2-13. ISO 37001 Introduction_20180427.pptx

ISO 370001 ACRC Korea

1. A nti- B ribery M anagement S ystem ISO 37001 No part of this publication may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from KSA

2. ISO Management System Standards Global Trends Anti-Bribery Management System KSA 2 ISO 37001 1. 2. 3. 4. Contents

3. 1. ISO Management System Standards 3 International Organization for Standardization Establishment: 1947.02.23 Goal: Through its members, it brings together experts to share knowledge and develop voluntary , consensus-based, market relevant International Standards that support innovation and provide solutions to global challenges. Central Secretariat: Geneva , Switzerland Member: 161 national standards bodies No. of Standards: about 19,500 Committee: TC, SG, WG, Ad hoc group(special) The acronym came from Greek word ‘ ι σος (Roman: isos )’ which means ‘equal, same’. (In French , Organisation Internationale de Normalisation ) Categories of International Standards: - Industrial Standards(All industries) - Management System Standards(MSS like ISO 9001/14001/45001/22301/37001/etc..) ※ IEC(International Electrotechnical Commission ) is in charge of standardization for electro/electronic fields. ※ ITU(International Telecommunication Union, in charge of Information Technology ), IEC and ISO are gathered as WSC(World Standards Cooperation ) ※ ISO/TC 309  Governance of organizations

4. 1. ISO Management System Standards 4 Management System Standards(MSS) What is a management system ? A management system is the way in which an organization manages the inter-related parts of its business in order to achieve its objectives . These objectives can relate to a number of different topics, including product or service quality, operational efficiency, environmental performance, health and safety in the workplace and many more . The level of complexity of the system will depend on each organization’s specific context. For some organizations, especially smaller ones, it may simply mean having strong leadership from the business owner, providing a clear definition of what is expected from each individual employee and how they contribute to the organization’s overall objectives, without the need for extensive documentation. More complex businesses operating, for example, in highly regulated sectors, may need extensive documentation and controls in order to fulfill their legal obligations and meet their organizational objectives.

5. 1. ISO Management System Standards 5 Management System Standards(MSS) The benefits of an effective management system to an organization include: - More efficient use of resources and improved financial performance, - Improved risk management and protection of people and the environment, and - Increased capability to deliver consistent and improved services and products, thereby increasing value to customers and all other stakeholders. MSS are the result of consensus among international experts with expertise in global management, leadership strategies, and efficient and effective processes and practices. MSS standards can be implemented by any organization, large or small .

6. 1. ISO Management System Standards 6 Developed by ISO, the HLS provides identical structure, text and common terms and definitions for all future ISO MSSs . Now, all ISO’s management systems standards could be aligned, facilitating full integration of several standards into one management system in a single organization. “ Emphasis on understanding the internal and external business environment(context ), leadership and linkages with the strategic direction of the organization and risk ­-based thinking makes ISO 9001:2015 and the other HLS­based MSSs ‘real’ management systems that address both direction and control, strategic thinking and operational excellence” MSS High Level Structure HLS

7. 1. ISO Management System Standards 7 Requirements of High Level Structure * risk ­-based thinking *

8. 1. ISO Management System Standards 8 PDCA of MSS

9. 1. ISO Management System Standards 9 PDCA of MSS

10. 1. ISO Management System Standards 10 ❍ Risk: effect of uncertainty on objectives NOTE 1 An effect is a deviation from the expected — positive and/or negative . NOTE 2 Objectives can have different aspects (such as financial, health and safety, and environmental goals) and can apply at different levels (such as strategic, organization-wide, project, product and process). ❍ Why is it important?: The importance of risk is highlighted on strategy planning, especially after the issuance of standard ”ISO 31000:2009 Risk management - Principles and guidelines” ❍ ISO 22301:2012 - Societal security - Business continuity management systems adopted the ( High Level Structure, HLS )’ for the first time. Technical Committee: : ISO/TC 292 Security and resilience Technical Committee : ISO/TMBG Technical Management Board - groups Risk

