Business Integrity in Ukraine: OECD Discussed Recommendations with Government, Business, and Civil Society Representatives

20 december, 2024
News

The Ukrainian Network of Integrity and Compliance (UNIC) co-organized the consultative seminar "On the Path to Integrity in Business Operations," held on December 18 in Kyiv.

The event was organized by the OECD Anti-Corruption Division and the “Promoting Integrity in the Public Sector (Pro-Integrity)” project, funded by the U.S. Agency for International Development (USAID) and UK International Development. The seminar provided a platform for exchanging views on the real challenges businesses face and steps that can help implement transparent standards.

Antonina Prudko, Head of the UNIC Secretariat, emphasized the importance of constructive dialogue between businesses and international organizations to develop effective anti-corruption tools:
“OECD recommendations on business integrity are of strategic importance on Ukraine’s path to membership in the organization. At UNIC, we are working to amplify the voice of transparent businesses, address their needs, and outline their vision for the future. Such dialogue allows for the consideration of companies' real challenges in shaping anti-corruption legislation that aligns with European standards. We are pleased that UNIC has contributed to the discussion of these recommendations, as business transparency is a key condition for Ukraine's sustainable economic growth, its accession to the OECD, and its European integration.”

The consultative seminar brought together representatives of the public and private sectors, civil society, and expert organizations. They discussed the preliminary OECD recommendations on business integrity. The business integrity review in Ukraine is part of the OECD Review on Integrity and Anti-Corruption in Ukraine, implemented under the OECD Ukraine program launched in June 2023. The review covers public policies on corporate compliance, the impact of the war on business integrity, and the development of recommendations for companies on combating corruption and implementing proper standards.

Ukraine has expressed its intention to join the OECD Recommendation on Public Integrity. Conducting an integrity review is a prerequisite for this process. Additionally, Ukraine has become a prospective participant in the OECD Working Group on Bribery in International Business Transactions (WGB), with the goal of joining the OECD Anti-Bribery Convention and achieving full WGB membership.

“We are pleased to see that, despite the challenging circumstances of war, Ukraine is making progress in anti-corruption reforms. This commitment has remained strong for several years. Membership in the OECD Working Group on Bribery will help attract investments and create a transparent environment for businesses,” said Julia Fromholz, Head of the OECD Anti-Corruption Division. She also highlighted the importance of the OECD Convention as a tool for ensuring transparency and equal opportunities for companies in the international market.

Yulia Yesmukhanova, Deputy Director of the Pro-Integrity project, emphasized the role of participant feedback and its significance for planning future efforts:
“Within the project, we collaborate with anti-corruption agencies, civil society organizations, and businesses to promote anti-corruption reforms and integrity in Ukraine. A key focus of our work is integrating Ukraine into the EU and joining the OECD. We listen carefully to the views of business representatives to better understand their needs and challenges. The business integrity review and the sociological survey we supported are essential tools for assessing compliance challenges and identifying ways to improve it. In collaboration with NACP, the OECD, and other partners, we will continue implementing measures to enhance our approaches and advance integrity in Ukraine.”

Dmytro Kalmikov, Deputy Head of NACP, highlighted the impact of the review on assessing Ukraine's anti-corruption initiatives and NACP’s role in the reform process:
“The business integrity review enables us to evaluate and improve Ukraine’s practices in preventing corruption in business. Our ambitious goal is to join the OECD Convention and attract foreign investments. It is crucial for us to achieve maximum effectiveness in the recommendations, which are based on thorough analysis. In preparing these recommendations, collaboration with all stakeholders is key to creating practical tools for businesses that prevent corruption without imposing excessive administrative burdens.”

Tetiana Khavanska, Head of the OECD Business Integrity Program for Eastern Europe, noted the changing role of business during the war and the challenges of recovery:
“Companies are actively investing in the country’s defense and recovery. Public and investor expectations have grown significantly, making business transparency even more critical. In today’s context, trust in business is fundamental for attracting foreign financing and ensuring Ukraine’s successful reconstruction. The OECD recommendations will include specific steps to help businesses implement effective internal anti-corruption mechanisms and raise compliance standards.”

During the seminar, participants discussed preliminary findings and recommendations from the OECD and provided suggestions for their successful practical implementation. Additionally, the results of a survey of Ukrainian companies on business integrity were presented.

Participants will have the opportunity to submit written comments on the OECD recommendations by the end of December 2024. The feedback received will be considered in the final version of the recommendations, which will serve as a foundation for future reforms and corporate changes in the field of business integrity.