OECD Integrity and Anti‑Corruption Review of Ukraine

7. Business integrity policy and awareness raising

Abstract

This chapter provides an overview of the OECD standards on which this assessment of Ukraine’s legislation and practices related to business integrity are based, including the OECD Anti-Bribery Convention and the 2021 Anti-Bribery Recommendation. The assessment highlights the importance of a strategic approach to business integrity and recommends that Ukraine enhance its relevant policies by improving outcome and impact indicators, streamlining the consultations with businesses at the policy development stage, and tracking the implementation of recommendations of strategic assessments of corruption risks affecting business. The chapter also recommends that Ukrainian authorities develop awareness raising activities on business integrity jointly with collective action initiatives, business associations and civil society organisations, while also expanding anti-corruption training opportunities for companies.

7.1. Introduction

The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (the Anti-Bribery Convention) (OECD, 1997[1])is the only legally binding international legal instrument focused on the “supply side” of bribery: the person or entity offering, promising or giving a bribe. The OECD Working Group on Bribery in International Business Transactions (WGB) is responsible for monitoring the implementation and enforcement of the Anti-Bribery Convention.

The Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions, which was adopted in 2009 and updated in 2021 (the 2021 Anti-Bribery Recommendation), aims to strengthen the implementation of the Anti-Bribery Convention and focuses on a number of areas, including business integrity.

In 2022, Ukraine requested and was subsequently granted participant status to the OECD Working Group on Bribery (WGB), with the aim of becoming a Party to the Anti-Bribery Convention and therefore a full member of the WGB. The participant status was given until February 2025, at which point Ukraine submitted a formal request to join the Working Group on Bribery.

The OECD Anti-Corruption Division, which is the Secretariat of the Working Group of Bribery, has also engaged with Ukraine through the Anti-Corruption Network for Eastern Europe and Central Asia (ACN), an outreach programme of the WGB. The ACN-Ukraine co-operation includes regular monitoring of the country’s anti-corruption legislation and practices under the Istanbul Action Plan (IAP), as well as Ukraine’s participation in the ACN programmes on business integrity and law enforcement.

The assessment in Chapters 7-10 of this report is based on the relevant parts of the 2021 Anti-Bribery Recommendation, with the exception of the section on business integrity policy development which is based on the recommendations from the ACN’s 2022 Regional Business Integrity Study (OECD, 2022[2]). The purpose of this assessment is to assist Ukraine in achieving compliance with the relevant OECD standards.

7.2. Developing policies to promote business integrity: International and regional practices

Most, if not all, countries of Eastern Europe have developed comprehensive policies to prevent and combat public-sector corruption, in other words involving public officials. In comparison, policies to strengthen business integrity, focused on the corporate sector, tend to less prioritised or limited to piecemeal measures. However, the role of business in corruption should not be underestimated. Some businesses engage in corruption to extract undue advantages from public resources, and some businesses suffer from abuse by corrupt public officials. Sometimes representatives of private businesses engage in corruption mutually to the detriment of shareholders, creditors, customers and other parties.

Effective strengthening of business integrity is best achieved with a mix of preventive and enforcement actions, including awareness raising. The United Nations Convention against Corruption (UNCAC) recognises that tackling corruption requires effective and co-ordinated anti-corruption policies, which promote the participation of relevant stakeholders and reflect the principles of rule of law, transparency, accountability, etc. (United Nations, 2004[3]) International standards do not oblige states to adopt dedicated strategies for business integrity. However, some governments like Ukraine include actions against private-sector corruption in national anti-corruption policy plans. This is in line with expert opinions that private-sector corruption should be given a higher priority in national strategies and plans than has been usual in the past (OECD, 2016[4]).

The OECD study on business integrity in Eastern Europe and Central Asia of 2022 recommends that governments:

• Devote attention to the available assessments of corruption in their countries, while enhancing communication with the private sector to learn about its anti-corruption efforts and impact

• Consider issues related to business integrity in corruption risk assessments of state institutions

• Regularly conduct business integrity surveys and/or use the surveys conducted by the private sector to design or adjust policies

• Assign responsibility for promoting business integrity to a specific institution or institutions

• Develop and implement programs to raise awareness about business integrity within the public sector. (OECD, 2022[2])

The study also recommends using data-driven platforms for the collection and sharing of information on compliance incidents and successful efforts, facilitating information sharing on internal anti-corruption safeguards between different companies, raising awareness on the importance of rigorous enforcement of internal anti-corruption rules. Major companies are encouraged to become role-models, exercising a broader duty of care and promoting business integrity standards.

7.3. Ukraine’s business integrity policies should be based on impact indicators

The National Anti-Corruption Strategy (the Strategy) for 2021-2025 (NACP, 2021[5]) and the State Anti-Corruption Programme (SACP) for 2023-25 (CMU, 2023[6]) define Ukraine’s anti-corruption policy. The Strategy and SACP address corruption challenges of business from several angles and aim to tackle the problems originating both in the public and the private sectors. A key example of the problems originating in the public sector the selective application of the mandatory rules for business, which causes corruption risks, and other inefficiencies of government regulation. A key example of the business-driven problems is a high level of tolerance to corruption in the private sector of the economy.