11. 1. ISO Management System Standards 11 ❍ Most important characteristic of HLS is reinforcing of planning for management system through ‘understanding the organization and its context’ & ‘understanding the needs and expectations of interested parties’, - Through the internal/external situation analysis, emphasizing the importance of Risk-based thinking ❍ Through Risk-based thinking, organization can decide aspects the affect the process and management system, execute prevention actions to minimize negative results and maximize the positive opportunities. Risk

12. 1. ISO Management System Standards 12 MSS Audit Audits(including certifications by 3 rd party) Audits are a vital part of the management system approach as they enable the company or organization to check how far their achievements meet their objectives and show conformity to the standard . In order to help the auditing related to these standards, ISO has released  ISO 19011:2011  providing specific guidance on internal and external management system audits . ISO auditor training courses include: study for ISO 19011 guideline & practical training(Pilot audit, Finding non-conformities) http://www.oksa.or.kr/portal/olcourse/main.list.user?paramMap.cmpy_category_seq=23428

13. 1. ISO Management System Standards 13 MSS Audit Category of Audits(by who) 1 st party audit: internal audit , declaration of conformity 2 nd party audit: supplier assessment 3 rd party audit: audit by certification bodies  impartiality Type of Audits(by purpose) initial, surveillance, re-certification(renewal), special, transition, transfer Stage of Audits stage 1 audit: document review, readiness review stage 2 audit: on-site audit, party audit: supplier assessment

14. 1. ISO Management System Standards 14 Who? Certification Body Certification Body - Global CBs : BSI, LRQA, DNV, SGS, TUV, NQA… - National CBs : KSA, KFQ, KMR…(53 CBs in Korea) ※ All CBs are registered(accredited) by national accreditation boards. Registration Body(Accreditation Body) - Usually there is one national Registration body in one country and, they are controlled by each government( eg . KAB, UKAS). IAF(International Accreditation Forum) - Board of representatives(AB) and many meeting group to discuss and work on common accreditation rules(ISO/IEC 17065 & 17021) - MLA(Multilateral Recognition Arrangement ) http ://www.iaf.nu/articles/MLA_Documents/39

15. 1. ISO Management System Standards 15 MSSs for Certification ISO 9001 Quality Management System(QMS) ISO 14001 Environment Management System(EMS) ISO 45001 Occupational Health and Safety Management System(OH&SMS) ISO 22000 Food Safety Management System(FSMS) ISO 20121 Event Sustainability Management System(ESMS) ISO 50001 Energy Management System( EnMS ) ISO 55001 Asset Management System(AMS) ISO 22301 Business Continuity Management System(BCMS) ISO 37001 Anti-Bribery Management System(ABMS) Above MSSs are developed as intention for certification.

16. 1. ISO Management System Standards 16 MSS not intended for Certification Some MSS cannot be certified “This International Standard is not a management system standard. It is not intended or appropriate for certification purposes or regulatory or contractual use. Any offer to certify, or claims to be certified, to ISO 26000 would be a misrepresentation of the intent and purpose and a misuse of this International Standard. As this International Standard does not contain requirements, any such certification would not be a demonstration of conformity with this International Standard .” From Scope of ISO 26000:2010 We should not ask companies & public institutions to be certified with ISO 26000.

17. 1. ISO Management System Standards 17 Concepts and definitions ISO; How do you read? PDCA HLS Risk Risk based thinking All ISO MSSs are intended for certification. Yes/No OK, Let’s jump up to the world of corruption and bribery.

18. 2. Global Trends 18 2% of Worldwide GDP (2016) USD 2,000,000,000,000 Everyday USD 5,479,452,054 Every Hour USD 228,310,52 More than 4 times of Korean Government Budget

19. 2. Global Trends 19 1 Minute USD 3,805,175 One Millionaire is produced Every 15 Seconds

20. 2. Global Trends General Citizen 66.8% Government Employee 8.0% Many Korean people think Korean society is corrupted. Korean Corruption Perceptions Index 2017 Score : 53 Points(out of 100) Ranked in 51 among 180 countries (No significant changes) TI 2017 Result(South Korea) Why? Korean social culture t hat brings corruption 20 GAP By Anti-Corruption & Civil Rights Commision

