regulation

Developing a Management Standard to Prevent Bribery: ISO 37001 Offers a New Approach, 2012 – 2019

Author
Tyler McBrien
Country of Reform
Abstract

After the United Nations Convention against Corruption went into effect in 2005, pressure grew on private firms as well as governments to prevent their agents and employees—high officials as well as the rank and file—from offering or receiving money or other gifts as illicit inducements in the conduct of business. But in the years that followed, it became apparent that leaders were hard-pressed to identify and establish ways to address those problems. Drawing on his experience in the international construction sector, British lawyer Neill Stansbury recognized the need for operational standards that would enable organizations of all types to reduce or eliminate the structures and behaviors that contributed to bribery risk. In 2013, Stansbury and experts representing 37 countries and eight international organizations came together under the umbrella of the International Organization for Standardization to craft ISO 37001—the first international antibribery management system standard, which laid out specific policies and procedures firms and governments could use to identify and address vulnerabilities before problems occurred. Initially, adoption was slow for three main reasons: companies were focusing their attention on compliance with applicable national laws; introduction of the new standard would demand significant amounts of management time; and final certification would require costly review by an independent third party. A high-profile bribery scandal at one of the first certified companies also raised credibility concerns. As efforts to implement ISO 37001 continued, experience revealed both the advantages and the limitations of adhering to an international management standard to change inappropriate behaviors and create a level playing field in global commerce.

 

Tyler McBrien drafted this case study based on interviews conducted in April and May 2020. Case published July 2020.

Where Credit is Due: Microfinance Regulatory Reform, Tunisia, 2011-2014

Author
Robert Joyce
Country of Reform
Abstract

In the wake of the 2011 civil uprising that toppled a longtime dictator, Tunisia’s transitional government struggled to meet citizens’ demands for economic opportunity. Interim Finance Minister Jaloul Ayed saw limited access to financial services as a barrier to building the private sector and creating jobs, but the microfinance industry was overregulated and dominated by a majority-state-owned bank that loaned government funds to nonprofit associations, which in turn loaned to clients at unsustainably low rates. Ayed and his deputy, Emna Kallel, crafted a strategy to expand small businesses’ and entrepreneurs’ access to loans by revising requirements and opening the door to private-sector lenders under the watch of a new supervisory authority. The law upended the existing microfinance industry, creating new opportunities but also disrupting the government-funded associations. Four years later, uncertainties remained, but Tunisia’s microfinance sector had begun to move toward a market-based system under a new regulatory environment that allowed for the industry’s future expansion.  

Robert Joyce, ISS Research Specialist, and Natalie Wenkers of Science Po's Paris School of International Affairs, drafted this case study based on interviews conducted in Tunis, Tunisia, during September and October 2015. This case study was funded by the French Development Agency. Case published in February 2016.