World Anti-Corruption Day: Strengthening ESG and Anti-Corruption in Business

Around the world, three letters shape how businesses talk about responsibility and long-term value: ESG. It stands for Environmental, Social, and Governance standards, which guide how companies manage their impact on people, the planet, and their internal systems. Yet behind every commitment lies one element that determines whether these efforts matter: integrity. Without it, sustainability reports become words on paper. This was the conclusion of an event to mark International Anti-Corruption Day, 9 December.

The United Nations Office on Drugs and Crime (UNODC) and its partners, the UN Global Compact Network Indonesia (IGCN), the Indonesia Internal Audit Community (IIAC), and the Indonesia Stock Exchange, convened the Responsible Business Forum 2025: Anti-Corruption at the Heart of ESG – Driving Sustainable Development and Impact Investment. The forum brought together leaders from government, business, and civil society to discuss how stronger integrity systems can support sustainable growth and responsible investment in Indonesia.

ESG performance is now widely recognized as a factor influencing long-term business value, public confidence, and access to investment.

Corruption remains a major barrier to effective ESG implementation. According to UNODC, corrupt practices can undermine environmental regulations, distort fair competition, and exacerbate social inequality. Ahead of International Anti-Corruption Day on 9 December, UNODC and its partners are reminding us that integrity is not just a part of ESG; it is the heart.

Integrity strengthens all pillars of ESG

Corruption affects all three ESG pillars. It weakens environmental safeguards, enables the misuse of natural resources, fuels inequality, and undermines the governance systems that protect both people and markets.

The United Nations Convention against Corruption (UNCAC) offers clear guidance. Article 12 calls for stronger internal controls, transparent accounting, penalties for misconduct, and ethical conduct in the private sector. Adopted in 2003, this framework remains highly relevant as companies prepare for tighter ESG reporting and expectations.

For Indonesia, aligning ESG implementation with UNCAC’s principles offers a pathway to more resilient markets and stronger investor confidence. Erik van der Veen, Head of UNODC Indonesia, noted ongoing policy reforms:

“Indonesia is advancing key reforms, including the amendment of the Anti-Corruption Law. Provisions on foreign bribery and bribery in the private sector are practical tools that will push stronger compliance and clearer expectations for responsible business conduct.”

He added that Indonesia’s efforts to accede to the Organisation for Economic Co-operation and Development (OECD) will further elevate standards. UNODC is supporting this process while expanding tools for the private sector—including the joint Doing Business with Integrity e-learning course with the UN Global Compact, and the UNODC Business Integrity Portal, which provides practical resources for building compliance systems.

Good governance starts with personal integrity

The forum also looked at how ethics guides corporate governance. Natalia Soebagjo, Expert Panel of the National Committee on Governance Policy (KNKG), shared Indonesia’s updated corporate governance principles: Ethical Behaviour, Transparency, Accountability, and Sustainability.

“Ethical conduct means a company respects human rights and pays close attention to its environmental and social impact,” she said. “It is not enough to provide material and relevant information to stakeholders; that information must also be accessible and easy to understand. When transparency and accountability are strong, trust in the company grows, and investor confidence follows.”

For regulators, investors, and the public to trust that every policy creates real impact, personal integrity must be reflected in company systems

“Integrity is fundamental to investment. When corruption creates unequal treatment, investors cannot predict whether regulations will be enforced. That uncertainty undermines fair competition. And in the most extreme cases, it leads to state capture corruption–where private interests distort public policies and regulations–which is deeply damaging,” said Agus Joko Pramono, Vice Chair of the Corruption Eradication Commission (KPK).

He also underscored these keys for ethical ESG:

“First, the tone from the top is crucial. Leaders must clearly express and demonstrate that integrity matters. Second, organizations must play by the rules through integrity-based systems such as anti-bribery management, whistleblowing mechanisms, and HR policies that reflect strong values.”

Transparency and data availability are key

Transparency is a non-negotiable element of ESG credibility. Yet, as Danang Widyoko, Secretary General of Transparency International, highlighted, Indonesian companies still face gaps:

“Not all data is available, and not all companies are willing to publish their ESG information.”

He also emphasised that current ESG indicators in Indonesia still lean heavily toward environmental aspects, with limited attention to social and governance aspects.

To help address these gaps, Transparency International Indonesia, together with Tempo, is developing an ESG rating using a new methodology. The rating is expected to be launched in mid-December. The rating aims to provide a more balanced, clear, and accessible view of corporate ESG performance.

The private sector has a central role in strengthening integrity across the ESG agenda. By embedding anti-corruption into sustainability strategies, strengthening data and transparency, and grounding corporate leadership in ethics, Indonesia’s private sector can unlock stronger investment, greater resilience, and sustainable growth for all. The message is clear: responsible business is not only good ethics—it is good economics.