How Can the ICAC Help Foster the Wide-Spread Adoption of Company Anticorruption Programmes in Hong Kong?

Abstract

By most measures, Hong Kong’s companies rank relatively poor in terms of adopting business measures aimed at preventing, detecting, and sanctioning corruption. Because Hong Kong anti-corruption law has focused on natural rather than legal persons, Hong Kong’s companies have hitherto had little incentive to adopt corporate policies and practices aimed at fighting corruption committed by its agents. In this brief, we argue that Hong Kong should adopt legal provisions similar to those in other upper-income countries (like the US, UK and Western Europe), which provide the incentives for companies to engage in some self-policing. Hong Kong law should penalise corporations for corruption committed by their agents. Such law should provide incentives for self-policing by offering limited relief from prosecution for companies which adopt generally effective, comprehensive and risk-focused anti-corruption programmes. Such law should introduce incentives for professional associations, business groups, accountants and other “stakeholders” to assist companies implement anti-corruption policies and practices. Corporate whistleblowing needs to be protected. We also recommend the restructuring of the ICAC’s Ethics Development Centre so can play a more effective role in helping companies adopt adequate anti-corruption measures.