21. 2. Global Trends 21 https://www.transparency.org/news/feature/corruption_perceptions_index_2017#table

22. 2. Global Trends 22 UNCAC OECD Anti-Bribery Convention UK Bribery Act US FCPA Kim Yeongran Law Social Values The United Nations Convention against Corruption ( UNCAC , adopted by the United Nations General Assembly on 31 October 2003) is a multilateral treaty negotiated by member states of the United Nations (UN) and promoted by the UN Office on Drugs and Crime (UNODC). It is one of several legally binding international anti-corruption agreements. UNCAC requires state parties to the treaty to implement several anti-corruption measures that focus on five main areas: prevention, law enforcement, international cooperation, asset recovery, and technical assistance & information exchange . http://www.acrc.go.kr/en/board.do?command=searchDetail&method=searchList&menuId=020111

23. 2. Global Trends 23 UNCAC OECD Anti-Bribery Convention UK Bribery Act US FCPA Kim Yeongran Law Social Values The OECD Anti-Bribery Convention (officially Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed on 17 December 1997 and came into force on 15 February 1999 ) is a convention of the OECD aimed at reducing corruption in developing countries by encouraging sanctions against bribery in international business transactions carried out by companies based in the Convention member countries . Its goal is to create a truly level playing field in today's international business environment. The OECD has no authority to implement the convention, but instead monitors implementation by participating countries via its Working Group on Bribery http:// www.oecd.org/korea/korea-oecdanti-briberyconvention.htm

24. 2. Global Trends 24 UNCAC OECD Anti-Bribery Convention UK Bribery Act US FCPA Kim Yeongran Law Social Values UK Bribery Act was entered into force on 1 July, 2011. It effects not only on UK commercial organizations, but also on foreign companies participating in business of UK companies . ‘The Bribery Act 2010 Guidance’ was published together, and ‘BS 10500:2011’ was rolled out for the practical adoption .

25. 2. Global Trends 25 UNCAC OECD Anti-Bribery Convention UK Bribery Act US FCPA Kim Yeongran Law Social Values The idea of Foreign Corrupt Practices Act (FCPA) is to make it illegal for companies and their supervisors to influence foreign officials with any personal payments or rewards. The FCPA applies to any person who has a certain degree of connection to the United States and engages in foreign corrupt practices . The Act also applies to any act by U.S. businesses, foreign corporations trading securities in the U.S., American nationals, citizens, and residents acting in furtherance of a foreign corrupt practice whether or not they are physically present in the U.S . This is considered the nationality principle of the act . Any individuals that are involved in those activities may face prison time.

26. 2. Global Trends 26 UNCAC OECD Anti-Bribery Convention UK Bribery Act US FCPA Kim Yeongran Law Social Values . . . According to the law before September 2016, ‘ rewardness & relationship in official service favor’ should have been proved for criminal punishment(proof basis). Now on this law, any public official who received over KRW 1,000,000 from one individual is criminally punished ‘regardless of rewardness & relationship in official service favor’ . And in case of less than KRW 1,000,000 , if ‘relationship in official service favor’ is proved, the public official is punished with penalty . Korean government determined ‘Government Innovation Total Plan’ on 19 March, 2018. Governing strategy will be transited into ‘Social Value base ’. This strategy strengthened assessment criteria for the Korean public institutions, especially in the field of ‘Ethic management’.

27. 2. Global Trends 27 Anti-corruption management of companies and government in our nation, is it ready for the level required by global world, our society, our citizen? Is it “YES” ? If the answer is “NO”, “Not yet” or “On the progress” , what is our next step? What is the requirement? Law, Act & Regulations(domestic/foreign) Needs of our citizen, companies & society about corruption Needs of foreigners about corruption

28. 2. Global Trends 28 We have to change “ NO” into “ YES ” ! What is needed to be changed? For that… The start of change begins from establishing System & Process that supports our Ethic management/governing and anti-corruption regulations to be progressed not being twisted and keeping improved continuously. Project? System! What?

