A practical guide for companies

Fighting Corruption in Sport SponSorShip and hoSpitality

acknowledgements

The UN Global Compact Working Group on the 10th Principle appointed a taskforce on Sport Sponsoring and Hospitalities to create a guidance document for small, medium and large companies on how to understand and fight corruption in sport sponsorship and hospitality.

This Guide was created over the course of 22 months (from February 2012 until November 2013) by the Taskforce, which included representatives of the following:

Companies (in alphabetical order) • Eni• Mtn nigeria• petrobras• Sanlam• System Capital Management• the Coca-Cola Company

Organizations (in alphabetical order) • Fachverband für Sponsoring und Sonderwerbeformen e.V• huMBoldt -Viadrina School of governance• instituto Ethos Brazil• transparency international• united nations global Compact• united nations office on drugs and Crime (unodC)

Observers of the Taskforce • Companies and investors national Committee Brazil• uni global union • Jabil Circuit inc.

about the united nations global Compact

Launched in 2000, the United Nations Global Compact is both a policy platform and a practical framework for companies that are committed to sustainability and responsible business practices. As a multi-stake-holder leadership initiative, it seeks to align business operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption, and to catalyze actions in support of broader UN goals. With 8,000 corporate signatories in 145 countries, it is the world’s largest vol-untary corporate sustainability initiative. www.unglobalcompact.org.

This publication is intended strictly for learning purposes. The material in this publication may be quoted and used provided there is proper attribution. The advice contained in this guide reflects the views of the sponsor-ing taskforce and not necessarily those of the United Nations Global Compact.

Copyright © 2014

United Nations Global Compact Office Two United Nations Plaza, New York, NY 10017, USA

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Foreword 4

Welcome Message from Georg Kell 4

Key definitions 5

About this Guide 6

1 The Business Case for Fighting Corruption 9 in Sport Sponsorship and Hospitality

2 Sport Sponsorship as Part of the Supply Chain 14

3 Preventing Corruption in Sport Sponsorship 17 and Hospitality

Step 1: Commit 18Step 2: Assess 20 Step 3: Define 23Step 4:Implement 34Step 5: Measure 37Step 6: Communicate 38

Addenda I: An example for a Code of Conduct for 41 Sport Entities

Addenda II: Example of a Hospitality and gift policy 47

Addenda III: Example of a Hospitality register 48

Addenda IV: Public reporting of policies and procedures 49

Annex 1: List of tools and resources 53

Annex 2: Case study on Collective Action – 54 “Clean Games Sectoral Agreement – business sector unites against Corruption in the FIFA World Cup 2014 and the 2016 Olympic Games in Brazil”

Table of Contents

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Foreword from a member of the Sport Sponsoring and Hospitalities Sub-Working Group of the UN Global Compact Working Group on the 10th Principle against Corruption

Throughtheyears,sportssponsorshiphasgrownbeyondspecificbusinessinterestsorbrandpromotingactivitytobecomeasignificantandverypublicdemonstrationofcorporateimage.Bythesametoken,therisksassociatedwithitsconsiderablereputa-tionalimpactaresignificantandfar-reaching;typicallythisimpactisonthreelevels–withinthecompany,alongthevaluechainandwithinsociety.

ThatiswhytheUNGlobalCompactGuideonSportSponsorshipandSportRelatedHospitalityisamuch-neededtooltoencourageandtodriveadherencetotheUNGlobalCompact10thPrinciple,whichfocusesonworkingagainstcorruptioninallitsforms.Indeed,theincreasingandwellknowncasesofallegationsofcorruptioninsportspon-sorshipsandsportrelatedhospitalitycallforanewapproachtotacklingcorruptioninthisspace,onethatismoreprecautionaryandproactivethanreactionary.

Fightingcorruptionisawin-winphilosophyasthewell-beingofourcommunitiesisdirectlylinkedtobusinesssustainability.Thatiswhybusinessesmustupholdethi-calconductastheessenceofalltheiroperations-withtheirshareholders,customers,employees,regulatorybodies,vendorsandbeneficiariesalikewhoarekeydriversformutualsuccessandsharedvalue.

Itisourbeliefthatasorganisationsmakeethicsandintegrityintegraltotheirbusinessandengageintheprocesstoeradicatecorruptionatalllevels–andinthisinstanceinsportsponsorshipandsportrelatedhospitality–theywillcreateatrulylevelplayingfieldforbusinessoperationsandpracticesineverysector.

Michael Ikpoki CEOofMTNNigeriaCommunicationsLimited

MTNNigeriaisamemberoftheSportSponsoring andHospitalitiesSub-WorkingGroup

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Welcome Message from Georg Kell

Thesignificanceofsportforsocietyisunquestionable.Itengenderssomeofhuman-ity’smostimportantvalues—fairness,equality,teamwork.Sportfosterscitizenshipandpromotesahealthylifestyle.Itisaboutemotions,passion,prestigeandpower.Inmanyrespects,sportandsportsponsorshiprequiresasignificantinvestment.Sportcanthereforebeapowerfultooltofosteruniversalvaluesandpromotetransformativesocialchange.

Sportisbeneficialforcompanies.Thepremiumoftenplacedonaccesstosportingeventshasmadethemaplatformtogainvisibilityandattractsignificantresources.Sportsponsorshipcanhelpcompaniesenternewmarkets,strengthentheirbrandandestablishapositiveemotionallinktoacompany’sproductsandservices.SponsorshipcanalsohelpsportentitiessuchasFederations,athletes,andteamstoachievepeakperformance.

However,theopportunityforcompaniesandsportentitiestobenefitfrominvolve-mentinsportingeventsgiventhatoverallspendingonsucheventsishuge,presentsapotentialforcorruption.Bribery,doping,matchfixingandillegalbettingarejustsomeofthenegativeactionsthatunderminethespiritofsport.

Topreservethepositivespiritofsportworldwide,companiesandsportentitieshavearesponsibilitytotakeactiontoensurethatprinciplesofintegrity,accountabilityandtransparencyarereflectedinthewaysportisconductedandmanaged.

Thisguide–amongthefirstbusiness-ledguidanceinthisarea–holdsgreatpromiseincontributingtopreventingcorruptioninsportsponsorshipandhospitality.Ihopeitwillenablecompaniestobetterestablishpreventativemeasuresandjoinforceswithsportentitiestoconfrontcorruption.

Georg KellExecutive Director

UnitedNationsGlobalCompactOffice

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Key Definitions

Tickets,passesand“inviteonly”invitationstoSportEntityevents.

Anyjuristicperson1enteringintotheSportSponsorshipAgreementwiththeSportEntity.FornaturalpersonsactingassponsorsitissuggestedtheGuidebeinterpretedaccordingly.

Ajuristicperson,mainlyasportfederation,sportclub,sporteventorganizer.Fornaturalpersonssuchasathletesregardlessofwhethertheyparticipateorcompeteasindividuals,agroupofindi-viduals,membersofasportteam,club,orfederationorinanyothercapacity,itissuggestedtheGuidebeinterpretedaccordingly.

CharacterizedbyacontractualexchangeofbenefitsbetweentheSponsorandtheSportEntity,• TheCompanyreceivestherighttoassociateitsnameordistinctivemarkwiththeactivityoftheSportEntityinordertopromotetheSponsor’sexposure,identity,brandorproducts/servicesinapositivemanner.

• OtherformsofsupportforaSportEntitybyaSponsor,suchaspatronagesordonationsusuallydonotobligetheSportEntityandhavetobedistinguishedcarefully,espe-ciallyfortaxreasons.

AcontractbetweenaSponsorandaSportEntitythatdefines:• ThepaymentormaterialbenefitstheSponsorwillprovidetotheSportEntity;

• ThepaymenttermstheSponsorwillapply;and• ThebenefitsthattheSponsorwillreceivefromtheSportEntityinexposureand/orcommercialterms.

Hospitality

Sponsor

Sport Entity

Sport Sponsorship

Sport Sponsorship Agreement

1.Theterm“juristicperson”meansabodyofpersons,acorporation,apartnership,orotherlegalentitythatisrecognizedbylawasthesubjectofrightsandduties—calledalsoartificialperson,conventionalperson,fictitiousperson[PleaseSee:http://www.merriam-webster.com/dictionary/juristic%20person].

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About this Guide

Sport!Almostnoothertopiccancatchtheattentionofhundredsofmillionsofpeoplearoundtheworldandunitethemtosharepassionforafavouriteathlete,teamorclub.Thesignifi-canceofsportforsocietyisunquestionable.Atitsbest,sportrepresentsvalues,suchasfair-ness,performance,teamworkandresponsibility.Sportbreaksdownbarriersofclass,socialstatus,mentality,culture,politics,sexualorientation,nationalorigin,religionandphysicalchallenges.Sportprovidesrolemodels,idolsandheroes,forfuturegenerationstolookupto.Theattributesandattitudesofsportstarscanhavelastingeffectsonthevaluesofoursocietyandespeciallyonyoungpeople.

Sport contributes to development as a tool to support peace, human dignity, health and education. Sport is therefore a critical aspect of Corporate Sustainability.

Eventsassociatedwithsportsareprestigiousaffairsandarepopularcivilplatformstodem-onstratepower,builduppositiveimages.ForbusinessSponsors,sucheventsareusedtogainpublicvisibility,awareness,andtoestablishanemotionalengagementwithfans.EventssuchastheOlympicGames,theFIFAWorldCup™tournamentsandinternationalchampionshipsinbasketball,hockey,rugby,cricket,tonamebutafew,reachlargeaudiencesandgeneratetheequivalentofbillionsofUSdollarsofrevenue.Worldwide,therearebillionsofsportfans,andtheeconomicimportanceofmediarights,merchandising,ticketing,eventmarketing,andtourismaroundsportisenormousandcannotbeoverestimated.

Sport Sponsorship helps companies enter new markets, create better images of brands and establish positive, emotional links to their products and services.

Thisholdstrueforlarge,multinationalorganizationsaswellassmallandmedium-sizedregionalenterprises.BothuseSportSponsorshipandHospitality,suchasinvitingaclienttoattendasportingevent,aslegal,legitimatetransactionstodeepenrelationshipsandadvancemarketing,advertising,promotionalandcommunicationstrategies.

Ontheotherhand,sportneedsprofessionalenvironmentsconduciveforathletestoachievepeakperformance.Inadditiontogovernmentalsupport,SportSponsorshipbycom-panieshelpsincreaseexposureandqualityofsport.SportSponsorshipaccountsforalmost30percentofthetotalsportsmarket,withanexpectedaveragegrowthrateof5.3percentperyearglobally.2

NotwithstandingtheopportunitiesforSponsorstopotentiallybenefitfromtheirinvolve-mentinsportandsportingevents,suchinvolvementcouldbetaintedbycorruption.Further-more,Sponsorsfaceoperationalchallengeswhenestablishingprudentmeasurestoreducecorruptionrisksinrelationtotheirsportsponsorships.

Toaddressthesepotentialchallenges,theUNGlobalCompactWorkingGrouponthe10thPrincipleconvenedaTaskforcetodevelopapracticalGuideforSponsorsthatwouldliketoconducttheirSportSponsorshipandsport-relatedHospitalitywithintegrityandthuspreventcorruption.

2.PricewaterhouseCoopers,Changingthegame-Outlookfortheglobalsportsmarketto2015,December2011.

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TheobjectiveofthisGuideistoprovideSponsorsofallsizes,withorwithoutanestablishedoverallanti-corruptionprogramme,apracticalframeworkonhowtoapproachSportSponsor-shipandHospitalityinatransparentandaccountablemannerandaddressassociatedmajorrisksofcorruption.AsaglobalGuide,itconsidersdifferentsituationsallovertheworldanditsapproachesarenon-mandatorybestpracticeguidance.

Insomecountriesand/orsportleagues,theremayalreadyberobuststandardsthatareap-plicabletoSportSponsorshipandHospitality.Inothers,knowledgeofbasicanti-corruptionmeasurescontinuestoimprove.UsersoftheGuidewillneedtoadapttheGuidetofittheirspecificsituation,dependingonthescopeandnatureoftheirsponsorships.TheGuideof-ferswaystoeitherestablishorimproveprogrammestomitigatepotentialcorruptionriskswhetherSponsorscurrentlyhavededicatedcomplianceprogrammesonSportSponsorshipandHospitalityorwhetheritisalreadywithintheirgeneralanti-corruptionandanti-briberycomplianceprogrammes.

WhilesportisatthecentreofthisGuide,itscontentscanbeappliedtootherformsofspon-sorshipaswell.Hospitality,inparticular,isanoverallissueforcorruptionrisksthatarenotlimitedtosport.

TheGuideisintentionallybrief,focusingprimarilyonsportrelatedissues.Theoverallap-proachfollowstheUNGlobalCompactManagementModel,whichcanbefoundat:http://www.unglobalcompact.org/docs/news_events/9.1_news_archives/2010_06_17/UN_Global_Compact_Manage-ment_Model.pdf

Forthosenotyetfamiliar,theUNGlobalCompactrecommendstheuseofitsManagementModelinfightingcorruptionandimplementingthe10thPrinciple.

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the un global Compact 10th principle

On 24 June 2004, UN Global Compact, the world’s largest corporate sustainability initiative, adopted a 10th Principle: “Businesses should work against corruption in all its forms, including extortion and bribery.” The 10th Principle commits UN Global Compact participants not only to avoid bribery, extortion and other forms of corrup-tion, but also to develop policies and concrete programmes to address it. Companies are challenged to join governments, UN agencies and civil society to realize a more transparent global economy. The addition of the 10th Principle sent a strong world-wide signal that though it is the primary duty of the governments to prevent and fight corruption, the private sector and other non-state actors share responsibility to prevent and to eliminate corruption.

The 10th Principle was the response to the adoption in October 2003 of the United Nations Convention against Corruption (UNCAC), which entered into force in De-cember 2005. As the sole global, legally binding anti-corruption instrument, UNCAC provides a unique opportunity to prevent and fight corruption in both private and public sectors.

Although UNCAC is legally binding only on countries that have ratified it, its values and principles are applicable to the widest spectrum of society, including the busi-ness community. The principles can serve as an inspirational tool for companies adopting or reviewing internal anti-corruption policies, strategies and measures.

Following the inclusion of the 10th Principle, the UN Global Compact established a multi-stakeholder working group to provide strategic input on anti-corruption, to define the needs of the business community in implementing the 10th Principle and to contribute to greater coherence by supporting the alignment of existing initiatives and avoiding the duplication of efforts. It has established several task forces to de-velop tools and resources to help businesses achieve the goals of the 10th Principle. This Guide is the result of one such effort.

the definition of “Corruption” and the un global Compact

Transparency International defines3 corruption as “the misuse of entrusted power for private gain.” This convenient shorthand, encompassing myriad illegal and illicit acts, recognizes the breadth of the concept, but does not attempt to enumerate acts or precisely delimit their scope. During the negotiations of the UNCAC, UN Member States carefully considered the opportunity for the global anti-corruption treaty to provide a legal definition of corruption. Concluding that any attempt at a compre-hensive definition inevitably would fail to address some relevant forms of corrupt behaviour, governments reached a consensus on manifestations of corruption while leaving each State to go beyond the minimum standards set forth in the UNCAC. The UNCAC calls on States Parties to outlaw, at a minimum: bribery of public officials; embezzlement; trading in influence; abuse of function; illicit enrichment by public officials; bribery and embezzlement in the private sector; money laundering; and obstruction of justice. In accordance with this approach, the 10th Principle of the UN Global Compact calls for companies to work against corruption in all its forms, including extortion and bribery.

3.DefinitionofTransparencyInternational

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THEIMPORTANCEOFSPORT SPONSORSHIPANDHOSPITALITy

Sponsors,bothlargemultinationalcom-paniesaswellassmallandmedium-sizedenterprises,turntoSportSponsorshipandHospitalityasanimportanttoolintheirmarketing,businessdevelopment,andrela-tionshipbuildingstrategiestoyieldbenefi-cialreturnoninvestment.

SportSponsorshipofSportEntitiesgivesSponsorstheopportunitytoreachlargeaudiences,onaregional,nationaloragloballevel.ThisisespeciallytruewhensporteventsarebroadcastonTVorothermediachannels.ThefinalmatchoftheFIFAWorldCup2010wasviewedby700millionpeople4, andthefinalsoftheUSNationalBasketballAssociation(NBA)in2012reachedaviewer-shipin215countries,withanadditional200millionpeoplefollowingthefinalsthroughsocialmedianetworks5.

SportSponsorshipalsodrawsanad-vantagefromthepositiveimageofaSportEntity.Sportfansoftenshowhighlevelsofemotionalresponsetotheirfavouriteathleteorteam,whichisadvantageousforestablish-inganemotionallinktothepromotedprod-uctorservice.Sponsorscanraisepositiveassociationswithacertainbrandbyusingthepositiveimageandemotionsthattheaudiencelinkstosport.

