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Chapter 4 Transparency and

anti-corruption in CSR

4.1 Transparency and anticorruption – DIFFERENT CONCEPTS

Transparency and anticorruption are concepts that usually go together. But what are they exactly and how
do they relate to CSR?

In our democratic societies, transparency is abasic principle, governing individual and collective action,
used as an underlying assumption. In principle, it means that companies have nothing to hide: they should
disclose their information to stakeholders and should be made accountable for their actions and act
responsibly. In this perspective, transparency is a democratic ideal and a matter of economy efficiency.

As for anti-corruption, it relates to the action of preventing or eradicating dishonest and fraudulent con-
duct especially in the political and business context.

At the EU level, the following actions have been taking to improve company transparency:

• Improving tax transparency : fighting tax evasion and avoidance through the Directive 2015/2376/EU on
automatic exchange of tax rulings and advanced tax agreement, the EU Action Plan for Fair and Efficient
Corporate Taxation and the EU Platform on Tax Good Governance

• Country-by-country reporting: Directive adopted in 2013 to enhance the transparency in the oil, gas,
mining and forestry sectors. This enhances government accountability.

• Directive on disclosure of non-financial information: This directive adopted in 2014 requires large
companies with more than 500 employees listed in the EU markets and operating in the banking and
insurance sectors to disclose certain non-financial information such as their business model, outcomes,
risk management, key performance indicators (KPI) in terms of employment, environment, social policy,
human rights and anti-corruption. It was followed by precise instructions from the European Commission
about compliance.

• Revised Shareholders Rights Directive: This directive adopted in 2017 aims at improving the governance
of EU companies listed on the stock exchanges.

• Sustainable Finance Action plan: Adopted in 2018 under the recommendations provided by the High
Level Action Group on Sustainable Finance. It provides investors with a set of tools and a framework to
integrate sustainability considerations in their investment choices and identify sustainable investment
opportunities.