ICC Rules of Conduct : Extortion and Bribery in International Business Transactions

Preface to 1999 Edition of ICC Rules of Conduct

ICC is extremely pleased to note that since the "1996 Revisions to the ICC Rules" were published, substantial progress has been made in addressing extortion and bribery in international business transactions. Most importantly, the OECD "Convention on Combating Bribery of Foreign Public Officials" (hereafter called the OECD Convention) was signed by 34 countries in Paris on December 17, 1997 and entered into force in 15 February 1999. The OECD has established a monitoring program to assure effective and consistent implementation and enforcement of the Convention. The monitoring programme also concerns compliance with the "Revised OECD Recommendations", which among other subjects, urges OECD member countries to disallow tax deductibility of bribes to foreign public officials. An effective monitoring process is of critical importance to the success of the Convention.

Other important anti-bribery initiatives have been launched by the World Bank, the International Monetary Fund, the European Union, the Council of Europe, the Organization of American States, the Pacific Basin Economic Council, the Global Coalition for Africa and the United Nations. Thus, much of what was proposed by ICC's 1996 "Recommendations to Governments and International Organizations" is now under way. However, much remains to be done.

Additional efforts are required to deal more effectively with the demand side of corruption: extortion by foreign public officials. To that end, national governments must strengthen their enforcement of laws prohibiting the solicitation and receipt of bribes, as well as the payment of bribes. ICC also renews its 1996 recommendation that the WTO take an active role, because bribery and extortion are clearly important factors distorting international trade.

Another area demanding additional attention is bribery within the private sector. The ICC Rules of Conduct clearly prohibit such bribery, as well as bribery of public officials. The OECD Convention focuses exclusively on bribery of public officials. In view of the large role played by the private sector in the global economy and the continuing privatization of governmental enterprises and activities, the time has come to make sure that effective measures are taken to control corruption within the private sector. This is an issue to which the ICC Standing Committee on Extortion and Bribery will devote substantial effort. The Council of Europe and the European Union have also recognized the need to address private sector corruption.

No changes are required in the "Rules of Conduct to Combat Extortion and Bribery", adopted by the ICC's Executive Board on 26 March 1996. ICC is publishing in the Spring of 1999 a manual of best corporate practices to accompany the Rules of Conduct, and to provide guidance for compliance with the OECD Convention.

Introduction

Foreword