10. In country-by-country reporting, Indian firms scored 29 per cent, compared to 9 per cent on average and 1 per cent in China. Last year, in a similar study conducted by Transparency International, the world’s 105 largest global companies scored 4 per cent.

“Businesses operating globally without transparency risk damaging their brand and losing the trust of local communities,” said Labelle. “People have a right to know what multinationals pay their government and how much taxes they pay.”

Seventy-five of the 100 companies in the report come from the BRICS, which have contributed 50 per cent of world growth since the crisis.

The full report is available on: 

http://landcommerce.info/news/feature/emerging_market_multinational_companies_ready_for_prime_time 

Background:

Transparency International released similar reports on the world’s largest 105 companies in 2012 and the oil and gas sector in 2011.

###

Transparency International is the global civil society organisation leading the fight against corruption

For daily global anti-corruption updates follow us on Twitter at  or on Facebook at 


For any press enquiries please contact

Chris Sanders
T: +49 30 34 38 20 666
E: .(JavaScript must be enabled to view this email address)

Solicitude

Support Transparency International

الأبعاد الخطيرة للتعديلات الدستورية المقترحة في مصر

يتأهب نواب البرلمان المصري للمصادقة على سلسلة من التعديلات الدستورية، التي ستؤدي في حال تمريرها إلى ترسيخ مزيد من السلطة بيد الرئيس، وتنصيب الجيش مجددا كأعلى سلطة في البلاد.

The alarming message of Egypt’s constitutional amendments

Parliamentarians in Egypt look set to approve a series of constitutional amendments this week that, if passed, would consolidate power in the office of the president, while restoring the military as the ultimate authority in the country.

Восточная Европа и Центральная Азия: слабая система сдержек и противовесов

Индекс восприятия коррупции (ИВК) за этот год представляет печальную картину касательно мер по борьбе с коррупцией в Восточной Европе и Центральной Азии. За несколько лет в этом регионе был достигнут очень незначительный прогресс в борьбе с коррупцией.

الشرق الأوسط وشمال أفريقيا: انتشار الفساد في ظل ضعف المؤسسات وتراجع الحقوق السياسية

كشف مؤشر مدركات الفساد 2018 عن صورة قاتمة لواقع الشرق الأوسط وشمال أفريقيا حيث أن معظم بلدان المنطقة قد أخفقت في مكافحة الفساد على الرغم من أن قلة قليلة من البلدان قد أحرزت تقدما تدريجيا.

Afrique subsaharienne:Les régimes non démocratiques sapent les efforts de lutte contre la corruption

L’Indice de perception de la corruption (IPC) présente cette année un tableau bien sombre de l’Afrique : seuls 8 pays sur 49 obtiennent un score supérieur à 43 sur les 100 points que compte l’Indice. Malgré l’engagement pris par les dirigeants africains de faire de 2018 l’Année africaine de lutte contre la corruption, les avancées concrètes se font encore attendre.

Trouble at the top: why high-scoring countries aren’t corruption-free

For the third year running, the top seven countries in the Corruption Perceptions Index 2018 consist of the four Nordic nations – Denmark, Finland, Sweden and Norway – plus New Zealand, Singapore and Switzerland. Yet that doesn’t mean that these countries are corruption-free.

Americas: el debilitamiento de la democracia y el auge del populismo

Con una puntuación media de 44 sobre 100 durante tres años consecutivos en el Índice de Percepción de la Corrupción (IPC), las Américas continúa sin lograr avances significativos en la lucha contra la corrupción.

Why rather

Follow us on Why rather