Compliance As A Tool Against Corruption

Transparency International's Corruption Perceptions Index (CPI) measures the degree of corruption in the world.
Norway Criminal Law
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Transparency International's Corruption Perceptions Index (CPI) measures the degree of corruption in the world. The current trend shows a worrying increase in corruption, also in regions such as Western Europe and the EU. This can be attributed to challenges related to both the implementation of measures and attitudes towards corruption.

The CPI's corruption scale ranges from 0 (highly corrupt) to 100 (very clean). Norway has a relatively low degree of corruption (84 points in 2023). However, the trend in the world, including in Europe, is that the risk of corruption has increased. As Norwegian businesses operate to a greater extent in a global market, the challenges and risks associated with corruption will constantly increase. However, corruption also occurs within our national borders, and Økokrim has stated that the risk in Norway is particularly high in municipal planning and building application processing. Secretary General Guro Slettemark of Transparency International Norway also mentions that "[t]he issues of integrity in Norwegian top politics last year showed that we also have integrity challenges here at home". 1

Section 387 of the Norwegian Penal Code describes what corruption is in a criminal law sense. In order to be punished for corruption, the perpetrator must have given, offered, demanded, received or accepted an improper advantage in connection with a position, office or assignment. In principle, almost all conceivable benefits can be affected, both benefits of economic value such as money, free holidays, loans or free renovations, and benefits of non-economic value, such as membership in an association.

Corruption has a negative impact on society, the economy, and businesses around the world. For a company, it will be very unfortunate to be linked to corruption cases, at the risk of loss of reputation, fines or prison sentences. In 2014, Yara International, a Norwegian fertilizer producer, became involved in a corruption case related to irregularities in connection with agreements in Libya and India. The case received extensive media coverage and the company was fined almost NOK 300 million. Such cases can affect who wants to collaborate with - or invest in - the business, which in turn can have financial consequences, and underlines the need for effective routines and practical compliance.

An important part of a company's anti-corruption work is to understand the risk and threat picture associated with its own business and partners. By conducting investigations into these conditions, the company will be able to more easily identify potential risks of corruption, develop policies and procedures to reduce uncovered risks, and provide training and guidance to employees on the importance of ethical business practices.

Footnote

1 https://www.transparency.no/bl...

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