We take a 'zero tolerance' approach to all forms of corruption and are committed to preventing bribery in all our investments. Raising business integrity standards in emerging markets has a positive developmental effect because it improves companies' performance, helps them access capital, and reduce their investment risk.
We do not pay nor condone the use of bribes, facilitation or other corrupt payments by fund managers or companies we're invested in. Such payments are in violation of our Code of Responsible Investing and international standards of business, and are wholly incompatible with our mission.
We define corruption as the offering, requesting, giving, or receiving of a financial or other advantage to induce or reward the improper performance of a role, duty, or function. Corrupt Practices come in different forms, including bribery, kickbacks, and facilitation payments. These are prohibited under the OECD Anti-Bribery Convention and considered a criminal offence in nearly every jurisdiction in the world.
Although bribes and facilitation payments are treated by some as just another cost of doing business in difficult environments, the momentum against such practices is shifting and an increasing number of governments, companies, and investors are scaling up their anti-corruption efforts.
Corruption hurts good businesses and hinders economic development. Moreover, the payment or receipt of bribes, kickbacks, and facilitation payments can leave businesses or the individuals involved facing fines and prison sentences.
Every business in which CDC’s capital is invested will:
- uphold high standards of business integrity and honesty;
- adopt and implement policies to prevent extortion, bribery, fraud, corruption and financial crime in accordance with local law requirements and international best practice;
- properly record, report and review financial and tax information;
- establish corporate governance practices appropriate to the size and nature of the business;
- deal with regulators in an open and co-operative manner; and
- use information received from its business partners only in the best interests of the business relationship and not for personal financial gain by any worker.
Find out more
More information about how to introduce good systems that tackle corruption is available in CDC’s Toolkit for Fund Managers.