Anti-Corruption
Definition
Anti-corruption refers to the policies, procedures, and practices designed to prevent, detect, and address bribery, fraud, and other corrupt activities within an organisation and its business relationships. It encompasses compliance with laws like the UK Bribery Act and US Foreign Corrupt Practices Act, as well as ethical culture and whistleblower protection. Robust anti-corruption programmes are a core governance expectation.
Why It Matters
Anti-corruption performance is a key governance metric in ESG assessments, directly affecting regulatory risk and reputation. Companies operating across multiple jurisdictions face heightened corruption risks that require systematic management.
Related Terms
Corporate Governance
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. It defines the distribution of rights and responsibilities among the board of directors, management, shareholders, and other stakeholders. Good governance ensures accountability, fairness, transparency, and responsible decision-making.
Ethical Supply Chain
An ethical supply chain is one in which all participants – from raw material suppliers to final distributors – operate in compliance with environmental, social, and governance standards. This includes fair labour practices, safe working conditions, environmental responsibility, and anti-corruption measures. Managing ethical supply chains requires ongoing due diligence, auditing, and supplier engagement.
UN Global Compact
The United Nations Global Compact is the world's largest corporate sustainability initiative, calling on companies to align their strategies and operations with ten universal principles on human rights, labour, environment, and anti-corruption. Participating companies commit to annual reporting on their progress (Communication on Progress). The initiative connects business with UN agencies, civil society, and governments.