The fight against corruption: a corporate social responsibility
Corruption represents a systemic global problem. Recently, the Supreme Court of Justice of the Nation (SCJN) has formally recognized that organized civil society is a factor in mitigating and reducing corruption, which is why it is fundamental within the new anti-corruption regulatory structure in Mexico. Corruption significantly affects the provision of public services, economic development, respect for human rights and the rule of law. E
Mexico suffers from a serious corruption problem. Transparency International noted, in the 2020 Corruption Perceptions Index, published in January 2021, that Mexico ranks 124 out of 180 countries in its ranking of perceived corruption in the public sector. For its part, the National Institute of Statistics and Geography (INEGI) reported increases in the prevalence rate of corruption incidents per 100,000 inhabitants, in 2017 with 14,635, and in 2019 with 15,732 corrupt procedures. In other words, as a country, we find ourselves in a regrettable position in terms of corruption, and the main indicators show no signs of improvement. Globalization, the growth of national economies and the accelerated creation of companies in various production sectors have brought about the diversification of acts of corruption and greater challenges to combat them. Currently, this phenomenon demands coordinated measures between the state and private parties, with a collaborative approach that involves all actors in society. Civil society has a key role as a permanent watchdog and actor in the fight against corruption. By adopting an ESG (Environmental, Social and Governance) perspective in their strategy, companies can contribute to this important task and lay the foundations to build a more resilient, sustainable and equitable society. The participation of civil society in the fight against corruption On April 28, 2021, in resolving Contradiction of Precedents 253/2020, the SCJN recognizes that the active participation of citizens in the fight against corruption is a fundamental piece for the correct functioning and application of the National Anti-Corruption System. Said System consists of the assembly of government agencies in charge of coordinating the prevention, detection and sanctioning of corruption in Mexico. The SCJN holds that civil society is a necessary counterweight in the fight against corruption, since, through complaints, the state body is activated to investigate acts of corruption committed by public servants and/or private parties. In the recent SCJN ruling, civil society is granted a new tool for its participation in matters of administrative liability, by recognizing the citizens' legal interest to challenge, through indirect amparo, the investigating body's decision to refrain from investigating or to conclude the investigation. Fittingly, the SCJN encourages the co-responsibility and co-participation of society, for the sake of effective accountability and the obtaining of results. The fight against corruption as an intangible corporate value Through corporate ethics, a culture of integrity, transparency, the adoption of international best practices in the matter and active participation in the fight against corruption, companies will manage to comply with the required standards of social responsibility and this, in turn, will increase their intangible value. The benefit for organizations is an increase in their reputation in the market, as well as before society and the authorities. It is essential that companies implement controls, manuals and programs that adopt the most advanced national and international standards in the matter. Based on these tools, grounded in a true conviction and leadership reflected in the corporate culture, organizations can combat internal and external corruption in their operations to avoid a negative impact (reputational, operational or financial) and, even, corporate criminal liability. Considering the current context of our country, the fight against corruption at the corporate level as part of its social responsibility must not be limited to its internal operations, but must contemplate effective actions and policies to eradicate corruption through participation in the investigations initiated -or, at times, avoided- by the government. This will increase the confidence of the different stakeholders and will allow citizens to take an interest and join this collective effort. Thus, social responsibility as the guiding principle of corporate conduct will have a favorable effect on corporate reputation, the ability to attract and retain talent and, eventually, on operational and financial performance, in addition to having a favorable impact on society. It is not solely about preventing violations of the law to avoid sanctions, but about building a culture of corporate integrity that will, moreover, generate economic benefits and new business areas for the company and the interested parties, including the society in which it operates. In this sense, it is essential for companies to have the legal advice of a multidisciplinary team with an ESG perspective that has broad experience in governance and internal control matters. This will allow them to build a new corporate ethics aligned with the international best practices in anti-corruption matters. In this way, they will manage to strengthen their processes and controls, which in turn will allow them to have greater and better access to capital and business opportunities, mitigate potential areas of liability and build a society with greater opportunities and social equity. For additional information on the subject of this note, please contact our experts: Diego Sierra, Partner: +52 (55) 5258-1039 | dsierra@vwys.com.mx Raymundo Soberanis, Partner: +52 (55) 5258-1034 | rsoberanis@vwys.com.mx Sara Hardy, Associate: +52 (55) 5258-1039 | shardy@vwys.com.mx
