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Part 2
The Integrity Initiative’s long-term goal is to have all companies follow the same integrity standards and set of rules. We are most heartened that our plan to establish an integrity certification and accreditation system, similar to the ISO, has earned the funding support of German firm Siemens AG, which has been implementing its own global Integrity Initiative program.
A Unified Code of Conduct and specific control measures will be adopted after due consultation with all stakeholders. There will be signings of Industry Integrity Pacts, which will commit signatories to implement the control measures and bind them to unified standards. These pacts will be the basis of regular monitoring and certification audits by an independent party that will assess whether companies are adhering to ethical ways of doing business.
Aside from citations and awards, participating companies that will meet the certification standards will enjoy such incentives as being accorded preferred supplier or service provider status and the granting of privileges from government agencies. We have already started meeting with various agencies to introduce the Integrity Initiative and discuss how we can support each other. Firms that operate ethically can also expect to attract employees, business partners, and customers who adhere to the same principles.
For the business community and the country in general, we see this initiative as transforming the culture of doing business, leading to increased investment as companies will be able to count on a fair business environment. We are also confident that it will improve our performance in corruption surveys and enhance the Philippines’ global competitiveness standing.
The Integrity Initiative is a bold and unprecedented undertaking, but we believe it is doable. As of June 2011, about 550 companies and organizations, representing a cross-section of industries and sizes, have already signed the Integrity Pledge. The Management Association of the Philippines, AIM Hills Governance Center, American Chamber of Commerce, Bankers Association of the Philippines, Bishops-Businessmen’s Conference for Human Development, Coalition Against Corruption, Employers Confederation of the Philippines, Federation of Filipino-Chinese Chambers of Commerce and Industry, FINEX, Institute of Corporate Directors, People Management Association of the Philippines, PhilExport, Philippine Chamber of Commerce and Industry, Philippine Marketing Association, Procurement and Sourcing Institute of Asia, Public Relations Society of the Philippines, and now the Philippine Constructors Association have already joined MBC and the ECCP in the Integrity Initiative consortium.
We have made noteworthy advances in engaging the Aquino administration’s support for the Integrity Initiative. In February, we sent letters to President Aquino and the heads of 35 government offices to introduce the project, and so far the DBM, DepEd, DND, DOF and its attached agencies the BIR and Customs, and the DOJ have already signed the government version of the Integrity Pledge. Meanwhile, the Bangko Sentral, Civil Service Commission, DAR, DND, DOE, DOH, DOTC, DPWH, PEZA, and SEC have also expressed their full support.
Finance Undersecretary Carlo Carag is a member of the Integrity Initiative’s Steering Committee. In February, Education Secretary Armin Luistro led the signing of an integrity pact between the DepEd and over 60 of its suppliers as well as several civil society groups. The SEC will study the proposal to require those applying for the renewal of their SEC registration to sign the Integrity Pledge. We also discussed with Budget Secretary Butch Abad the possibility of making all government agencies and GOCCs ask the companies who transact with them to sign the Integrity Pledge, and he replied that he would look into the feasibility of linking the Integrity Initiative with the Philippine Government e-Procurement System. BIR Commissioner Kim Henares is open to considering our proposal for the establishment of “Blue Lanes” for honest business taxpayers as long as we help identify the “Blue” companies, while Customs Commissioner Lito Alvarez will explore the setting up of a “Super Green Lane Plus,” which will give Integrity Pledge signatories access to faster release of importations.
The Integrity Initiative took another step forward with the survey conducted in February and March among the signatories of the Integrity Pledge in an effort to generate inputs for the Unified Code of Conduct and Industry Integrity Pacts. The signatories were asked to indicate the problem areas vulnerable to corruption, as well as share company policies that nurture a culture of integrity. The survey revealed that the institutionalization of ethical business practices is gaining ground in the country. More companies are now signing integrity pacts with their suppliers. Policies against bribery and “facilitation payments” are now more explicitly stated. Companies are setting up hotlines that employees can call if they need advice on ethics issues or would like to report violations. Focus group discussions with experts and practitioners are currently being conducted to develop the integrity compliance measures that will be included in the Unified Code of Conduct. Expect the Integrity Initiative Project Team to visit Cebu and Davao in the next two months for consultation meetings.
To increase public awareness of the Integrity Initiative project, an Integrity Run was held on May 29 at the Bonifacio Global City. The event was highly successful, gathering more than 5,000 runners, thus preparations are ongoing to stage another Integrity Run here in Cebu.
We are also looking forward to the holding of the first-ever Integrity Summit on September 21 where President Aquino will be our guest of honor. The objectives of the summit, which will convene all the signatories of the Integrity Pledge, will be to see the adoption of the Unified Code of Conduct for business and to highlight good corporate practices that enhance the culture of integrity in organizations.
We are very excited about the Integrity Initiative and we are determined to push this endeavor forward. We have had enough talk about corruption. Now is the time for action and for us to do our part.
Thus, please let me take this opportunity to call on the members of the Management Association of the Philippines to join us in our campaign. Please take the time to read the copies of the Integrity Pledge that were distributed here. Then I strongly urge you to sign the pledge and express your solidarity with our drive to promote ethical business practices in the private sector.
This is the business community’s chance to lead by example. Let us all work together and take these bold steps toward breaking the cycle of corruption and poverty that has long hounded our country. Thank you.
* Speech delivered by the author at the 3rd General Membership Meeting of the Management Association of the Philippines in Cebu. The author is president and CEO of PHINMA, Inc. and chair of the Makati Business Club. Feedback at [email protected]. For previous articles, please visit map.org.ph.
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By: Ramon R. del Rosario, Jr. – MAP Insights
Source: Business World, Aug. 8, 2011
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