Transparency International Russia studied GR practices, mechanisms and channels used by largest Russian public companies at home and abroad.
The study found that the interactions between business and government bodies in Russia are not transparent enough and lack publicity. Companies rarely disclose information about departments which are tasked with government relations (GR), and do not mention specific members of staff responsible for such activities. Common ethical and professional standards for GR officers do not exist.
The practice of personnel movement between roles of legislators/regulators and members of the industries affected by the legislation/regulation is known as ‘revolving doors’. Use of this practice can give companies unfair competition advantage and lead to conflicts of interests among public officials and other corruption risks.
The study found that:
- 15 out of 20 companies considered in the study have acting or former public officials as members of the supervisory board;
- 13 out of 20 companies have such persons as members of the board of directors;
- 10 out of 20 companies currently have or used to have ties with at least one member of Russian federal parliament;
- representatives of the companies take seats in expert councils at parliamentary committees and federal government bodies, but companies do not disclose their staffers‘ involvement in the work of such councils, and the information on such councils at parliamentary committees is often completely unavailable to the public;
- several companies considered in the study are registered within systems of lobbying disclosure in the EU and the USA, which shows these companies are interested in the usage of regulated channels of interaction with the state where such activities are regulated by the law.
Despite several attempts to legislate lobbying regulation in Russia, the work of lobbyists still remains unobserved and therefore non-transparent. If a lobbying market accountable to civil society and state emerges and a culture of corporate transparency pervades, a more open and public interaction between government and the whole business sector will follow, as well as reduction in reputational and corruption risks and an increase in confidence levels of shareholders, consumers and state bodies towards companies.
Full research paper (in Russian)