One of the central issues emanating from the ILO World Commission on the Social Dimension of Globalization, and one heavily propagated by employers, was the importance of good and effective governance. For there to be a successful democratic market economy, societies need as a first step to build governance structures that are transparent, free of corruption, democratic and above all genuinely serve the public interest and are accountable to that public.

 

The consequences of corruption can be pervasive, creating weak or unstable political situations, developing a lack of trust in political and public authorities, creating unfair competition or worse, an absence of competition, increasing company costs, undermining investor confidence, hampering business-start-up. All of which contribute to hindering economic, political and social development. Corruption is also seen by the public in some instances as a "failure" of democracy and its presence in everyday life can further undermine public support for the political and judicial system. While corruption is on the agenda of many employers’ organizations, it can often be difficult to find concrete and practical ways to fight it as often other highly political elements can come into play.

 

The IOE approach to this issue is to try and keep the focus on how all companies can tackle corruption and not just a narrow focus on MNEs. The IOE also been engaged with the Global Compact in trying to develop a greater awareness of this approach.


Prior to the annual IOE European Meeting in Poland in 2004, the IOE and the ILO organized a European workshop on the role of employers’ organizations in the fight against corruption. This process has started to raise awareness among members in all regions of their own role in tackling corruption.