Siemens has launched a global US$100 million Siemens Integrity Initiative which will support organizations and projects that fight corruption and fraud through Collective Action and Education and Training.
The main objective of the Siemens Integrity Initiative is to create fair market conditions for all market participants by fighting corruption and fraud through Collective Action and Education and Training.
The Initiative focuses on supporting projects that have a clear impact on the business environment, can demonstrate objective and measurable results and have the potential to be scaled up and replicated. Siemens will consider those projects with impact on the business sectors and countries where Siemens is active.
Project proposals can be submitted for the following two sub-themes and need to link clearly to the fight against corruption and fraud.
The Siemens Integrity Initiative aims to support a mix of global, regional and country-specific projects and projects of various sizes. At least two-thirds of the funds will be allocated to the sub-theme "Collective Action". During this first funding round 31 projects were selected for funding.
The Siemens Integrity Initiative seeks to attract proposals that include a portfolio of activities rather than one-time activities, and proposals that foresee a time horizon of 3 to 5 years. The maximum funding per project proposal is up to US$5 million. Applications from projects for amounts below this maximum are welcome where funding is above a minimum of US$50,000. Applicants may submit several projects, Siemens may however introduce a funding limit per organization in the course of the selection process.
Application for funds from the Siemens Integrity Initiative is open to non-profit organizations, such as non-governmental organizations (NGOs), international organizations, business associations and academic institutions.
On July 2, 2009, the World Bank Group announced a comprehensive settlement with Siemens. As part of the settlement, Siemens agreed to co-operate to change industry practices, clean up procurement practices and engage in Collective Action with the World Bank Group to fight fraud and corruption. As a result of this commitment, Siemens has set up the US$ 100 million Siemens Integrity Initiative and launched a global call for expressions of interest to attract a wide range of proposals on December 9, 2009. The World Bank Group has audit rights over the use of these funds and veto rights over the selection of anti-corruption groups or programs receiving funds.
In the face of the widespread and deep-rooted corruption problem that affects society in general, governments and their procuring entities and the private sector in equal measure, it seems highly unlikely that individual activities alone will be sufficient to bring about significant ethical changes and improve the transparency of business processes.
Collective Action enables corruption to be fought collectively, with various interest groups, working together and building an alliance against corruption so that the problem can be approached and resolved from multiple angles.
The ultimate aim of these joint efforts is to create fair and equal market conditions – a "level playing field" – for all market players and to eliminate the temptations of corruption for all of them.
Collective Action promotes a fair competitive situation in which a transparent process based exclusively on market economic criteria (such as quality, price, innovation and service) ensures that the contract is awarded to the best bidder. It prevents competition from being distorted and destroyed by corruption, and ensures that companies acting honestly and morally are not disadvantaged. The available methods range from integrity pacts for individual procurement transactions right through to industry-specific codes of conduct and compliance pacts, as well as joint measures implemented as part of a long-term initiative to raise a country's public awareness and tighten up its regulatory system and procurement guidelines. Ideally, such action should involve competitors, authorities, non-governmental organizations (NGOs) and other interest groups working jointly for the common good. It is also crucial to examine the anti-trust aspects in each individual case.