Detailed Information :

Europe

Year of Establishment: 2008

Initiative Phase: Long-term Initiative

Participants: Member companies of the member organizations of the European Aerospace and Defense Industries Association of Europe (ASD). ASD members are 32 National Trade Associations in 21 countries across Europe.

Scope:

• Asserts principles for gifts, hospitality, and political contributions, including rules for transparency and accountability.

Key Facts:

Objective:

• Creating a market place free of corrupt practices, allowing all participants in the international markets to compete on equal and fair bases.

Description:

• Voluntary code.
• Bans all forms of passive and active corruption.
• The European Aerospace and Defense Industries Association of Europe (ASD) created a Common Industry Standard to improve transparency and promote a code of ethical standards.
• Member companies and their subsidiaries agree to adhere to comply with applicable laws and standards, including the OECD and UNCAC conventions.
• Companies encourage their agents, consultants, etc. to adhere to the standards and exercise their influence towards other entities in the same direction.
• The need for the ASD Common Industry Standard arose due to the allegations of fraud and bribery by BAE Systems and the US Department of Justice’s Investigation.

Key Learning:

• An industry-wide initiative can help to break the “prisoners’ dilemma” in a high-risk sector.
• Local ownership of implementation can be fostered through national trade associations.

Mechanisms:

• The Aerospace and Defence Industry have founded an Ethics and Anti-Corruption Task Force. This Task Force has initiated and pursued the sharing between themselves and the benchmarking of their corporate integrity practice, with a view to determining, through an industry-wide cooperative effort, commonly established standards.
• Requires companies to conduct due diligence examinations of consultants and agents and regulates the principles for remuneration.
• All agreements with agents, consultants, and intermediaries are to contain a provision on adherence to the OECD and UNCAC convention, as well as the ASD Common Industry Standard.
• The companies are to implement an integrity program and train employees and managers.

Benefits:

• By being proactive in the fight against corruption, defense companies can enhance their reputation and the reputation of the industry.

Links:

ASD Website

Sources:

• Pfeifer, Sylvia, 2008, Push for Defence Industry Ethics Code, Financial Times, 2 April 2008
• ICC, Department of Policy and Business Practices, Commission on Anti-Corruption Meeting on 30 April 2008: Item 9 – Common industry standard for the defense and aerospace industry.