| Nigerian Convention on Business Integrity |
| Country: Nigeria |
| Sector: Multi-sector |
| Initiative Type: Certifying Business Coalition |
Detailed Information :
 Nigeria
Year of Establishment: 1997
Project Phase: Implementation Phase
Participants:
Integrity, Transparency in Nigeria, Cadbury Nigeria Plc. Denham Management Ltd. Diamond Bank Limited, Dunlop Nigeria Plc. Lagos Business School, Omolayole & Co., Pfizer Pharmaceuticals, Prominent Securities, Risk Watch, SAP AG, Express Discount Limited, MTN Nigeria, GT Bank, Standard Chartered Bank Ltd., Prima Garnet Ogilvy Group, the Ministry of the Federal Capital Territory
Scope:
- A business coalition against corrupt business practice certifying compliance of its members with its principles.
Key Facts:
Description
- The Convention on Business Integrity (CBI) is a certifying business coalition that is based on a joint declaration between signatories to adhere to integrity in their business conduct. Compliance with the convention is self-policing after a company signs and ratifies the Convention. Signatories get certified after a third party verifies their compliance with the required mechanisms.
- Signatories to CBI are required to provide a whistle-blowing mechanism, appoint an Ethics Counselor who monitors organization compliance with the CBI, and to provide a periodic peer review.
Objectives
- To encourage the establishment of a minimum standard for business integrity in Nigeria
- By certifying the integrity of its signatories, the Convention aims to gradually change the perception that all Nigerian business is fraudulent
Key Learning:
- A strong CEO-level commitment and willingness to participate in a coalition is imperative to sustain the initiative.
- A well thought-out external, third-party verification mechanism is necessary to enhance the monitoring of companies compliance with the CBI.
Mechanisms:
- CBI was formally launched in Lagos on 2 October 1997. Getting companies in Nigeria to join the CBI was difficult. Cadbury Nigeria plc was the first company to sign up to CBI. Cadbury assisted CBI to reach out to potential members and several companies signed up, most notably in 2002, SAPAC, a member of the Global compact
- Cost: SAP AG financially supports the CBI through its anti-corruption project as a United Nations Global Compact signatory; the UK Department for International Development (DFID) has been offering technical assistance to develop a strategic plan for the initiative and has provided funding to the CBI secretariat to recruit new members and to roll out the concept in other countries in Africa.
- Role of Monitor: all CBI signatories are required to appoint an ethnic counselor who will help the organization resolve ethical dilemmas and to clarify ethical values of the organization. Additionally, the ethics counselor provides confidential support to those wishing to report unethical and corrupt practices. Finally, the ethics counselor monitors the organization compliance with the Code of Business Integrity.
- External Monitor: CBI secretariat carries out a periodic compliance check, but is different from a conventional external monitor which verifies the claim made by CBI signatories.
- CBI secretariat provides assistance in implementing the CBI standards; carries out compliance checks and has full time staff.
Benefits:
- Strengthened business process transparency in Nigeria.
- Increased investor confidence and bring about greater investment inflows.
- Initiative served as an example for other African countries with similar challenges.
- Inspired the organizational change of a number of public enterprises such as the Ministry of the Federal Capital Territory (MFCT), the Ministry of Finance for the Government of Nigeria, and Express Discount Limited.The Ministry of the Federal Capital Treasury signed on the CBI in 2004, requiring that contracts with over N50 million needed to comply with CBI standards.
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Case Story: Convention on Business Integrity
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CASE SUMMARY