People & Skills  

Defence companies lack anti-corruption policies

New report reveals that two-thirds of the world's largest defence companies are failing to provide sufficient public evidence regarding their anti-corruption strategies
 129 contractors were analysed, such as BAE & Boeing

The study by Transparency International UK took into account 129 of the biggest defence contractors in the sector, from nations such as the USA, Russia, Germany, France, the UK and China; including BAE, Boeing, Lockheed Martin and Saab AB.

Director of Transparency International UK’s Defence and Security Programme and author of the study, Mark Pyman said:

“Corruption in defence is dangerous, divisive and wasteful. The cost is paid by everyone. Governments and taxpayers don’t get value for money and clean companies lose business to corrupt companies. Money wasted on defence corruption could be better spent.”

Ranking the companies A to F, the study found that 85 percent of those analysed do not publicly share enough information on the importance of preventing corruption.

The latest edition of Manufacturing Digital is available now

The leading anti-corruption organisation recommends that “CEOs actively promote a values culture, through speaking out against corruption both within the company and publicly across the industry”; as well as calling on “Chief Executives, government defence procurement chiefs and investors to demand that better systems be put in place.”

Pyman added:

“It is in the interest of companies, governments and taxpayers that the defense industry raises standards globally. I hope the defence industry responds to the challenge and embeds good practice in preventing corruption, and increases transparency in the sector.”

Former Secretary General to NATO, Lord Robertson commented:

“Companies must have a reputation for zero tolerance for corruption. By doing so, they could enjoy a distinctive advantage and mitigate reputational and financial risk. A corruption scandal can wipe away the decades spent building a reputation.

“By having the right anti-corruption systems in place, companies can avoid a drop in stock prices, blacklists and even prison. It is in their interest to take action, and this index provides the guidance to do so.”

More information on the study can be found here.

Our magazine is now available on the iPad. Click here to download it

Join Businessfriend today. Where social networking leads to productivity


Featured Articles + MORE Featured Articles >>