SWS Corruption Data

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EMBARGOED UNTIL NOVEMBER 21, 2008.
Transparent Accountable Governance:
The 2008 SWS Surveys of Enterprises on Corruption
The SWS Surveys of Enterprises on Corruption are sponsored by The Asia Foundation (TAF). Opinions expressed here are those of the SWS research team and do not necessarily reflect the views of TAF.
SOCIAL WEATHER STATIONS

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COPYRIGHTED MATERIAL/STRICTLY CONFIDENTIAL. NOT AUTHORIZED FOR QUOTATION, PUBLICATION OR RELEASE. FOR INFORMATION OF THE ASIA FOUNDATION ONLY. EMBARGOED UNTIL NOVEMBER 21, 2008.
Outline
Survey Design Survey Results 1. Public Sector Corruption 2. Sincerity in Fighting Corruption 3. Government Efforts To Fight Corruption 4. Enterprises Solicited For A Bribe 5. Anti-Graft Legislation 6. Private Sector Corruption 7. Business Efforts To Fight Corruption 8. Honest Business Practices 9. The Business Climate Summary of Findings
Survey Design

The TAG Project Surveys a. Are Time Series 8 rounds (2000-08): National Capital Region 5 rounds (2004-08): Metro Cebu 5 rounds (2004-08): Metro Davao 3 rounds (2005-07): Cavite-Laguna-Batangas, Cagayan de Oro-Iligan.* b. Are Stratified by Size 2/3 weight: Small & Medium Enterprises 1/3 weight: Large Enterprises.
*Not part of TAG-2008 due to lack of funds. The 2008 SWS Surveys of Enterprises on Corruption
5
SWS SURVEYS OF TOP/MIDDLE MANAGEMENT OF ENTERPRISES ON CORRUPTION, 2000-2008

Fieldwork Dates Aug14-Oct26 2000 Sep4-Dec4 2001 Oct25-Feb25 2002/03 Nov13-Jan28 2003/04 Jan21-Mar15 2005 Feb18-Apr27 2006 Mar4-May11 2007 Sep9-Oct10 2008 NCR C=Metro Cebu D=Metro Davao Total Sample 604 505 500 701 701 700 703 402 202 100 100 Large 204 200 214 285 232 231 233 135 67 34 34 Small & Medium 400 305 286 416 469 469 470 267 135 66 66 Error Margin 4% 4% 4% 4% 4% 4% 4% 5% 7% 10% 10%

A partial-panel design
Total 2008 interviews Interviewed in both 2007 & 2008 Newly interviewed in 2008
NCR/C/D NCR METRO CEBU METRO DAVAO
402 202 100 100
282 127 80 75
120 75 20 25
Public Sector Corruption

% WHO SAY THERE IS A LOT OF CORRUPTION IN THE PUBLIC SECTOR HIGH; NO TENDENCY TO FALL
80%
77 71 67 63 67 65 60 71 66 63 63 57 59 58 58 60 55 2000 2001 2003 71
60%
40%
2004 2005 2006
20%
2007 2008
0%
NCR
Cebu
Davao
Q40. How much corruption do you think there is in the public sector? (A lot, Some, A The 2008 SWS Surveys of little, None)
Enterprises on Corruption
MOST/ALMOST ALL COMPANIES IN MY LINE OF BUSINESS GIVE BRIBES TO WIN PUBLIC SECTOR CONTRACTS
Base: Total who say there is corruption in the public sector
80% 70% 60% 54 50% 40% 35 30% 20% 10% 0%
In NCR, the downtrend stopped. Davao has a new low.

62 56 57 56 52 46 42 49 54 47 56 48 50 57 49 49 2000 2001 2003 2004 2005 2006 2007 2008
NCR
Cebu
Davao
10
Q42. In your line of business, how many companies do you think give bribes to win The 2008 public sector contracts? (Almost all, Most, Few, Hardly any, None) SWS Surveys of

MEDIAN PERCENTAGE OF CONTRACT ALLOTTED AS BRIBE FOR A PUBLIC SECTOR CONTRACT

25%
Higher allotment now in NCR than in Cebu or Davao.

20% 20 20 17 15% 15 15 15 15 15 15 15 15 20 20 20 20 2000 2001 2003 2004 2005 10% 10 10 10 2006 2007 2008 5%
0%
NCR
Cebu
Davao
11
PERSONAL KNOWLEDGE OF PUBLIC SECTOR CORRUPTION IN ONES SECTOR OF BUSINESS IN THE PAST THREE MONTHS
60%
Apparent downtrend in Davao only.