Sponsorshipingrassrootssports,givesop-portunitiesofsupportingthelocalcommu-nityanddemonstratingcorporateresponsi-bility.

Hospitalityoffersnetworkingopportuni-tieswithbusinesspartnersinordertoim-provetheSponsor’spublicrelations.Often,Hospitalityinhigh-profilesporteventsisveryexclusive,makingitsattendanceevenmoredesirable.Businessrepresentativescanmeetinfluentialpeoplethatmaybeofstrate-gicrelevancefortheadvancementofabrandorthecompanyitself.

Similarly,SportSponsorshipandHospital-ityholdgreatbenefitsfortheSportEntities.Today’ssports,beitprofessionalandhighperformance,amateurorgrassroots,cannotsurvivewithoutsponsorship.Professionalathletesneedprofessionalconditionsforachievingpeakperformance.Additionallytogovernmentalsupportthatmayexist,Spon-sorshelptoincreasetheexposureandthequalityofSportEntities.

Sponsorshipalsoplaysadecisiveroleinbringingsportstonewregionsand/ortargetgroupsandmayespeciallyhelpSportEntitiesinsupportingtheyouthanddevelopingtheeducationalvaluesofsport.

Inthelasttwodecades,Hospitality,aspartofthefinancingofvenues,hashelpedtoimprovethestandardofstadiumsandarenasfundamentally,thusopeningsporteventstonewaudienceslikewomenandfamilies.VIPareas,suchasbusinessseatsandlounges,mayalsosupportcheaperticketpricesforthefans.

SportSponsorshipandHospitality,how-ever,donotonlyprovidebenefitsfortheSponsorsandtheSportEntities.Anynega-tiveincidentconcerningeitherthedirectrelationshipbetweenthetwopartiesorjustonesideofitcanleadtoawidespreadscandalwithdevastatingimpactonthepo-tentialpositivegoalthatoriginallyledtothesponsorship.

PREVENTINGCORRUPTION–THESPONSOR’SPERSPECTIVE

ThebusinesscaseforSponsorstoprotecttheirownreputationandbeneficialreturnoninvestmentinconnectionwithSportSponsorshipandHospitalitycannotbelim-itedtocorruptioninanarrowsenseoftheword.ThebusinesscasemustalsoincludereducingtheriskofothernegativeincidentsrelatedtotheSportEntity,particularlywithtechnologicaladvancementsincreasingrap-

The Business Case for Fighting Corruption in Sport Sponsorship and Hospitality 1

4.http://www.reuters.com/article/2010/07/13/us-football-idUSTRE66C0ZV20100713 5.http://www.forbes.com/sites/aliciajessop/2012/06/14/the-surge-of-the-nbas-international-viewership-and-popularity/

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idnessofcommunications,includingsocialmedia.Forexample,dopingisamajorrepu-tationalriskforSponsors,aswellas“fabri-cated”imagesofstarathletesunderSportSponsorshipAgreementsbeingassociatedwithillegaldruguse.Thesamenegativeinci-dentrisksapplytoalackofgoodgovernanceandtransparencywithregardtofinancialmatters,adeficiencyinmanySportEntitiesduetovariouscomplexitiesinorganizationalstructure.

ThisGuidethereforedifferentiatesbetweentwoareaswherecorruptionandsimilarriskscanoccur:• CorruptionintherelationshipbetweentheSponsorandtheSportEntity(e.g.,offeringorgivingofbribestowinaSportSponsorship)aswellaswithotherbusinesspartners.

• CorruptionandothernegativeincidentsrelatedtotheSportEntity.Suchbehaviourmaycompriseactsreferredtoas“corrup-tiononthefield”and“corruptionoffthefield”,aswellasotherillegalorinappropri-ateconduct.6

AddressingthesetwodifferentareasofrisksrequiresdifferentapproachesthatSponsorsneedtoconsider(asoutlinedinChapter3).

ThisGuidedoesnotindetailrefertomajorsportagenciesthat–especiallyontheinternationallevel–oftenplayanimpor-tantroleinSportSponsorshipandHospital-ity.Anti-corruptionmeasuressuchasduediligence,contractualobligations,andmoni-toringoftenapplyaswelltotherelationshipwiththeseagencies.

TheperspectiveofSportEntitieswithregardtotheSponsors’reputation/behaviourdoesnotlieinthescopeofthisGuideduetopracticalreasons.

I. Corruption in the RelationshipASponsormayfacenegativelegal,com-mercialorreputationalconsequencesiftherelationshipwiththeSportEntityistaintedbycorruption.SuchrisksareconsiderableduetothehighbusinessvaluesassociatedwithsponsoringaSportEntity,resulting

insometimesfiercecompetitionamongcompaniestowinsponsorshipdealswithprestigiousSportEntities.Furthermore,SportSponsorshipissometimestreatedas“outsidetherules”bysomeSponsors(e.g.,ifsponsorshipisexplicitlydemandedbytheseniormanagementoftheSponsor).Insuchcases,compliancerulesandprocessesmaybedisregardedorsetasideinordertoestablishasponsorshiprelation.

Sponsorsmustthereforeaddressavarietyofcorruption-relatedriskswithintheirownoperationssuchas:• The promise, offering or giving, directly

or indirectly, of an undue advantage to become a Sponsor.SponsorsneedtotakeintoaccountthatrisksofcorruptionmayalreadybepresentintheselectionprocessofthetargetedSportEntity.EmployeesmaybriberepresentativesoftheSportEn-titytowinaSportSponsorshipAgreement(especiallyinthecaseofhigh-profileSportEntitiesoreventswithhighcompetitionbetweenSponsorsvyingforsponsorship);

• The promise, offering or giving, directly or indirectly, of an undue advantage by the Sport Entity to obtain sponsorship. Sponsorsalsofacetheriskthattheirownemployeessolicitoracceptundueadvantag-es(e.g.payments,kickbacks,gifts)fromtheSportEntitytoestablishasponsorshiprela-tionship.ThiscouldbeespeciallythecasewithsmallerlesspopularSportEntities;

• Conflicts of interest.EmployeesmayfaceconflictsofinterestinawardingSportSponsorshipAgreementswhentheindi-vidualinterestoftheemployeeconflictswiththeemployer’sinterest;

• Misuse of Sport Sponsorship to obtain an undue competitive advantage. For instance,acompanymaysponsoraclient’sfavouriteorevenassociatedSportEntityteamprimarilyforthepurposeofinappro-priatelyobtainingacommercialcontractfromtheclient.Insuchacase,theSportSponsorshipmaybemisusedtosubter-fugecorruptpayments.Thefactthattherealvalueofasponsorshipinmanycases

6.“Corruptiononthefield”(sometimesalsoreferredtoas“competitioncorruption”)involvesactivitiesbyathletesand/orthoseofficialswhohaveadirectresponsibilityfortheoutcomeofasportingcontest.Examplesincludedoping,matchfixing,andirregularitiesinof-ficiatingandjudging.“Corruptionoffthefield”(alsoreferredtoas“managementcorruption”)relatestononcompetitiondecisionsmadebysportingofficialsandgoverningbodies(e.g.,grantingano-bidSportSponsorshipAgreementwhencompetitionexists).Allocationofrightsorawardingofcontractsforconstructionofsportingvenuesisonesuchexample(Maenning2005).Otherillegalorinappropriatebehaviourmaycompriseracism,indigentcitizendisplacements,fraudulentelectionsofgoverningofficials,etc.

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ishardtomeasureandthatcomplianceprogrammesseldomreflectthespecialcircumstancesunderwhichsponsorshipsarenegotiatedandexecutedaddstothisrisk;and

• Misuse of Hospitality to obtain an undue advantage.Aninvitationtoasporteventmaybeofferedtoundulyinfluencebusi-nesspartnersorpublicofficials.Therefore,specificattentionissuggested,especiallyasthereisnoclearlinetodistinguishaccept-ablerelationshipbuildingfrominappropri-ateHospitality.Forinstance,VIPticketstohigh-profilesporteventsmaybeissuedtobusinesspartnersorpublicofficialstoinfluencetherecipientandgainaninap-propriatebusinessadvantage(e.g.,receiv-ingapubliccontract,obtainingcriticallicenses).Additionalcorruption-relatedrisksthatstemfromtheSponsor’sownactivitiesrelatedtoSportSponsorshiporHospitalitymayincludemoney-launder-ing,infringementofanti-trustregulationorfraud.SponsorsmayalsofacetheriskofbeingforcedintoaSportSponsorshipre-lationship,forexample,whereapotentialrefusaltosponsorwouldresultinseriousconsequencesfortheeventualSponsor(lossofcontractsorevenextortion).ThismaybethecasewhenSportEntitiesarecloselyrelatedtopublicofficialsormajorbusinesspartners.

II. Corruption and Other Negative Incidents related to the Sport EntityThebenefitofSportSponsorshipanditsef-fectivenessdependtoagreatextentonthereputationoftheSportEntity.IftheSportEntityisassociatedwithmisconductandillegitimatebehaviour,theintendedpurposeofestablishingapositiveemotionallinkwiththebrandmaybenegatedorcouldevenbeturnedaround.Thus,Sponsorscandamagetheirownreputationandincurconsequen-tialnegativefinancialimplicationsbyengag-ingwithaSportEntitythatdoesnotmitigateitsrisksbydealingwiththemappropriately.Recentexamplesshow,thattherisks–besidesCorruptioninallforms,includingin

electionsinafederation,transfers,awardingofmajorevents,obtainingofSportSponsor-shipAgreementcontractsorTVbroadcast-ingrights,constructionandinfrastructuredevelopmentformajorpubliceventslikeOlympicGames–mayinclude:• Doping• Match-fixing7

• Problemgambling/gamblingaddiction• Political/Ethnicity/NationalOrigin/SexualOrientationprotests

• Racism• Cronyism,nepotismandinexperiencedpersonneldecisions

• Violence/Hooliganism• Accidentsandhealthrisksforathletesandspectators

• Sexualmisconduct• Taxfraud• Associatedcriticismforsportrelatedindi-gentcitizenrelocationprogrammes

TheSportEntitymayalsohavealackofawarenessandknowledgeconcerninganti-corruptionpractices.Possiblelackofaware-nesscanaddtothechallengethatsomeSportEntitiesdonotsubjectthemselvestogeneralgoodgovernanceprocedures.

ItissuggestedthatSponsorstakecaretothoroughlyconsidervariousriskswhenestablishingandexecutingasponsorshiprelationship.Recentexamplesthatdemon-stratethevalueofthissuggestionincludeinstanceswhereSponsorswereforcedtostopanexpensivemarketingcampaignduetomisbehaviourofanathleteorateamandprotestsagainstmajorsporteventsoraSportEntityinconnectionwithallegationsofcor-ruptionandotherwrongdoingslikehumanrightsviolations.TakingconcreteactionstopreventsuchcasesoratleasttomitigatetheirimpactwillbenefitSponsorslargely.Itwillalsobeintheenlightenedself-interestofmanySportEntities–andforsportsonawhole–toincreasegoodgovernance.

7.Formoreinformationonthistopic,pleaserefertoacomparativestudyontheapplicabilityofcriminallawprovisionsconcerningmatch-fixingandillegal/irregularbettingbyUNODCandtheInternationalOlympicCommittee(IOC).‘’Criminalizationapproachestocombatmatch-fixingandillegal/irregularbetting:aglobalperspective’’(July2013):http://www.unodc.org/documents/corruption/Publications/2013/Criminal-ization_approaches_to_combat_match-fixing.pdf

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PREVENTINGCORRUPTION–THESPORTENTITyPERSPECTIVE

ItisintheSportEntity’sowninteresttodealwithitsrisksaccordinglythusdevelopingcorporategoodgovernance.SportEntitiesthatestablisheffectivemeasurestocombatcorruptionandotherunethicalbehaviourintheirownorganizationwillnotonlyreducecostsandavoidpotentialliabilities;suchmeasureswillalsofacilitaterelationshipswithexistingandnewSponsorsandmaycontributetolong-termrelationshipswithsponsors.ItmakesSportEntitiesmoreattrac-tiveasasponsorshiptargetwhentheysharevalueswithethicallyoriented,reputation-focusedandrisk-consciousSponsors.

AdditionallygoodgovernanceisthebasisforSportEntitiestoachievetheiroverallsocietalgoalssuchasgivinganexampleoffairnessandrolemodelsforyouth.

ThisGuidecannotexplainindetailwhatmanagersinSportEntitieshavetodotoestablishgood(corporate)governance.SportEntitiesmayfindguidanceinvariousUNGCresources8orinTransparencyInternational

Germany’sBusinessPrinciplesoncounter-ingBribery.Additionally,UNODC’sThe UN Convention against Corruption: A Strategy for Safeguarding against Corruption in Major Public EventsmayalsobehelpfultoSportEnti-tiesaswellasUNODC’scomparativestudyoncriminalizationapproachestocombatmatch-fixingandillegal/irregularbetting,conductedincooperationwiththeInterna-tionalOlympicCommittee(IOC).Forsmallandmiddle-sizedenterprises,TransparencyInternational’sBusinessPrinciplesforSMEsmaybehelpful.Clubsornationalfederationsmayrefertotheirinternationalfederationforguidance.TheInternationalOlympicCommitteepublishedin2009“BasicUni-versalPrinciplesofGoodGovernanceoftheOlympicandSportMovement”.Forgrassrootssportorganizations,theInternationalSportandCultureassociation(“ISCA”)togetherwithTransparencyInternationalpublishedGuidelinesforGoodGovernanceinGrass-roots Sport9. AdditionallytheexampleofaCodeofConductforSportEntitiesinAdden-dumIofthisGuideprovidesguidanceandaswellpracticalactions.

8.SeeListofresourcesinAnnex1orvisithttp://unglobalcompact.org/resources 9.PleaseseeAnnex1foralistofallresourcescitedinthissection.

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Sponsorsofaclub,federationorevententerintoarelationshipwithbenefitsandobligationsonbothsides.ParticularlyimportantfortheSponsor’sinvestmentistherightsownershipprotectionbytheSportEntity.

ThefollowingpictureshowstheexchangebetweenSponsorandSportEntity:

Sport Sponsorship Viewed as Part of the Supply Chain 2

Figure 1: Sponsor-Sport Entity Relationship in Sport Sponsorship

SponSor Sport Entity

• Marketing, Advertising & Promotional rights

• Sport-related hospitality rights

• Financial compensation

• In-kind compensation (goods and services)

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10.Examplesofmarketingrightscontainbranding/advertisingspacesandrightssuchasperimeterboards,flags,promotionrights,coaches’bench,sportshirts,posters,adsinthestadiummagazine,andadditionalrights(especiallymediarights).Inaddition,sponsorsmayutilizetheirrightsindirectlytopromotetheirsponsorshipactivitiesinfurthercommunicationchannels(e.g.,socialmediachannels,stores,branches). 11.Obtainingsport-relatedHospitalityopportunitiesisnotalwaysconfinedtosponsoring.CompaniescanobtainsuchopportunitieswithoutsponsoringaSportEntity. 12.Ofcourse,thisviewisdifficultwithmajorglobalSportEntityevents(i.e.,theOlympics,FIFAWorldCup™)astheseeventsareunique,andhavenosubstituteentitiesSponsorscanengage,unlikegeneralsuppliers. 13.FormoreinformationonsupplychainsustainabilityseealsoUnitedNationGlobalCompact,SupplyChainSustainability–APracti-calGuideforContinuousImprovement,2010.

A Sport Entityoffersabroadrangeofcommunicativeandsales-orientedrightstotheSponsor.MarketingrightstypicallycomprisetheintegrationoftheSponsor’slogooncommunicationmediums10andtheabilitytoofferHospitality“moneycan’tbuy”experiencestocustomers/fans,suchasaccesstointernalfacilities,"meet&greet"withstars,etc.ThemarketingrightsmaybeeitherexclusivelyawardedtoaSponsororsharedwithothersponsoringpartners(e.g.,brandexposureonperimeterboardsacrossafootballstadium).

Inaddition,therightspackageoftenof-ferstheprovisionofHospitalityrights.ThisincludesthattheSportEntitymaygrantdif-ferentcategoriesoftickets(fromgrandstandtoVIPtickets)and/or,forexample,therightfortheSponsortouseaskyboxinastadiumduringtheentiresportseason.

