Ethos Institute Initiatives

Initiatives – Integrity, transparency and anticorruption December, 2014

Mission Mobilize, encourage and help companies manage their business in a socially responsible way, make them partners in building a sustainable and fair society.

A new development model demands new processes in the economy

Green

Inclusive

Responsible

Ensuring a sustainable relationship between society’s productive processes and natural processes

Decent living conditions for the entire population, poverty eradication and reduction of inequalities

System of integrity and transparency, which is an essential condition for the success of a new economy

Integrity initiatives

Business Pact for Integrity and Against Corruption

Clean Games Inside and Outside the Stadium

What is the Pact for Integrity and against corruption?

A collective action and a voluntary commitment of companies to business ethics. The pact currently includes over 300 signatory companies and organizations, and it has a Working Group that shares knowledge and experiences about best business practices regarding improving integrity and combating corruption.

Was launched in June 2006 by Ethos Institute in partnership with Patri Government Relations & Public Policy, United Nations Development Programme (UNDP), United Nations Office on Drugs and Crime (UNODC), and the Brazilian Committee of the UN Global Compact

Business Pact for Integrity and against corruption • 248 companies have signed the pact • 7 public commitments • www.empresalimpa.org.br

Business Pact – Commitments To inform and to raise awareness among workers about applicable legislation To inform and to raise awareness among all its stakeholders about the applicable legal requirements for its activities To forbid bribery In case of funding electoral campaigns, to contribute in a transparent and lawful manner To disseminate the principles of the Pact amongst its stakeholders If necessary, to conduct transparent and open inquiries To promote pact’s values within its supply chain

Business Pact – Strategies Publications

Advocacy

Seminars

Monitoring platform

Organizations from the Working Group of the Pact for Integrity and against corruption 3M, AES Brasil, Alstom, Ambev, ANFAC, Anhanguera Educacional, Banco do Brasil, Bionexo, BMF & Bovespa, BP Biofuels, BRF Foods, Braskem, Controladoria Geral da União, CPFL Energia, Dudalina S/A, EDP Energias do Brasil, Endesa, Fersol, Fibria, FIEMG, FIESC, FIRJAN, Gelita, Great Place to Work, Grupo Libra, Grupo Multi, Iaudit Assessoria Empresarial, Ibrademp, ICDE – Instituto de Combate à Fraude e Defesa da Concorrência, ICTS Global, Infraero, Jonhson Controls BE do Brasil, Mexichem, Natura, Nike, Núcleo Ético Pacto Global (Rede Brasileira – UNDP,) Patri – Políticas Públicas – Relações Institucionais e Governamentais, Petrobras, Philips, PwC, Ponto de Contato Nacional (PCN Brasil), Samarco Mineração S.A., Semp Toshiba, Shell, Siemens, Suzano Holding S/A, Terra Sistemas Brasil, Unimed do Brasil, Unodc, Vale S/A, Fundação Vale, Wal-Mart Brasil, Yázigi Internexus, Machado Meyer

Clean Games Project

Clean Games Inside and Outside the Stadiums Project The Clean Games project seize the opportunity of hosting 2014 World Cup and 2016 Olimpyc Games in Brazil, to empower the fight against corruption.

Taking advantage of the investments made for the games to truly perpetuate a range of tangible and intangible assets, of structure and values created from a virtuous circle of social development.

Clean Games – Objectives Promoting:

Transparency Integrity Social Control

Through collective actions with the engagement of:

Public Sector Business Civil Society Workers

over infrastructure investments for the 2014 World Cup and the 2016 Olympic Games

Academia

Clean Games – Strategies for Action 1. Sectoral Agreements 2. Mobilization 3. Social Control Tools 4. Transparency Pact 5. Transparency Indicators

1. Clean Games Sectorial Agreements • A tool for self-regulation, to define clear rules between competing within the same business sector, aimed to promote conditions of fair and transparent market and to prevent corrupt practices in their business relations. • 3 sectors: health tecnology, energy and sports sponsorship

2. Mobilization 3 Colective Action National Committees • 1 National Committee for Coordination Mobilization • 2 Thematic National Committees: Legal // Companies and investor 12 Local Committees • 12 World Cup host cities and Rio de Janeiro, host city of the Olympics Participation at the Thematic Chamber Transparency - coordinated by the Ministry of Sports, the Comptroller General's Office and Attorney General's Office

3. Social Control Tools

Publication: Fair Game x Foul Game

Guide on How to Read Contracts

4. Transparency Pact • Document signed by the mayor candidates on the 11 host cities with 05 commitments: regulate the Access Information Law, improve the transparency of the World Cup budget Improve the local level transparency indicators result Implement the proposals of the Consocial Adopt the Open Government Partnership guidelines Main results: • 85% of all candidates signed the commitment letter • All the 11 elected mayors signed the commitment letter

5. Transparency Indicators Objectives: 1. Assessing the availability and the organization of information deemed adequate to ensure transparency; 2. Assessing the existence and operation of information channels and participation mechanisms; 3.