29. 3. Anti-Bribery Management System 29 Why an Anti-Bribery Management System (ABMS) Why? Bribery “Worldwide-spread critical business Risk” “It raises serious social, moral, economic and political concerns, undermines good governance , hinders development and distorts competition. It erodes justice, undermines human rights and is an obstacle to the relief of poverty. It also increases the cost of doing business , introduces uncertainties into commercial transactions, increases the cost of goods and services , diminishes the quality of products and services , which can lead to loss of life and property, destroys trust in institutions and interferes with the fair and efficient operation of markets.” f rom Introduction of ISO 37001:2016

30. 3. Anti-Bribery Management System 30 Why an Anti-Bribery Management System (ABMS) Why? Many countries have already strengthened or legislated laws w hich define bribery as crime. But bribery cannot be decreased only by regulations and forceful measures. Decreasing bribery can be continued and improved by organization-wide approach through Anti-Bribery Management System. Complying the requirements and guidelines of ISO 3700:2016 does not assure that the organization can eliminate all bribery risks, guarantee that there was no bribery case before and prevent future bribery perfectly. But implementation and operation of ISO 37001 can be great contribution to prevent & detect bribery in rational and adequate measures .

31. 3. Anti-Bribery Management System 31 Anti-Bribery Management System (ISO 37001:2016) Standard for Anti-Bribery Management System Formal name: A nti- B ribery M anagement S ystems (ABMS ) Issued in consideration of Bribery Act 2010, but it can be applied to all countries with anti-bribery regulations ISO 37001 Goal This standard supports to comply laws/regulations on bribery and to retain good practice.

32. 3. Anti-Bribery Management System 32 For all organizations interested in and in need of prevention of bribery ; Organization: person or group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives For Whom?

33. 3. Anti-Bribery Management System 33 PDCA of ISO 37001 Establish (PLAN) Implement & Operate (DO) Monitor & Review (CHECK) Maintain & Improve (ACT) 0 Introduction 1 Scope 2 Normative references 3 Terms and definitions PLAN 4 Context of the organization 5 Leadership 6 Planning 7 Support DO 8 Operation CHECK 9 Performance evaluation - Monitoring and reviewing the ABMS ACT 10 Improvement - Change the ABMS

34. 3. Anti-Bribery Management System 34 Structure of ISO 37001(HLS) H igh L evel S tructure

35. 3. Anti-Bribery Management System 35 Requirements of ISO 37001 1 Scope 2 Normative references 3 Terms and definitions 4 Context of the organization 4.1 Understanding the organization and its context 4.2 Understanding the needs and expectations of stakeholders 4.3 Determining the scope of the anti-bribery management system 4.4 Anti-bribery management system 4.5 Bribery risk assessment 5 Leadership 5.1 Leadership and commitment 5.1.1 Governing body 5.1.2 Top management 5.2 Anti-bribery policy 5.3 Organizational roles, responsibilities and authorities 5.3.1 Roles and responsibilities 5.3.2 Anti-bribery compliance function 5.3.3 Delegated decision-making

36. 3. Anti-Bribery Management System 36 Requirements of ISO 37001 6 Planning 6.1 Actions to address risks and opportunities 6.2 Anti-bribery objectives and planning to achieve them 7 Support 7.1 Resources 7.2 Competence 7.2.1 General 7.2.2 Employment process 7.3 Awareness and training 7.4 Communication 7.5 Documented information 7.5.1 General 7.5.2 Creating and updating 7.5.3 Control of documented information 8 Operation 8.1 Operational planning and control 8.2 Due diligence 8.3 Financial controls

37. 3. Anti-Bribery Management System 37 Requirements of ISO 37001 8.4 Non-financial controls 8.5 Implementation of anti-bribery controls by controlled organizations and by business associates 8.6 Anti-bribery commitments 8.7 Gifts, hospitality, donations and similar benefits 8.8 Managing inadequacy of anti-bribery controls 8.9 Raising concerns 8.10 Investigating and dealing with bribery 9 Performance evaluation 9.1 Monitoring, measurement, analysis and evaluation 9.2 Internal audit 9.3 Management review 9.3.1 Top management review 9.3.2 Governing body review 9.4 Review by anti-bribery compliance function 10 Improvement 10.1 Nonconformity and corrective action 10.2 Continual improvement

