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Philippines

Improving Corporate Accountability (PH0041)

Overview

At-a-Glance

Action Plan: Philippines National Action Plan 2015 – 2017

Action Plan Cycle: 2015

Status: Inactive

Institutions

Lead Institution: Integrity Initiative, Inc.

Support Institution(s): Department of Budget and Management/Government Procurement Policy Board. Makati Business Club, Philippine Business Groups-Joint Foreign Chambers (PBG-JFC)

Policy Areas

Private Sector

IRM Review

IRM Report: Philippines End-of-Term Report 2015-2017

Starred: No

Early Results: Did Not Change

Design i

Verifiable: Yes

Relevant to OGP Values: Not Relevant

Potential Impact:

Implementation i

Completion:

Description

Public sector corruption will not thrive without the participation of the private sector. Many companies in the Philippines bribe government officials in order to win government contracts or expedite government processes.
The Integrity Initiative was launched in December 2010 to help create a culture of integrity within both the public and private sector. After more than four years, over 3,000 corporations, government agencies, and non-profit organizations, have signed an Integrity Pledge where signatories commit themselves and their respective organizations not to engage in bribery and other unethical business practices. However, this remains to be a small proportion of the total number of corporations/organizations in the country.
In order to expand this number significantly, government as a whole must come out with specific policy issuances that will encourage organizations to sign the Integrity Pledge, as some government agencies and even government owned corporations (e.g. Department of Public Works and Highways, Department of Education, PEZA, Subic Bay Management Authority, Clark Development Corporation, John Hay Management Corporation and Development Bank of the Philippines) have done. The mainc objective is to institutionalize public and corporate accountability, integrity, and transparency by cultivating through the promotion of common ethical and acceptable integrity standards by the public and private sector. Relevance - This commitment is relevant in promoting Public Accountability
and Civic Participation. This collaborative effort between the government and the business sector aims to:
a) provide incentives for good corporate behavior; and
b) create a mechanism through which the private sector can seek redress and/or remediation of integrity issues both in the public and private sectors.
Government will play a crucial role in recognizing entities that will follow OGP principles and observe the highest ethical standards in dealing with the public sector. Ambition - This initiative seeks to significantly expand the number of organizations that sign the Integrity Pledge. These organizations will be required to implement strict integrity management programs themselves. It is hoped that signing the Integrity Pledge will become a requirement in private sector participation in government procurement activities, thereby increasing public sector integrity and safeguarding public resources.

IRM End of Term Status Summary

13. Integrity Initiative on Corporate Accountability

Commitment Text:

Public sector corruption will not thrive without the participation of the private sector. Many companies in the Philippines bribe government officials in order to win government contracts or expedite government processes. The Integrity Initiative was launched in December 2010 to help create a culture of integrity within both the public and private sector. After more than four years, over 3,000 corporations, government agencies, and non-profit organizations, have signed an Integrity Pledge where signatories commit themselves and their respective organizations not to engage in bribery and other unethical business practices. However, this remains to be a small proportion of the total number of corporations/organizations in the country. In order to expand this number significantly, government as a whole must come out with specific policy issuances that will encourage organizations to sign the Integrity Pledge, as some government agencies and even government owned corporations (e.g. Department of Public Works and Highways, Department of Education, PEZA, Subic Bay Management Authority, Clark Development Corporation, John Hay Management Corporation and Development Bank of the Philippines) have done. The mainc objective is to institutionalize public and corporate accountability, integrity, and transparency by cultivating through the promotion of common ethical and acceptable integrity standards by the public and private sector. Relevance - This commitment is relevant in promoting Public Accountability and Civic Participation. This collaborative effort between the government and the business sector aims to: a) provide incentives for good corporate behavior; and b) create a mechanism through which the private sector can seek redress and/or remediation of integrity issues both in the public and private sectors. Government will play a crucial role in recognizing entities that will follow OGP principles and observe the highest ethical standards in dealing with the public sector.

Ambition - This initiative seeks to significantly expand the number of organizations that sign the Integrity Pledge. These organizations will be required to implement strict integrity management programs themselves. It is hoped that signing the Integrity Pledge will become a requirement in private sector participation in government procurement activities, thereby increasing public sector integrity and safeguarding public resources.