To reduce the risks of tolerance to corruption, the policy aims to achieve ten strategic results:

• amendments of legislation to introduce incentives for the private sector to improve business integrity

• permanent and effective co-operation among public authorities, the business community, and other stakeholders

• a developed concept for the implementation of anticorruption standards in the private sector

• methodological assistance to private business entities

• assistance in developing and improving codes of integrity

• effective mechanisms for verification of information on the ultimate beneficial owners

• adopted law on administrative procedure

• adopted law on administrative fees

• established obligation of internal auditors to report corruption

• adopted law on the Business Ombudsperson. (CMU, 2023[7])

The strategic results and measures for their achievement are highly relevant for strengthening business integrity and improving the business climate in terms of corruption. However, the documents propose no measurement of the level of tolerance to corruption to be achieved, despite this being the focus of this part of the Strategy and SACP. Indicators of achievement cover outputs such as coming of laws into effect and adoption of methodological documents more than the impact. (CMU, 2023[8]) This will make it difficult to determine the degree of success of the implementation in tackling the tolerance problem.

Recommendation: Therefore, in the next policy planning cycle, the National Agency on Corruption Prevention (NACP) should more clearly link problems and strategic results to indicators of outcomes and impact. Such indicators could be, for example, the preparedness of businesses to report corruption (as measured by surveys), the level of use by companies of NACP’s methodological guides on building integrity-based organisations, trends in reporting of corruption by internal auditors, and so on. The strategic result of developing a plan for the implementation of anticorruption standards in the private sector is broader than the activities that are supposed to achieve it. The activities are limited to the development and publication of the standards. The existence of standards does not ensure their implementation automatically. Developing the concept or framework for implementation and indicators to enhance and monitor compliance with the standards is a useful aim. It should be maintained in the future iterations of the state anti-corruption programme and backed by relevant activities.

7.4. Ukraine should assess risks of private-to-private corruption and develop preventive measures

The Strategy and SACP pay no attention to private-to-private corruption. Private-to-private corruption has many forms, for example, bribes paid by employees of one company to influence decision making of another company, extortion or solicitation of undue advantages by company representatives from other entities in return for business opportunities, trading of confidential business information, conflicts of interest and others. Therefore, international standards – the UNCAC and the Council of Europe Criminal Law Convention on Corruption – foresee the criminalisation of bribery in the private sector even when no public officials are involved.

Ukraine has criminalised bribery of an official of a legal entity of private law, regardless of the organisational and legal form, under Article 368-3 of the Criminal Code (CC) (Verkhovna Rada of Ukraine, 2001[9]). However, preventing such bribery requires more than just criminalisation in law. In February 2024, in a survey of companies conducted by the Ukrainian Network of Integrity and Compliance (UNIC), 24% of respondents considered that they were likely to experience corruption with private-sector entities. A comprehensive policy should consider the forms of private-to-private corruption in practice in the Ukrainian context, raise awareness of harm caused by this type of corruption, encourage reporting it, and designate officials responsible for fighting it.

Recommendation: In the preparation of the Anti-Corruption Strategy for the next period, the NACP in co-operation with other authorities and non-governmental stakeholders should carry out an assessment of risks of private-to-private corruption in Ukraine and develop necessary measures for its prevention.

Ukraine also has other strategies and plans that can potentially reduce corruption in business operations. For example, in August 2024, the Cabinet of Ministers approved the Strategy for the Recovery, Sustainable Development and Digital Transformation of Small and Medium-Sized Enterprises for the Period until 2027 (SME Strategy) and the Operational Plan of Measures for Implementation in 2024-2027 of the Strategy. (CMU, 2024[10]) The SME Strategy and the Plan do not address corruption directly but focus on other challenges, for example, those associated with the administrative burden. One strategic goal of the SME Strategy is the development of human capital and the culture of entrepreneurship. Among the operational goals is “responsible and inclusive entrepreneurship”, backed by actions such as raising awareness about the standards of responsible business conduct, conducting training, providing advisory and expert support, and introducing self-assessment tools for SMEs. These goals and actions may strengthen business integrity, but there is room for addressing corruption problems in the operations of SMEs more directly. SMEs are particularly vulnerable to corruption, and their resources are often insufficient for introducing the best practices of compliance employed by larger companies. (OECD, 2022[11]) Therefore, some countries, for example, France have dedicated anti-corruption guides for SMEs. (AFA, 2022[12])

In the virtual consultations for the preparation of this review, business stakeholders shared their impression that some authorities consider prevention of corruption to be the exclusive competence of the NACP. Consequently, these authorities themselves do not wish to assume the ownership of anti-corruption efforts.

Recommendation: considering the above, it would be good practice to discuss with business and other stakeholders the corruption risks that could jeopardise policy goals and consider potential mitigation actions in all sectoral policy strategies affecting business.

7.5. Ukrainian authorities should enhance and streamline their consultations with business representatives

International guidance advocates the involvement of legal entities or their associations in the development of anti-corruption strategies and in the work of corruption prevention agencies. (United Nations, 2009[13]). Companies can recommend to governments policies and legal solutions that address corruption schemes affecting their operations. Businesses can also help ensure that policy measures are implementable and practical. (OECD/UN, 2024[14]) Thus, the participation of the private sector can strengthen not only the policy to promote business integrity but also the national anti-corruption efforts generally. Moreover, consultations where participants believe that their opinions influence policies tend to strengthen trust in government. (OECD, 2024[15])

In Ukraine, the Resolution of the Cabinet of Ministers of 3 November 2010, No. 996 “On Ensuring Public Participation in the Formation and Implementation of State Policy” determines the procedure of consultations with the public (Cabinet of Ministers of Ukraine, 2010[16]). The procedure requires providing public feedback regarding the acceptance of proposals and comments with reasons shown when the proposals have not been accepted. The Law No. 1700-VII on Prevention of Corruption (LPC) (Article 21, Part 4) also obliges public bodies to summarise the results of the public discussion of draft regulatory legal acts and publish them (Verkhovna Rada of Ukraine, 2014[17]).

