Criteria

This is how we evaluate the Globalance Footprint with regard to markets and infrastructure:

Global challenge

A negative Footprint causes

  • A high degree of legal uncertainty
  • Unstable and closed markets
  • A lack of transparency in terms of political influence (lobbying)
  • Economic costs due to unethical business practices (corruption)
  • Price-fixing (cartels)
  • Untimely or poorly conducted infrastructure projects

Global goal

A positive Footprint fosters

  • The integrity and transparency of companies and transactions
  • High standards of corporate governance
  • The opening and strengthening of goods and services markets, also for previously disadvantaged market segments
  • Financial market development
  • Sustainable Infrastructure for transport, communication and energy.

My Portfolio

Your Footprint Map for the topic

Name Anteil Footprint URI
TBF Smart Power 0.13 67 /en/assets/4q-smart-power-1
ABB 0.08 77 /en/assets/abb-1-2-1
CAF Corp Andina Fomento 0.08 80 /en/assets/caf-corp-andina-fomento
Ecolab 0.1 80 /en/assets/ecolab
First State Infrastructure 0.15 47 /en/assets/first-state-infrastructure
Novo Nordisk 0.08 55 /en/assets/novo-nordisk
NTT DoCoMo 0.07 73 /en/assets/ntt-docomo-1
Unilever 0.1 52 /en/assets/node-541991579b9f1
Varian 0.14 52 /en/assets/varian
ZKB Gold ETF 0.07 50 /en/assets/zkb-gold-etf-1
    0
    adverse
    Balanced     100
    positive
    Legend :
    • Colours indicate the Footprint-Scores
    • Field sizes indicate proportion of invested capital

    The three best investments

    The three investments with the best Footprint for this theme are:

    Global Context

    Global Context: Corruption also affects G20 nations

    Corruption within the public sector leads to stagnating education and slower progress. This is as relevant to G20 countries as it is to the developing world.


    Source: Transparency International Corruptions Perception Index (2014)

    What this chart tells us: Corruption is a global phenomenon with local consequences

    The graph shows the values of the 2014 Corruption Perceptions Index (CPI) for individual countries. Dark red shading of a region indicates a bad corruption score, while lighter colours indicate better results in the study conducted by Transparency International in 2014. Switzerland shares its fifth place with Norway, while Denmark came out on top in the country ranking. North Korea and Somalia are found at the end of the list at position 174.

    Countries at the bottom need to adopt radical anti-corruption measures in favour of their people. Countries at the top of the index should make sure they don’t export corrupt practices to underdeveloped countries.

    José Ugaz, Chair, Transparency International

    Challenge: Corruption leads to stagnating education and slow progress

    Corruption puts money in an individual‘s pocket at the expense of the general public. One example of a consequence is the loss of the right to valuable natural resources by the latter. The problem is not restricted to the developing world: G20 states face corruption issues as well.

    Corruption undermines the basic functionality of sovereign states and leads to a lack of resources for public investment in education and infrastructure. This in turn inhibits progress. Insufficient access to education can be both cause and result of corruption. A catch 22.

    Investment-Relevance: Controlling corruption pays dividends

    According to former World Bank director Daniel Kaufmann, a 300% development dividend can be generated with good governance and corruption control. Countries that fight corruption and improve legal frameworks will profit from a threefold increase in Gross Domestic Product (GDP) in the long run, says Kaufmann.

    Investing in companies that are active in countries facing corruption problems creates a moral obligation to take responsibility. But investors also profit from a strong future economic development of such markets in the long run.

    58

    58% of G20 states scored less than 50 out of 100 points in the Corruption Perceptions Index (CPI).

    43

    The average score of the countries investigated by the CPI is 43 on a scale from 0 to 100.

    175

    175 countries where investigated by Transparency International in the CPI.

    Relevant sources of guidance for the Globalance Footprint

    Globalance Bank considers various publications by Transparency International when investigating Footprints in Market and Infrastructure. In addition to the CPI, Transparency International also publishes the so called „ Bribe Payers Index (BPI)“, which investigates corporate behaviour of different companies when competing for contracts in various countries. Publications from the World Bank‘s „World Wide Governance Indicators Project“ are an additional source of valuable information.