Responsible institution: Integrity Initiative, Inc.

Supporting institutions: Department of Budget and Management/Government Procurement Policy Board. Makati Business Club, Philippine Business Groups-Joint Foreign Chambers (PBG-JFC

Start date: 1 August 2015

End date: 31 December 2017

Commitment Aim

This commitment aimed to institutionalize public and corporate accountability, integrity, and transparency through the Integrity Initiative. The integrity Initiative aims to cultivate and promote common ethical and acceptable standards of integrity in the public and private sector. More specifically, this commitment sets out to enlist 3,000 Integrity Pledge signatories in 2015, 5,000 in 2016, and 10,000 in 2017. The commitment also aimed to issue and pass a policy in support of the Integrity Initiative.[Note: For details, see Aceron, Joy. 2017. Philippines Progress Report, 2015-2017. Open Government Partnership Independent Reporting Mechanism. ]

Status

Midterm: Limited

At the midterm, the level of completion of this commitment was limited. While several advocacy and outreach events took place to support the achieving the target, it was not reached. 2,636 out of 3,000 signatories were secured in 2015 and 3,755 out of 5,000 were reached in 2016. The Department of Budget and Management (DBM) has yet to issue a policy in support of the Integrity Initiative.

End of term: Limited

At the time of writing this report, the number of signatories remains unchanged.[Note: The list of signatories is available at http://integrityinitiative.com/signatories/. ] The DBM has not passed a specific policy adopting and/or supporting Integrity Initiative. Although some parameters of the Integrity Initiative have been incorporated into procurement policy, this is still limited and may not achieve the desired impact as a separate Integrity Initiative policy or program.

Did It Open Government?

Access to Information: Did Not Change

Civic Participation: Did Not Change

Public Accountability: Did Not Change

The commitment is not directly relevant to any OGP values. However, many private sector players were willing to adopt integrity standards. This is a milestone that can be built on to achieve more systemic gains, such as policies that link compliance to those standards with the eligibility of these businesses as service providers in government procurements. Encouraging integrity in the private sector also indirectly addresses corruption in government, since the private sector is often on the other side of illegal transactions. However, the initiators must watch out for reversal of gains. Cheska Castillo of the Integrity Initiative pointed out that the Integrity Pledge adopted by the Department of Public Works and Highways, an agency with a reputation for corruption, has since been abandoned by its new secretary.[Note: Documentation Report. Roundtable discussion on ‘Did it Open Government’ organized by Government Watch. October 12, 2017.]

Carried Forward?

This initiative has not been carried forward. For this initiative to contribute to more ambitious corruption prevention,[Note: Aceron, Joy. 2017. Philippines Progress Report, 2015-2017. Open Government Partnership Independent Reporting Mechanism.] the IRM researcher recommends that the Integrity Initiative secretariat in the Makati Business Club focus on actions taken on integrity issues which surfaced through the certification system. This includes those involving corporate accountability and anti-corruption measures. Reviewing the indicators to include standards that are important to deter corrupt activities, such as anti-bribe measures, would also strengthen this anti-corruption effort. Mainstreaming the Integrity Pledge as a requirement of government in its transactions with the private sector and monitoring compliance to these integrity indicators are also good next steps to pursue.