A SponsorcompensatestheSportEntityforthemarketingrightsand(ifapplicable)forHospitalityeitherfinanciallyand/orwiththeprovisionofgoodsandservicesthatbenefittheSportEntity(e.g.,sportoutfits,nutrition,trainingfacilities,cars,services).11

Hence,therelationshipaSponsorentersintowithaSportEntitymaybeviewedassimilartotherelationshipwithitsgeneralproductandservicesuppliers12,meaningtheyshouldadoptandimplementrobustpracticesandprogrammessuchasadoptinganti-corruptionprogrammesandpracticesforsportsponsorshipandhospitalityapprov-als.ThiswillrequirethemtoplaceSportEntitiesinasimilarpositionasothersuppli-erstotheSponsor.Inthisregard,aSponsorshouldconsiderwhetheritscontractualrela-tionshipwithaSportEntitypresentsahigh,mediumorlowriskandtakeappropriateaction.ForaSponsor,addressingrisks,suchascorruption,requiresatwo-foldapproach:

firstestablisheffectiveinternalmeasurestoreducesuchriskswithintheSponsorandinrelationtothesponsorshipagreementitself,andsecond,engagewiththeSportEntity(i.e.,supplier)toestablishsimilarprocedures.

TreatingSportSponsorshipaspartofthesupplychainofferspracticaladvantagesforSponsors.Theycandrawonexistinginternalsupplychainprocedurestoexecutesuchengagementsandestablishriskmitigationactivities.TheselectionofSportEntitiesforsponsorshipshouldfollowsimilarprocessesastheselectionofregularbusinesspartners.Existingprocesses,suchasduediligenceorvendormanagement,canbeapplied.Asanormalbusinesstransaction,SportSponsor-shipmaybeintegratedwithinthenormalpurchasingprocess.

Aswithsuppliers,SponsorsshouldengageproactivelywithSportEntitiestosupportcapacitybuildingforpreventivemeasures.Forexample,complianceexpertsoftheSponsorcanworkwithSportEntityadmin-istrationtodevelopaneffectivecomplianceprogramme.ThisisparticularlytrueforsmallerSportEntitiesorforcountrieswithgrowingknowledgeorexperienceinthisarea.Engagingcomplianceexpertsshouldgobeyondsimplytryingtodictatecompliance.Instead,itshouldmovetowardpartnership,capacitybuildingwithaviewtoconductingbusinesswithintegrity.TheresultwillbebeneficialtotheSponsor,theSportEntityandthesociety.

TheUNGlobalCompactrecognizestheimportanceandchallengesoffightingcor-ruptioninsupplychainsandhasprovidedapracticalguide:Fighting Corruption in the Sup-ply Chain: A Guide for Customers and Suppliers13.

16

Thischapteroutlinessixsequentialsteps,accordingtotheUNGlobalCompactManagementModel,thatshouldbecarriedoutbySponsorsonacontinuousbasistoaddressthecorruption-relatedrisksassociatedwithSportSponsorshipandHospitalities:

Preventing Corruption in Sport Sponsorship and Hospitality 3

CoMMit Leadership commitment to mainstream

the Global Compact principles into strategies and operations and to take action in support of broader

UN goals and issues, in a transparent way

aSSESS Assess risks, opportunities

and impacts across Global Compact issue areas

iMplEMEnt

Implement strategies and policies through the company and across

the company’s value chain

dEFinE

Define goals, strategies

and policies

MEaSurE Measure and monitor impacts and progress towards goals

CoMMuniCatE

Communicate progress

and strategies, and engage

with stakeholders for continuous improvement

THE GLOBAL COMPACT MANAGEMENT MODEL

17

AssumingaSponsorhasalreadyestablishedananti-corruptionprogramme,consistingofpoliciesandproceduresincludingtrainingandcommunication,internalcontrols,andmoni-toring,thentailoredpoliciesandprocedurestopreventcorruptioninSportSponsorshipandHospitalitycanbeintegratedintoexistingmeasures.

TheGuideaimstoprovidepracticalguidancetoSponsorsbutshouldnotbeseenasprovidingastandard,exhaustivelistofmandatorymeasurestobeimplemented.EverySponsorshouldconsiderthisguidanceinthecontextofitsownuniqueandspecificcircumstancesthatincludesconsiderationoftheoverallobjectivesoftheSportSponsorship,theSponsor’sCodeofEthics,CodeofConduct(e.g.,forSportSponsorship),anti-corruptionandoverallriskpolicies,proce-dures,departments,exposureprofileandriskappetite;andallrelevantlegislation,regulation,conventionsorotherrulesthatmaybeapplicabletotheSponsor,theSportEntityinvolvedandtheSportSponsorshipitself.TheSponsorshouldalsoconsidermeasuresalreadyputinplacebytheSportEntitytoensuregoodgovernance,ethicalbehaviourandthepreventionofcorruption.

18

SportSponsorshipandHospitalitycanbeseenasanidealopportunitytocombinebusinessopportunitieswithsocialresponsi-bility,contributingtoapositivedevelopmentofsportsasatooltosupportpeace,humandignityandeducation.

OneimportantwaySponsorscanintegratebasicethicalSportSponsorshipandHospital-ityprinciplesintotheirexistingpolicies,suchasaCodeofEthicsorsimilardocument(s),issuggestedintheexamplebelow:

AccordinglytheSportEntityshouldcom-mititselftoanti-corruptioninasimilarway.Anti-corruptioncommitmentexecutionoftenworksbestwhenSponsors’senior-mostleader-shipmakesthepromiseanddirectsresourcestowardsachievingthegoal.

With its Sport Sponsorship the <name of the Sponsor> desires to:

• Contribute to a positive development of sport as a tool to support peace, human dignity and education, thus acting in a socially responsible way.

• Achieve a positive image transfer, increase the Sponsor’s reputation and reach new/additional consumer audi-ences for its products/brand/services.

the un Convention against Corruption: a Strategy for Safeguarding against Corruption in Major public Events.

The UNODC has published a handbook on good practices, based on the UNCAC, for preventing corruption in the organi-zation of major public events, including major sports events. The handbook highlights the unique corruption risks associated with the organization of ma-jor public events due to the involvement of significant resources, large amounts of funds and complex logistical arrange-ments within tight time frames

UNODC’s handbook covers a wide range of issues, such as: financial manage-ment and control; procurement; infra-structure and construction; security infrastructure; the involvement of the private sector (through sponsorships and as service providers); detection of corruption; and law enforcement inter-ventions. The handbook is accompanied by a checklist to assist the authorities responsible for the organization of major public events in reviewing their preparedness and capacity to prevent, detect and respond to corruption while ensuring the successful organiza-tion of the event. The handbook was developed through broad consultations and is available at UNODC’s corrup-tion homepage at: http://www.unodc.org/documents/corruption/Publica-tions/2013/13-84527_Ebook.pdf

Step 1: COMMIT

19

The UN Global Compact Guide for Risk Assessment proposesagenericapproachtoconductanti-corruptionriskassessments.

Step 2: ASSESS

1. Establish

the process

2. Identify the

risks

3. Rate the

inherent risk

4. Identify and

rate mitigating

controls

5. Calculate

residual risk

6. Develop

action plan

Figure 2: Generic risk assessment approach14

ThisapproachcanalsobeusedtoconductspecificriskassessmentsforSportSponsor-shipandHospitality.15Thepurposeofsuchspecificassessmentsistoidentifyareasofsignificantrisksthatneedtobeprioritizedwithtailoredpoliciesandprocedures(e.g.,increasedduediligenceforhigh-riskSportSponsorshipAgreements,orspecifictrainingforpublicrelationsandmarketingperson-nel16onthereputationalrisksofSportSponsorship).

Inthefollowingparagraphs,theabove-showngenericriskassessmentapproachisbrieflyexplainedandextendedbyspecificcharacteristicsforconductingariskassess-mentforSportSponsorshipandHospitality.

ESTABLISHTHEPROCESS

BeforeconductingspecificriskassessmentsonSportSponsorshipandHospitality,oneexcellentapproachistohaveSponsorsclearlydefineoperationalrolesandrespon-sibilities,operationalprocesses(e.g.,timing,frequency,collectionandaggregationofdata,stakeholdersinvolved)andoversightfortheseactivities.

IDENTIFyTHERISkS

OnestartingpointintheidentificationofcorruptionrisksistohavetheSponsordrawupontheoutcomesofitsregularoverallanti-corruptionriskassessmentstoobtainanoverviewoftheSponsor’scurrentriskpro-file.Suchabroadriskassessmentmayhavealreadybeenidentifiedamongotherindus-tries,countriesorbusinessactivitieswhereahighriskofcorruptionisestimated.

Suchinformationcanbeusedasaninitialindicationbutcanalsobecomplementedbyathoroughidentificationofotherfactorsinfluencingcorruptionrisks,suchas:• SubsidiariesorjointventurepartnersthatalreadysponsororevenownaSportEntity(e.g.,soccerteam);

• Suppliers,consultantsandotherprofes-sionals(e.g.,accountants,lawyers)toaSponsorthatmayhaveunmonitoredindividualsengagedintheprovisionofservicesassociatedwithaSportSponsor-shipAgreementwithaSportEntity;

• EngagementofthirdpartyintermediariesforestablishingSportSponsorshipAgree-ments(e.g.,rightscompanyorsponsorshipbrokers)orconductingHospitality(e.g.,travelagents);

14.ThischapterisstructuredaccordingtotheUNGlobalCompact‚AGuideforAnti-CorruptionRiskAssessment,2013.Formoreinforma-tion,pleaseconsultthisguide.SeeAnnex1forweblinktothisresource. 15.Incasethecompanyalreadyhasanexistingoverallanti-corruptionriskassessmentapproach,thisspecificriskassessmentmaybeincluded. 16.PleasenotethatsomeSponsorsoffer“SocialMediaTraining”ontheuseofTwitter™,FacebookandothertechnologicalcommunicationprogrammestocertainstarathletesunderSportSponsorshipAgreementsaswell.

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• Awarenessoftime-crunchsnapdeci-sionsmadeforprovisionofproductsandservices17whenanimpendingSportEntityeventdeadlinecreatescircumstancesforbusinessprocesssafeguards(e.g.,properRFPs,duediligencebackgroundchecks,conflictsofinterests,contractualprovi-sions)tobecircumvented;

• SportSponsorshipAgreementswithahighmonetaryvalue,complexcommercialterms,orhighpublicexposure(e.g.,spon-soringofpopularathleteorteam);

• RelationshipswithSportEntitiesthatlackawareness,capacitiesandmeasuresregard-ingthepreventionofcorruptionandothernegativeincidents;

• PotentialconflictsofinterestsbetweenSponsorrepresentativesandSportEntities(e.g.,seniormanagersitsontheboardofasportsteam);

• ASponsoroffersHospitalitytokeybusi-nessleaderswhileSponsorhasanout-standingbidouttowinacriticalcontractwiththatkeybusinessleaders’entity18;

• Launchofnewproductsorservicesthatrequireextensiveandimmediatebrandbuilding;

• Countries/regions/industrieswhereSportSponsorshipispartofthebusinessculturewiththereforelow(er)awarenessofinher-entrisksand/oratraditionofneglectingrisks;

• Lackofprocessestotrackanddocumentthefinalrecipientsandultimatebenefi-ciaryofHospitality;

• EmployeeperceptionregardingtheusageofHospitalitytowardsrelationshipbuild-ingasself-evident(especiallyincountrieswherethecostofinvitingbusinesspart-nerstoasporteventislow);

• Hospitalitylinkedtobusinessfunctionsthatrequireextensiverelationshipbuild-ing(e.g.,salesandmarketing);and

• LegalorotherrestrictionsforbusinesspartnersinacceptingHospitality(e.g.,publicofficials19).

TheriskassessmentcanalsohelpunderstandhowSportSponsorshipAgreementsareiniti-ated,negotiated,executedandmonitoredandhowHospitalityisreceivedorgivenanddocumentedintheSponsor’sbooksandrecords,includinganytransactionsmadebyintermediariesontheSponsor’sbehalf(e.g.,travelagents).

Sport-specific characteristics and repu-tationmayalsohelptoidentifyrisksthatarepresentwithaparticularSportSpon-sorshipand/orinaparticularcountry.Forinstance,insomeregionshorseracingmaybestronglyassociatedwithillegalbetting,andendurancesportsareoftenassociatedwithdopingwhileequestriansportfacesriskswithregardtoanimalwelfare.Hence,theanalysisoftheSponsor’sSportSponsor-shipactivitiesalongitsregionsandsportsmayhelptoidentifyrelevantrisks.

To effectively identify corruption risks, Sponsors should collect data from various internal and external sources and take regional and sport-specific characteristics into account.

RATETHEINHERENTRISk

Notallrisksrequirethesamelevelofatten-tionandresources.Toallocateresourcesef-ficientlyandeffectivelytoidentifiedrisks,itisagoodpracticetorateboththeprobabilitythatariskmightoccurandthecorrespond-ingpotentialimpactofthatoccurrence.

ForsmallerSponsorengagements,(e.g.,onetimesupportforaonedayeventonalo-callevel),riskmaybelimitedandsimplifiedproceduresmaybejustified.

IDENTIFyANDRATEMITIGATINGCONTROLS

Oncetheinherentcorruption-relatedrisksassociatedwithSportSponsorshipandHospitalityareidentifiedandprioritized,theSponsorcandecideonmitigationoptions.

17.ThisriskmaybeexacerbatedbySponsorpersonnelbeinggeographicallyisolatedfromtheirheadquarters,usualsuppliers,languagebarriers,andcompliancepersonnelaswellasriskoflocallawsandcustomsignorance. 18.ConsiderwhetheracceptanceofanofferofHospitalitymaybeaviolationofthatkeybusinessleader’sownentity’sCodeofConductaswell. 19.ConsiderSponsorvigilanceregardingofferingHospitalitytocertainChinesemediajournalists,forinstance,astheymaybedeemedgovernmentemployeesforpurposesoftheU.S.’sForeignCorruptPracticesActof1977.

21

Mitigationoptionstoreducetheriskofcor-ruptionoccurringmayincludenewpolicies,additionaltrainingandcommunication,duediligenceprocesses,internalcontrols,whistle-blowerhotlinesanddiligentfollow-ups20,aswellasmonitoringandauditing.

TheUNGlobalCompactGuideforAnti-CorruptionRiskAssessmentliststwoadditionalstepsaspartofacomprehensiveriskassessment:CalculateresidualriskandDevelopactionplan.Thesetwostepstakeintoaccountthatdespitesignificanteffortstoreducetheriskofcorruption,itisstillpos-sibleforsuchriskstooccur.Asaresult,therewillnormallybesomelevelofresidualrisk.

PrudentSponsorsshouldconsiderabroaderrangeofpotentialactionstoaddressresidualcorruptionriskinSportSponsorshipandHospitality,including:• AdjustingthescopeoftheSponsor’ssponsorshipstrategy,whichmayincludeavoidingorabolishingSportSponsorshipincertaingeographies,sports,ormarkets,whereriskisconsideredimpossibletomitigatesufficientlyandreliably;

• Changingbusinessprocessesormethodssoastoreduceoreliminatetheareaofrisk.ThismayincludeexternalverificationandbenchmarkingofSportSponsorshipAgree-ments,technology-supportedapprovalpro-ceduresforHospitalityrequestsandreviewsofanythingofvaluegiventogovernmentofficialsorotherindividualsbyexperiencedlegal,financeandotherleaders;

• Avoidingthemesorwordinginadver-tisementsthatmightbeinterpretedinamannerthatcouldreflectnegativelyontheSponsorifcircumstancessurroundinganyofthesponsorshipelementstakeanegativeturn;

• Enhancinganti-corruptioncontrolsthroughtheapplicationoftechnology.ThiscanincluderandomauditsandcouldespeciallybeusefulforHospitality-relatedtransactions,whichmaybeautomatedtomanagelargenumbersofrequests;

• RequestingassessmentsandcontractualprovisionsfromtheSportEntityregardingitsanti-corruptioneffortsasaprerequisiteforbeingconsideredassponsoringpartner;

• Providingresourcesforawarenessrais-ingandcapacitybuildingforexistingorpotentialSportEntities;and

• Participatingincollectiveaction21initia-tivestoleveltheplayingfieldwithregardtoanti-corruptionmeasures.

Fortheseitems,itisanexcellentpracticetoestablishacorruptionriskresponseplanaswell.

20.Dependingonlocallaws,whistle-blowersmayremainanonymous,strictconfidentialitycanbeobservedandanyretaliationagainstanindividualwhoraisesanissuehonestlycanbeaseriousviolationofaSponsorsCodeofConduct. 21.Acollectiveactionisacollaborativeprocessandsustainedcooperationamongstakeholders.Itincreasestheimpactandcredibilityofindividualaction;bringsvulnerableindividualplayersintoanallianceofsimilarmindedorganizations;equalsconditionsamongcom-petitors;andcanserveasasupplementortemporarilyreplaceandstrengthentheweaknessoflocallawsandpracticesagainstcorruption.

