Private companies urged to sign ‘integrity pledge’

The Makati Business Club has urged Malacañang to issue an executive order requiring companies participating in government deals to sign the Integrity Pledge.

This move is expected to help weed out graft and corruption as well as minimize bribery, collusion and tax evasion in government biddings and projects, said MBC executive director Peter V. Perfecto.

On the sidelines of the forum series on Business and Anti-Corruption in Asean Tuesday, Perfecto said some agencies were hesitant to require their bidders, suppliers and other private companies that have dealings with them to be part of the Integrity Initiative, because they do not have the legal framework to mandate or demand it.

There were also concerns raised on possible conflicts with the Procurement Law.

“The EO will be written in such a way that it will not violate that (Procurement Law)…. Right now, the law does not say that (signing the Integrity Pledge) is required, but it also doesn’t say that it’s not allowed. If there is an EO, that will empower state agencies to make that requirement without fear that one will lodge a complaint against them,” Perfecto said.

So far, only the Department of Public Works and Highways has mandated companies participating in its projects to sign the pledge.

Signatories to the pledge are expected to, among others,  prohibit bribery; ensure that charitable and political contributions, business gifts, and sponsorships are transparent; and refrain from engaging in business with parties who have demonstrated unethical business practices.

There were reportedly over 1,000 signatories from the DPWH side, while there are about 1,900 direct signatories to the Integrity Pledge since it was launched.

The Integrity Initiative project was started in 2010 by the European Chamber of Commerce of the Philippines and the Makati Business Club with the aim of helping the government combat corruption, provide a level playing field for investors, and minimize unemployment in the country.

The signing of the Integrity Pledge is deemed a commitment to ethical business practices and good corporate governance, with the view that “corruption is one of the biggest impediments to economic growth and prosperity in the Philippines and has been eroding the moral fiber of this society.”

According to Perfecto, signing the Integrity Pledge is a start of a process of integrity self-assessment, validation and certification.

“It doesn’t stop at the pledge. It has to go through the assessment, validation and certification. Once we do the certification, the company (signatory) would have met a number of requirements in terms of integrity practices and integrity standards so that will minimize the chances that bribery happens, collusion happens. We will also incorporate a mechanism wherein employees of the company and the general public can report any company if they are in violation,” Perfecto explained.

“There will be an online system wherein employees of a company or the public can report violations to the Unified Code of Conduct for example, because once you sign the pledge, the next step is you abide by the Unified Code of Conduct,” he added.

Groups pushing for the executive order want the proposed EO to be issued by September this year, in time for the 4th Integrity Summit.