Workshop 4.4

Workshop 4.4 The Private Sector's role in Fighting Corruption in the Wood Supply Chain: An example from Russia

Stream 2 Natural Resources & Energy

Coordinator: Dr. Reinier de Man, International Consultant for Sustainable Business Development
Date: Saturday 11:00 to 13:00
Location: MC 3.2

Fighting corruption can only be effective if all players make their contribution: both public players at all levels and private players, including business and non-governmental organisations. Transparency International's Business Principles for Countering Bribery (introduced in 2002 and developed further since then) not only addresses the business players' responsibility for reducing corruption practices, but also gives clear guidance on the organisation structures and management processes needed. One thing is clear: corruption does not only create huge losses to society as a whole, it destroys many more business opportunities than it creates.
Corruption is wide-spread in the forestry and forestry industry sector of many countries. The corruptive practices, often referred to in a somewhat wider context as ‘illegal logging', severely block sustainable development in many forestry regions of the world: unsustainable forestry or even destruction of entire forest regions, lack of sustainable economic development leading to persistent poverty problems and, in many cases, substantial losses of government income. A recent WWF report (Illegal Wood for the European Market, An analysis of the EU import and export of illegal wood and related products, July 2008) claims that "23 per cent of wood-based products imported from eastern Europe originated from illegal or suspect sources, with 40 per cent from South East Asia, 30 per cent from Latin America and 35-55 per cent from Africa."
In Russia, illegal practices in the forestry sector, including those linked with bribery and other forms of corruption, are severely threatening sustainable development in a number of regions. The result is, apart from the loss of ecologically valuable forests, a lack of healthy economic development with serious economic and social consequences.

Moderator: Reinier de Man, International Consultant for Sustainable Business Development

Rapporteur: Krina Despota, Policy and Research,Transparency International

Pirjetta Soikkeli, Communications Director, Sustainability, Wood Supply, Stora Enso OYJ 

Florian Nehm, Sustainability Officer, Axel Springer

Elena Panfilova, Executive Director, Transparency International Russia