In the preparation of the Strategy, the NACP received numerous comments and suggestions, including from business representatives. (NACP, 2020[18]) In addition, the surveys on corruption, which informed the development of the Strategy, covered business respondents as a separate group. The surveys helped determining priority sectors for preventing and countering corruption. The NACP has also been holding numerous consultations on other issues. According to the NACP, from the start of 2023 to mid-2024, it held more than 50 public consultations involving more than 60 organisations. According to the National Anti-Corruption Bureau of Ukraine (NABU), to develop legal amendments for the implementation of the OECD Anti-Bribery Convention, it also held several round tables, discussions, presentations with participation of business associations, law firms and nongovernmental organisations in 2022-24.

In the virtual consultations for this review, business stakeholders shared both positive and negative experiences of consultations. Criticism concerned:

• allegedly inadequate feedback regarding why proposals have not been accepted

• untimely publication of documents for discussion, late requests from authorities to provide comments, i.e. too short deadlines for responses

• closed discussions without a public announcement

• a high turnover of employees of authorities, which complicates long-term co-operation

• the absence of initiative of the authorities to involve the stakeholders in the preparation of the Strategy for the next period.1

There were also claims of inadequate representation of business in regional business councils, which will be significantly reformed according to the Government decision of 4 October 2024.2 (MoE, 2024[19]) It is not the purpose of this review to verify, confirm or disprove such claims, but it may be possible to better streamline the organisation and communication regarding public consultations.

In the context of public consultations, the SACP contains a significant strategic result to ensure effective co-operation with the public and business associations when developing and implementing measures to prevent corruption in the customs authorities. The State Customs Service carried out consultations regarding its draft Anti-Corruption Programme for 2023-25. However, based on information provided by the Customs Service to the NACP, it is not clear whether the lists of accepted and rejected proposals from the public (with justifications for rejection) have been published as the SACP requires it (measure 2.3.1.5.4). (NACP, 2024[20]) This validates some of the criticism expressed by the stakeholders.

Recommendation: To address the above-mentioned concerns, the NACP and other relevant authorities should enhance and streamline their consultation practices with business representatives and other stakeholders. One possibility would be for the stakeholders to provide inputs in a standardised manner through online tools, for example, dedicated participation portals, with ample time for the preparation of contributions, clear deadlines, substantive feedback from the authorities (what has been taken into account, what not and with what justification) and other standards of quality of consultation (for example, (OECD, 2022[21])). This is especially important in the development of the national anti-corruption policy and in areas with heightened corruption risks such as tax administration and the customs. Consultations regarding key documents could proceed in the form of continuous dialogue at all stages of their development - initial discussions, analysis of concept notes, first drafts, pre-final drafts, etc. Targeted invitations to participate should address different types of national and regional business representatives, civil-society organisations, individual companies and experts. Participation should also remain open to stakeholders upon their own initiative. The participation portals could host surveys of business representatives. Ukraine could develop a guiding document on how to interact with business representatives, including best as well as indicating unacceptable practices and clear algorithms of policy review and consultations to ensure meaningful dialogue.

The NACP is also co-operating with other public authorities and private-sector representatives by concluding Memoranda of Co-operation and Integrity Building. In 2023-2024, the NACP concluded 13 memoranda with private-sector organisations, which usually stipulate studying corruption risks, information and awareness-raising activities, etc. In June 2024, the NACP and the Ukrainian Railway signed a memorandum, which foresees joint informational and educational activities to raise the awareness of employees of the Ukrainian Railway as well as the development and implementation of the principles of integrity in the railway industry. (NACP, 2024[22]) Such agreements seem to be a good practice. However, one could wonder whether co-operation of this kind should not be mandatory between the NACP and all state-owned enterprises that correspond to certain criteria.

7.6. Ukraine should track the implementation of recommendations of strategic assessments of corruption risks affecting business

Business integrity risk assessment is significant on two levels. Governments should engage in risk-assessment prior to developing their anti-corruption policies and measures. A 2022 study on business integrity in Eastern Europe and Central Asia found that the absence of such assessments causes poor understanding of business integrity risks. (OECD, 2022[2]) On the other hand, companies should develop internal controls, ethics and compliance programmes and prevention measures based on risk assessment addressing their individual circumstances. They should regularly monitor and reassess such circumstances and risks. (OECD, 2021[23]) Of the two levels, this section addresses primarily the government activity (the private sector’s internal controls are discussed in Chapter 9 of this report).

