Transparency in Reporting on Anti-Corruption (TRAC)
As part of the ongoing efforts to measure the supply side of corruption, TI’s survey of Corporate Practices: Transparency in Reporting on Anti-Corruption (TRAC) assesses the extent to which some 500 leading global companies report on the strategy, policies and management systems they have in place for combating bribery and corruption. TRAC is based on the premise that disclosure of these measures is key to improved corporate transparency, which in turn underpins good corporate governance.
With TRAC, TI aims to:
- Encourage companies to adopt and make public the measures they have put in place to discourage corrupt practices
- Promote high standards of company reporting on integrity and anti-corruption measures
In 2009 TI released the first TRAC report which assesses the extent to which close to 500 leading listed companies have publicly reported the strategies, policies and management systems they have in place for combating bribery and corruption. The companies are those included in the March 2007 version of Fortune’s annual global listing of the largest 2000 companies.
Download the full report.
TRAC primarily focuses on companies from developed countries but the report’s coverage will be extended to developing countries at a later stage. Each company is evaluated based on criteria drawn upon the TI movement’s experience, including TI’s Business Principles for Countering Bribery, expertise from analysts, leading thinking on corporate integrity, and evolving corporate best practice.
TRAC is based on original research. Information is drawn from publicly reported and available documents and then measured against a comprehensive set of indicators. The report presents aggregate results by sector and country and future editions of TRAC are expected to include named company rankings.
The results from the first TRAC report show that on average, leading companies still have a long way to go in demonstrating that they are embedding anti-corruption practices into their organisations.
It was found that information about management systems lags behind companies’ stated anti-corruption and anti-bribery policies. While companies may often report high-level strategic commitments to anti-corruption, they do not always report on the necessary support systems required to meet these requirements.
Companies from Canada and the United States were found to be among the top performing group. Companies from Russia and Taiwan were among the weakest performers.
Graph: Average Score by Country / Territory
Sectoral results showed that Software & Services and the Drugs & Biotechnology sectors received the highest average ratings, while Hotels, Restaurants and Leisure and Food Markets fall at the bottom of the list. Some high risk sectors, such as Oil and Gas operations, scored better than average, which may reflect their general acknowledgement that anti-corruption and anti-bribery systems are a key aspect of risk management.
Graph: Average Score by Sector
For more results and analysis, read the full report.