Within the international development and democracy support communities, few issues have risen to prominence as rapidly as corruption. It was not until the late 1990s that corruption _ and strategies on how to reduce it _ emerged as a major theme in economic and democratic development. Indeed, the World Bank did not have a formal anti-corruption strategy until 1997 and the United Nations did not begin crafting the UN Convention Against Corruption until 2000.
Today, the issue of corruption is among the paramount priorities for economic development and democratic consolidation, and corruption is now a central political and electoral issue in Thailand and worldwide.
This increased attention to the causes and costs of corruption is engendering more and more anti-corruption initiatives by governments, donors and NGOs.
But the vast majority of these efforts focus on the public sector, such as regulatory reform and the creation of new oversight bodies.
Those initiatives that do involve the private sector are often merely informational disclosure requirements for businesses mandated by the government.
In Thailand, the Thai Institute of Directors (IOD), joined by six other key private sector organisations, is spearheading the Collective Action Coalition Against Corruption (CAC). This initiative is showing the importance of private sector approaches to addressing corruption. The CAC campaign is emerging as one of the most robust, dynamic and comprehensive private sector anti-corruption initiatives in the world.
IOD, in its function as the CAC secretariat, has assembled a still-expanding coalition of companies and business associations committed to fighting corruption in Thailand, with technical and financial assistance from the Centre for International Private Enterprise (CIPE), a US-based organisation that works to strengthen democracy around the globe through private enterprise and market-oriented reform.
To join this coalition, a company signs the CAC Declaration which lays out tangible and specific steps that a company must take to proactively reduce corruption-related risks on the part of its employees, managers and vendors. Companies also agree to share best practices, even with competitors.
But signing this document is no mere photo-op, because to remain a member of the CAC, a company must submit to an external evaluation to verify whether it is actually doing what it has promised to do.
There are other anti-corruption efforts under way in other countries that involve the private sector, some of which are supported by CIPE. There are also a few global anti-corruption campaigns that focus on the business community.
However, Dr John D Sullivan, executive director of CIPE, explains that this anti-corruption effort in Thailand is unique because "companies understand that joining IOD's coalition requires a substantial commitment of time and resources, and could involve significant organisational changes, but they are joining in droves anyway".
The CAC campaign in Thailand "debunks the view that businesses benefit from corruption," Dr Sullivan went on to explain. "This Thai initiative not only demonstrates that private businesses are interested in reducing corruption, but that they are willing to be mobilised to take concrete steps to fight it."
This IOD-led anti-corruption coalition now consists of the largest Thai and multinational corporations in Thailand, along with the country's most influential business associations. CIPE estimates that, with 153 companies already joined, this coalition could represent over 15% of the entire Thai economy and more than 1 million employees.
To help companies comply with the standards of this collective action coalition, IOD developed two separate technical training courses. The first is a one-day course for corporate directors and senior executives where they learn how to embed anti-corruption principles in their respective corporate strategies and organisational cultures.
The second course is a two-day programme that trains corporate compliance officers and internal auditors on how to use a company's existing internal control structures to mitigate corruption risks. Participants also receive instruction on the certification process which a company must undergo to remain in the anti-corruption coalition.
Despite the significant time commitment for senior corporate officers, and despite the fact that companies must pay a participation fee, IOD is being overwhelmed with requests to attend.
This begs the question: why are companies, both Thai and multinational, so eager to participate in an initiative that requires such commitment? Bandid Nijathaworn, president and CEO of IOD and a former deputy governor of the Bank of Thailand, believes that "the Thai private sector is fully aware that tackling corruption is key to the sustainability of Thai businesses and the economy in the longer term. The CAC initiative offers a workable and visible vehicle for companies to directly participate and help promote integrity and a level playing field in Thai businesses.
"The momentum is now building, and as more companies join, the momentum will be even stronger. This is the private sector's policy advocacy by example."
Combating corruption must involve more than simply weeding out crooked government officials. After all, many of the countries that are most known for ruthlessly punishing corrupt officials are among the countries in which corruption is most embedded and intractable. To truly change the way things are done in a country, the factors that give rise to corruption must be addressed. In Thailand, IOD and its coalition partners are doing just that.
By establishing uniform standards of conduct to which companies must adhere and by facilitating the sharing of information on anti-corruption experiences and best practices, the CAC is levelling the playing field and increasing transparency and accountability in the Thai marketplace.
John Morrell, CIPE Asia Program Officer, manages CIPE projects in East and Southeast Asia.