In September 1998, the St. Peterburg business community created the Declaration of Integrity in Business Conduct, a voluntary statement of commitment to international business principles and practices.
By adopting the Declaration, a company promises to repudiate corruption and to implement a code of business ethics as part of its policy of corporate governance. For companies that do not have a corporate code, Sovereign Ventures, Inc. developed a Model Code of Business Conduct incorporating the best corporate governance practices of leading international companies. Both the Declaration of Integrity and the Model Code of Business Conduct were funded by a grant from the United States Agency for International Development through the Eurasia Foundation.
There are now more than 130 voluntary signatories to the Declaration of Integrity. These companies, the majority of which are Russian owned, represent a cross section of the St. Peterburg economy, including small, medium and large firms in the service, manufacturing and retail sectors. The Association of St. Peterburg Contractors, the Commercial Bankers Association, the St. Peterburg Chamber of Commerce and Industry, the St. Peterburg International Business Association and the St. Peterburg Rotary Club, which together represent more than 1,200 members, have endorsed the Declaration and presented it to their memberships for signature.
Prior to the Declaration of Integrity, the reduction of corruption in St. Peterburg was generally treated as the responsibility of government. The growing support for the Declaration of Integrity shows that the private sector is prepared to accept responsibility to eliminate bribery on the supply-side. This project has exacted a stronger, more unified commitment to legal and ethical business practices by Russian businesses, business associations and foreign investors operating in St. Peterburg.
Bribery is a two-way street; it takes one party to offer the bribe and another to demand it. As a voluntary, private sector initiative, the Declaration of Integrity is designed to curb bribery on the supply-side and strengthen the rule of law for all businesses operating in St. Peterburg. Specifically, the Declaration has:
- Provided St. Peterburg businesses with a vehicle to make a unified commitment to reduce corruption;
- Stimulated public debate over the economic risks of corruption and the need for better enforcement of Russian anti-corruption laws; and,
- Created a model for private sector efforts to reduce corruption in other regions of Russia.
