Defence Companies Index coming soon

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

What is the Defence Companies 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 autumn 2020. 

The upcoming index will apply a revised methodology and will include some key differences from previous editions, including a focus on corporate transparency.

The draft 2020 Questionnaire and Model Answer document can be found here.

The 2015 DCI can be found here.

How will the 2020 DCI 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 were companies selected?

Companies for assessment on the 2020 DCI were 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. 

What type of data on companies is 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 information published on a company’s website – including any relevant webpages, reports or documents – to determine the extent to which it meets the level of commitment to transparency outlined in our scoring criteria.

In reviewing company materials, we will assess the completeness and accessibility of the information, in particular:

  • The amount of information a company makes public about its internal anti-corruption programmes, incident response systems and interactions with third parties; 
  • Evidence that these systems are made available and are being used by employees;
  • Evidence that the company monitors and reviews its anti-bribery and corruption processes;
  • The amount of information that a company makes public and transparent about its operations which may help to reduce corruption in the sector overall, for example, details relating to agents and intermediaries, offset contracting, beneficial ownership and high risk markets.

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.

Since the first draft, the QMA has been updated based on feedback from all stakeholders and a final version will be published alongside the launch of the DCI in autumn 2020.  

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 2020 methodology. 

What is the research process?

Researchers from TI DS began conducting assessments of each company’s public information starting in June 2019. Once a draft assessment is ready, each company assessment undergoes two rounds of quality checks by members of TI DS’s Industry Integrity team. This process aims to ensure the accurate and consistent application of the scoring criteria across all assessments.

Each company will then receive a copy of their draft assessment and will have a period of four weeks to complete a review of the research and provide feedback. TI DS will then review this feedback and update the assessment where relevant, before undertaking a final round of quality checks. Once this stage is complete for all assessments, the results will be analysed and published on our website.

What is the timeline for the DCI?

We are currently in the final stages of reviewing company assessments, which involves quality checks to ensure accuracy and consistency in both the individual assessments and across the board. We aim to complete this process in the coming months and launch the Defence Companies Index on Anti-Corruption and Corporate Transparency (DCI) in autumn 2020.  

What should companies expect next?

All companies will receive their final assessments and results in autumn 2020, a few weeks ahead of the public launch. TI DS will be in touch with company representatives to provide updates on the launch and the process for making official comments.

To get in touch with the team – especially if you are a company representative who is not already in contact with TI DS – please send an email to dci@transparency.org.

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