Detailed Information :

Germany

Year of Establishment: 1996

Project Phase: Long-term Initiative

Participants: 45 construction company members in 2006

Scope:

• The Ethics Management Initiative was launched by the Bavarian Construction Industry Association and aims to foster integrity in the construction sector and to improve the industry’s reputation.
• Anti-corruption is the main focus of the initiative, but the issue is seen in the broader context of ethics management.

Key Facts:

Description

• The Bavarian Construction Industry Association launched a Certifying Business Coalition in 1996 to foster integrity in the construction sector and to improve the industry’s reputation. The certificate can be used as a pre-qualification for bidders.
• In 2006, the initiative had 45 members, all construction companies.
• Conditions for membership:
• Companies join the initiative by signing the charter, committing themselves to implement an ethics management system based on the initiative’s principles and accepting to be audited after one year of membership.
• In the case of a successful audit, they would receive the initiative’s certificate and would be re-audited again after a pre-defined time period. In the case of an unsuccessful audit, they would get the chance to improve their ethics management system and would be re-audited. If they failed again they would be excluded from the initiative.

Key Learning:

• A valid enforcement mechanism is accepted by member companies if it is described as a benefit (“certification”) rather than sanctions (“exclusion from initiative in the case of non-compliance”)
• The key task of an initiative’s administration is to promote certification and thus increase public awareness. Such awareness again is a benefit for member companies

Mechanisms:

• Members have to comply with preset rules and implement an enforcement mechanism.
• Compliance with rules and implementation of enforcement mechanisms have to be proven in various ways and are audited externally. (see below)

• There are only limited costs involved for member companies: The annual membership fee is 250 EUR, the cost of an external audit is 2.000 EUR.

Benefits:

• Certificate of the Ethics Management Initiative is already recognized by some companies as proof of anti-corruption behavior during pre-qualification of bidders (e.g. German Rail)
• Restored reputation of construction industry and increased credibility of initiative members
• Improved employer brand
• New members are joining on a regular basis
• Initiative is currently rolled-out in other regions of Germany

Links:

Click here for more information (In German only)

EMB Wertemanagement Bau, EMB 2007 (German only)

Source:

• Interview with head of initiative (Dr. Lupp), Publication of initiative (in German only)