22

InordertoaddressthespecificrisksidentifiedinStep2(Assess),policiesandproceduresoftheSponsor’soverallanti-corruptionprogrammeshouldincludeSportSponsorshipaswellasHospitality.PoliciesexpresstheSponsor’sstandardsonaspecifictopicandhelpemployeesaswellasSportEntitiesunderstandbetterthecorrespondingpositionoftheSponsor;proce-duresintegratethesepoliciesintoday-to-dayoperations.

DEFINEPROCEDURESFORSPORTSPONSORSHIP

AddressingtherisksofcorruptioninSportSponsorshipsaspartofaclear,visibleandac-cessiblepolicyisanimportantstep.However,withoutseniorleadershipcommitmentandappropriateresources,anddefiningandimplementingconcreteproceduresthatgiveeffecttothepolicy,thepolicymaybeper-ceivedasirrelevant.

Proceduresdependonthescope,periodandmonetaryvalueofasponsorship.SmallfinancialsupportforaonedayeventmaynotrequirethesameadministrativeeffortasafouryearSportsSponsorshipAgreementwithaSportEntity(i.e.,aprofessionalbasketballleague)amongstvariousmilliondollarSpon-sors.ComprehensiveproceduresformajorSportSponsorshipsshouldbedefinedandimplementedwithrespecttoeachofthefol-lowingstepstoreducetheriskofcorruptionandothernegativeincidents.

Theseproceduresrelatetotheinitialassessment,approvalandexecutionofaSportSponsorshiprequestandSportEntityaswellastothesignatureandexecutionofaSportSponsorshipAgreement.Additionalprocedurestofurthermitigatetheriskofcorruptionareoutlinedinthenextchapter(Step4:“Implement”andStep5:“Measure”).Forsmallersponsorships,alesscomplex,yetcontent-similarapproachmaysufficetofulfilriskpreventiongoals.

Step 3: DEFINE

Submission of the Sponsorship request

i

ii

iii

iV

V

assessment of the Sponsor-ship request and Sport Entity

authorization of the Sponsorship request

negotiation and finalization of the Sponsorship agreement

Execution of the Sponsorship agreement

Figure 3: Define procedures to prevent corruption in Sport Sponsorship

23

I) Submission of the Sponsorship requestASportSponsorshiprequestmaybegener-atedfromwithintheSponsor(e.g.,commit-teesorsalesdepartmentsseekingtoengageanathletetopromotethelaunchofanewproduct)orfromoutsidetheSponsor(e.g.,throughanofficialsponsoringtender22),ordirectlyorindirectlythroughasponsorshipbroker(e.g.,talentagencyorasponsorshiprequesttotheSponsor).AnyincomingSportSponsorshiprequestscanbesubmittedtotheresponsibledepartmentorfunctionoftheSponsor23.Aformalizedrequesttemplate,mainlyfocusingonformalisticrequirementsandprojectedreturnoninvestment,canfacilitateinitialapproval.Suchatemplatemayinclude,forexample,butisnotlimitedto,thefollowinginformation:• TitleoftheSportSponsorship;• NameoftheSportEntity;• Originofthesponsorshiprequest(e.g.,ifanexternalpartyrecommendedtheSportEntity);

• Initialdescriptionofthesponsorship,in-cludingotherpotentialsponsorsinvolved(e.g.,othercompaniesseekingtoenterintotheSportSponsorshipAgreement);

• PersonresponsibleforthesponsorshiprequestwithintheSponsor(e.g.,seniormanager);

• PotentialorexpectedbenefitsandcostsofthesponsorshipfortheSponsor;

• Statementthatthevalueofthesponsor-shiprequestiswithintheapprovedbudgetforSportSponsorshipinitiatives;

• CurrentorformerrelationshipsbetweentheSponsorandtheSportEntity;

• RisksofthissponsorshipfortheSponsor;and

• Otherimportantmotivationsorconsider-ations.

Itisanexcellentpracticeifthedepartmentorfunctionresponsibleforsponsorshipsac-ceptsresponsibilityforcollectingcertainin-formationforriskassessment(Step2above).

II) Assessment of the Sponsorship request and Sport EntityAsindicatedinStep2,assessmentofrequestsshouldbeagainsttheSponsor’soverallobjec-tivesforengaginginsponsorshipactivities.SportSponsorshipsareoftenbasedonacomprehensivesponsorshipstrategy,whichoutlinesindetailwhattheSponsordesirestoachieveintermsofreturnoninvestmentwiththesponsorship.Thismayinclude:• Developing,increasingorchangingthereputationoftheSponsor,itsbrands,and/orproducts/services;

• Reachingouttonewtargetgroups;• Introducinganewproduct;and• Supportingcorporatesocialresponsibilityinitiatives.

IftheSportSponsorshiprequestdoesnotmeetthecriteriaintheoverallstrategy,therequestshouldbedeclined(e.g.,requesttargetsasportthatisexcludedintheoverallstrategy).

Iftheoverallcriteriaaremet,thedepart-mentorfunctionresponsibleneedstoassesstheSportSponsorshiprequestwithregardtobusinessobjectives,whichshouldalsoincludecomplianceobjectives.24

AssessingaSportSponsorshiprequestintermsofcomplianceobjectivesshouldincludethefollowingelements:

Due Diligence on the Sport Sponsorship Request• Istherepotentialforaconflictofinterestcreatedbythesponsorshiprequest?ThiscouldbethecaseiftheSportEntityhasbeenrecommendedbyanemployeewhoholdsafunctionwithintheSportEntity.

• Isthereariskthatthesponsorshiprequestcanbeseenasaffordinganundueadvan-tagetoobtainbusiness?Forexample,theSportEntityisrelatedtoamajorcustomerwithwhomcontractnegotiationsarecur-rentlyongoing.

22.Similartoregularbusinessopportunities,Sponsorscanpublicizetheircriteriaforsponsoring,theformalcriteriaforproposals,themethodsusedtoselectSportEntities,andinformationaboutspecificSportSponsorshipopportunitiesastheyarise,givingaduedateforproposalsandanofficialandexclusivecontactpoint.BasedonUNODC’sTheUnitedNationsConventionagainstCorruption:AStrategyforSafeguardingagainstCorruptioninMajorPublicEvents,September2013.http://www.unodc.org/documents/corruption/Publica-tions/2013/13-84527_Ebook.pdf 23.IfaSponsordoesnothaveadedicatedsponsorshipdepartment,theirsalesandmarketing,communicationsorpublicrelationsfunctionsmayconducttheseactivities.IrrespectiveofaSponsor’sdepartment,responsibilityandaccountabilityforthemanagementofsponsorshipagreementscanbeclearlyassigned. 24.Incasesuchduediligenceactivitiesareconsideredunnecessary,orreducedduediligenceisdeemedsufficient(e.g.,outstandingandrecognizedreputationofthesportentitywithregardstoethicsandcompliance),awrittendocumentshouldbesubmittedtotheauthoriz-ingbodywithintheSponsor.

24

• Isthesponsorshiprequestpartoforre-latedtoanofficialtender?

• Isthesponsorshiprequestinitiatedbyathirdparty(e.g.,sponsorshipbroker)?

• Doesthesponsorshiprequestrequireun-usual,disadvantageousorriskycommercialconditions(e.g.,paymentoffacilitationfees/provisionsorpaymentstointermediaries)?

• Donationallawsprohibitcontributionstothepotentialpartnerorlimittheformoramountofthepayment?

• Arethereotherrisksthatmayindicatethatthesponsorshiprequestisunusualorabnormal?Forexample,therequestishighlysupportedbyamemberofthepublicadministrationorbyapublicof-ficial.Orthesponsorshiprequesthasbeenproposedfornoapparentgoodreason.

• DoestheSportEntityrefusetoguaranteecompliancewiththecompany’sCodeofEthicsand/orCodeofConductforsuppli-ers/SportSponsorship?

• DoestheSportEntityrefusetoprovidetheinformationrequestedduringtheduediligenceprocedure?

• DoestheSportEntityaskforthesponsor-ingcontributiontobepaidaccordingtothefollowingschemes? à Paidincash; à Paidlargely“upfront”(advancepay-ments);

à PaidtoapartyotherthanthesportEntity;

à PaidtoabankaccountregisteredinacountryotherthanthecountryinwhichthesportEntityresidesorworks;and

à Paidtoanumberedbankaccount,atanoffshorebankinacountryknownasataxhaven.

• DoestheSportEntityrequestanunusualstructureforthesponsorshiporSponsor-shipAgreement(e.g.,taxrequirements)orprovideincomplete,inaccurateoruntruth-fulinformationfollowingarequesttoshowsupportingdocuments(e.g.,legalproofofgrantingexclusivemarketingrights)?

• Aretheproposedcommercialconditionsinlinewithexperiencesorbenchmarks,oraretheconditionsexcessiveandunreason-able(e.g.,inflatedcommercialconditionsmayindicatepotentialkickbacksincludedintherequest)?

Due diligence on the Sport Entity• ArethecircumstancesinwhichtheSportEntityhasbeenidentifiedorpresentedunusualorabnormal(e.g.,theSportEntityhasbeenrecommendedbyabusinesspart-nerorbyapublicofficial)?

• IstheownershipoftheSportEntityclear?Forexample,theSportEntitymaybe(part-ly)ownedbyamajorbusinesspartner,apublicofficialorbyfiduciarycompanies.

• DoestheSportEntityrefusetoprovideinformationonthecontrolchain/owner-shipstructure?

• IstheSportEntityowned,operatedorinfluencedbypublicofficialsorafamilymemberofapublicofficial?

• IstheSportEntitylocatedinacountrywithahighriskofcorruption?Regardingacountry’scorruptionrisk,pleaserefer,e.g.,totheannualCorruptionPerceptionsIndexpublishedbyTransparencyInternational.

• IstheSportEntityinvolvedinasportwithahistoryofhighrisksofcorruptionorotherunethicalbehaviour?Forexample,formerincidentsofdopingand/ormatch-fixingoraperceivedlackofgoodgover-nance.HowdidtheSportEntityhandlepastincidentsofcorruptionorotherunethicalbehaviour?

• IstheSportEntitydulyregisteredbutwithoutmajoractivitiesorwithnoorveryfewpersonnel,andisitsaddressa“PObox”?

• IstheSportEntityinasustainablefinan-cialsituation?

• Arethereanyredflagsthatneedtobeaddressedsuchasaccusationsthatthesportentityhasareputationforcorrup-tion,hasbeenaccused,committedfortrialorsentenced(particularlyintheeventofcrimesrelatingtocorruption,moneylaun-deringorfraud),orhasbeenprohibitedorincludedinexclusionlists?

• HastheSportEntityterminatedsponsor-shipagreementswithotherSponsorswith-outsuitablegroundsorwithoutaproperjustification?

• HasanySponsorterminatedsponsorshipagreementswiththeSportEntitywithorwithoutgroundsorwithoutsuitablegrounds?

TheactivesupportandinvolvementoftheSportEntityinduediligenceiscrucialandshouldbeacriteriaforSportSponsorship

25

eligibility.Suchduediligencecanbecon-ductedthroughinterviewsorastandardizedquestionnaire,completedbytheSportEntity.Forcertainaspects,theSponsormayrequestadditionalindependentconfirmationofinfor-mation(e.g.,regardingownershipstructure,registration).ThestatusofsportfederationsandotherSportEntitiesdiffersfromcountrytocountry.Conditionssuchasgovernmentowned/influencedsportfederationscontrarytotheprincipleofautonomyofsportshouldbetakenintoconsiderationinassessingsponsorshiprequestandSportEntity.Theduediligenceinformationshouldbereviewedandvalidatedagainstavailabledata.25

Incaseanyoftheseassessmentsprovideindicationsforpotentialrisks(redflags26),theSponsorshouldmakeanadditionalef-forttoconductmorein-depthduediligenceinvestigations.Thedataandinformationcollectedduringduediligence,aswellasthesourcesused,shouldbedocumentedinasummarynotewithanyidentifiedredflagshighlighted.

AsSportSponsorshipAgreementscaninvolvecomplextermsandconditions,itisadvisableforbigSponsorsand/ormajorsponsorshipstoestablishadecision-makingbody(i.e.Committee)thatisaccountableandinchargeofassessingtherequestaswellastheSportEntity,andnegotiatingtheSportSponsorshipAgreement.27

TheCommitteemayalsoseekinputfromotherdepartmentsorexternaladvisorsrelatedtothesponsorshipbenefitsandrisks(e.g.,localsubsidiaries,externalsponsoringandcomplianceexperts).

III) Authorization of the Sponsorship requestSubsequenttothecompletionofthesponsor-shiprequestandSportEntityassessmentanddependingonthesize,benefitsandrisksofthesponsorship,seniormanagementcanbeinformedabouttherequestand,wherere-quiredintermsoftheSponsor’sgovernancesystem,anauthorizationobtained.

ThesponsorshipdepartmentorotherrelevantfunctionshouldberesponsibleforkeepingrecordofthedocumentsrelatingtotheSportSponsorshiprequest,includingtheassessmentresults.

IV) Negotiation and finalization of the Sponsorship AgreementOncetheSportSponsorshiprequesthaspassedrelevant,internalassessmentandau-thorizationsteps,theSportEntityshouldbecontactedinordertonegotiateandfinalizeaSportSponsorshipAgreement.

SportSponsorshipAgreementsareinwritingandareusuallynegotiatedanddraftedbyappropriateSponsorlegalperson-nelincloseconnectionwithbusinessperson-nel.ThismayincludecooperationwiththeSponsor’slegal,tax,finance,procurement,supplierdiversity,ethicsandcompliance,andpublicrelationsandcommunicationsdepartments.

If,forexample,withregardtomajorsportevents,asingleSportSponsoringAgreementisembeddedintocomprehensivecommercialprogrammesandthenegotiationpoweroftheSponsorthereforelimited,theseoverallanti-corruptionapproachescanstillbepur-sued.MajorSponsorsinsuchcasescanseekcollectiveactiontoensurethatappropriateanti-corruptionmeasuresareinplace.

Similartoacustomer-supplierrelation-ship,aSportSponsorshipAgreementshould:i. Includeadetaileddescriptionofthe

SportEntity,thebenefitstobegrantedtotheSponsor,theobligationsoftheSportEntity28,theagreedworthofthesponsorship,thepaymenttermsandcurrency,thedurationoftheagreement,andtheapplicablelawandjurisdictionincaseofdisputes;

ii. Includecontractualsafeguardstoguar-anteethatpaymentsmadebytheSpon-sorareonlyfortheperformanceoftheactivities/servicesdescribedintheSportSponsorshipAgreement,aremadeexclu-sivelytotheSportEntity,initscoun-tryofincorporation,onitsregistered

25.Suchinformationshouldincludeinternaldata,suchasthesportentity’shistorywiththecompany(e.g.,pastcontracts,employeeswithacurrentorpastrelationshipwiththeSportEntity)aswellasexternaldata.Thiscaninclude(interalia)publiclyavailablefinancialrecords,electoraldocumentation,qualificationsandmembershipoforganizations,onlineduediligenceandmediareports. 26.Riskreferenceindicators,signallinghigh-riskcorruptionissues. 27.DependingonSponsorsize,thesecommitteesmaybecross-functional,withmembersofleadership,legal,ethics,compliance,sales,marketing,finance,publicrelations,purchasingandinternalauditpersonnel. 28.Suchobligationscanincludesponsorexclusivityinaparticularproductorservicecategory,andpreventionofambushmarketing.

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accountasindicatedintheagreementandnevertoanumberedaccountorincash(thisdoesnotprecludepaymentsinanothermannerthatwouldbedeemedaslessriskyafteraproperassessment);

iii. IncludeanundertakingfromtheSportEntitythatthemonetaryorin-kindcontributionsshallneverbegiventoapublicofficialoraprivateparty,theirfamilymembers,forcorruptpurposesortransferred,eitherdirectlyorindirectly,tomembersofthecorporatebodies,directors,oremployeesoftheSponsor;

iv. IncludeastatementfromtheSportEn-titythatfromthemomentofsignatureandduringtheexecutionofthesignedSportSponsorshipagreement,itsown-ers,directors,employeesorvolunteersareorwillnotbepublicofficials(thisdeclarationhastobeprovidedtakingintoconsiderationtheeventualpublicnatureofasportentity,ifany);incoun-trieswheresportfederationsaresimilartopublicentitiesthismaybeadaptedaccordingly;

v. SpecifytheSponsor’srighttocarryoutauditsontheSportEntityintheeventthattheSponsorhasareasonablebeliefthattheSportEntitymayhaveviolatedtheprovisionsofthisSportSponsorshipAgreement29;

vi. SpecifytheSportEntity’sobligationtoinformtheSponsoraboutanyrelevantdeviationfromthecontractualtermsoftheSportSponsorshipAgreement,includingtheCodeofConduct(asshownbelow)30;and

vii. SpecifytheSponsor’ssanctionsincaseofaviolationoftheSportSponsorshipAgreementbytheSportEntity.Thismayincludetherighttoterminatetheagreement,interruptpayments,receivecompensationfordamages,andexclu-sionfromfuturesponsorshipopportuni-ties.Itmayalsoincludeadjustmentsofcontractualobligationsiftheaimofthesponsorshipisoutofreach.

