The new SWS survey on corruption

Since 2000, Social Weather Stations has surveyed top executives of Filipino enterprises, on matters of public and private corruption, 12 times. This survey series is far superior to that of Transparency International, producer of the Corruption Perceptions Index (CPI), which is based on surveys of expat executives by private foreign consulting firms that do not open the underlying data for specific questionnaire items in any country. The CPI is adequate for comparing countries’ corruption for the benefit of multi-country investors and international agencies, but not for assessing movements in a single country’s corruption over time.

The new SWS Survey of Enterprises on Corruption did interviews of Filipino executives at 966 companies over Nov. 14, 2014 to May 12, 2015, in the National Capital Region and six other major business areas. It used a random sample, two-thirds from lists of small and medium companies, and one-third from lists of large companies.

The new survey of 2014/15 is the third during the P-Noy administration so far, after one in President Estrada’s time, and eight in President Arroyo’s time. It was supported by the Integrity for Investments Initiative with funding from the US Agency for International Development. The findings were presented to a multisectoral audience at Hotel JEN Manila last Thursday, in cooperation with the National Competitiveness Council.

Experiences of corruption have declined. On the whole, the 2014/15 survey shows continued progress against corruption since 2013, after the quantum leap in 2012. This is based on corruption as experienced, and not merely as perceived, by the responding business executives.

Sincerity in fighting corruption, based on businessmen’s judgment calls, has generally improved. The respondents gave mostly favorable ratings of the sincerity of institutions—all government agencies, except for “Filipino business associations” and the Philippine Stock Exchange—in fighting corruption.

Out of 36 ratings, 21 are favorable, 9 are neutral, and 6 are unfavorable. Top-rated is the Securities and Exchange Commission; bottom-rated is the Bureau of Customs (BOC). (In 2013, there were 24 institution-ratings; of these, 14 were favorable, 8 were neutral, and 6 were unfavorable. Top-rated was the Office of the President; bottom-rated was the BOC.)

Compared to their last ratings, 8 institutions are upgraded, 7 are downgraded, and 19 have stayed the same; 2 are rated for the first time. (In 2013, 5 were upgraded, 10 were downgraded, and 9 stayed the same; 2 were rated for the first time.)

The most notable upgrade is that of the Presidential Commission on Good Government, up from a Poor -38 in 2009 to a Moderate +15 in 2014/15. The Bureau of Internal Revenue has climbed steadily to a Neutral -4 in 2014/15, after having been mired in Very Bad grades below -50 in 2008 and 2009.

The Office of the President got a Very Good +54 in 2014/15, after an Excellent +77 in 2013; this is like becoming silver medalist after being the sole gold medalist. None of the new downgrades went to an unfavorable category.

Attitudes about the prospect of defeating corruption are strong:

But honesty in business practices still leaves much to be desired. Referring to companies in their own line of business—

Conditions are right for businesses to do more to help fight corruption.

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Contact mahar.mangahas@sws.org.ph.

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