Letter: Business leaders must do more to fight corruption

I was pleased to read Martin Sandbu (“We must clean up global finance to ‘build back better’”, Opinion, March 1) stressing that the need to address illicit finance was more urgent than ever, while referring to the report of the UN high level panel on financial integrity which launched last week.

Yet this is not an agenda for governments alone. I am convinced that the private sector can play an important role as a driver of change in reducing corruption. Positive leadership from the top is essential: to instil an understanding that bribery is unacceptable; that paying corporate taxes is part of the social contract and to respect the spirit not only the letter of the law, in all matters.

There is undeniably a business case for financial integrity. It is time to accentuate the culture shift in the accountability of business to include not only numbers and performance but also people and the planet. Self-regulating mechanisms can form an important complement to a regulatory structure. For example, it can take the form of financial divestment from businesses. Last month, Norges Bank Investment Management, the administrator for Norway’s oil revenue fund, sold its stake in seven companies which engaged in aggressive tax planning and had not been transparent in tax matters.

In fostering fairness around taxation, it is also imperative that we address emerging issues around the taxation of digitalised economic activity. The advent of giant technology companies has profound implications for local employment and economic activity; yet in many countries those digital giants pay very little tax. It is therefore urgent that international tax reform covers today’s gaps in digital taxation.

It is often said that “with crisis comes opportunity”. This is such a moment. The UN panel has now published its recommendations. We know that the recommendations are ambitious and to some extent controversial. People rightly expect their political leaders to uphold high ethical standards. They should expect the same of business leaders.

I hope the recommendations will trigger common action to the benefit of all.

Benedicte Schilbred Fasmer
Member, UN High Level Panel on International Financial Accountability, Transparency and Integrity
Chief Executive, Sparebank1 SR Bank Stavanger, Norway