38. 3. Anti-Bribery Management System Major Requirements 38 Evaluation and analysis of bribery risk in connected with stakeholders Arrange adequate measures for occurrence of bribery event Implement and execute contingency action on bribery risk(internal control) Leader should establish anti-bribery/ethic strategy and take responsibility for achieving anti-bribery goal Conduct Due Diligence and feedback the result into bribery risk analysis Establish criteria to handle gifts , hospitality, donations in the view point of law & regulation Running anti-bribery/ethic committee if applicable 1. 2. 3. 4. 5. 6. 7.

39. 3. Anti-Bribery Management System 39 Provide appropriate Anti-Bribery education and training to members Communicate anti-bribery policy and program to every stakeholders & business interests [supplier, subcontract, investor] Appoint compliance function to supervise anti-bribery program Rational and adequate measure to ensure that business interests are conducting anti-bribery controls Monitoring personals and business process is complying anti-bribery policy Reporting procedure(Whistle-Blowing) Investigation of bribery or trades which is suspected as bribery case 8. 9. 10. 11. 12. 13. 14. Major Requirements

40. 4. KSA 40 The KSA was established in 1962 as prescribed in Article 32 of the Industrial Standardization Act. As an organization specializing in the provision of general knowledge services in the areas of standards, accreditation , education, and promotion for the past 56 years , the KSA promises to make continuous efforts for the sustainable growth of stakeholders both inside and outside the association. KSA Headquarter (Yeoksam-dong , Gangnam-gu, Seoul) KSA Seoul(Gasan) Learning Center (Gasan-dong , Geumcheon-gu, Seoul) KSA Human Resources Development Center (Anseong-si , Gyeonggi-do) 회사명 Chairman &CEO Sangjin Lee 회사명 Name Korea Standards Association 회사명 Sales 99 billion won (as of the fiscal year 2017) 회사명 Headquarters Korea Technology Center, 305, Teheran-ro, Gangnam-gu , Seoul (701-7, Yeoksam -dong) 회사명 No. of Employees 325 (as of 2017) 회사명 Association Non-profit corporation (public entity) under the Ministry of Trade, Industry and Energy (MOTIE) 회사명 Purpose of Establishment 회사명 Date of Establishment March 13, 1962 To promote the development of science and technology and to raise productivity by fostering industrial standardization, conducting R&D on quality management, and developing and disseminating quality management practices, with the ultimate goal of contributing to the advancement of the national economy.

41. 4. KSA 41 KSA –The history of the KSA mirrors Korea’s industrial development Developed into a Leading Organization for Standards & Quality Management 1962 1971 1975 1983 E stablishment of the Korea Standards & Norms Association Q uality Control Engineer Training Agency (Designated by the Ministry of Trade and Industry ) M anaged the Korea National Quality Awards as the Quality Control Implementation Division Bureau (Designated by the Industrial Advancement Administration) E ligible Vocational Training Center designated by the Ministry of Employment and Labor Developed into the National Certification Body for KS Certification & ISO Training 1991 1993 1994 1996 1998 1999 E stablished the Quality Management Research Center R enamed as Korean Standards Association D esignated as the first Quality Management System Training Center D esignated as the first Environmental Management System Training Center D esignated as KS certification body I ntegrated with the Korean Industrial Standard Institute 2000 2001 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1960s~1980s 1990s Developed into a National Knowledge Service Provider 2000s A ppointed as ISO 9001 and ISO 14001 certification body D esignated as JIS certification body for the first time as a foreign institute . K SA Media (KSAM) established as a KSA subsidiary D esignated as the Social Responsibility (SR) Standardization Forum Bureau K orea LOHAS certification body D esignated as a public organization(Designated by the Ministry of Strategy and Finance). Sustainability. management partnership concluded with GRI. Designated as an assurance provider for greenhouse gas reduction projects D esignated as CDM (Clean Development Mechanism) operation body. Provided greenhouse gas inventory assurance services D esignated as ISO 26000 national secretary. Designated as a VCS (Verified Carbon Standard) assurance provider for the first time in Korea. Opened the KSA Seoul(Gasan) Learning Center D esignated as a Green Training Institute (Committee on Green Growth). Obtained the Best HRD (Human Resources Development) Certification. Joined the UN Global Compact (UNGC) D esignated as an assurance provider for Greenhouse Gas Target Management System. Indoor air quality certification body. Registered as an official license institute for the MATRIZ C elebrated the 50th Anniversary and published the Association's 50 years of history O pened the KS Certification Support Center opened (Suwon, Daejeon, Daegu) H osted the 40th National Convention on Quality Control Circle. Hosted the 40th National Quality Management Convention. Establishment of the KSA Share Happiness Voluntary Group. Registered as the official training institute for the Ministry of Employment and Labor O pened the Safety Innovation Center

