Keeping Better Company: Engaging the private sector to reduce forest sector-related corruption risk

The document argues that corruption in the forest sector leads to significant environmental degradation and financial loss, costing governments approximately US$29 billion annually. It recommends that companies implement robust anti-corruption compliance programs and engage in collective action initiatives to mitigate these risks. The brief highlights the role of international laws like the US Foreign Corrupt Practices Act and the UK Bribery Act in incentivizing corporate integrity, while noting that transparency alone is insufficient without strong monitoring and civil society oversight.

• Forestry-related corruption has severe global economic and environmental consequences, with INTERPOL estimating annual government costs of approximately US$29 billion and contributing to biodiversity loss, ecosystem degradation, and carbon emissions that exacerbate climate change.
• Corruption risks in the forest sector are driven by several systemic factors, including inconsistent legal frameworks, lack of transparency in permitting and company ownership, concentration of discretionary powers, and low salaries for sector workers.
• While some companies view corruption as a way to increase efficiency or profit, evidence suggests that integrity systems provide long-term advantages, such as better access to capital, stronger growth, and reduced costs from enforcement actions.
• Effective corporate anti-corruption compliance programs must be tailored to specific business risks and include elements such as top management commitment, thorough risk assessments, confidential reporting systems, and continuous periodic testing.
• Collective action initiatives, such as the Maritime Anti-Corruption Network (MACN) and the Extractive Industries Transparency Initiative (EITI), can reduce corruption by creating a level playing field and leveraging diplomatic or civil society pressure, though their success depends on strong monitoring and an enabling institutional environment.
• Legal frameworks like the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act create significant financial and legal incentives for companies to maintain rigorous compliance systems, as seen in the case of Lumber Liquidators, which faced over USD 13 million in fines for violating the US Lacey Act.

APA

Smith, A., & Grant, J. (2021). Keeping Better Company: Engaging the private sector to reduce forest sector-related corruption risk. WWF International. https://www.worldwildlife.org/documents/165/19o03tv9wg_Topic_Brief_Keeping_Better_Company_Engaging_the_private_sector_to_r_ykg7Ml9.pdf

Chicago

Smith, Amy, and Jason Grant. Keeping Better Company: Engaging the private sector to reduce forest sector-related corruption risk. WWF International, 2021. https://www.worldwildlife.org/documents/165/19o03tv9wg_Topic_Brief_Keeping_Better_Company_Engaging_the_private_sector_to_r_ykg7Ml9.pdf.

Wikipedia

{{cite report |last1=Smith |first1=Amy |last2=Grant |first2=Jason |title=Keeping Better Company: Engaging the private sector to reduce forest sector-related corruption risk |publisher=WWF International |date=January 2021 |url=https://www.worldwildlife.org/documents/165/19o03tv9wg_Topic_Brief_Keeping_Better_Company_Engaging_the_private_sector_to_r_ykg7Ml9.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{smith2021keeping, author = {Smith, Amy and Grant, Jason}, title = {{Keeping Better Company: Engaging the private sector to reduce forest sector-related corruption risk}}, institution = {WWF International}, year = {2021}, month = jan, url = {https://www.worldwildlife.org/documents/165/19o03tv9wg_Topic_Brief_Keeping_Better_Company_Engaging_the_private_sector_to_r_ykg7Ml9.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }