Defence Companies Index coming soon

Defence Companies Index coming soon 

Transparency International Defence & Security is working to publish the 2020 edition of the Defence Companies Anti-Corruption Index (DCI).  

What is the Defence Companies Anti-Corruption Index (DCI)? 

The DCI sets standards for transparency, accountability and anti-corruption programmes in the defence sector. By analysing what companies are publicly committing to in terms of their openness, policies and procedures, we seek to drive reform in the sector, reducing corruption and its impact. The DCI will assess ca. 140 of the world’s leading defence companies across 39 countries. The Index was first published in 2012 with a second edition in 2015, and the latest edition is set to be published in 2020. 

The upcoming index will apply a revised methodology and will include some key differences from previous editions.

The draft Questionnaire and Model Answer document can be found here.

The 2015 DCI can be found here.

How will the 2019 Index be different?

After a comprehensive review, the new DCI assessment has evolved and should be read alongside our recent report Out of the Shadows: Promoting Openness and Accountability in the Global Defence Industry’ – which provides greater insight into the theory behind our methodology. Based on consultations with anti-corruption and defence experts, TI DS have identified ten key areas where higher anti-corruption standards and improved disclosure can reduce the opportunity for corruption. 

In one the most significant changes to the methodology, TI DS will this year base the research only on what companies choose to make publicly available. The decision to exclude internal information from the evaluation reflects our increased focus on transparency, public disclosure of information, incident response and the practical implementation of anti-bribery and corruption programmes. 

How have companies been selected?

Companies for the 2020 DCI have been selected on the basis that: 

  • The company features in the 2016 edition of SIPRI’s Top 100 Arms-Producing and Military Services companies. 
  • The company features in the 2016 edition of Defence Industry Weekly’s Top 100 defence companies. 
  • The company is the largest national defence company headquartered in a country exporting at least £10 million, as identified by SIPRI. 

To see the list of companies selected for assessment in 2019, click here.

How will data on companies be collected?

Our assessment of a company’s individual anti-bribery and corruption record is based entirely on publicly available information. In particular, we will review the company’s website, including any available reports, for evidence of anti-corruption systems, as well as any functioning hyperlinks to other relevant online materials. In reviewing your company’s materials, we will assess the completeness and accessibility of the information, in particular: 

  • The amount of information a company publishes about its internal anti-corruption programmes, incident response systems and interactions with third parties; 
  • Evidence that these systems are used by employees and made available to all employees; 
  • Evidence that the company monitors and reviews its anti-bribery and corruption processes. 

Researchers from TI DS began conducting assessments of each company’s public information starting in May 2019. After the completion of an initial assessment, draft assessments undergo two rounds of quality checks by members of TI DS’s Industry Integrity team. This process ensures the accuracy of individual assessments and the consistency across them.   

The draft assessments are then shared with companies, who will have the opportunity to review initial findings and suggest any corrections. Following final reviews of feedback and consistency, the assessments will be published on our website. 

Where can I find the assessment criteria?

A draft version of the 2020 Questionnaire and Model Answer document is available here. Companies, governments, and civil society alike were invited to provide feedback on the methodology. To view an anonymised version of this feedback, click here.

The QMA has been adapted based on this feedback before becoming final. 

Our recent report ‘Out of the Shadows: Promoting Openness and Accountability in the Global Defence Industry’ provides greater insight into the theory behind the changes to the 2019 methodology. 

What is the timeline for the Index?

We are currently in the process of completing the first drafts of company assessments. We aim to complete this stage by early 2020. Over this period, companies will also be reviewing the first draft of their assessments, which they have four weeks to do.  

We aim to launch the Index in early 2020.  

What do companies have to do next?

Companies should expect to receive their first draft assessments over the coming weeks and the first few months of 2020.  

As indicated, companies will have four weeks upon receipt of their first draft assessment to provide feedback to TI DS. Companies are welcome and encouraged to make any changes to their publicly available policy documents; or they can provide us with evidence that may have been missed in the first draft, or with rationale for why existing evidence may have been misinterpreted.   

After we have received company feedback, we will review it and incorporate it into the assessments as appropriate. Please note that we will only change scores where the feedback provided clearly meets the criteria outlined in the Questionnaire and Model Answer document. 

We will then conduct a final review of the assessments before they are published on our website as part of the Index.