Deputy Chief of Mission Duane Butcher’s Remarks on the Occasion of the Launch of the AmCham Romania Anticorruption Guidelines

November 20, 2012

Deputy Chief of Mission Duane C. Butcher delivers remarks at the American Chamber of Commerce in Romania launch of "Anticorruption Guidelines" (Lucian Crusoveanu / Public Diplomacy Office)

I am pleased to be here this morning along with so many people, representing American and Romanian businesses, who are dedicated to making Romania a better place to do business and invest.

Many of you have probably heard the Ambassador and me speak repeatedly about the importance of a sound business climate and anticorruption efforts for the successful long-term growth and development of Romania.

Many developing countries eager to attract foreign direct investment (FDI) have placed an emphasis on cheap labor, tax incentives, and education. However, experience has shown that local corruption may deter more FDI than cheap labor or generous tax giveaways can bring in.

Foreign investors have been vocal and influential in Romania and throughout the region, showcasing what makes an attractive business environment. They have powerfully and effectively lobbied the government on several key objectives:

• Anticorruption initiatives
• Transparent, honest, and technologically neutral public procurement
• A transparent and honest civil service
• Genuine dialogue between business and government on economic policy

As you may know, American companies operating in Romania or anywhere else in the world are subject to the Foreign Corrupt Practices Act, which prohibits them from paying bribes or engaging in other forms of corruption. U.S. firms that violate the provisions of the Foreign Corrupt Practices Act are liable to prosecution in U.S. Federal courts and to severe penalties.

Many U.S. firms, and AmCham member companies from other countries, are placing sound, corruption-free corporate governance at the core of their business practices.

AmCham's Anticorruption Guidelines will provide basic tools for its members on issues such as public procurements, sponsorships, hiring and recruitment practices, to enable them to deal with public officials and politicians while observing the principles of integrity, accuracy of transactions/expenses, responsibility, disclosure, and avoidance of conflicts of interest.

I hope that promoting respect for these good practices throughout the business community will enhance the national anticorruption efforts and help improve the business climate. Respect for good governance and anticorruption principals such as those outlined in the Guidelines will help level the playing field for companies that play by the rules and follow honest business practices.

I commend AmCham initiative in developing the Guidelines and its commitment to provide guidance and support to its members towards the implementation of the guidelines. While I understand that at this stage the guidelines are voluntary, they are a good first step; I would welcome compliance with the guidelines eventually becoming mandatory for AmCham member companies.

Across the board implementation of anticorruption practices not only supports investors but also citizens.

In closing, I would encourage all companies to embrace and implement the anticorruption guidelines, and remember that, as Bess Myerson said, "The accomplice to the crime of corruption is frequently our own indifference."

Thank you.