"The Integrity Seal" in Paraguay: Building a culture of business ethics and transparency together

The promotion of a culture of integrity in the Paraguayan business sector has increased significantly since the launch of the "Sello Integridad" (Integrity Seal) on 4 May 2022 in Asunción, Paraguay. The incentive-based programme has contributed to companies becoming increasingly aware of their role in preventing corruption, fostering the dissemination of good integrity practices, thus generating a positive impact on investments, the business climate, the economy and the country's image.

"The Seal" is part of the Trilateral Cooperation Project between Paraguay, Brazil and Germany, called "Strengthening integrity to overcome times of crisis". The programme is promoted by the National Anti-Corruption Secretariat of Paraguay (SENAC) and the Ministry of Industry and Commerce of Paraguay (MIC). The highest authorities of both institutions were present on the day of the launch, demonstrating the commitment of top management to promote a successful culture of integrity.

Minister René Fernández, representative of SENAC, highlighted in his speech on the launch day that the objective of the Seal is to promote business ethics and prevent corruption within the private sector. For his part, Minister Luis Castiglioni, representative of MIC, added that the Government aims to promote incentives to the private sector to comply with standards of integrity and transparency, seeking that companies voluntarily apply these standards recognizing the advantages they can offer.

The Trilateral Cooperation Project, and specifically the "Integrity Seal" incentive programme, is gladly supported by the Office of the Comptroller General of the Union of Brazil (CGU) and the Brazilian Cooperation Agency (ABC), institutions that contribute a great deal of value in the process of developing the Seal, through the transmission of theoretical knowledge and practical experiences of the "Pro-Ethics Companies Programme", previously developed in Brazil and launched in 2010.

In turn, the German Cooperation for Sustainable Development supported the development of the programme through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, which provided expert advice, consultancy and adapted the applications of the tools. The methodology developed by our global initiative, Alliance for Integrity. In addition, it contributed permanent monitoring for the management and supervision of the project, and the articulation between local actors, realisation and facilitation of exchange events.

Also present at the launch event were Mr. Wagner de Campos Rosário, Minister of the Comptroller General of the Union (Brazil), Mr. João Carlos Beato Storti, Minister Counsellor of the Brazilian Embassy in Paraguay (Brazil), Ms. Mariana Madeira, Minister of the Brazilian Cooperation Agency (Brazil) and Mr. Wolfgang Erdmannsdemann, Minister of the Brazilian Cooperation Agency (Brazil). Wolfgang Erdmannsdörfer, Counsellor of the German Embassy in Paraguay (Germany), thus demonstrating the important role of international technical cooperation in strengthening the business integrity of both public and private sector organisations.

The event was attended by more than 150 representatives of the Paraguayan business sector. Paraguayan companies of all sizes and sectors can apply for the Integrity Seal and are eligible for the numerous benefits offered by the Integrity Seal, such as positive publicity, public recognition and outreach to other public and private sector institutions. In addition to spreading a culture of integrity, the Seal acts to sustainably increase profitability levels, improve the business environment and the overall business climate in the country. The adoption of a culture of integrity, in addition to reducing internal corruption risks, helps to gain new clients and to enter as suppliers and business partners in the chains of large national and foreign companies.

The Integrity Seal's training activities include the development of support tools to implement the most important integrity requirements: senior management commitment to the issue, the development of a code of ethics and whistleblowing channels, and regular training on ethics and transparency. As mentioned above, candidate companies benefit from a free monitoring and training programme, developed by the Alliance for Integrity. Through it, more than 35 registered companies received advice on the implementation of each of the requirements, as well as access to a digital library with extensive compliance content through the corruption prevention training programme 'From Businesses for Businesses (De Empresas Para Empresas – DEPE)'. The training programme was implemented in two ocassions, of 8 hours each, face-to-face in Paraguay on 22 and 23 June, 2022. In order to create a space for trust and exchange, the second session was exclusively for female entrepreneurs.

Participants also carried out a first self-assessment of their corruption prevention systems and policies on the free digital application 'TheIntegrityApp'. Later on, companies will be able to complete the questionnaire again in order to monitor and measure their progress. It is important to add that in order to receive the Integrity Seal, companies will be assessed by a Selection Committee, made up of representatives from the public sector, the private sector, academia, civil society and international organisations.

The Integrity Seal is an initiative that greatly contributes to a new look at compliance in the private sector, one of the objectives of the Alliance for Integrity. Incentives for companies that comply with more than just the basic requirements of legislation allow acts of corruption and consequent sanctions to be prevented, leading to long-term sustainable growth. Applications for the Integrity Seal are now open and can be made on the initiative's website. Building a culture of integrity in Paraguay is possible thanks to the contribution and union of all committed actors!

Author: Adriana Gómez Vidal