Private Sector Corruption Prevention

1. Business nature
   1. Sandell Theory
2. Extortion
3. Bad System
   1. Regulation
      1. Existing regulations
         1. Comparison with other country
         2. Regulation improvement possibility
   2. Unfair competition

1. Cost of Bribe is increasing significantly
2. Low competitive advantage
3. Creating unfavorable business environment
4. Legal risk

1. Supporting Theory
   1. Porter
   2. Kotler 3.0

      Annotations:

      • Linking with the latest marketing theory

Annotations:

• How can anti corruption shared value contributes to the reduction of national corruption level

1. Benefits
   1. Contributes to the nations
      1. Reduce cost of doing business

         Annotations:

         • Reduce red tape + facilitating payments
         1. Encourage the government to provide better service
      2. Improve national corruption perception index

         Annotations:

         • Involving business as the actor of corruption prevention and also change the perception of business people
   2. For the company
      1. Increases company competitiveness
         1. Increases customer trust
         2. Improve company's sustainability
            1. Gain employee trust
      2. Improve company reputation
         1. Increases shareholder value
         2. Lower cost of fund (creditor point of view)
         3. Attract investor
      3. Reduce legal risk
         1. Increase sanction for corporate involved in bribery
            1. LKPP
            2. KPPU
               1. Supporting Laws ?
2. What needs to do
   1. Phase I
      1. Campaign
         1. Anti Bribery Campaign
         2. Engage with Firms as much as possible
   2. Phase II
      1. Commitment
         1. Published in corporate annual report

            Annotations:

            • Including corporate annual report
            1. Audited by CPAs
               1. Ratings System
                  1. 1. Anti-Bribery as Corp. policy
                  2. 2. Anti-Bribery employ in Company's internal regulation
                  3. 3.Periodic Anti-Bribery and Gratification training for executives
                  4. 4. Proven in a year financial report
         2. Maintain

            Annotations:

            • Part of audit subject
            1. Discussion Forum

               Annotations:

               • To facilitate any complaint from companies.  Conducted by KPK per semester.One event is on anti corruption day involving related government bodies.
   3. Phase III
      1. Rewarding (Create Dependency)
         1. Create Stock market Index

            Annotations:

            • for shared certain value categories including anti corruption shared value idea) combined with SRIKEHATI index
            1. Existing condition ?
         2. Persuade Credit ranking Agency
            1. Pefindo
         3. Persuade Lenders Institution

1. Ignorance possibility

   Annotations:

   • they can't see the benefits and only consider the costs
   1. Costs
      1. lost from competitor
      2. short term obstacle in running the business

         Annotations:

         • Due to red tape (bureaucracy)
   2. No instant benefit
2. Ceremonial without further commitment