Defining transparency parameters and standards for public management.

Indicators Methodology • 90 indicators: Content (48 indicators) Information channels (30 indicators) Participation mechanisms (12 indicators) Application of the indicators in host cities within the context of World Cup organization • Transparency assessment is made based on 4 questions: Are there information channels?

Are they effective?

Do they provide all the necessary information?

Do they allow for social participation?

Transparency Indicators – Innovation What differentiates this new tool?

Allows practical measurement of public management transparency Translates into indicators the key pillars of a transparent administration What is the use of this new tool?

Citizens, organizations and business can apply it Governments can use it as a reference for their transparency actions.

Along the process, for instance, some city halls made changes in their web portals based on the indicators.

Comparison 2012 /2013 – Cities Resultado 2013 Cidade Brasília

77,26

Nível de Transparência Alta

Porto Alegre Belo Horizonte Rio de Janeiro

71,82 70,33 50,37

Alta Alta Média

Cuiabá

49,08

Curitiba São Paulo

Resultado 2012

14,63

Nível de transparência Muito Baixa

49,92 49,86

Média Média

15,36

Muito Baixa

Média

10,38

Muito Baixa

45,87 38,15

Média Baixa

15,57

Muito Baixa

18,81

Muito Baixa

Recife

35,55

Baixa

14,32

Muito Baixa

Manaus

25,18

Baixa

13,23

Muito Baixa

Fortaleza

23,24

Baixa

14,29

Muito Baixa

Salvador

19,48

Muito Baixa

14,82

Muito Baixa

Natal

12,21

Muito Baixa

15,75

Muito Baixa

Pontuação

Pontuação

Indicators Results – Cities 100,00 90,00 80,00 70,00 60,00 2012 50,00 40,00

2013

30,00 20,00 10,00 0,00 Brasília

Porto Belo Rio de Alegre Horizonte Janeiro

Cuiabá

Curitiba São Paulo

Recife

Manaus Fortaleza Salvador

Natal

Cidade referência

States Estado-sede

2014 Pontuação

Pernambuco Ceará Paraná Bahia São Paulo Minas Gerais Mato Grosso Rio de Janeiro Rio Grande do Sul Rio Grande do Norte Amazonas

70,16 68,55 59,10 54,83 51,94 50,26 47,14 37,68 36,71 22,25 18,88

Nível de Transparência Alta Alta Média Média Média Média Média Baixa Baixa Baixa Muito Baixa

2013 Pontuação 63,37 65,22 42,15 49,23 24,52 56,20 30,82 30,33 32,62 15,74 16,20

Nível de Transparência Alta Alta Média Média Média Média Baixa Baixa Baixa Muito Baixa Muito Baixa

Comparison 2013 /2014 – States 100,00

89,98 89,92

80,00 70,16 63,37 60,00

68,55 65,22 59,10 54,83 49,23

51,94

56,20 50,26

47,14

42,15 37,68

40,00 30,82 24,52

30,33

36,71 32,62 22,25

20,00

15,74

0,00

2013

2014

18,88 16,20

Transparency at the Olympic Games, Rio 2016 Ethos Institute is adapting the transparency indicators applied in the World Cup 2014 to the Olympic and Paralympic Games in Rio, 2016. They will assess the institutions involved with the Games (Olympic Public Authority - APO, Municipal Olympic Company - EOM, Government of State of Rio de Janeiro, 2016) to measure the transparency of these institutions. The indicators will be applied between January and February 2015, with the release of the results in March 2015.

In addition, they are promoting the Transparency Roundtable, a space where CSOs meet with members of the 2016 Rio Organizing Committee - responsible for coordinating sports activities of the Olympics - and Ethos Institute to discuss the transparency of the Olympic Games.

The first meeting was held in October 2014. In total six thematic roundtables will be created to help Rio 2016 to meet the commitments set out in the Olympic Games sustainability reports.

Civil society institutions, with the support of Rio 2016, will lead the roundtables.

Ethos Institute will lead the transparency debate.