Policy Briefs

Takeaways from B20 Task Force Paper on Integrity and Compliance

Ahead of the B20 Brasil Summit held on the 24^th and 25^th of October 2024, several official B20 Task Forces spread across a diversity of priority areas published reports on recommendations and policy actions that G20 nations could take to support these priority areas. One of these official B20 Task Forces focused on Integrity and Compliance as its priority area and developed three key recommendations for G20 nations on how to improve governance in this domain.

Recommendation 1: Encourage the implementation of integrity and anti- corruption measures to enhance responsible and sustainable governance in business. Stimulating private integrity and the convergence of sustainability standards and disclosure to elevate governance maturity.

Under the aegis of Recommendation 1, the B20 Task Force on Integrity and Compliance advocates for two policy actions. First, the B20 Task Force on Integrity and Compliance believes that the G20 should incentivise private integrity and anti-corruption measures to enhance responsible and sustainable governance. The B20 Task Force proposes seven potential actions that the G20 could take to address this action area.

First, the Task Force recommends that G20 nations should prefer to grant government support or services to companies that implement integrity and anti- corruption measures.

Next, the G20 nations should reduce penalties on firms that self-report integrity violations, which distinguishes them from those that try to evade accountability.

Third, the B20 Task Force recommends implementation and enforcement of anti- corruption measures and responsible sustainable governance.

Fourth, the G20 should reward corporations that operate with high degrees of ethics and integrity through an “allowlist”.

Fifth, the B20 Task Force recommends that the G20 should train government agents to exercise professional judgement related to compliance structure and anti-corruption requirements as well as assessing a companies’ ability to prevent money laundering.

Sixth, the B20 Task Force recommends that companies in G20 nations should conduct integrity and compliance trainings for workers to prevent and combat corruption.

Finally, the B20 Task Force promotes the adoption of innovative technological solutions to strengthen monitoring and deliver more accurate, real-time insights.

The second policy action recommended by the B20 Task Force on Integrity and Compliance is ensuring the convergence of adopted frameworks for sustainability standards and disclosures. Under this policy action, the B20 Task Force recommends five initiatives.

First, the B20 Task Force recommends that the G20 advocate for the convergence of frameworks to enhance international coordination.

Second, the B20 Task Force recommends that the G20 should support MSMEs to adopt sustainability standards and disclosure frameworks.

Third, the G20 should adopt a unified online platform that serves as a central knowledge hub on capacity building and sustainable best practices.

Fourth, the G20 should create a centralised data collection system to manage sustainability data and develop plans for national sustainability goals. Finally, the B20 Task Force recommends that G20 nations converge integrity and anti- corruption frameworks in line with sustainability standards.

Recommendation 2: Stimulate Collective Action, engaging the Public Sector and value chains to uphold integrity. Promoting collaboration of public sector, private sector, and civil society to strengthen integrity and resilience in the value chain, upholding safeguards to combat corruption, developing specific approaches for situations related to environmental and human rights issues.

Under the aegis of Recommendation 2, the B20 Task Force on Integrity and Compliance advocates for two policy actions.

The first policy action under Recommendation 2 is to foster collective action with both the private and public sectors to promote integrity and resilience in value chains. Under this policy action, the B20 Task Force on Integrity and Compliance recommends that G20 nations combat and address demand and supply side corruption with efforts focused on integrity and effective methods of information sharing.

Next, the B20 Task Force recommends that the G20 countries should implement structured integrity programs, training sessions for corporate leaders and public sector officials, and promoting awareness about anti-corruption.

Third, the G20 should establish business networks across sectors that would increase information sharing, coordination, and engage with public sector stakeholders as well as promote anti-corruption programs.

Fourth, G20 nations should form Integrity Pacts in public procurement aligned with local regulations, social or economic impact, and corruption risks.

Finally, the B20 Task Force recommends that G20 nations develop High Level Report Mechanisms (HLRM) with inputs from the private and civil sectors.

The second policy action under Recommendation 2 is to promote both transparency and accountability to tackle corruption effectively on both the demand and supply side and addressing infractions related to green transition, environmental crimes, and human rights violations. Under this policy action, the B20 recommends six initiatives that G20 nations can implement to address this action item.

First, the Task Force recommends the G20 nations conduct a corruption risk- assessment at sectoral and institutional levels to develop targeted reduction strategies.

Second, the Task Force recommends that G20 governments should implement measures to enhance awareness and prevent corruption.

Third, the G20 nations should support anti-corruption trainings to increase awareness and enforcement of anti-corruption measures.

Fourth, G20 nations should hold corrupt actors responsible, and fifth, strengthen national digital public records.

Finally, the G20 nations should support and endorse beneficial ownership transparency.

Recommendation 3: Promote ethical leadership to foster inclusive growth. Promoting ethical leadership aimed at guiding society towards sustainable and inclusive growth by setting a tone of respect and equality in the workplace, as well as fostering the transparency and ethical development, deployment, and use of AI.

Finally, the B20 Task Force recommends two policy actions under Recommendation 3. The first policy action is on ensuring a safe work environment by establishing safeguards against harassment and discrimination in both the public and private sector. The B20 Task Force recommends that G20 nations establish legal obligations to promote safe workplaces as well as develop reporting mechanisms for harassment and other misconduct. Moreover, the B20 Task Force recommends that G20 nations implement comprehensive protections for whistleblowers both inside and outside the employment framework. Finally, the G20 should increase institutional capacity and establish sanctions and penalties on individuals and entities that promote harassment.

The second policy action under Recommendation 3 is to promote the adoption of international frameworks for technologies and AI systems regarding transparency and communication to end users. The B20 Task Force recommends that G20 nations develop voluntary codes of conduct related to the use of AI, raise awareness of the ethical use of AI, consider pro-innovation and risk-based approaches in developing AI policies, and, finally, implement oversight mechanisms on AI usage.

Read the full B20 Brasil Policy Paper on Integrity and Compliance here:
https://b20brasil.org/documents