PREVENTION IS A BIG UNDERTAKING HERU PRASETYO CHAIRMAN – IBL BOARD OF PATRONS
PREVENTION IS A BIG UNDERTAKING
HERU PRASETYO CHAIRMAN – IBL BOARD OF PATRONS
INTEGRITY. CAPACITY. SUSTAINABILITY
THE MOMENTUM BUILDERS
DECEMBER 1998 DECEMBER 2003
INTEGRITY. CAPACITY. SUSTAINABILITY
INDONESIA RESPONDED
INTEGRITY. CAPACITY. SUSTAINABILITY
FROM SEPTEMBER 1999
• 65 CORPORATIONS (NATIONAL AND MULTINATIONALS)
• FOCUS ON BUSINESS ETHICS, • EMPOWERING SMALL AND MEDIUM
ENTERPRISES, • ADVOCATING CORPORATE CITIZENSHIP
ACTING ON THE MOMENTUM
INTEGRITY. CAPACITY. SUSTAINABILITY
NATIONAL STRATEGY CREATED
INTEGRITY. CAPACITY. SUSTAINABILITY
TOOLS AND APPROACH IDENTIFIED
INTEGRITY. CAPACITY. SUSTAINABILITY
ACTION PLAN CONTINUED
INTEGRITY. CAPACITY. SUSTAINABILITY
PREVENTION (ALWAYS) A PRIORITY
INTEGRITY. CAPACITY. SUSTAINABILITY
.. BUT OBSTACLES REMAIN
INTEGRITY. CAPACITY. SUSTAINABILITY
SISTEM INTEGRITAS NASIONAL
NATIONAL INTEGRITY SYSTEM, CORPORATION LIGHT
INTEGRITY. CAPACITY. SUSTAINABILITY
• IBL International CSR Conference in 2006, 2008, 2010, 2013 (With Business Ethics and Integrity Focus)
• Business Integrity Forum in 2013, 2014, 2015, 2016
• Public Service Announcement (PSA)
• 57 Radio and 7 TV talk shows on Business Ethics
MEANWHILE IBL SOLDIERS ONWARD
INTEGRITY. CAPACITY. SUSTAINABILITY
Business Integrity Forum, February 2013. Left to right: Mr. Erry R Hardjapamekas (former KPK), Mr. Hayie Muhammad (Indonesia Procurement Watch), Mr. Nur Pamudji (PLN), Mr. Josef Winter (Siemens), and Mr. Adnan Pandu Pradja (KPK)
Mr. Charles ‘Chuck’ Taylor (Chevron) opening BIF on December 2014
Launching Guidebook on Anti-corruption Compliance for Mid-sized Companies in Oil & Gas Sector, August 2015.
MULTISTAKEHOLDERS BIF
INTEGRITY. CAPACITY. SUSTAINABILITY
• Workshops on ‘Managing Ethical Dilemmas in Business’ since 2000, through 50 workshops building the capacity of 4000 business leaders and staffs of many companies.
• Workshops on ‘Building Code of Conduct for SMEs’, built the capacity of 400 SMEs in 7 provinces through 11 workshops
BUILDING CAPACITY FROM THE GROUND UP
INTEGRITY. CAPACITY. SUSTAINABILITY
MAKING REFERENCES AVAILABLE
INTEGRITY. CAPACITY. SUSTAINABILITY
DOING A REGULAR CHECK-UP ON THE STATE OF INTEGRITY
“BUSINESS WITH INTEGRITY MEANS THE WHOLE
ORGANIZATION IS HAVING GOOD INTENTION, WELL
PRINCIPLED, SOLID AND MAINTAIN STRUCTURE AND
SYSTEMS TO ASSURE CONSISTENCY”
INTEGRITY. CAPACITY. SUSTAINABILITY
24.4% 23.8% 20.9%
13.4% 9.9% 7.6%
Permit andLicense
CommunityDevelopment and
SocialResponsibility
(CSR)
Procurement andLogistics
Finance andTaxation
Sales andMarketing
Human Resource/ Workforce
Nowadays, in your opinion which critical areas of business are prone to unethical practices?
