Johan H. Andresen
Owner and Chairman, Ferd
Chair, Council on Ethics, Norwegian Pension Fund Global
Exclusion is the opposite of inclusion. The most effective tool of exclusion is corruption. Misappropriating funds or allocating resources in a way that does not reflect merit, prolongs exclusion. Corruption helps to create a kleptocracy, while entrepreneurship contributes to creating a meritocracy. So if we get rid of corruption, we pave the way for the success of initiatives that seek to include everyone in an economy. This is a lofty ideal, I know. Nevertheless, the fact remains that corruption stands in the way of many good efforts that seek to share the benefits of a growing economy with those who work hard and take initiative, whatever their background.
The Norwegian Government Pension Fund Global is saving for future generations in Norway. One day the oil will run out, but the return on the fund will continue to benefit the Norwegian population. As such the Fund provides a mechanism for the inclusion of many generations, rather than squandering all our wealth on only the current generation.
It is important that the Fund generates returns in a responsible manner: this is where the Council on Ethics comes in. The Council makes recommendations to the Central Bank on companies that should be put under observation or be excluded (if there is an unacceptable risk that the company contributes to or is responsible for conduct that is in breach of the guidelines). One such breach is gross corruption. The Council is concerned with future risk and judges a company on whether it has in place and uses meaningful measures to combat gross corruption. And by the way, being a company in the Fund's universe is not a human right. One's conduct matters.
Gross corruption differs from other criteria that the Council considers in two ways. The first is that malpractice in this area often results in prosecution. The second is that all too often even large Western companies come to our attention. As the owner of a family company that itself owns several businesses which operate in industries and parts of the world where corruption is endemic, I know that fighting corruption is a huge practical undertaking. It is also a value choice. Neither comes easily.
I ask you please to do your utmost to halt corruption within your industry and especially within your company. Let's put an end to this mess - because a mess it is, and a very costly one at that. Remember: we do not want to exclude you. At least you cannot say that we did not warn you.