How we can support the evolving global integrity agenda

Business leaders from across the world will convene for the B20 Summit in Rome this week to hand over recommendations to the Italian G20 Presidency. At the same time, we are witnessing a paradigm shift in corporate governance driven by the rise of hyper-transparency in modern society. Levels of political and employee activism are rising, as are popular protests about corruption, environmental justice, equity and equality. Increased use of artificial intelligence (AI) and digital technology across all industries has resulted in ethical concerns about issues such as privacy and authenticity. Green growth, climate and social justice imperatives, and the severe economic crisis generated by COVID-19, have all intensified and expanded the various forms of public intervention in economic systems.

There are a number of global bodies and leading organisations that seek to uphold and promote this growing global focus on the need for sustainable governance, integrity, transparency and anti-corruption. Many of the resulting efforts come together in a broader multilateral process spearheaded by the G20 Anti-Corruption Working Group (ACWG) and the B20 Taskforce on Integrity & Compliance. The B20 is an official G20 dialogue forum, comprising more than 1,000 business community delegates from G20 countries. Each year, the country holding the G20 Presidency sets forth its agenda and priorities, which are then reflected by the B20 taskforces.

Drawing on the insights, input and best practices of B20 participants over the past decade, we have taken stock of the evolution of critical issues in the taskforce. This is what we and others within the taskforce believe are important priorities for the decade ahead:

An ongoing retrospective of the integrity agenda

Since its inception in Seoul in 2010, the B20 priorities for fighting corruption, promoting transparency and upholding sustainable governance have evolved. They have ranged from calls and actions to ratify the United Nations Convention Against Corruption (UNCAC) and OECD Anti-Bribery Convention in the early cycles, to more business-focused recommendations such as calling on G20 governments to incentivise compliance.

Recent efforts to track these developments - for example through the C20 Anti-Corruption Commitments Tracker – as well as newly established online repositories including by UNODC on G20 outputs and developments, and by B20 Collective Action Hub, should be supported by future presidencies.

Boosting links with ESG and the SDGs

The 2021 Italian B20 Presidency has maintained the momentum on these critical topics. The focus this year includes improving efficiency and integrity in public administration through digitization and other means, as well as looking at beneficial ownership transparency and public-private partnerships as a way to enhance compliance.

As detailed in the latest B20 Integrity & Compliance Policy Paper 2021, some of the current Presidency's more important contributions have included:

A renewed focus on ESG must factor in risks in the form of corruption and illicit behaviour that affects the entire range of stakeholders - from shareholders and employees, to community members and the planet. Opportunities must also be considered, however, including upholding high ethical standards and promoting transparency and integrity in our governance systems.

Governance also plays an increasingly crucial role – not just as the “G” component, but as a critical enabling factor for the environmental and social elements of ESG. It can help address critical challenges from the climate crisis to human rights abuses.

At the same time, there is also an urgent need for harmonisation and standardisation around ESG matrices to guide corporate action and disclosures. The 2022 Indonesian B20 Presidency should build on momentum to date to create a stronger link between corporate governance, assessment of corruption risks and the overall ESG agenda.

Increasing future uptake of B20 recommendations

B20 Integrity & Compliance Taskforce recommendations have been constructive, innovative and action-oriented over the years, but research has shown that G20 uptake has been limited to select high-level recommendations. This must change, but how?

One factor that has positively influenced the evolution of priority topics on the global integrity agenda is a closer working relationship between B20 Integrity & Compliance Taskforce with the G20 Anti-Corruption Working Group. As suggested by a group of B20 Integrity & Compliance Taskforce members, a more strategic and pragmatic alignment of B20 and G20 focus topics must be based on an ongoing dialogue, transparent information sharing, coordination of timelines and follow-through across G20 presidencies. This could contribute to a more impactful B20-G20 engagement process and the implementation of more recommendations, enabling governance to keep pace with the global shift towards hyper-transparency.