Commitments

  1. Civil Society Participation to Improve LGU Service Delivery

    PH0042, 2017, Capacity Building

  2. Engage Communities in the Fight Against Corruption, Criminality and Illegal Drugs

    PH0043, 2017, Capacity Building

  3. Ease of Doing Business:Competitiveness

    PH0044, 2017, Legislation & Regulation

  4. Ease of Doing Business: Philippines’ Anti-Red Tape Challenge)

    PH0045, 2017, Capacity Building

  5. Citizen Participatory Audit)

    PH0046, 2017, Audits and Controls

  6. 8888 Citizens’ Complaint Center

    PH0047, 2017, Public Participation

  7. Government Feedback Mechanism

    PH0048, 2017, Capacity Building

  8. Access to Information Legislation

    PH0049, 2017, Capacity Building

  9. e-Participation Through the National Government Portal

    PH0050, 2017, Citizenship and Immigration

  10. Open Budget Index and Budget Reform Bill

    PH0051, 2017, E-Government

  11. Philippine Extractive Industries Transparency Initiative

    PH0052, 2017, Beneficial Ownership

  12. Institutional Mechanisms for Disaster Response

    PH0053, 2017, E-Government

  13. Shelter Development for Informal Settler Families

    PH0054, 2017, E-Government

  14. Open Local Legislative Processes

    PH0055, 2017, E-Government

  15. Law on ATI

    PH0029, 2015, Right to Information

  16. Transparency of Local Govs Plans and Budgets

    PH0030, 2015, Fiscal Transparency

  17. Open Data

    PH0031, 2015, Open Data

  18. Extractive Industries' Transparency

    PH0032, 2015, Extractive Industries

  19. CSO Engagement in Public Audit

    PH0033, 2015,

  20. Civic Enagement in Local Budget Planning

    PH0034, 2015, Participation in Budget Processes

  21. Civic Enagement in Local Budget Planning – Community Capacity-Building

    PH0035, 2015, Capacity Building

  22. Improving Public Service Delivery

    PH0036, 2015, Public Participation

  23. Improving Local Govs' Performance

    PH0037, 2015, Capacity Building

  24. Improve the Ease of Doing Business

    PH0038, 2015, Private Sector

  25. Local Government Competitiveness

    PH0039, 2015, Capacity Building

  26. Public and Private Sector Dialogue

    PH0040, 2015, Private Sector

  27. Improving Corporate Accountability

    PH0041, 2015, Private Sector

  28. Sustain Transparency in National Government Plans and Budgets

    PH0020, 2013, E-Government

  29. Support for the Passage of Legislations on Access to Information and Protection of Whistleblowers

    PH0021, 2013, Legislation & Regulation

  30. Engage Civil Society in Public Audit

    PH0022, 2013, Public Participation

  31. Enhance Performance Benchmarks for Local Governance

    PH0023, 2013, Capacity Building

  32. Enhance the Government Procurement System

    PH0024, 2013, E-Government

  33. Strengthen Grassroots Participation in Local Planning and Budgeting

    PH0025, 2013, Participation in Budget Processes

  34. Provide More Accessible Government Data in a Single Portal and Open Format

    PH0026, 2013, E-Government

  35. Starred commitment Initiate Fiscal Transparency in the Extractive Industry

    PH0027, 2013, Extractive Industries

  36. Starred commitment Improve the Ease of Doing Business

    PH0028, 2013, Private Sector

  37. Disclose Executive Budgets

    PH0001, 2011, Fiscal Transparency

  38. Access to Information Initiative

    PH0002, 2011, Right to Information

  39. Broader CSO Engagement

    PH0003, 2011, OGP

  40. Participatory Budget Roadmap

    PH0004, 2011, Participation in Budget Processes

  41. Local Poverty Reduction

    PH0005, 2011, Subnational

  42. Empowerment Fund

    PH0006, 2011, Capacity Building

  43. Social Audit

    PH0007, 2011, Public Participation

  44. Results-Based Performance

    PH0008, 2011, Capacity Building

  45. Performance-Based Budgeting

    PH0009, 2011, Capacity Building

  46. Citizen’S Charters

    PH0010, 2011, Capacity Building

  47. Internal Audit

    PH0011, 2011, Audits and Controls

  48. Single Portal for Information

    PH0012, 2011, E-Government

  49. Integrated Financial Management System

    PH0013, 2011, E-Government

  50. Electronic Bidding

    PH0014, 2011, E-Government

  51. Procurement Cards

    PH0015, 2011, Open Contracting and Procurement

  52. Manpower Information System

    PH0016, 2011, E-Government

  53. Expand the National Household Targeting System (NHTS)

    PH0017, 2011, Public Participation

  54. e-TAILS

    PH0018, 2011, E-Government

  55. Budget Ng Bayan

    PH0019, 2011, Fiscal Transparency