WithparticularfocusonreducingtheriskofcorruptionintherelationshipwiththeSportEntityaswellasotherunethicalbehaviourfromtheSportEntity,theSportSponsorshipAgreementshouldbecomplementedbyaCodeofConduct.IftheSponsoralreadyhasoneforbusinesspartnersinplace,itmaybesufficienttojustaddspecificreferencestoSportSponsorshipandHospitality.SuchaCodeshouldfocusonprotectingtheSpon-sor’scommercialinterestsandreputation.Fromanintegritypointofview,itshouldincludeinteraliatheSportEntity’scom-mitmenttocomplywithallrelevantlaws,includinganti-corruptionlaws,andacom-mitmenttoestablishpreventivemeasurestoreducetheriskofcorruptionandothernegativeincidents.

DEFINEAPOLICyFORHOSPITALITy

EstablishingaclearandvisiblepolicyforHospitalityaspartoftheSponsor’soverallpolicyongiftsisofparticularimportance,astheborderlinebetweenlegalandillegalpracticesingivingandreceivingHospital-ityisnotalwaysclearormaybedifficulttoclearlydefine.Forexample,aninvitationofabusinesspartnertoasportsmatchinordertomaintaingoodbusinessrelationshipsiscommonpracticeandtypicallyapproved,butitisadvisablethatanyundueinfluenceorperceptionthereofbeavoided.

Forthebiggestsponsorships(e.g.,interna-tionalsponsorofFIFAWorldCup™)aspecificsponsoringconcept,includingHospitality,maybeadvisable.

AnexampleofagiftandHospitalitypolicyisshowninAddendaII:Exampleofahospitalityandgiftpolicy.

29.Foranexample,pleaserefertoInternationalChamberofCommerce(ICC),ICCAnti-corruptionClause,2012.Thisdocumentincludescontractclausesonnoncompliance,remedialactionandsanctions,disputeresolution,orauditrights. 30.Exampleclause:”If,atanytimeduringtheTerm,thesportentitycommitsanyactthatbringsthesportentityintopublicdisrepute,contempt,corruption,scandalorridicule,orwhichshocksoroffendsthenational/internationalcommunityoranysignificantgroups,classesorcountriesthereof,orwhichreflectsunfavorablyinamaterialmannerupontheSponsororreducesthecommercialvalueoftheSponsor’sassociationwiththeSportEntityinamaterialmanner,oriftheSportEntityoranyassociatedrepresentativehassoconductedhimorherselfinthepastandinformationabouttheconduct,actionsorstatementsaremadeknowntothegeneralpublicorbecomeamatterofpublicknowledgeduringtheTerm,thentheSportEntityshallinformtheSponsorofsuchoccurrencesimmediately”.

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DEFINEPROCEDURESFOR HOSPITALITy

ProceduresforlargescaleHospitality,espe-ciallyinlargercompanies,shouldbedefinedandimplementedinrespectofeachofthefollowingstepstoreducetheriskofcorrup-tioninHospitality:

I) Submission of the Hospitality requestAnyemployeewhoconsidersgivingorreceivingsport-relatedHospitalityshouldsubmitastandardizedpre-approvalformtospecifiedordesignatedpersonneloftheSponsor.31TheassessmentoftheHospitalityrequestmaydeterminethattheriskposedbyaninvitationistoohighintermsofunethi-calconductorcorruptpracticesandthustheinvitationneedstobedeclined.Itisthere-foreimperativethatnoinformalinvitationorsuggestionofaninvitationismadeuntiltheentireprocesshasbeencompleted.Oth-erwise,thecounterpartmaybeoffended.

Incaseofasponsorshipofmajorsportevents,itshouldbeconsideredgoodbusinesspracticethattheSponsorestablishesandpublishesitssponsoringconcept,whichinteraliaoutlinestheusageofHospitality(e.g.,tickets,VIPlounge).Forsuchmajorevents,itisadvisabletoseekgeneralagreementswithcounterpartstobeinvited(e.g.,publicof-ficials)andtoprovidespecificguidelinesandcommunicationupfronttoemployees.

II) Assessment of the Hospitality requestAnyHospitality,eitherofferedtoorgivenbytheSponsor’semployeesorthirdpartiesactingontheirbehalfmustbeexaminedtobe,fromanobjectiveviewpoint,reasonableandingoodfaith.Theassessmentofsuchre-questsshouldbeperformedbyaspecifiedordesignatedofficialwhomaybetherequestor’ssupervisor,theSponsor’scompliancedepart-mentorotherauthorizedpersonnelchargedwithgovernanceprocedures.Increasingly,technology-basedtoolssupportsuchassess-ments.AnassessmentofHospitalityrequestsshouldconsiderthefollowingcriteria:32

i. No obligation:Hospitalityisgivenclearlyasanactofappreciationorcom-mercialcourtesyanddoesnotplacetherecipientunderanydirectorindirectobligation;

ii. Made openly: IfHospitalityisgivenorreceivedsecretlyandundocumentedthenthepurposewillbeopentoques-tion(toavoidthis,pleasereferbelowto“IVRecordingoftheHospitalityrequest”);

iii. Accords with stakeholder perception: Hospitalitywouldnotbeviewedunfa-vourablybyotherstakeholdersifitweretobemadeknowntothem;

iv. Reasonable value:ValueoftheHospi-talityisinlinewithgeneralbusinesspractice–assessingthevalueshouldcomprisetheentireHospitalitypack-age,whichmayincludetravelexpenses(toandfromthesportvenue)andgifts(e.g.,signedjerseyfromathlete).ItshouldalsoincludethevalueofticketsthatwerepartoftheSportSponsorshipAgreement;

31.Thesesubmissionsmaybedonethroughanautomated,technology-basedprocessifresourcesallow. 32.BasedonTransparencyInternationalUk,The2010UkBriberyActAdequateProcedures,2010.

Figure 4: Define procedures to prevent corruption in sport-related hospitality (giving and receiving)

Submission of the hospitality request

i

ii

iii

iV

assessment of the hospitality request

authorization of the hospitality request

recording of the hospitality request

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v. Appropriate:ThenatureoftheHospital-ityisappropriatetotherelationshipandaccordswithgeneralbusinesspracticeandlocalcustoms;

vi. Legality:Hospitalityiscompliantwithallapplicablelaws;

vii. Conforms to the recipient’s rules: HospitalitymeetstherulesorCodeofConductoftheSponsor’sorganizationor-withregardtogivinginvitation–requeststhattherecipientconfirmstocomplywithallapplicablerules;

viii. Infrequent:GivingorreceivingHospi-talityisnotoverlyfrequentbetweenthegiverandtherecipient;

ix. No cash:ProvidingHospitalityisnotaccompaniedbycashpaymentsorcashequivalents(e.g.,perdiemsorgiftcards);and

x. No extension:Hospitalityisnotex-tendedtofamilymembersorpartners(unlessitisseenasacceptable,e.g.,attendingasportawardceremony;orabusinessleaderbringingtheirsignificantothertomeetanotherbusinessleader’ssignificantother).

Incaseinvitationscombinebusiness-relatedaspects(e.g.,symposium)withentertain-ment-relatedaspects(e.g.,attendanceofasportcompetition),theformeraspectsshouldoutweighthelatter.

AnyHospitality,givenorreceived,thatdoesnotmeettheabove-showncriteriashouldberefusedand–whereappropriate–forwardedtotherelevantgovernancebod-iesoftheSponsor(e.g.,touseasanexampleinfuturetrainings).

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III) Authorization of Hospitality requestTheSponsormayarrangefordifferentap-provallevelsinrelationtospecificneeds,de-pendingontheassessmentsdescribedabove.Thismayalsoincludeinternalprocessesincaseauthorizationscannotbeobtainedforvalidorurgentreasonsorduetowork-relat-edimpediments.

TheSponsor’semployeesmayproceedwiththeHospitalityonceapprovalhasbeenreceived.

InvitationsofpublicofficialstoSportEntityeventsmayundergomoredetailedduediligenceautomaticallyversusinvita-tionstocertainbusinesspartners.Again,itisprudentforSponsorstoestablishaformalprocess.Suchaprocessshouldinclude,forexample,thatinvitationsbemadeinatrans-parentmanner,e.g.,invitations:• areaddressedtotheofficialbusinessaddressofthepublicauthoritywhichemploystherecipientandnotpersonallytotherecipientortotherecipient’shomeaddress;

• arecopiedtoofficialstowhomtheinviteereportstowithintheinvitee’sdepartmentorministry;33

• containanaccuratedescriptionofthetypeandscopeoftheinvitation(includingben-efits,suchascatering,gratuities,toenableeffectiveauthorization);

• authorizedemployeesofSponsorshouldberequiredtopersonallyattendtheSportEntityeventalongwiththeinviteetosharetheexperienceanddeepenrelation-ships;and

• includeanexplicitreservationthatthein-vitationissubjecttotherecipientobtain-ingauthorization.

Similarpracticesshouldbeappliedwhendealingwithbusinesspartnersorforreceiv-ingHospitality.

IV) Recording of the Hospitality requestSponsorsshoulddocumentindividualHospitalityarrangements(whethergivenorreceived)asfaraspossible.ThiscanbedonethroughaninternalHospitalityregister.Thishelpstomonitorcompliancewiththeestablishedpoliciesandprocedures,andfendoffchargesifallegationsofundueinfluenceorcorruptionoccur.

AnexampleofaHospitalityregisterisshowninAddendaIII:Exampleofahospital-ityregister.

AnyHospitality-relatedexpenditureshouldalsoberecordedaccuratelyandtrans-parentlyintheSponsor’sfinancialbooksandrecordswithsufficientdetailandsupportedbyappropriatedocumentationthatmayincludealinktoaHospitalityRegister.

33.Inthecaseofmajorpubliceventstowhichseveralpublicofficialsaretobeinvited,theirgovernmentagenciescanbecontactedinadvanceconcerningauthorizationregulationswithintheframeworkofageneralconcept.Alternatively,theinvitationshouldbeissuedtothegovernmentagenciessothattheycanchoosetheirownrepresentatives.

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Step 4: IMPLEMENT

Policiesalonearerarelysufficientinthem-selves;theyarefarmoreeffectivewhenthecommitmentisemphasizedbyseniorleader-shipandresourcesallocatedtowardstheirachievement,andthentheyareimplement-edintoday-to-daypracticesoftheSponsorthroughavarietyofprocedures,suchastraining,communication,internalcontrolsandreportingofviolations.

Whereappropriate,SponsorsshouldalsoengagewithSportEntitiestoempowertheminaddressingcorruption-relatedissuesandmeetthespecificobjectivessetbytheircon-tractualobligations.ThisincludescompliancewiththeSponsor’sCodeofConduct.Byensur-ingagoodworkingrelationship,Sponsorsdo

notonlyhelpthemselvestoavoidpotentialliabilityandreputationaldamages,butalsostrengthenanti-corruptionefforts,bothoftheSponsorandamongSportEntities.

Finally,Sponsorsshouldstrivetoengageincollectiveactioninitiativestosupportlevellingtheplayingfieldasfarasanti-cor-ruptionmeasuresareconcernedamongallSponsorsandSportEntitiesengagedinSportSponsorship.ThisespeciallyapplieswhereSportEntitiessuchasFIFAorIOChavecon-siderablenegotiatingpowerduetoamonop-olyandtheexclusivenessoftheirsponsoringrights.Multi-stakeholderforumscanaswellbeusedforcapacitydevelopment.

Figure 5: Implement procedures to reduce the risk of corruption

implementation procedures to reduce the risk of corruption in Sport Sponsorhsip and hospitality

i. Within the Sponsor ii. at the Sport Entity iii. through Collective action initiative

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I. Implementation procedures within Sponsor’s CompanySponsorscanputavarietyofmeasuresinplacetoensurethatestablishedpoliciesareadheredtobyemployees.Suchmeasurestyp-icallyincludecommunicationandtraining,internalcontrolsandrecordkeeping,guid-anceandreportinghotlines,andsanctionandincentiveprovisions.ThesemeasuresshouldbemademandatoryforallSponsoremployees,includingthoseinsubsidiariesandotherentitiesoverwhichtheSponsorhaseffectivecontrol.

Guidance and reporting channels: Spon-sorsshouldprovidewaysforemployeesandSportEntitiestoseekguidanceandsuggestimprovement.Forthis,dedicatedpersonnelordepartmentscanbeappointed.Alternatively,ahotlinemaybeestablished.Suchchannelsdonotonlysupportemployeesandstake-holdersintheinterpretationoftheSponsor’spoliciesandprocedures,butalsoassistinidentifyingmajorareasofconcernsforaddi-tionalsupportandtraining(e.g.,provisionsofHospitalityintermsofamajorsportevent).

SportSponsorshipAgreementscomprisecomplextransactionsthatmakeitdifficulttodetectirregularities,evenforinternalcontrolmeasuresorauditors.Thus,reportingonsuchirregularitiesisanimportantwaytodetectmisconduct.TheSponsorshouldthere-forealsoestablishreportingchannelstopro-videinformationonirregularities.Thiscanagainbeeitherdonebyadedicatedinternalorexternalperson(e.g.,ombudsman),orviaahotline(alsoreferredtoaswhistle-blowinghotline).Reportingmechanismsmustcriti-callyaddresstheriskofretaliationforthosereportingmisconductbytheircolleagues,peersorsuperiors.Thisisespeciallyimpor-tantinthecontextofSportSponsorships,assuchengagementsareoftendrivenbyseniormanagementandlinkedtohighemotions.

II. Implementation procedures at the Sport EntitySimilartotherelationshipwithitssupplychain,SponsorsshouldbeclearabouttheexpectedgovernancefromtheSportEntity,makingtheadherencetotheoverallSportSponsorshipAgreementanditsrelevantCode(s)acontractualobligation,subjecttonegotiationleverage.

Ideally,SportEntitiesalreadyhaveorareintheprocessofadoptingtheirownpro-

grammesandsystemsforpreventingcorrup-tionandothernegativeincidents.

RecognizingthatSportEntitiesmaynothavetheneededlevelofawarenessandgov-ernancecapacity,insteadofexcludingthemfromanysponsoring,theSponsorshouldofferitssupport,suchas:• Regular meetingstodiscusschallengesrelatedtobusinessandcomplianceobjec-tivesanddeterminesolutionapproachesinaconsistentmanner;

• Training and educationforkeyemployeesfromtheSportEntity;and

• Expertisewithregardtoananti-corrup-tionstrategyandtools.

IncasetheSportEntityviolatesthecontrac-tualobligationsoftheSportSponsorshipAgreement,itisprudentforSponsorstobereadytoterminatearelationshipwherenecessary.Publicannouncementsofappliedsanctionsmayfurtherincreasethemotiva-tionofSportEntitiestoavoidsuchsanctions(“noisywithdrawal”),however,todosomayhinderfuturerelationshipopportunities,especiallyifSponsorsabandonSportEntities(andtheirstakeholders)duringpublicallyperceivedchallengingtimes.

Sanctions:• Impositionofunfavourableconditions(e.g.,increasedduediligencerequirements,reducedcommercialcompensation)

• TerminationoftheSportSponsorshipAgreement

• Indemnificationclaims(e.g.,fines,com-pensationfordamages,losses,expenses,costs,thirdpartyclaims)

• Exclusionfromfuturesponsorshipop-portunities

• Withdrawalfromparticularsports

Dealing with objections by the Sport Entity:SponsorscanexpectavarietyofresponsesfromSportEntitieswhenconfrontedwiththeSponsor’sexpectationstoadheretocompliance-orientedcontractualaspects,especiallytheSponsor’srelevantCode(s).

Likemanysuppliers,SportEntitiesmayfacedifficultieswithmultiplestandardsandpracticesthatmaybeinconsistent.Theymayobjecttohavingtoadheretoseveralcontrac-tualterms,beingaskedtoattendtraining,ormayfaceauditsandothermonitoringactivi-

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tiesbymultipleSponsors.Toavoidduplica-tionofeffortsandanunnecessaryburdenonSportEntities,Sponsorsmayconsideramulti-stakeholderapproach,acceptingtrain-ingorauditingconductedbyotherSponsorsandexploringifthereisastandardizedandinternationalbest-practiceapproachtowhichallSponsorscanagree.Collectiveac-tioncouldbeanavenuetoachievethiskindofcoherence(seebelow).