CONCERNS ON INTERFACE REMAIN
INTEGRITY. CAPACITY. SUSTAINABILITY
7.0%
7.0%
8.0%
10.1%
12.1%
12.1%
14.1%
14.1%
15.1%
Others
E-hub (market place) for business integrity initiatives
Online training on business integrity areas
Engage schools and universities to provide extra-curricularlessons on business integrity
Dialogue with relevant business stakeholders tostrengthen business integrity
Whistle blowing mechanism
Help Desk on doing business with integrity
Awareness and advocacy campaign to relevant businessstakeholders
Engage media to spread business integrity spirit andprinciple to wider stakeholders
What more can we do collectively?
ACTION FOR SOLUTIONS SOUGHT
INTEGRITY. CAPACITY. SUSTAINABILITY
FORUM INPUT ON: CHALLENGES ON PRACTICING BUSINESS INTEGRITY Licenses and permits Licenses and permits remains an area with high frustration. If outsourced to an agent, chances are high there are bribes. If not, it will take forever.
In applying permits, some improvement with PTSP happened but there are still requests for contribution funds in many cases, to speed up process. Lamanya proses, birokrasi yang berbelit-belit, jumlah license dan permit yang seharusnya bisa disimply.
One door administration to get permit through BKPM seems simplifying the process, but actually still need to go the related authority that handles such permit to get this done promptly with extra cost. Sidang Komisi Amdal di suatu daerah PERNAH diancam untuk tidak dibuka, sebelum menyerahkan secara kontan sejumlah uang.
Agents are often used to do the bribing, hiding the unwarranted transaction Dalam pengurusan perijinan, pemerintah menunjuk beberapa consultant dimana kita harus bekerja sama dengan salah satu konsultan yang ditunjuk yang nota bene harganya sangat mahal.
INTEGRITY. CAPACITY. SUSTAINABILITY
Finance and Tax
When we pursue Tax Amnesty, which one we choose to seek help (with fee)? Tax Officer or Tax Consultant?
Corporate Social Responsibility
CSR is abused as a reason to "buy" favor to business while local governments see CSR as alternative funding for development. Is it ethical or just smart? CSR dijadikan alasan oleh banyak Pemda sebagai dana urunan untuk pembangunan.
Local authorities sometimes colluded with NGOs to gain unauthorized money from the company, especially at the beginning of the construction of new business in the area. Managing the expectations of local community for company to help local development. Many personal/group interest only benefit a few and low impact.
Procurement and Logistic
In government procurement processes, sometimes the Panitia Lelang make pre-arranged scenarios in favour to firms who is willing to share its profit informally ( often at an agreed amount ). LKPP and Inspectorate are constrained by existing regulations and weak co-ordination amongst ministries/government agencies.
INTEGRITY. CAPACITY. SUSTAINABILITY
INPUT ON BEST PRACTICES ON STRENGTHENING BUSINESS INTEGRITY • Promote transparency by having technology based business process, whistle blow
mechanism and constant education and clear sanction.
• License and permit: menyerahkan ke agent namun dibentengi dengan ada klausa terkait anti bribery and corruption dan ada statement to no corruption before they engaging with us.
• Saya punya pengalaman dimana vendor kami "dididik" scara tidak langsung untuk jadi Etis melalui MoU yang dibuat di awal.
• Memperkuat peran dan tanggung jawab Asosiasi Profesi.
INTEGRITY. CAPACITY. SUSTAINABILITY
INPUT: IDEAS TO PROMOTE BUSINESS INTEGRITY • Use technology to provide faster, lower cost business processes that at the same time
promotes transparency.
• Develop a Code of Conduct which emphasizes on business integrity to be imposed on every member of the company (at all level) and conduct regular sessions to enforce it.
• Educate vendor. Not only educate but also help vendors to comply by measures.
• Educate more young people (start up businesses) to avoid unethical conduct in the first place.
• Award mechanism for online businesses that include whistle blowing mechanism. Ask them to be a "watch dog" for unethical practices.Educate the online businesses to be ethical in the first place. Not just selling but also become advocator of integrity.
• Build Collective Action and increase capacity CSR Forum di daerah dengan private sectors sebagai leading sectors, dapat membantu menumbuhkan implementasi program CSR yg berintegritas. Sekaligus bisa menjadi aliansi (buffer) terhadap praktik unethical integrity.
• Establish and promote a Business Ethics Index to incentivize businesses to appreciate it is good for business when ethics are better.
INTEGRITY. CAPACITY. SUSTAINABILITY
MAINTAINING THE MOMENTUM, NEXT STEP
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INTEGRITY . CAPACITY . SUSTAINABILITY
THANK YOU
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