FTSE Group Introduces New Anti-Bribery Criteria To Its FTSE4Good Series

FTSE Group (FTSE), the award-winning index provider, takes another step forward in the area of corporate social responsibility (CSR) benchmarking, as it launches a new set of criteria to counter bribery for its FTSE4Good Index Series. The criteria, which are the most developed and transparent counter-bribery criteria in any CSR index, have been developed in conjunction with Transparency International (TI) based on the results of a public consultation exercise. It has been widely welcomed by companies, investors, NGOs, and government bodies.

The criteria will be implemented into the index series on a phased basis over two years, beginning July 01 2006. Beginning then, from just over 200 companies that have been identified as having the highest level of exposure to bribery, around 130 companies will need to meet the criteria by having policies or management systems in place to mitigate bribery risk. FTSE’s in-house Responsible Investment Unit will work directly with affected companies to explain the criteria and what they have to do to meet it.

Commenting on today’s announcement, Gareth Thomas, the UK’s International Development Minister said, “Operating in an open and transparent environment is essential for good business practice, both in the UK and abroad, and the launch of the FTSE4GOOD criteria is another strong step towards improving international business behaviour and combating bribery. Tackling bribery remains a key component of the UK Government’s efforts to improve governance and sustainable development.”

Jermyn Brooks, Board Director for Transparency International also supported the introduction of the criteria saying, “The FTSE4Good criteria signal that countering bribery is an important part of the corporate social responsibility agenda. If we are to achieve the Millennium Development Goals, then bribery must be

Will Oulton, Head of Responsible Investment at FTSE Group added, “Working with our Committee of SRI and CSR experts, FTSE is committed to keeping the criteria governing the FTSE4Good Index Series in line with CSR best practice. Countering bribery is an important issue for companies and investors alike, and we feel these criteria will make an important contribution to helping companies manage their risks.”

For more information about the FTSE4Good index series, including full details of the new countering-bribery criteria and its implementation timetable, please visit www.ftse.com/ftse4good