SportEntitiesmayrequesttomodify,orbeexcludedfrom,contractualtermsandCodesofConduct.ThereisgreatvaluetostandardcontractuallanguageforalloftheSponsor’ssuppliersandsponsoredSportEntities,anditisgenerallynotadvisabletonegotiateissueslikeanti-corruptionmea-sureswitheachandeverySportEntity.Inaddition,objectionstocontractualprovisionsregardingcorruptionorotherunethicalcon-ductmaybearedflag,indicatingthattheSportEntityisaparticularlyhighrisk.

III. Implement Procedures through Collective Action InitiativesSponsorsthatseektoengageinSportSpon-sorshipsfacehighlycompetitivemarkets,es-peciallyformajorsporteventsorwell-knownsportfederations,teams,clubsandathletes.Insuchmarkets,individualSponsorsmayloseimportantcontractsiftheSportEntity

isnotwillingtoaccepttheproposedcompli-ance-relatedtermsandconditions.TheSportEntitymaysimplyturntootherSponsorswithfewerrequirements.Thiscanposespecificchallengesforthesportinggoodsindustrythathasnochoicenottoengageinsportsponsoringastheirproductsdirectlyrefertosport.

Insuchcases,Sponsorsmayseektoestablishcollectiveactionsoflike-mindedcompaniesasanadvancedstepinthefightagainstcorruption,therebyhelpingto“leveltheplayingfield”.

Sponsorsthatengageincollectiveactioncanbalanceconditions,givecredibilitytotransparencyclausesandbringempower-menttoacoalitionofinterests,insteadoflimitedactionsfromindividualSponsors.Suchacollectiveactioncanresultinasecto-rialagreement,whichcreatesconditionsoffairnessandtransparencyinthemarket,bydefiningclearrulesandcleanactionsbetweencompetitorsinaspecificbusinesssector(corporateself-regulation).

CollectiveactionmayalsobeconsideredamongSponsorsofaspecificsporteventorsportorganization,sothattheycanincorpo-ratetherulesestablishedinthisdocument,proposingcommonstandardsamongSpon-sors.Withanycollectiveaction,relevantprovisionsofanti-trustlawcanbetakeninconsideration.

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Step 5: MEASURE

ContinuouslymonitoringandevaluatingaSponsor’santi-corruptionprogrammeisanim-portanttaskinordertodeterminewhetherthepoliciesandproceduresareintegratedintoday-to-dayoperationsandwhethertheprogrammeisstillup-to-dateintermsoftheSponsor’sbusinessenvironment.

MonitoringandevaluatingtheSponsor’sprogrammealsohelpstoidentifyineffectiveactivitiesthatcanbeoptimized.SimilartoStep4(Implement),monitoring,aswellasitsmonitoringcosts,maybesharedwithotherSponsors(again,ifthereiscollectiveaction).

Figure 6: Measure impact and progress

Measure impact and progress to reduce the risk of corruption in Sport Sponsorship and hospitality

i. Measure adherence to the Sponsor’s Code of Conduct,

policies and procedures

ii. Measure adherence to the contractual terms of Sponsorship

agreement

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Withregardtomeasuringspecificanti-corruptionpoliciesandproceduresonSportSponsorshipandHospitality,itisanexcel-lentpracticeforSponsorstoconsiderthefollowingareas:

I. Measure adherence to the Sponsor’s Code of Conduct, policies and proceduresMonitoringadherenceisessentialtoassesstheeffectivenessoftheSponsor’santi-corruptionprogramme.OnlyifrelevantemployeesareawareandcompliantwiththeSponsor’spoliciesandproceduresonSportSponsorshipandHospitalitycantheriskofcorruptionbeminimized.SportEntitiesshouldalsobemonitoredregardingadher-encetotheSponsor’sCodeofConduct,ortheirownCodesofConduct.Thisencompass-estheexistenceofpreventivemeasuresaswellasactualviolations.ThelattercanposedifficultiesforSponsors.Ideally,anycorrup-tion-relatedorothernegativeincidentshouldbedirectlyreportedbytheSportEntityitselftotheSponsor.SuchanobligationmaybepartoftheSportSponsorshipAgreement.

II. Measure Adherence to the contrac-tual terms of Sponsorship AgreementAsoutlinedinStep3,theSportSponsorshipAgreementmustclearlystatethenegotiatedcontractualtermsbetweentheSponsorandtheSportEntity.Aclearlydefinedmonitoringprocesswithregardtoanti-corruptionshouldbepartoftheagreedcontractualterms.

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Step 6: COMMUNICATE

Publicdisclosureintermsofanti-corruptionisnotonlyanimportantwayofdemonstratingthesincerityoftheSponsor’scommitmenttotheUNGlobalCompact’s10thPrinciple.Itcanalsoprovidesubstantialbenefits,suchasstrengtheninginternalanti-corruptionprogrammesthroughincreasedtransparency,enhancingreputation,andprovidingacommonbasisformeasuringprogressandlearningfrompeers.Additionallyitsetsstandardsandmayhaveapositiveimpactonsports,industriesand/orcountriesnotyetadvancedwithregardtoanti-corruptionmeasures.

PubliclydisclosingtheSponsor’spoliciesandprocedures,interaliaonthecompany’sweb-site,couldserveasadeterrenttothosewishingtoactcorruptly.

Figure 7: Public disclosure on Sport Sponsorship and Hospitality

Communicate progress and strategies and engage with stakeholders for

continuous improvement

i. public disclosure of the company’s policies

and procedures

ii. public disclosure of sport sponsorship

iii. public disclosure of sport-related hospitality

I. Public disclosure of the company’s policies and proceduresTheUNGlobalCompact–TransparencyIn-ternationalReportingGuidanceonthe10thPrincipleagainstCorruptionsetsoutandpromotesthestrongbenefitsofreportingonanti-corruption.Itprovidesastructuredandcomprehensiveguidancedocumentthatencouragesthoroughandconsistentreport-ingofanti-corruptionefforts.

Sponsorsthatseektopubliclydemon-stratetheircommitmentandefforttoreducetheriskofcorruptionintheirSportSponsor-shipandHospitalitycanusethisReporting

Guidance.TheGuidanceprovidesacompre-hensivesetof22reportingelements,whichcanbereportedagainstinamainlydescrip-tivemanner.

ReportingonaSponsor’spoliciesandprocedurestoreducetheriskofcorruptioninSportSponsorshipandHospitalityshouldbeintegratedintotheSponsor’soverallanti-corruptionreportingsystem.

AnalignmentofaSponsor’sSportSpon-sorshipandHospitalitypoliciesandproce-durestothereportingelementsisreflectedinAddendaIV:Publicreportingofpoliciesandprocedures.

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II. Public Disclosure of Sport SponsorshipSponsorsshouldpubliclydisclosetheirSportSponsorshipsinanaccessiblemanner.ThisenablespublicscrutinytotakeplaceandavoidsthatSportSponsorshipisperceivedasobtainingundueadvantages.

Withoutprejudicetotherespectofconfidentialityobligations,dataprotection,competition/anti-trustandotherapplicablelawSponsorsmayconsiderreportinginthefollowing3categories:• Publish the names of the Sport Enti-

ties:AsSportSponsorshipisdonewithamarketingandcommunicationstrategyinmind,itisinthebusiness’owninteresttopublishthenamesoftheSportEntitiestheysponsor.

• Publish the overall amount spent on sponsorships:AsSportSponsorshipispartofregularbusinessconduct,theoverall(monetary)amountspentonsponsorshipsmustbepartoftheSponsor’sfinancialreports.

• Publish details about individual sponsor-ships:Intheinterestoftransparencyandaccountability,Sponsorsshouldalsocon-siderpublishingasmuchinformationontheirsponsorshipsaspossible,outsidetheconstraintsofSportSponsorshipAgree-mentconfidentialityprovisions.ThismayincludeinformationonamountsspentoneachindividualSportSponsorshipAgree-ments,thedurationoftheagreementsandappropriateHospitalitybenefits.

Especiallywithregardtomajorpublicevents,Sponsorsmayoptforpublishingtheirspon-soringconceptfortheseparticularevents.

DEALINGWITHOBJECTIONS

PubliclydisclosinginformationontheSpon-sor’sSportSponsorshipactivitiesmaygiverisetoavarietyofobjections,notonlyfromSportEntitiesbutalsofromtheSponsor’sownemployees.

Givingawaytoomuchinformation,resultinginapotentialcompetitivedisad-vantagebydisclosingtheindividualvalueofaparticularSportSponsorshipAgreement,isamongprominentobjections.Sponsors,however,maybalancetheseargumentsonacase-by-casebasiswiththeriskthatnon-dis-closuremayincreasepublicspeculationsorevenfalsestatementsfromotherstakehold-ers,whichmayhaveseverenegativeimpactonSponsorsandtheSportEntity.InordertoincreasetransparencyinSportSponsorship,Sponsorsshouldstrivetoestablishcollectiveactioninitiativestoovercomethepotentialdisadvantagesofbeinga“firstmover”(asoutlinedinStep4).

ExistingSportSponsorshipAgreementsmayincludeastrictconfidentialityclause,whichprohibitsthepublicdisclosureofdetailedinformation.Sponsorsshouldmakeitthereforepartoftheirnegotiationstrategythatfuturecontractualtermsmayallowpub-licdisclosureofinformationabouttheSportSponsorshipAgreementasfarasreasonable.

Successfulexamplesfromotherinitia-tives,liketheExtractiveIndustriesTranspar-encyInitiative(EITI)34,haveshownthatsuchinitialobjectionstoincreasedtransparencycanbeovercome.AccordingtotheEITI,implementingcountriesareencouragedtopubliclydiscloseanycontractsandlicensesthatprovidethetermsattachedtotheexploitationofoil,gasandminerals.Initialobjectionstothesedisclosureshavebeenovercomeandbecomebenefitstothecompa-niesandstakeholdersalike.

SomeSponsorsareincreasinglyobligedbylegalrequirementstodisclosesuchinforma-tion(seecasestudybelow).Forexample,state-ownedcompaniesmayfallundernationalpublicinformationlawsthatrequirethemtoactivelydiscloseinformationofcollectiveorgeneralinterest(e.g.,sponsoringamajornationalsportevent).Moreover,citizensareempoweredtorequestspecificinformationanddocumentsfromsuchSponsors.

34.TheExtractiveIndustriesTransparencyInitiativesetsaglobalstandardforrevenuetransparencyinnaturalresources.Underthisstan-dard,companiespublishwhattheypaytogovernmentsandgovernmentspublishwhattheyreceivefromcompanies.Companiesbenefitfromalevelplayingfieldinwhichallcompaniesarerequiredtodisclosethesameinformation.AsofJuly2013,over70oftheworld’slarg-estoil,gasandminingcompaniessupportandactivelyparticipateintheEITIprocess.

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CaSE Study: the Brazilian public information act impacts companies with regard to public disclosure of their sport sponsoring activities

18 November 2011 marked in Brazil the enactment of Act n. 12,527, known as the Access to Information Act, which regulates the constitutional right to access to public information. This act decrees that all information produced or held by the government and not classified as confidential shall become accessible to all citizens.

The act follows an international trend. Today some 90 nations, including the United States, United Kingdom, India, Mexico, Chile and Uruguay, already have laws regulating the right of access to information. Along these lines, Brazil has signed treaties, conventions and declarations on this matter, such as: the Universal Declaration of Human Rights, the Inter-American Declaration of Principles on Freedom of Expression, and the International Covenant on Civil and Political Rights.

The Act encompasses public entities that are members of the direct administration of the Executive, Legislative – including the Courts of Auditors, and Judiciary government branches, and of the Public Prosecution Service and local authorities, public foundations, state companies, mixed economy corporations, and other entities controlled directly or indirectly by the Union, States, Federal District, and by the Municipalities.

The three main concepts involved in the Act are: active transparency, passive transparency and information confidentiality.

In active transparency, public entities proactively disclose information of collective or general interest, acting on their own initiative, regardless of whether or not this information has been requested. In this context, the Act requires the information to be made easily accessible, as well as being primary, genuine, authentic and updated, and presented in transparent, clear and easily understandable language.

In passive transparency, any citizen may request specific information and documents. In this context, the Act demands the creation of a Citizen Information Service (CIS) to meet requests, provide guidance for the public on how to access the information, report on the processing of documents and file documents and information access requests. Requests for information need not be justified and must be met within 20 days, with a 10-day extension being granted provided the requester is informed of the reason for the delay. Any denials must be justified and are subject to appeal within the entity itself, to the Office of the Comptroller General (CGU) and the Joint Commission on Information Revaluation.

Information confidentiality is considered in certain situations and justified for a given period of time, as is in the case of information of a personal nature, related to national security, to industrial property and other legal hypotheses of judicial confidentiality and secrecy.

In the event of a refusal to provide public information, a delay or inaccuracy in the provision of information, disclo-sure of confidential and personal information, information misclassification due to bad faith, among other illegal behaviours, those responsible shall be subject to disciplinary action under the Administrative Misconduct Act.

In this context, all the companies that are directly or indirectly controlled by the Brazilian Federal Administra-tion will have to disclose on their websites, according to the concept of active transparency, relevant informa-tion about contracts, public bids, sponsorships, covenants and travel expenses, among other information. With reference to sponsorship, the information that is required to be disclosed includes: name of the sponsored entity, Tax Payer ID, contract summary, type of bid, entire contract period and contract value.

Petrobras is an example of a company that has to comply with the Public Access to Information Act due to the fact that the Brazilian Federal Administration owns the majority of the voting shares. Petrobras has already put an emphasis on disclosing information to all of its stakeholders, a fact that since 2006 has helped to secure the top score in transparency in the Dow Jones Sustainability Index. The company discloses all the information required by the Act (which includes its sponsorship agreements) on its website. Moreover, the Petrobras Citizen Information Service (CIS) is in place and stands ready to meet the requests and guide the public in accessing the information.

In this context, the Act establishes a regulatory framework, pushing the company and the nation a major step forward in its path toward transparency, contributing to improvements in public management, control and social inclusion, the consolidation of democracy and the fight against corruption.

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III. Public disclosure of sport-related hospitalityAspartofitsinternalpoliciesandprocedures,SponsorsshoulddocumentindividualvalueofHospitalityinaninternalHospitalityregister.Thishelpsmonitorcomplianceandfendoffchargesifcorruptionallegationsoccur.

ThequestioniswhetheraSponsormaymakesuchHospitalitytransactionspublic.Increasingly,publicsectorinstitutions35 are publishingdetailsofexpensesandHospital-ityincurredbytheirmostseniorofficialstodemonstratetheircommitmenttotranspar-ency.InsuchcasesinformationthataSpon-sorinvitedaseniorpublicofficialtoasportseventwouldbemadeavailablethroughthepublicsectorside.

However,largeSponsorsmayextendHospitalityinvitesonafrequentandregularbasisrenderingpublishingimpractical.

Publicizingeverysingleeventcouldbecounterproductiveasitcouldleadtovolumesofinformationanddatathatmaymakethingslessclearandtransparent.Publishingsuchinformationindiscriminatelymayalsoreducethelikelihoodofinviteesacceptinginvitations,therebydefeatingtheobjectofextendinginvitesinthefirstplace.

Sponsorsshouldhencepublishtheirpoli-ciesandprocedureswithregardstoHospi-tality,includingdetailedinformationwhenactingasasponsorforamajorpublicevent.

PublishingindividualgivenandreceivedHospitalitymaybeassessedcasebycase,suchasinvitingalargenumberofpublicofficialstotheopeningceremonyofanewstadiumthatbearstheSponsor’sname.

35.Asanexample,seetheCabinetOfficeintheUnitedkingdomhttp://www.cabinetoffice.gov.uk/resource-library/business-expenses-senior-officials.

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36.PleasenotethatthisCodeofConductusesthesamedefinitionsasoutlinedin”keydefinitions”ofthisGuide.

Addenda I: An example for a Code of Conduct of Sport Entities

ThisCodeofConductoutlinesthebasicIntegrity and Transparency Principles that shouldbeexpectedfromsponsoredSportEntities.36Theprinciplesarefurthersup-portedbyconcreterecommendations-takenfromexperienceinreallife,howtoputtheseprinciplesintoaction.Thisshouldnotbere-gardedasanexhaustivelist,butisrathertohelpSponsorsandSportEntitiesunderstandtheimportanceaswellasthecontentofanti-corruptionmeasuresandthepreventionofunethicalbehaviourinsport.

TheseprinciplesarebasedontheUNGlobalCompactTenPrinciplesbutfocusontheintegrityandtransparencypointofview.AssuchtheydonotattempttoprovideablueprintforacomprehensivesustainableapproachbyaSportEntity(i.e.,especiallyenvironmentalandeconomiccriteriaarenotincluded).

