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Global Engineering And Construction Firms Adopt Anti-Corruption Principles

Submitted by: World Economic Forum

Categories: Business Ethics

Posted: Jan 25, 2004 – 11:00 PM EST

 

Jan. 25 /CSRwire/ - Davos, Switzerland - In a move to combat global corruption within their own industry, 19 leading international engineering and construction (E&C) companies today signed and adopted a set of business principles for countering bribery, as part of the World Economic Forum's Annual Meeting at Davos. These 19 companies represent annual revenues in excess of 70 billion US dollars.

The principles are the product of a yearlong effort by the World Economic Forum's Governors for Engineering and Construction Task Force, working in close association with Transparency International and the Basel Institute on Governance.

The companies have committed to two fundamental actions - a "zero tolerance" policy on bribery and development of a practical and effective programme of internal systems and controls for implementing that policy. In practical terms, this will mean either implementing anti-bribery practices based on these E&C business principles or, for companies with established programmes, using the principles to benchmark existing practice.

"We believe the time is right for issuance of these E&C business principles and that their widespread adoption will raise standards across the industry, contributing to the goals of good governance and economic development," said Alan Boeckmann, Fluor Chairman and Chief Executive Officer, who chairs the multinational Engineering and Construction Task Force (see members below).

The group was established at last year's World Economic Forum Annual Meeting to develop anti-corruption principles for the global E&C industry.

"There is a moral imperative for our efforts," Boeckmann said. "Officials who take bribes steal from their own people - and not just money. Their actions distort government decisions, waste scarce resources and undermine public trust in political leaders and institutions."

"As for a business rationale, leaders in business as well as government are becoming much more aware of how corruption hurts economic progress and national development. This has a direct bearing on future business opportunities as well as the security of existing investments," said Jermyn Brooks, former Executive Director and CFO and current board member of Transparency International. "Strong anti-corruption policies within the E&C industry will promote the principles of transparency, accountability and responsibility for the long-term benefit of all stakeholders."

"Global concern and interest in fighting corruption is intensifying," Boeckmann said, "and our industry is pleased to join other major business sectors that have been working to develop industry-specific guidelines and practices for stamping out corruption. The companies signing today are from 15 nations around the globe. (A list of companies is attached.)

In 2004, the Engineering and Construction Task Force will work to increase the number of companies in the sector who formally commit to the E&C business principles and to develop more concrete guidance and practical tools for programme implementation. Implementation guidelines will address organizational responsibilities, treatment of subsidiaries and other related parties, training, audit controls and other standard elements for internal control.

The task force worked closely with Jermyn Brooks of Transparency International and with Professor Mark Pieth, a founding director and board member of the Basel Institute on Governance and chairman of the Organisation for Economic Co-operation and Development (OECD) Working Group on Bribery.

Note to Editors:

In addition to Alan Boeckmann of the United States, Engineering and Construction Task Force members include:

Dinesh C. Paliwal, Group Executive Vice-President and Head of Automation Technologies Worldwide, ABB, Switzerland

Sir Peter Mason, Chief Executive, Amec, United Kingdom

Anthony Allum, Chairman, Halcrow Group, United Kingdom

Michael Hilti, Chairman of the Board of Directors, Hilti Aktiengesellschaft,
Liechtenstein

Hans-Peter Keitel, Chairman of the Board and Chief Executive Officer, Hochtief, Germany

Samer S. Khoury, Executive Vice-President, Operations, Consolidated Contractors Company, Greece

Takeo Obayashi, Chairman, Obayashi Corporation, Japan

Stuart Graham, President and Chief Executive Officer, Skanska, Sweden

Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group, Canada

The 19 signatories are:

Fouad Alghanim, Chairman and Chief Executive Officer, Fouad M.T. Alghanim & Sons Group, Kuwait

Pius Baschera, Chief Executive Officer, Hilti AG, Liechtenstein

Nicholas Billotti, President and Chief Executive Officer, Turner International, USA

Alan Boeckmann, Chairman and Chief Executive Officer, Fluor Corporation, USA

Brian Bruce, Chief Executive, Murray & Roberts Holdings, South Africa

Stuart Graham, President and Chief Executive Officer, Skanska, Sweden

Carl Grim, Chief Executive Officer, Aveng Limited, South Africa

Gian-Maria Gros-Pietro, Chairman, Autostrade, Italy

Samer Khoury, Executive Vice-President, Operations, Consolidated Contractors Company (CCC), Greece

Samir Lahoud, Chairman, Lahoud Engineering, Lebanon

Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group, Canada

Nicolas Mariscal, Chairman of the Board, Marhnos, Mexico

Takeo Obayashi, Chairman, Obayashi Corporation, Japan

Dinesh Paliwal, Group Executive Vice-President and Head of Automation Technologies Worldwide, ABB, Switzerland

Enrique Pescarmona, President, Corporacion Impsa, Argentina

Ralph Peterson, Chairman, President and Chief Executive Officer, CH2M HILL Companies, USA

Razali Abdul Rahman, Chairman, Peremba Group of Companies, Malaysia

Peter Steiner, Chairman of the Board, Karl Steiner Holding, Switzerland

Adrian White, Group Chairman, Biwater, United Kingdom

Session summaries are available at:
http://www.weforum.org/summaries2004

Photos of our events can be downloaded free of charge for journalists at
http://www.swiss-image.ch/worldeconomicforum (login required).

About us
http://www.weforum.org/aboutus

The World Economic Forum is the foremost global community of business, political, intellectual and other leaders of society committed to improving the state of the world.

Incorporated as a foundation, and based in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests. The Forum has NGO consultative status with the Economic and Social Council of the United Nations.

For more information, please contact:

Mark Adams, Head of Media World Economic Forum
Phone: +41 (0)81 414 69 17

 

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