The Anti-Corruption Strategy is not based on a comprehensive assessment of corruption risks specifically in business. However, the NACP receives information about corruption practices from various sources. Regarding corruption that affects business, exchanges with the Business Ombudsman Council (BOC) are a key source. The BOC sends to the NACP information regarding assessment of corruption practices in the interaction of businesses with state authorities and local self-government bodies, including business entities belonging to the sphere of management of the authorities. (NACP, 2024[24]) As shared by stakeholders in the virtual consultations for this review, the information from the BOC shows the areas of taxation, law enforcement, and the customs as the most significant concerns for business in terms of corruption. The NACP uses the information from the BOC for conducting research and strategic analysis of corruption risks.

Another important source of information is regular surveys of business commissioned by the NACP. Thus, the survey of 2023 revealed that businesses encountered corruption most frequently in relations with the customs, law enforcement authorities, in construction and land relations as well as in interaction with services of power, gas, water supply and sewer systems. Issuance of permits and extraction of minerals as well as the customs had the highest perceived prevalence of corruption according to business respondents. (NACP, 2023[25]) The findings show that interactions of business and authorities are most prone to corruption in areas of heavy regulatory burden and the exercise of repressive powers. This conforms with common knowledge about corruption.

The NACP also carries out the strategic assessment of corruption risks in specific areas, for example, risks in transactions involving land, the Ukrainian Railway, in the field of training and certification of seafarers, in real estate reconstruction, in state enterprises, in the procedure for renewing/suspending the registration of tax invoices/adjustment calculations in the Unified Register of Tax Invoices. (NACP, n.d.[26]) The assessments find where public powers can be abused to the detriment of business. For example, when tax authorities suspend the registration of tax invoices ungroundedly or reject data tables submitted by VAT payers, the NACP found risks that such actions may be motivated by extracting undue benefit. (NACP, 2023[27]) On the other hand, public authority can also be used to create unfair profit opportunities for specific companies. An example of this kind was the requirement to pay to a private company for entering seafarers’ certificates into the Unified State Register of Seafarers' Documents. (NACP, 2022[28])

Business stakeholders praised the practice of strategic risk analyses. However, they also expressed disappointment for the lack of follow up to the findings. It is understandable why it may be difficult to ensure appropriate policy responses to the identified risks and challenges. The strategic assessments cover many complex areas and identify numerous risks. To develop and advocate policy proposals for the mitigation of all these risks would be a major task, for which the NACP may not have adequate capacity.

Recommendation: The NACP should propose a system for tracking the implementation of the recommendations of the strategic assessment of corruption risks. The recommendations could form an appendix to the SACP periodically approved by the Government. The web portal of the implementation of the SACP could also include information on these recommendations.

7.7. Ukraine could authorise the NACP to examine anti-corruption programmes of legal entities to form a common risk inventory

The NACP maintains a special focus on risks in SOEs. It has identified 15 criteria for identifying SOEs with the highest level of corruption risks. These criteria are, for example, being included in the list of large privatisation, the lack of implementation of the OECD Guidelines on Corporate Governance of State-Owned Enterprises (OECD, 2024[29]), the monopoly situation of the enterprise, being among the largest procurers, etc. (NACP, 2023[30])

In the virtual consultations for this review, representatives of the NACP discussed the plans to introduce auditing the anti-corruption systems in SOEs with a particular focus on procurement processes. The possible target for this activity would be auditing ten entities annually. The enterprises would be selected based on criteria such as the significance of the enterprise, indications of corruption practices (public scandals, suspicions due to investigations, etc.), large numbers of high-value procurement procedures. Representatives of the NACP admitted that it could also audit private enterprises if the law would be amended to allow it.

Recommendation: A useful method for gaining an overview of corruption risks in private enterprises could be a systematic review of anti-corruption programs of legal persons and their implementation by the NACP. Based on the review, the NACP could compile a common risk inventory. However, to ensure that this activity does not turn into a mere compilation of poorly prepared risk inventories, it is contingent on the rigorous assessment of the compliance programmes by the authorities (see the recommendation regarding a system of oversight of anti-corruption compliance programmes in sub-section 10.4).

7.8. Ukraine should strengthen the responsibility of the National Commission on Securities and Stock Market for monitoring anti-corruption compliance

International recommendations recognise that multiple public bodies have relevant roles to strengthen business integrity and counter corruption that affects business. Preventive anti-corruption bodies that mostly focus on the public sector can also be instrumental for prevention of corruption in the private sector. (OECD, 2013[31]) Co-operation between law enforcement agencies and private entities should encourage reporting corruption-related crime. Stock exchanges or other regulatory agencies should require that publicly quoted companies adhere to appropriate standards and procedures. (United Nations, 2009[13]) It is moreover self-evident that a co-ordinated and co-operative mode of action of the multiple involved bodies can strengthen the effectiveness of their efforts.

Ukraine has numerous public bodies with responsibilities relevant for strengthening business integrity. These are, first, the NACP and the BOC, which is a key institution for business. The NACP shapes and largely implements the anti-corruption policy. Despite valuable efforts, anti-corruption compliance in private legal entities has a comparatively minor place in the NACP’s overall mandate.

The BOC, established in 2014, is an independent and impartial institution whose mission is to promote the protection of the legitimate rights of businesses before the state. The BOC considers complaints from entrepreneurs regarding the unfair behaviour of state authorities and helps resolve disputes at the pre-trial stage. The BOC also carries out investigations on own initiative, for example, on tax audits where it found tens of thousands of acts made every year, which are often extremely formalistic and insufficiently substantiated. (BOC, 2024[32]) An important aspect of the work of the BOC is monitoring the implementation of its recommendations. For example, in 2023 the BOC analysed problems of the risk assessment system of the State Tax Service (STS). Since then, the BOC has maintained contact with the Ministry of Finance and the STS regarding the elimination of deficiencies. (BOC, 2024[33]) Although many recommendations of the BOC do not target corruption explicitly, if implemented, they may lead to the reduction of corruption opportunities. The BOC and the NACP exchange information twice a year as per their memorandum of understanding.