BASICPRINCIPLESANDExAMPLESONHOWTOPUTINTOACTION

The<nameoftheSportEntity>commitsitselftoobservethefundamentalethicalap-proachsetoutinthisCodeofConductandtotheprinciplesunderlyingit:

Principle 1: Prohibition of corruptionThe<nameofthesportentity>adoptsandimplementsazero-toleranceapproachtocorruption,unfaircompetitionandsportingfraud,especiallydoping,match-fixingandage-fraud.

Put into action:

1. TheSportEntityensuresadherencetothehigheststandardsofintegrity,account-abilityandtransparencyinallbusinessaswellasotherinteractionandactivity,regardlessofwhetheritissports-relatedornon-sports-related.

2. TheSportEntityexpresslyprohibitsallformsofmisuseorabuseofpowerforpersonalgain/advantages,especiallycor-ruption,bribery,extortion,andembezzle-mentandshallnottolerateanysuchconduct.

3. TheSportEntityputsadequateanti-cor-ruptionmeasuresinplace.

4. TheSportEntitydoesnotexerciseorattempttoexerciseanyundueinfluenceonpoliticians,publicofficials,themedia,businesspartnersoranyotherpartyandshallnottolerateanysuchconductonitsbehalforforitsbenefit.AnylobbyingonbehalforbytheSportEntityshalltakeplaceinatransparentandresponsiblemanner.

5. TheSportEntityengagesinestablishingclearandexpressrules,implementingeducation-andpreventionprogrammes,withregardtocorruption,especiallysportingfraud,e.g.doping,match-fixingandage-fraud.

6. TheSportEntityputswhistle-blowingmeasuresinplacetobeutilisedbyallem-ployees,volunteers/officials,athletesandstakeholders.Adequatewhistle-blowerprotectionshouldbestandard,butspe-cialmeasuresshouldapplywithregardtohigh-riskareassuchasdopingandmatch-fixingcases.Noindividualshouldsufferretaliationasaresultofreportingmisconduct.

7. TheSportEntityhasappropriateinvesti-gativepower,disciplinaryrulesandbod-iesinplaceanddealswithanysuspicion.

8. TheSportEntitydoesnotengageinanybehaviourthatsupports,encourages,provokesorpromotessportingfraudorunfaircompetitionormaybeperceivedtodoanyoftheaforementioned.With-outdetractingfromthegeneralityofthestatementintheprecedingsentence,theSportEntityshallrefrainfromplacingtoomuchpressureonperformance,mak-

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ingpoorornopaymentswherepaymentsaredueandneglectingtoissueclearguid-anceorexercisepropercontrols.

9. TheSportEntityacceptssponsoringbyabettingcompanyonlyifi. Thebettingcompanyislegalunder

theSportsEntity’sjurisdiction,andii. Both–theSportsEntityaswellasthe

bettingcompany–havestrictcon-flictsofinterestspoliciesinplacetoavoidanyoccurrenceorevenpercep-tionofmanipulationofcompetitiontoobtainbettingadvantages.

Principle 2: Financial transparency and accountabilityThe<nameoftheSportEntity>commitsitselftothehigheststandardoftransparencyandaccountabilityinrespectofrecordkeep-ingandreportingasitrelatestoitsfinancialpositionsandtransactions.Thiscommitmentincludesanundertakingtocomplywithallrelevantandapplicableaccountingstandardsandtoensuretransparencyonsponsoringrelationshipsandhospitality.

Put into action:

1. TheSportEntityreportsonitsfinancialmattersinatransparent,comprehensivewayandasaminimumadheretoallrel-evantfinancialreportingstandards.

2. TheSportEntityusesastandardaccount-ingsystemcommensuratetothesizeofitsoperational-andsponsorshipbudget.

3. TheSportEntityperformsaproperduediligenceonanypotentialcontrac-tor(supplier,sponsor,etc.)thatwillberequiredtoperformanymaterialservicebeforeengagingwithsuchcontractor.

4. TheSportEntityengagestomakespon-sorshipagreementsandothercontractualarrangementstransparenttoallitsstake-holders,includingemployees,volunteersandathletes,totheextentthatitwillnotinfringeonthelegitimatecommercialinterestsofthecontractualpartner.

5. TheSportEntitydoesnotacceptoff-shoreimagerightdealswithindividualathletes.

Principle 3: Avoidance of conflicts of interestThedecisionsoftheSportEntityshallnotbeinfluencedbyanyundueinterestsoradvan-tages(includinginvitationsorgifts)offered,

andanysuchoffersorattemptedoffersshallberefusedoutright.TheSportEntityde-mandsthesameofitsemployees,volunteers/officials,athletes,anditspartners.

Put into action:

1. TheSportEntityadoptsanadequateconflictofinterestpolicythatmustin-cludeprovisionforthepubliclyavailableregisterforthedeclarationofintereststobecompletedbyallsenioradministra-tiveemployeesandvolunteers/officials(electedmembersofbodies).

2. TheSportEntityincludesintheconflictofinterestpolicyspecificprovisionsdealingwithwhatwillbeconsideredtobeundueadvantages(gifts,invitations,discounts,immaterialadvantageslikehonorarymembership,etc.,aimedatexertingundueinfluenceorgaininganundueadvantage).

3. TheSportEntityensuresthatanykindofrelationshiptoabettingcompanytakesintoaccountthenecessityofprevent-inganimpactontothecompetitiontheSportsEntityanditsathletesengagein.

4. TheSportEntityprovidesclearguid-anceonthetreatmentofhospitality.ThisguidanceshouldinteraliadealwiththedistributionofVIPtickets,whatisunderstoodundertheconceptofsponsor-ingandhospitalityandthedisclosureofinvitationsofferedand/oraccepted.

Principle 4: Legal complianceTheSportEntitycomplieswithallrelevantlawsandregulation,allapplicablesportingcodesorrules,contractualobligationsandanyadditionalstandardapplicable.Withoutlimitingthescopeofthisprinciple,itshallapplytoalldataprotectionorprivacylawsaswellasmeasuresaimedattheprotectionofinsideinformation,intellectualpropertyandtradesecrets.

Put into action:

1. TheSportEntityimplementsmeasurestoensurecompliancewithallrelevantinter-nationalandnationallawsandregula-tion,allapplicablesportingcodesorrulesandanyadditionalstandardapplicable.

2. TheSportEntityengagestosupportandeducateitsmembers,athletes,employees,volunteers/officials,businesspartnersand

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othersincomplyingwithallinternation-alandnationallawsandregulation,allapplicablesportingcodesorrulesandanyadditionalstandardapplicable.

3. TheSportEntitytakescareofsensitivedataofathletes,especiallydataonhealthandinjuriesshallonlybepublishedwiththeagreementoftheathlete.

Principle 5: Human rights and non-discriminationTheSportEntityobservesandprotectsallbasichumanrightsandthehumandignityofalltheiremployees,volunteers,athletes,opponents,spectatorsandsupporters.Theobservationofbasichumanrightswillincludeclearactionstoreject,indicatezerotoleranceofandactivelyfightanydiscrimi-nation37,beitforrace,colour,origin,caste,religion,gender,sexualorientation,disabil-ity,politicalopinionorage.

Put into action:

1. TheSportEntityacknowledgesthathu-manrightsareatthecentreofanysportactivityandtheobservanceofbasichu-manrightsisoneoftheprincipleslistedabove.

2. TheSportEntitypositivelyengagesinensuringthatnocorporalpunishmentoranycoercionisexercisedonanyathletes,andspecialcareshouldbetakenthatthisisthecasewhereminorsareinvolved.

3. TheSportEntityrespectstherightsofparentsofathletes.Therightsofparentsshouldhoweverbebalancedagainsttherightsoftheathletesand,whereneces-sary,minorathletesshouldbeprotectedfromtheirparents’unrealisticambitionsordemandsbyrefrainingfromanysup-portforactivitiesthatmightbedanger-ousforaminor.

4. TheSportEntitytakescarethatunder-ageathleteshaveunhinderedaccesstoproperbasiceducation,includingmentaldevelopmentandthedevelopmentoflifeskills,inordertoprepareathletesforlifeoutsideofaprofessionalsportcareer.Thisshouldincludepreparationforalternativecareersafterconclusionoftheprofession-alsportcareer,supportforindependencefromaprofessionalsportcareerandthe

possibilityofadualcareer.Attheveryleastthereshouldbenobarrierstobasiceducationandlifeskillsdevelopment.

5. TheSportEntitydoesnottolerateanyformofharassmentordiscrimination.IndoingsotheSportEntitywillensurethatemployees,volunteersandathleteshaveequalopportunities.Noformofinsultingorviolent(bothphysicalandpsychologi-cal)treatment,includingsexualharass-mentorabuseand/orinsultinglanguage,shallbetolerated.Specialcareshouldbetakenthatminorsarenotexposedtoanyofthistypeofbehaviour.TheSportEntitywillengageininfluencingallspec-tatorsinordertobehaveaccordinglyinordertoprotectathletesfromharassmentbythespectators,crowdsoraudiencesinattendance.

Principle 6: Labour rights and stakeholder involvementTheSportEntityactivelysupportstheprin-ciplesoftheInternationalLabourOrganiza-tion(ILO)inrespectoftheirrelationshipswithemployees,professionalathletesandvolunteers,andwillinvolvetheirstakehold-ersaccordingly.

Put into action:

1. TheSportEntitydoesnottolerateanyformofchildlabourand/orforcedlabour.Thisprohibitionappliestoathletesaswell,andspecificprotectionshouldbeaffordedtominorsinthisregard.Afairandtransparenttransfersystemwithstrictregulationsregardingminorsmustbeinplacetopreventanykindofhumantraffickingandexploitationinsport.

2. TheSportEntityguaranteesfreedomofassociationandappropriateparticipationforemployeesandvolunteersinadminis-trationandalsoforprofessionalathletes,coachesandothersupportpersonnel.

3. TheSportEntityensuresthatthewages,benefits,andworkinghoursofemploy-ees,volunteers(asfarasappropriate),professionalathletesandcoachesmeetminimumstandards,wheresuchspecificstandardsexist,butthatitatleastcom-plieswithallrelevantlabourlawsandtheILOprinciples.

37.TheOxfordDictionarydefinesdiscriminationas:“theunjustorprejudicialtreatmentofdifferentcategoriesofpeople”.

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4. TheSportEntityensuresthatappropriatemeasuresareinplacefortheprotectionofathletesintheeventofphysicalorfi-nancialharmduetosport-relatedinjuriesandaccidents.

5. TheSportEntitysupportsprofessionalathletesinpreparingfortheirpost-careerlife.

6. TheSportEntityensuresthatathletesearningtheirlivingoraconsiderablepartoftheirlivingbysportaresubjecttoallregulationsforprofessionalathletesandnotfalselytreatedasamateurs,.

7. TheSportEntityrewardsallvolunteersfairlyandadequatelyfortheircontribu-tions.Volunteersshouldalsobeprovidedwithappropriateparticipationindeci-sion-making,trainingonthejob,knowl-edgetransferandanadequatestructureofsupport(insurance,allowances,accesstomeals,etc.).

8. TheSportEntitydoesnotsubjectemploy-ees,volunteersorathletestounacceptableworkinghoursorworkingconditions.

9. TheSportEntityanalysesitsstakehold-ers(suchasprofessionalandamateurathletes,coaches,referees,officials,clubs,leagues,players’agents,supporters,sponsorsandothercommercialpartners,media,municipalityandotherpublicauthorities,civilsociety)andinvolvesthemaccordingly,thusguaranteeingaminimumstandardofrepresentation(consultationand/orparticipatingindecision-makingprocesses).Theprocessofstakeholderinvolvementshouldbetransparentandobligatory.

Principle 7: Health and safetyTheSportEntityengagestoensureasafeandhealthyoperatingenvironmentforemploy-ees,volunteers,athletes(includingoppo-nents)andspectators.

Put into action:

1. TheSportEntityensuressafeandhealthyworkingconditionsforallemployeesandvolunteers.Increatingasafeandhealthyworkingenvironment,thespecificcircumstancesofallemployees

andvolunteersastheyrelatetoaccesstoinformationaswellasworkplaceexperi-enceshouldbetakenintoaccount.

2. TheSportEntitygivesspecialattentiontothesafetyofprofessionalandamateurathleteswithregardtominimizingtheriskofsport-relatedaccidents,andmea-surestakenshallbecommensuratewiththelevelofriskposedbyaspecificsport.

3. TheSportEntityengagestoimplementadequatemeasurestoprotectthephysi-calwell-beingandhealthofprofessionalandamateurathletes.Thescheduleandformatofeventsshouldbedeterminedinamannerthatwillnotplacethefinan-cialinterestsofthesportentityoranysponsor/TV-partnerabovethephysicalwell-beingandhealthoftheathletes.Examplesincludeensuringthatnoeventsareheldinextremeweatherconditionssuchasheat,pollution,coldandthelikeaswellasthatproperallowanceismadeforadequaterestperiodsintheeventsorcompetitioncalendar.

4. TheSportEntityensuresthatcoaches,medicaladvisors,athletes,parentsofmi-norathletesandallothersupportperson-nelarewellinformedaboutthepotentialnegativeimpactofnutritionsupplementsandmedicineabuse,forexample,strongpainkillersandsimilarnonprohibitedsubstances.Thisisinadditiontoatotalbanontheuseofallillegalsubstancesorsubstancesthatappearonalistofprohibitedsubstancesissuedbyarelevantbody.Thesportentityinadditionedu-catescoaches,medicaladvisors,athletes,parentsofminorathletesandallothersupportpersonnelandothersaccordinglywithaviewtopreventhealthrisks.

5. TheSportEntityengagestoensurethatallsportseventsandcompetitionsareorganizedinamannerthatensurestheprotectionofthehealthandsafetyofspectatorsandthegeneralpublic.Thismeansthatunhealthyconditionsforspec-tators(heat,etc.),risksofviolenceandaccidentsemanatingfromthecompeti-tionitselfortheinfrastructureusedforitshouldbeavoidedormitigated.

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Addenda II: Example of a hospitality and gift policy

Agenericexampleofahospitalityandgiftpolicycouldbeframedasfollows:38

1. [Nameofcompany]doesnotpermitanyemployeeof[Nameofcompany],directlyorindirectly,andwhetherinhis/herpersonalcapacityoronbehalfof[nameofcompany] à tosolicitanygiftorhospitalityinthecourseofhis/heremployment;

à toofferorgiveto,orreceivefrom,anyConnectedPersonanyofthefollowing: » apersonalorcorporategiftinexcessofavalueof[…];and

» hospitalityinexcessofavalueof[…]; à tooffer,give,orreceiveanygiftorhospi-talitythatisinbreachoftheapplicablelaw.Consequently,thelawmustbecheckedbeforeanygiftorhospitalityisoffered,givenorreceived. A“ConnectedPerson”meansanyorga-nizationorindividual(otherthananemployeeof[nameofcompany])whohashad,has,ormayhaveanyconnectionwithorinfluenceoverthebusinessof[nameofcompany].

2. Inexceptionalcircumstances,[nameofcompany]mayexerciseitsdiscretionsoastopermitgiftsorhospitalitytoexceedthethresholdsspecifiedinparagraph1.Suchdiscretionisexercisedby[specifyaseniorexecutive,e.g.,chiefexecutiveorfinancedirector].

3. Allemployeesof[nameofcompany]arerequiredtoenterdetailsintoaregisterofallgiftsandhospitalitymadeandreceivedthatarepermittedunderpara-graphs1and2.Theregisterisinspectedregularlybythemanagementof[nameofcompany]andbyitsauditors.

4. Intheinterestsoftransparency,thisgiftsandhospitalitypolicyispublishedontheinternalwebsiteof[nameofcompany].

5. Inordertoensurethatallemployeesareboundbythisgiftsandhospitalitypolicyandfullyunderstandit: à Compliancewiththisgiftsandhospital-itypolicyisaconditionofeachemploy-ee’semploymentcontract;

à Compliancewiththisgiftsandhospi-talitypolicyisrequiredundernameofcompany]’sCode;and

à Guidanceastohowtocomplywiththisgiftsandhospitalitypolicyformspartoftheanti-corruptiontrainingprovidedtoemployees.

6. [Nameofcompany]willuseallreasonableeffortstoensurecompliancewiththisgiftsandhospitalitypolicy.

7. Ifanyperson,whetherornotanem-ployeeof[nameofcompany],isawareofanygiftorhospitalitythatisormaybeinbreachofthisgiftsandhospitalitypolicy,heorshemaymakeareportto[specifythenameandcontactdetailsoftheoffi-cerresponsibleforcorporategovernance].Thisreportmaybemadeanonymously.

38.DerivedfromGlobalInfrastructureAnti-CorruptionCentre,Anti-CorruptionTools,GiftsandHospitalityPolicy.