42. 4. KSA 42 Branch Offices and Centers Human Resources Development Center and 12 Branch Offices 5 Offices Overseas Branch Office The KSA became the leading knowledge service provider in Korea that ensures joint growth with customers by establishing a domestic industry-academia-research collaborative network centered on its 12 branch offices and 5 offices in the country. Daegu Gyeongbuk Branch Office China Beijing Office Incheon Branch Office Northern Chungnam Branch Office Jeonbuk Branch Office Yeoksam-dong Headquarter KSA Seoul(Gasan) Learning Center Ansan Office Daejeon Sejong Chungnam Branch Office Gwangju Jeonnam Jeju Branch Office Uijeongbu Office Gangwon Branch Office Gyeonggi Branch Office Human Resources Development Center Chungbuk Branch Office Gumi Office Suncheon Office Pohang Office Ulsan Branch Office Gyeongnam Branch Office Busan Branch Office

43. 4. KSA 43 International Organization for Standardization (ISO) Bureau of Standards, Metrology and Inspection (BSMI) French Association for Standardization (AFNOR) International Electrotechnical Commission (IEC) International Automotive Task Force (IATF) British Standards Institution (BSI) German Institute for Standardization (DIN) American Society of Mechanical Engineers (ASME) Japanese Standards Association (JSA) China Association for Standardization (CAS) American Society for Testing and Materials (ASTM) American National Standards Institute (ANSI) Japanese Automotive Standards Organization (JASO) Standards Press of China (SPC) European Organization for Quality (EOQ) Union of Japanese Scientists and Engineers (JUSE) Japan Institute of Plant Maintenance (JIPM) Global Reporting Initiative (GRI) China Association for Quality (CAQ) Shenyang Bureau of Quality and Technical Supervision Asian Network for Quality (ANQ) Singapore Quality Institute Singapore Productivity Association (SPA) Vietnam Quality Association of Ho Chi Minh City (VQAH) Vietnam Chamber of Commerce and Industry (VCCI) American Society for Training & Development (ASTD) American Society for Quality (ASQ) Six Sigma Management Institute (SSMI) - Arizona State University (ASU) Infrared Training Center (ITC) International TRIZ Association (MATRIZ) MICI China Association for Quality (CAQ) Corporate Synergy Development Center (CSD) The KSA is actively exchanging with relevant overseas organizations in the areas of quality, certification and training. Standards & Certifications Quality Management Training

44. 4. KSA 44 The KSA, Korea's No. 1 standards and quality management body , provides services in four major business areas. Certification Quality Standard Training& Development

45. 4. KSA 45 ISO Management System Certification Services KSA offers international certification services(3 rd party audit) that create customer values based on reliability, fairness, and expertise, and has worked on about 3,000 cases in total. In addition, KSA runs auditors ethics education regularly to strengthen the fairness of the international certification.

46. 46 ISO 37001 Anti Bribery Management System If you have any question about ISO 37001 3 rd party certification, feel free to contact KSA. [phone] [email protected] International Certification Division Jangwook Lee

47. 47 감사합니다