In principle the NABU could also play a significant role for business integrity. This would be most obvious in case of criminal proceedings against legal entities for corruption offences. However, the application of criminal liability of legal persons for corruption is limited in Ukraine for the time being (see Section 10.1. for more analysis).

The State Audit Service (SAS) audits entities funded by the state budget. The SAS cross-checks the obtained information of the audited public-sector entities with documents of private entities, which had contractual relations, etc. with the audited entity. However, this is done to confirm the type, volume, quality and documentation (accounting) of transactions that the public-sector entities have engaged in rather than to audit the private companies as such.

The National Commission on Securities and Stock Market (NCSSM) provides methodological support for the introduction and development of the principles of corporate governance, establishes requirements, develops and approves standards of corporate governance in professional participants of the stock market. The NCSSM also has the task to carry out inspections and audits of the activities of issuers regarding the state of corporate governance (President of Ukraine, 2011[34]). The NSSMC does not have a unit dedicated to supervision regarding business integrity or anti-corruption compliance in business, but several of its units have this competence among other tasks. In practice, the NCSSM indeed defines corporate governance standards and issues recommendations. However, as already found in the Pilot 5th Round of Monitoring Under the OECD IAP in 2022 (OECD, 2022[35]), there is no evidence of monitoring regarding corruption risk management in issuers of securities and professional market participants.

Recommendation: Considering that no public body systematically monitors anti-corruption compliance in private legal persons, Ukraine should strengthen the responsibility of the NCSSM for this function in the Law 3480-IV on the Capital Markets and Organised Commodity Markets and in the Statute of the NCSSM.

7.9. Ukraine should improve coordination on business integrity-related activities in SACP implementation

The SACP assigns responsibilities relevant to business integrity to numerous institutions. Thus, for example, the Ministry of Economy (MoE) was responsible for drafting and submitting to the Cabinet of Ministers of the draft State Ownership Policy (adopted by the Cabinet of Ministers on 29 November 2024). The State Regulatory Service is responsible for the public dialogue with business on deregulation and other tasks concerning the regulation of economic activity. The NABU, the NACP, and the Ministry of Justice (MoJ) are co-responsible for analysing the OECD Recommendation for Further Combating Bribery of Foreign Public Officials in International Business Transactions (2021 Anti-Bribery Recommendation) (OECD, 2021[23]), identifying gaps in the Ukrainian legislation, drafting and submitting proposals to ensure approximation with the Recommendation. (CMU, 2023[7]). It is therefore important to have effective coordination between these institutions.

The progress of implementation of the activities of the SACP is uneven but generally rather high. In the case of “Problem 2.4.4. A high level of tolerance of corruption in the private sector of the economy’, the institutions responsible for the highest number of measures with deadlines by December 2024 were the MoJ (12 measures), the NACP (10 measures) and the Ministry of Finance (6 measures) (see Table 7.1 below for details). The average estimate of achievement of expected strategic results regarding “Problem 2.4.4” is 55.3%. (NACP, 2025[36]) There have been significant delays, for example, in the preparation and submission to the Cabinet of Ministers of draft legislation for approximation with OECD recommendations and supporting the consideration of the draft Law on the Institution of the Business Ombudsman, for which the initial deadline has been postponed from March 2024 to December 2025.

Table 7.1. The state of implementation of tasks to reduce tolerance of corruption in the private sector (with deadline of implementation by 31 December 2024)

Main performers	Measures in total	Implemented	Partly implemented	Not implemented
Ministry of Justice	12	12
NACP	10	8	2
Ministry of Finance	6	6
Working group on developing proposals for Ukraine's participation in OECD WGB	1			1
Ministry of Digital Transformation	3	1	2
Ministry for Development of Communities and Territories	2	2

The web portal of the implementation of the SACP at least partly presents reasons for the delays. In some cases, the published explanations regarding the implementation reflect differences of opinions between the implementing authorities and the NACP about the most expedient manner of proceeding. For example, the implementing authority may consider that a certain task in no longer relevant, which is not accepted by the NACP.

Recommendation: While the degree of implementation of measures for business integrity is good, it would further benefit from improved coordination and communication between the implementing agencies to address the issue described above.

7.10. The Government should define benchmarks for its awareness-raising activities on business integrity and implement them jointly with relevant stakeholders

The 2021 Anti-Bribery Recommendation advises member countries to undertake, inter alia, awareness-raising efforts in the private sector, including SMEs, for preventing and detecting bribery. The Recommendation specifically mentions collective action and partnerships between the private and public sector in awareness-raising activities. Also in practice, in recent years, international organisations, business associations and governments have stepped up their activities in support of business integrity through awareness-raising campaigns, ensuring access to relevant information and promoting reporting channels. (OECD, 2022[2])

Several public and private stakeholders engage in awareness raising about the subject of business integrity. The SACP lists ten different authorities, which should participate in events held within the framework of the annual month of business integrity of the UNIC. Representatives of the NACP are involved in training sessions, seminars and other events on anti-corruption compliance and building integrity in the private sector. The NACP does it often in co-operation with non-governmental partners such as UNIC, the Corporate Governance Professional Association and the Center for International Private Enterprise (CIPE).