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Acompanyshoulddocumentindividualhospitality–givingandreceiving–inaninternalhospitalityregister.Thishelpstomonitorcompliancewiththeestablishedpoliciesandproce-dures,butalsotofendoffchargesifcorruptionallegationsoccur.

Anti-corruptionlegislations,suchastheUkBriberyAct2010,recognizethathospitalitythatisreasonable,proportionateandmadeingoodfaithisanestablishedandimportantpartofdo-ingbusiness;butalsorecognizesthathospitalitycouldformthebasisforcorruptoffenses.39

Anyhospitalityofferedto,orreceivedby,thecompany’semployees(evenifrefused)shouldberecordedaccuratelyandtransparentlyinthisregister,whichincludesthefollowinginfor-mation:

Eachentryinthehospitalityregistershouldalsoincludereceiptsforexpensesincurredrel-evantpre-approvalformsfromauthorizedpersonnel.

Ifnationallawdoesnotprovideotherwise,itisinthediscretionofthecompanytopublishthehospitalityregisterinpartsorentirely.

Addenda III: Example of a hospitality register

39.http://www.cps.gov.uk/legal/a_to_c/bribery_act_2010/#a17.

date when hospitality was given or received

name of the company’s employee who offered or received hospitality (incl. employee id)

name of direct supervisor of the employee

name of the partner (organization and person) that received or gave the hospitality

description of hospitality (incl. location)

rationale for offering or receiving hospitality

date of offer or receipt of the hospitality

Statement on the nature of the benefit (e.g., meal, travel expenses, tickets)

Current or estimated value of the hospitality

if relevant, indication of the refusal and related reasons

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Publicreportingonanti-corruptionisnotonlyanimportantwayofdemonstratingthesincerityofthecompany’scommitmenttotheUNGlobalCompact’s10thPrinciple.Italsoprovidessub-stantialbenefits,suchasstrengtheninginternalanti-corruptionprogrammesthroughincreasedtransparency,enhancingreputationandprovidingacommonbasisformeasuringprogressandlearningfrompeers.In2009,theUNGlobalCompactandTransparencyInternationalpublishedtheReportingGuidanceonthe10thPrincipleAgainstCorruptiontoprovidecomprehensiveguidanceforathoroughandconsistentreportingofacompany’santi-corruptionefforts.

ThisReportingGuidanceprovidesacomprehensivesetof22reportingelementsthatcanbereportedagainstinamainlydescriptivemanner.Sevenelements(Bx)areconsideredtobethebasiclevelofreporting;15elements(Dx)givetheopportunitytoreportmoreextensivelyonthecompany’santi-corruptionpoliciesandprocedures.

Inthefollowing,acompany’ssportsponsoringandhospitalitypoliciesandproceduresarealignedtothereportingelementsofthisGuidance.

Addenda IV: Public reporting of policies and procedures

Commitment and policy

B1 Publicly stated commitment to work against corruption in all its forms, including bribery and extortion

• Provide your organization’s statement against corruption in sport sponsorship and hospitality.

• Describe where the statement can be found pub-licly (e.g., website, corporate citizenship report).

B2 Commitment to be in compliance with all relevant laws, including anti-corruption laws

• Provide a public written statement that you are committed to be in compliance with all relevant laws and indicate where this statement is pub-lished.

• Describe your procedures and efforts with regard to that statement.

D1 Publicly stated formal policy of zero tolerance of corruption

• Describe the extent to which the zero tolerance against corruption in sport sponsorship and hospi-tality covers all legal entities and locations over which you have effective control.

D2 Statement of support for international and regional legal frameworks, such as the UN Convention against Corruption

Only applicable to the company’s overall anti-corruption commitment.

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Commitment and policy

D3 Carrying out risk assessment of potential areas of corruption

• Describe your current risk assessment proce-dures (e.g., how to conduct a risk assessment on sport entities, on sport sponsoring requests, how often it is carried out, who is in charge, which parts of your organization are covered, how results are dealt with).

• Describe the business units and subsidiaries for which a risk assessment on sport sponsorship and hospitality has been undertaken.

D4 Detailed policies for high-risk areas of corruption

• List the areas of potential risk of corruption that are covered by detailed policies (e.g., promise, offering or giving, directly or indirectly, of an undue advantage to obtain sponsorship; solicit or accept undue advantages from the sport entity to establish a sponsorship relationship; conflicts of interest; misuse of sponsorship and/or hospital-ity to obtain an undue advantage; other unethical behaviour by the sponsored sport entity.

• Describe where these policies can be found and how they are made available to all employees and sport entities concerned.

D5 Policy on anti-corruption regarding business partners

• Outline your definition of sport entities.

• Describe how your organization’s anti-corruption commitment extends to the sponsored sport entities (e.g., specific provisions in the Code of Conduct for suppliers/sport entities) as well as how anti-corruption commitments from your sponsored sport entities extend to your organi-zation.

• Describe your identified high-risk sport entities by sport segment or region.

• Specify detailed policies for sport entities.

implementation

B3 Translation of the anti-corruption commitment into actions

• Report on the existence and the elements in your anti-corruption programme regarding sport spon-sorship and hospitality.

• Describe the assignment of responsibility to oversee and implement the relevant policies and procedures.

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implementation

B4 Support by the organization’s leadership for anti-corruption

• Describe your organization’s leadership message regarding zero tolerance of corruption in sport sponsorship and hospitality.

• Describe the form of expression (e.g., corporate social responsibility report, speaking at employee events prior to a major public event).

B5 Communication and training on the anti-corruption commitment for all employees

• Describe internal communication such as sport-event newsletter, management communications, publications, business conduct guidelines, inter-net or intranet resources.

• Provide monitoring measures such as results of surveys of employee attitudes towards using hospitality for relationship building, publications in local languages.

• Describe the frequency of such communications (e.g., quarterly, biannually, annually, sport-event based).

• Describe sport sponsorship and hospitality-relat-ed training initiatives.

• Explain whether the communications and/or the training resources have been translated into multiple languages and if so, indicate the principal languages.

B6 Internal checks and balances to ensure consistency with the anti-corruption commitment

• Describe specific internal checks and balances such as segregation of duties for request and approval of sport Sponsorship agreements, audit plans, expense and invoicing guidelines, etc., aimed at detecting and/ or preventing corruption.

• Describe how often you review these internal checks and balances.

D6 Actions taken to encourage business partners to implement anti-corruption commitments

• Outline your definition and scope of sport entities (e.g., individual athletes, teams, sport federations)

• Describe specific communication measures and actions, such as training taken to encourage your sponsored sport entities to implement anti-corruption programmes and measures to prevent other unethical behaviour.

• Describe the process of monitoring the effective-ness of such communication measures and ac-tions (e.g., measuring the value of sport sponsor-ing agreements).

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implementation

D7 Management responsibility and accountability for implementation of the anti-corruption commitment or policy

• Describe how responsibilities for sport sponsor-ship and hospitality are assigned throughout your organizational structure.

• Provide, if possible, specific reporting indicators used in your organization to support responsibil-ity and accountability for implementation of the policies and procedures.

D8 Human Resources procedures supporting the anti-corruption commitment or policy

• Describe how your organization implements docu-mented personnel policies and processes that support the commitment of zero tolerance for corruption in sport sponsorship and hospitality, including references to how these were developed (e.g., including consultation with employees, sport entities, unions).

• Report measures of activities and results, such as percentages of recruits that have received relevant orientation or numbers of employees dis-missed for noncompliance with relevant policies.

D9 Communications (whistle-blowing) channels and follow-up mechanisms for reporting concerns or seeking advice

• Describe individual solutions already implement-ed or envisaged (e.g., utilization of company’s reporting channels by sport entities).

• Provide statistics on the use of the whistle-blow-ing, advice or hot lines.

• Specify a breakdown of the types of inquiries, provided this will not lead to a breach of confiden-tiality or security for the reporting employees.

D10 Internal accounting and auditing procedures related to anticorruption

• Describe the internal control policies and pro-cesses (e.g., frequency, scope of organizational coverage, degree of control automation, interna-tional frameworks used).

• Report whether internal and external audits have taken place regarding sport sponsorship and sport-related hospitality.

• Report on the specific mandates given to the audit function, internal and external where applicable.

D11 Participation in voluntary anti-corruption initiatives

• List voluntary initiatives or collaborative actions in which your organization participates with regard to sport sponsorship (e.g., International Sponsoring Associations).

• Specify the type of involvement (active/passive membership) as well as duration of membership.

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Monitoring

B7 Monitoring and improvement processes

• Describe the process in place to undertake monitoring of your internal process, the sport sponsorship agreement and the behaviour of the sponsored sport entity.

• Describe who is responsible for the process, how often it takes place and how results are taken into account, including review and oversight by senior management and/ or the Board or appropriate Board Committees.

• Describe the procedures for internal and external communication of the monitoring and improve-ment process and the results.

D12 Leadership review of monitoring and improvement results

• Describe the oversight of the review process (e.g., who has ultimate oversight over sport sponsorship, who conducts the review, who reviews the results, frequency of reviews).

• Describe actions taken, including improvement results.

D13 Dealing with incidents • State that there is a process in place for dealing with incidents, including remedial steps.

• Describe the process.

• State the nature and number of incidents dealt with and the number of disciplinary actions.

D14 Public legal cases regarding corruption

• List in a corporate publication (such as your annual report or sustainability report or on your website) any current public investigations, pros-ecutions or closed cases (avoid stating any infor-mation that may be misleading or compromising).

D15 Use of independent external assurance of anti-corruption programmes

• State that an external assurance (or any kind of external verification or assessment) of your anti-corruption programme with regard to sport spon-sorship and/or hospitality has been carried out.

• Specify the nature and the scope of such an external assurance, i.e., if assurance has been on the programme design and/or effectiveness of the programme.

• Specify the scope of the engagement, e.g., com-pany, subsidiary, business unit or function.

• Describe if the outcomes of an external assur-ance are publicly available.

WhilethisGuidanceisoriginallyintendedforcompaniestoreportontheiroverallanti-corruptionefforts,sponsoringcompaniesmayalsousethisstructuretorequestinformationfromsportentitiesregardingtheirrelatedefforts.

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• AGuideforAnti-CorruptionRiskAssessment(UNGC,2013) http://www.unglobalcompact.org/docs/issues_doc/Anti-Corruption/UNGC_AntiCorruptionReporting.pdf

• TheFightAgainstCorruption:E-LearningTool(UNGC/UNODC,2010) http://thefightagainstcorruption.org/certificate/

• FightingCorruptionintheSupplyChain:AGuideforCustomersandSuppliers(UNGC,2010) http://www.unglobalcompact.org/docs/issues_doc/Anti-Corruption/Fighting_Corruption_Supply_Chain.pdf

• ReportingGuidanceonthe10thPrincipleAgainstCorruption(UNGC,Transparency International,2009) http://www.unglobalcompact.org/docs/issues_doc/Anti-Corruption/UNGC_AntiCorruptionReporting.pdf

• RESIST–ResistingExtortionandSolicitationinInternationalTransactions (UNGC/ICC/TransparencyInternational/WEF,2009) http://unglobalcompact.org/resources/157

• TheUnitedNationsConventionagainstCorruption:AStrategyforSafeguardingagainstCorruptioninMajorPublicEvents(UNODC,2013) http://www.unodc.org/documents/corruption/Publications/2013/13-84527_Ebook.pdf

• Criminalizationapproachestocombatmatch-fixingandillegal/irregularbetting:aglobalperspective.Comparativestudyontheapplicabilityofcriminallawprovisionsconcerningmatch-fixingandillegal/irregularbetting(UNODC/IOC,2013) http://www.unodc.org/documents/corruption/Publications/2013/Criminalization_approaches_to_combat_match-fixing.pdf

• BusinessPrinciplesforCounteringBribery–SmallandMediumenterprise(SME)Edition(TransparencyInternational,2008) http://www.transparency.org/whatwedo/tools/business_principles_for_countering_bribery_sme_edition/1/

• BusinessPrinciplesforCounteringBribery(TransparencyInternational,2009) http://www.transparency.org/whatwedo/tools/business_principles_ for_countering_bribery/1/

• BasicUniversalPrinciplesofGoodGovernanceoftheOlympicandSportMovement (InternationalOlympicCommittee,2009) http://www.olympic.org/Documents/Conferences_Forums_and_Events/2008_seminar_autonomy/Basic_Universal_Principles_of_Good_Governance.pdf

• GuidelinesforGoodGovernanceinGrassrootsSport(InternationalSportandCulture associationISCA,TransparencyInternational;2013) http://www.isca-web.org/files/GGGS_WEB/Files/Guidelines_for_Good_Governance_in_Grassroots_Sport.pdf

To download these resources and to access the complete list of anti-corruption tools and resources, please visit: http://www.unglobalcompact.org/Issues/transparency_anticorruption/Anti-Corruption_Guidance_Material.html

Annex 1: Anti-Corruption Tools and Resources

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InDecember2010,theEthosInstitute,withsupportfromtheSiemensIntegrityInitiative,launchedtheCleanGamesInsideandOutsidetheStadiumsproject.Theprojectaimstopromotegreatertransparencyandintegrityofinfrastructureinvestmentsinthe2014FIFAWorldCupandthe2016OlympicGames,throughthecreationofmechanismsforcol-lectiveaction,monitoringandsocialcontrol.

OneexampleofcollectiveactionisaSectoralAgreement.FollowingthestepsofimplementationdevelopedbyTransparencyInternational(TI),theCleanGamesSectoralAgreementsarebeingconcludedinthesectorsofhealthcareequipmentandenergyprovision.Theconstructionandtransporta-tionsectorswillbetargetednext.

Maingoalsofthesectoralagreementsare:a.Tobuildanunprecedentedagreementonethicsandtransparency;

b.Toidentifyandmaprisksofthesectorthroughouttheproductionchainanditsbusinessrelationships;

c.Toidentifymeasuresandmechanismstopreventandcombatcorruptionininvest-mentsforthe2014WorldCupand2016OlympicGames.

Thesegoalsshouldberealizedbyusingamethodologythatfocusesonengagingthemainplayersinthesectors(atleast60%ofthemarket)andbuildingconfidencebetweencompetitors.Whenacompanysignsthesec-toralagreement,thisinformationisdisclosedtotheothercompaniesinvited,reinforcingtheinvitationtojointheworkinggroup.Seminarsandpubliceventsareorganizedtopersuadecompaniesinjoiningthenetwork,andtoovercomepossiblereservationstheymighthave.Attheseevents,companiesthatarenotyetsignatoriesalsoreceiveapresenta-

tionandinvitationtotheBusinessPactforIntegrityandAgainstCorruption.

Aftertheestablishmentoftheworkinggroups,nextstepsaccordingtoTIare:• Disseminate/explain/sharecontentknowl-edgeoftheBusinessPrinciplestofightbribery;

• Identifyareasvulnerabletobribery(RiskMap);

• Definemeasurestofightagainstbribery;• TheformationofanEthicsCommittee;• Agreeinguponabudget,andthecontribu-tionsofindividualcompanies,ensuringthebasicoperationsoftheagreementandtheEthicsCommittee;

• Signtheagreement.

MEASURESTOCOMBATBRIBERy

Theworkinggroupwillagreeuponadocu-mentthatidentifiesthemainissueswithregardtocombatingbriberybythecorpo-ratesector.Furthermore,thedocumentwillspecifymeasurestobeimplementedbythecompaniesintheirrespectiveorganiza-tionsandbusinessrelationships,inordertocomplywiththecommitmentstheymadeintheBusinessPactforIntegrityandAgainstCorruption.

Annex 2: Case study on Collective Action (Step 4: Implement) – “Clean Games Sectoral Agreement – business sector unites against Corruption in the FIFA World Cup 2014 and the 2016 Olympic Games in Brazil”

Published by the United Nations Global Compact OfficeContact: unglobalcompact@un.orgMarch 2014

HUMANRIGHTS

Businessesshouldsupportandrespecttheprotectionofinternationallyproclaimedhumanrights;andmakesurethattheyarenotcomplicitinhumanrightsabuses.

LABOUR

Businessesshouldupholdthefreedomofassociationandtheeffectiverecognitionoftherighttocollectivebargaining;theeliminationofallformsofforcedandcompulsorylabour;theeffectiveabolitionofchildlabour;andtheeliminationofdiscriminationinrespectofemploymentandoccupation.

ENVIRONMENT

Businessesshouldsupportaprecautionaryapproachtoenvironmentalchallenges;undertakeinitiativestopromotegreaterenvironmentalresponsibility;andencouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.

ANTI-CORRUPTION

Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery.

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TheTenPrinciplesofthe UnitedNationsGlobalCompactTheUNGlobalCompactaskscompaniestoembrace,supportandenact,withintheirsphereofinfluence,asetofcorevaluesintheareasofhumanrights,labourstandards,theenvironment,andanti-corruption: