D1. Business Integrity / D2. No Improper Advantage

Code 7.0

The highest standards of integrity are to be upheld in all business interactions. Participants shall have a zero-tolerance policy to prohibit any and all forms of bribery, corruption, extortion, and embezzlement. Bribes or other means of obtaining undue or improper advantage are not to be promised, offered, authorized, given, or accepted. This prohibition covers promising, offering, authorizing, giving, or accepting anything of value, either directly or indirectly through a third party, in order to obtain or retain business, direct business to any person, or otherwise gain an improper advantage. Monitoring, record keeping, and enforcement procedures shall be implemented to ensure compliance with anti-corruption laws.

Elements to Demonstrate Compliance to RBA Code

1. Policy

• a. Adequate and effective policy and procedures to uphold the highest standards of integrity in all business interactions with a zero tolerance to any and all forms of bribery, corruption, extortion, and embezzlement.
• b. The policy on zero tolerance for all forms of bribery, corruption, extortion, and embezzlement is in place.
• c. Adequate and effective procedures are in place that ensure:
  • i. Gifts: Gifts to or from suppliers and customers are not excessive in cost and frequency.
  • ii. Bribes: Bribes or other methods of obtaining undue or improper advantage are not being promised, offered, authorized, given, or accepted.
  • iii. Conflict of interest: Workers/employees are encouraged to declare conflicts of interest.
• d. Ensure compliance with anti-corruption laws.

2. Procedures & Practices

• a. Adequate and effective monitoring program, including a program to regularly monitor the business to ensure:
  • i. Workers or agents do not make or accept improper offers, bribes, or undue/improper advantage.
  • ii. Records are verified, not falsified, and accurate.
  • iii. Fair business, advertising, and competition.
  • iv. Protection of identity and protection from retaliation.
  • v. Protection of personal information.
• b. Appropriate investigation process when there is an alleged violation, including misrepresentation by workers, managers, and their agents.
• c. Appropriate sanctions when a violation is confirmed/proven, together with a preventive action plan.
• d. Adequate and effective procedure is in place to protect workers/employees from retribution for refusing to do anything in non-conformance with the "highest standard of integrity" policy and to communicate/volunteer their decision.

NOTE: If labor agents are used, these procedures also need to be implemented at the labor agent level.

3. Controls & Monitoring

Record review confirms that:

• a. Investigation reports on alleged violations are maintained.
• b. Sanctions in personnel files for proven/confirmed violations and the preventive action plan are recorded.
• c. Personnel files, leave records, and disclosure records confirm no negative consequence for any worker/employee refusing to do anything in non-conformance with the "highest standard of integrity" policy.
• d. Confirmation in personnel records that the policy was communicated in an understandable form.
• e. Declarations of conflict of interest are recorded.

NOTE: All Ethics investigation and sanctions findings must be listed in this criterion (D1.1).

4. Serious conditions to ensure do not occur include

• A confirmed case of an Ethics breach (any of the D section) without investigation or corrective action plan, or where the corrective action plan is not implemented (excluding deliberately misleading documents, which are listed under Disclosure of Information).
• A confirmed case of bribery, improper advantage, corruption, extortion, or embezzlement with no corrective action plan.

1.0.0 (2021-01-01)

Changed

• Initial historical baseline — Business Integrity (D1) + No Improper Advantage (D2) (RBA Code of Conduct 7.0): Earliest imported version, published as two separate criteria: D1 Business Integrity and D2 No Improper Advantage. Required adequate and effective policy and procedures upholding the highest standards of integrity with zero tolerance to bribery, corruption, extortion, and embezzlement; a monitoring program; an investigation and sanctions process with a preventive action plan; a gifts cost/frequency standard; conflict-of-interest declarations; and conformance with anti-corruption laws. Explicit Major/Minor rating bands were used and remote verification was not acceptable for the Business Integrity provision. The Priority trigger was a confirmed Ethics breach without investigation or corrective action plan (D1) and a confirmed case of bribery/improper advantage without a corrective action plan (D2).