The Department of Attracting Investment and Interaction with International Organisations of the MoE performs the functions of the National Contact Point for Responsible Business Conduct (NCP). The NCP shall, inter alia, promote the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (Chapter VII of the Guidelines focuses on what enterprises should do to combat corruption). Together with interested parties, the NCP organises events to promote the Guidelines. In December 2023, the MoE held an international conference, which included panel discussions on standards of responsible business conduct and their contribution to a human-oriented, fair and sustainable recovery of Ukraine as well as on due diligence.

All such activities are potentially useful, but it is hard to foresee the impact of individual efforts. The November 2024 survey of 1 200 active Ukrainian companies by the Rating Group, which was commissioned by USAID and UK Dev's Promoting Integrity in the Public Sector Activity (Pro-Integrity), shows that the spread of knowledge about measures taken by the government to promote integrity in the private sector among companies is still limited. Only 43% of respondents were aware of channels/hot lines for companies to report bribe solicitation, 21% – of information campaigns to promote business integrity, 18% – of anti-corruption training or guidance for companies, and 10% – of public incentives for companies to develop compliance and anti-corruption policies and procedures. 43% were aware of none of the measures.

Therefore, it is commendable that Ukraine has taken a strategic approach to anti-corruption communication. In 2023, the Government approved the Communication Strategy (CS) in the Area of Prevention and Countering of Corruption for the Period until 2025. (CMU, 2023[37]) The expected results of the implementation of the CS are:

• an increase in the level of trust of, inter alia, business representatives in authorised anti-corruption entities and other state bodies

• an increase in the level of public awareness of corruption

• a decrease in the level of tolerance for any of its manifestations

• the popularisation of messages about possible facts of corruption or corruption-related offences, the establishment of effective communication between implementers of the SACP.

  Regarding business, the CS aims specifically to:

• increase the understanding of the benefits of the implementation of the SACP

• stimulate the abandonment of corrupt practices by implementing educational projects, involving business in information campaigns and events, and distributing relevant information materials.

Actions of the CS include the monitoring and disclosure of the implementation of recommendations of the BOC and periodical exchange of information between the BOC and the NACP. However, the CS does not include benchmarks for determining when the results regarding business are achieved. The CS also does not include inputs from business regarding what information they lack and wish to receive. In the business survey of February 2024 by UNIC, 53% responded that their company would like to benefit from assistance, including guidance or training, regarding how to co-operate with the government, including on reporting and co-operating with the law enforcement.

Recommendation: Considering the above, when the Government renews the CS, it should study the needs of businesses (gaps in awareness and preferences regarding what information businesses want to receive). The Government should also define benchmarks of success – the level of awareness and attitudes of business representatives to be achieved at the end of the implementation of the CS. The awareness-raising activities should be developed and implemented in partnerships with collective actions, representatives of business and civil society.

7.11. The NACP should further develop training for business

Among Ukrainian public authorities, the NACP is the key source of expertise on anti-corruption and integrity. In 2024, the NACP published the Handbook on Building a Virtuous Organisation (see more on it in Section 9.4). (NACP, 2024[38]) Another relevant publication is the Model Code of Integrity for legal entities. (NACP, 2024[39])

Representatives of the NACP and private-sector trainers directly train anti-corruption officers of companies. The trainings tend to be delivered in co-operation of the NACP with other stakeholders (CIPE, UNIC, the coalition “RISE Ukraine”, etc.) and on online platforms of partners that host courses. The NACP itself has an advanced education website with online courses for public servants, educators, anti-corruption commissioners in the public sector, as well as the general public and young people. (NACP, n.d.[40]) For the time being, the development of the NACP’s own courses for compliance officers of the private sector remains largely work in progress. An important prospective subject of awareness raising and training is lobbying and compliance with the Law 3606-IX on Lobbying, which must fully enter into force no later than on 1 September 2025. According to the 2024 survey of 1 200 active Ukrainian companies by the Rating Group, only 9% of respondents affirmed that representatives of their company participated in anti-corruption training provided by or with participation of state authorities in person or online in the last two years. 20% responded that their company required training of personnel for ethics and anti-corruption. These results are evidence of the need to enhance the supply of the training for business.

Recommendation: The NACP has developed a large amount of advanced training materials and supplied a significant volume of training. However, the supply of anti-corruption training for the private sector by the NACP is limited. Considering the expertise and experience of the NACP, it could significantly boost support for business integrity by further developing its offer of training for business, including a dedicated block on the platform Study.NAZK. The training offer should include different options of volume and frequency, different levels of difficulty (for beginners or advanced users), different formats (online/offline), programs for different target groups (owners, top management, etc.) and for different sectors (energy, etc.). Feedback from business participants should inform the development of the training contents and methods.

Summary of recommendations

Business integrity policy development

In the next policy planning cycle, the National Agency on Corruption Prevention (NACP) should:

• Ensure that outcome and impact indicators in the policy documents make it possible to measure adequately the progress on addressing identified problems and the achievement of strategic results on business integrity

• Carry out an assessment of risks of private-to-private corruption in Ukraine and develop necessary measures for its prevention

• Discuss with business and other stakeholders the corruption risks that could jeopardise policy goals and consider potential mitigation actions in all sectoral policy strategies affecting business

• Enhance and streamline their consultation practices with business representatives and other stakeholders, consider using online platforms and surveys for this purpose 

• Propose a system for tracking the implementation of the recommendations of the strategic assessment of corruption risks.

• Consider creating a common inventory of business integrity risks based on the risk assessments which companies carry out

• Improve the coordination and communication between the implementing agencies responsible for the policy measures on business integrity

Raising awareness

When Ukraine renews its anti-corruption communication strategy, it should:

• Ensure that communication reflects the needs of companies in terms of information

• Define benchmarks of success – the level of awareness and attitudes of business representatives to be achieved at the end of the implementation of the strategy

• Implement the awareness-raising activities in partnerships with collective actions, representatives of business and civil society

Business integrity training

The NACP has developed a large amount of advanced training materials and supplied a significant volume of training. However, the supply of anti-corruption training for the private sector has been limited. Going forward, the NACP should:

• Increase the offer of training for business, including a dedicated block on the platform Study.NAZK

• Provide flexible training options in terms of volume and frequency, levels of knowledge (for beginners or advanced users), different formats (online/offline), programs for different target groups (owners, top management, etc.) and for different sectors (energy, etc.)

• Use the feedback from business participants to inform the adjustment of training contents and methods.

References

[12] AFA (2022), Anti-Corruption Guide for SMEs and Smaller Intermediate-Sized Enterprises, https://www.agence-francaise-anticorruption.gouv.fr/files/files/AFA_GuidePME_ETI_2021_AN_Web.pdf.

[33] BOC (2024), Квартальний звіт 1 квітня – 30 червня 2024 року, https://boi.org.ua/wp-content/uploads/2024/09/2q-2024-ua-1.pdf.

[32] BOC (2024), Податкові перевірки – перевіряй, але довіряй: звіт за результатами розслідування за власною ініціативою, https://boi.org.ua/reports-post/podatkovi-perevirky-pereviryaj-ale-doviryaj-zvit-za-rezultatamy-rozsliduvannya-za-vlasnoyu-inicziatyvoyu/.

[16] Cabinet of Ministers of Ukraine (2010), Resolution of 3 Nobember 2010 N 996 on On Ensuring Public Participation in Formation and Implementation of the State Policy, https://www.icnl.org/wp-content/uploads/Ukraine_cabminuk.pdf (accessed on 9 April 2025).

[10] CMU (2024), Стратегія відновлення, сталого розвитку та цифрової трансформації малого і середнього підприємництва на період до 2027 року, https://www.kmu.gov.ua/npas/pro-skhvalennia-stratehii-vidnovlennia-staloho-rozvytku-ta-tsyfrovoi-transformatsii-maloho-i-s821300824.

[8] CMU (2023), Indicators and sub-indicators of achievement of the anticipated strategic results of Program implementation, https://nazk.gov.ua/wp-content/uploads/2023/11/02.-Appendix-1-to-the-Program.pdf.

[7] CMU (2023), Measures of the implementation of the State Anti-corruption Program for 2023-2025, Cabinet of Ministers of Ukraine, https://nazk.gov.ua/wp-content/uploads/2023/11/03.-Appendix-2-to-the-Program.pdf.

[6] CMU (2023), State Anticorruption Program for 2023-2025, https://nazk.gov.ua/wp-content/uploads/2023/11/01.-State-Anticorruption-Program.pdf.

[37] CMU (2023), Стратегія комунікацій у сфері запобігання та протидії корупції на період до 2025 року, https://www.kmu.gov.ua/npas/pro-skhvalennia-stratehii-komunikatsii-u-sferi-zapobi-a1203r.

[19] MoE (2024), Уряд перезапускає регіональні ради підприємців, https://www.kmu.gov.ua/news/uriad-perezapuskaie-rehionalni-rady-pidpryiemtsiv.

[36] NACP (2025), Module of the State Anti-Corruption Program, https://dap.nazk.gov.ua/en/cardproblem/45/?a%5Bstatus%5D=&a%5Bmain_organ%5D=&a%5Bid%5D=&a%5Bbydate%5D=2.

[20] NACP (2024), , https://dap.nazk.gov.ua/module/.

[38] NACP (2024), Handbook on Building a Virtuous Organisation (in Ukrainian language), https://wiki.nazk.gov.ua/wp-content/uploads/2024/nastilna_knyga_z_rozbudovy_dobrochesnocti.pdf.

[24] NACP (2024), Звіт 2023 щодо діяльності Національного агентства з питань запобігання корупції, https://drive.google.com/file/d/1gOEkDfh5Y3L2R48wc2s0hgDbN6qUhVXT/view.

[22] NACP (2024), НАЗК та Укрзалізниця підписали меморандум про співпрацю в розбудові культури доброчесності, https://nazk.gov.ua/uk/novyny/nazk-ta-ukrzaliznytsya-pidpysaly-memorandum-pro-spivpratsyu-v-rozbudovi-kultury-dobrochesnosti/.

[39] NACP (2024), Примірний кодекс доброчесності, https://wiki.nazk.gov.ua/wp-content/uploads/2024/Prym%D1%96rnyi-kodeks-dobrochesnosti.pdf.

[25] NACP (2023), Corruption in Ukraine 2023: understanding, perception, prevalence, https://nazk.gov.ua/pdfjs/?file=/wp-content/uploads/Pages/5d/15/5d15a2accface6740497b6cace316f2eada55009c16ed3ef7100307aa7f17f0d6739819.pdf.

[30] NACP (2023), Аналітичний звіт щодо стратегічної оцінки корупційних ризиків у діяльності підприємств державної форми власності та визначення підприємств з найвищим рівнем корупційних ризиків, https://nazk.gov.ua/wp-content/uploads/2023/09/ANALITYCHNYJ-ZVIT.pdf.

[27] NACP (2023), Корупційні ризики у процедурі відновлення/зупинення реєстрації податкових накладних/розрахунків коригування у Єдиному реєстрі податкових накладних, https://nazk.gov.ua/download-controler/?sid=6402&a=inline&id=ba26d40d8d995ab03c852d68c04062412502b82325eb9809db0859c2ddaad67c24570291.

[28] NACP (2022), Корупційні ризики у сфері підготовки та дипломування моряків, https://nazk.gov.ua/wp-content/uploads/2023/06/Sailors-research-2022.pdf.

[5] NACP (2021), Anti-Corruption Strategy for 2021-2025, National Agency on Corruption Prevention, https://nazk.gov.ua/wp-content/uploads/2023/11/Anti-corruption-Strategy-for-2021-2025.pdf.

[18] NACP (2020), Порівняльна таблиця до проекту антикорупційної стратегії на 2020-2024 роки, https://nazk.gov.ua/wp-content/uploads/2020/09/NAZK-Porivnyalna-tablytsya-do-proektu-Antykoruptsijnoyi-strategiyi-na-2020-2024-roky.pdf.

[40] NACP (n.d.), Каталог курсів, https://study.nazk.gov.ua/kursi/courses/?limit=21&offset=0.

[26] NACP (n.d.), Стратегічний аналіз корупційних ризиків, https://nazk.gov.ua/uk/strategichnyj-analiz-koruptsijnyh-ryzykiv/.

[29] OECD (2024), OECD Guidelines on Corporate Governance of State-Owned Enterprises 2024, OECD Publishing, Paris, https://doi.org/10.1787/18a24f43-en.

[15] OECD (2024), OECD Survey on Drivers of Trust in Public Institutions – 2024 Results: Building Trust in a Complex Policy Environment, OECD Publishing, Paris, https://doi.org/10.1787/9a20554b-en.

[35] OECD (2022), Anti-Corruption Reforms in Ukraine: Pilot 5th Round of Monitoring Under the Istanbul Anti-Corruption Action Plan, OECD Publishing, Paris, https://doi.org/10.1787/b1901b8c-en.

[2] OECD (2022), “Business integrity in Eastern Europe and Central Asia 2022”, OECD Business and Finance Policy Papers, No. 11, OECD Publishing, Paris, https://doi.org/10.1787/1ed3fe17-en.

[21] OECD (2022), OECD Guidelines for Citizen Participation Processes, OECD Public Governance Reviews, OECD Publishing, Paris, https://doi.org/10.1787/f765caf6-en.

[11] OECD (2022), “Toolkit for raising awareness and preventing corruption in SMEs”, OECD Business and Finance Policy Papers, No. 21, OECD Publishing, Paris, https://doi.org/10.1787/19e99855-en.

[23] OECD (2021), Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions, https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0378.

[4] OECD (2016), Business Integrity in Eastern Europe and Central Asia, OECD Publishing, Paris, https://doi.org/10.1787/d5ba2e7f-en.

[31] OECD (2013), Specialised Anti-Corruption Institutions: Review of Models: Second Edition, OECD Publishing, Paris, https://doi.org/10.1787/9789264187207-en.

[1] OECD (1997), Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0293 (accessed on 9 April 2025).

[14] OECD/UN (2024), A Resource Guide on State Measures for Strengthening Business Integrity, OECD Publishing, Paris/United Nations, New York, https://doi.org/10.1787/c76d7513-en.

[34] President of Ukraine (2011), Ordinance of the President of Ukraine on the National Commission on Securities and Stock Market, 23 November 2011, No. 1063/2011, as amended by 7 July 2020, https://zakon.rada.gov.ua/laws/show/1063/2011?lang=en#Text (accessed on 9 April 2025).

[13] United Nations (2009), Technical Guide to the United Nations Convention against Corruption, https://www.unodc.org/documents/treaties/UNCAC/Publications/TechnicalGuide/09-84395_Ebook.pdf.

[3] United Nations (2004), United Nations Convention against Corruption, https://www.unodc.org/documents/brussels/UN_Convention_Against_Corruption.pdf.

[17] Verkhovna Rada of Ukraine (2014), Law on Prevention of Corruption 1700-VII, https://zakon.rada.gov.ua/laws/show/1700-vii?lang=en#Text (accessed on 9 April 2025).

[9] Verkhovna Rada of Ukraine (2001), Criminal Code of Ukraine 2341-III.

Notes

← 1.  In March 2025, the NACP provided information that it had initiated sectoral research to assess corruption risks in various areas of public life and planned to engage with business representatives to gather their perspectives thereon.

← 2.  For example, membership in the councils will become elective. Constituent meetings will be organised with the participation of civil society organisations.