50% 48 43 40% 39 48 49 46 41 48 45 40 39 2004 37 37 36 27 2005 2006 30% 2007 2008 20%
10%
0%
NCR
Cebu
Davao
12

Sincerity in Fighting Corruption
13
NCR/C/D 2008: RATINGS OF SINCERITY IN FIGHTING CORRUPTION

Very/ Somewhat Sincere Filipino Business Assns. SSS DTI Supreme Court City/municipal govt DOH COA DOF** 72% 62 60 57 57 53 48 44 Somewhat/ Very Insincere 8% 16 18 20 22 23 25 29 Page 1 of 4 Net* Sincere +64 +46 +42 +37 +35 +30 +23 +15
VERY GOOD (over +50) GOOD (+31 to +50)
MODERATE (+11 to +30)
*Net figures (% Sincere minus % Insincere) correctly rounded. **DOF was covered for the first time in 2008. Q7-37. PLEASE EVALUATE THE FOLLOWING INSTITUTIONS IN TERMS OF SINCERITY IN FIGHTING OR PREVENTING PUBLIC SECTOR CORRUPTION IN THE PHILIPPINES.
14


Page 2 of 4 Very/ Somewhat Sincere DepEd AFP Sandiganbayan Ombudsman Trial Courts Senate DBM 43% 39 37 38 31 35 34 Somewhat/ Very Insincere 36% 33 32 33 37 41 41 Net* Sincere +7 +6 +5 +4 -5 -6 -7
MEDIOCRE (-10 to +10)
*Net figures (% Sincere minus % Insincere) correctly rounded. Q7-37. PLEASE EVALUATE THE FOLLOWING INSTITUTIONS IN TERMS OF SINCERITY IN FIGHTING OR PREVENTING PUBLIC SECTOR CORRUPTION IN THE PHILIPPINES.
15

Very/ Somewhat Sincere GSIS DA DOJ PNP DILG PAGC DENR COMELEC DOTC Office of the Pres. 30% 30 29 28 27 24 26 24 25 27 Somewhat/ Very Insincere 42% 47 47 46 50 48 50 51 52 55 Page 3 of 4 Net* Sincere -12 -17 -17 -18 -23 -23 -25 -27 -27 -27
POOR (-11 to 30)
16


Page 4 of 4 Very/ Somewhat Sincere LTO PCGG House of Reps. BIR DPWH Bureau of Customs 22% 19 18 14 9 6 Somewhat/ Very Insincere 54% 50 59 70 72 79 Net* Sincere -32 -32 -41 -56 -63 -72
BAD (-31 to -50)
VERY BAD (below -50)
17
NET SINCERITY IN FIGHTING CORRUPTION, 2008

VERY GOOD (over+50): Filipino Business Associations GOOD (+31 to +50): SSS, DTI, Supreme Court, City/Municipal Government MODERATE (+11 to +30): DOH, COA, DOF MEDIOCRE (-10 to +10): DepEd, AFP, Sandiganbayan, Office of the Ombudsman, Trial Courts, Senate, DBM POOR (-11 to 30): GSIS, DA, DOJ, PNP, DILG, PAGC, DENR, ComElec, DOTC, Office of the President BAD (-31 to -50): LTO, PCGG, House of Representatives VERY BAD (below 50): BIR, DPWH, BOC
18

NCR/C/D: Moderate to Very Good Sincerity Ratings

Very Good
+70 +60 +52 +50 +40 +30 +20 +10 0 +8 +40 +46 +42 +51 +67 +64
Good
+48 +44 +37
LGUs and COA improve. Moderate

2006 +35 +27 +24 +27+29 +30 +23 +21 +15 2007 2008
Filipino SSS Business Assns.
NET SINCERITY IN FIGHTING CORRUPTION
DTI Supreme City/ Court Municipal Govt.
DOH
COA
DOF
19
NCR/C/D: Mediocre Sincerity Ratings

Sandiganbayan DepEd
+10 +2 0 +10 +7 +6 +5 +6 +4 +4 +4 +15 +13
+20
The AFP and Senate are no longer Poor. The Sandiganbayan has become Mediocre. Ombudsman
+9 +8 +6 2007 2008 2006
AFP Trial Courts -5 DBM

-7 -6 -7
-10 -10
Senate
-20
-20
-17
NET SINCERITY IN FIGHTING CORRUPTION
20

10
NCR/C/D: Poor Sincerity Ratings, Part 1 of 2

+20 +13 +10 +5 0
GSIS falls from Moderate to Poor. PNP rises from Bad to Poor.
DA GSIS
DOJ
PNP
DILG
2006
-10 -12 -20 -26
-8 -17 -20 -21 -25 -34 -17 -18 -21 -23
2007 2008
-30
-40 NET SINCERITY IN FIGHT ING CORRUPT ION
-36
21
NCR/C/D: Poor Sincerity Ratings, Part 2 of 2

0 -5 -3
-10
-20
-16
-15 -23 -22 -27 -36 -39
-15 2006 -27
PAGC
-30 -24 -25
DOTC -27
DENR
-40
Office of the Pres.
2007 2008
Comelec PAGC, DOTC and OP drop. Comelec rises to Poor.
-50
-60
NET SINCERITY IN FIGHT ING CORRUPT ION
-59
22

11
NCR/C/D: Bad to Very Bad Sincerity Ratings

PCGG is worsening.
0 -10 -20 -30 -29 -40 -50 -60 -70 -80 -34 -32 -13 -20 2006 2007 -33 -44 -41 -48 -57 -56 -60 -68 -63 -69 -75 -72 2008
Bad
Very Bad
PCGG-32
LTO
House of Reps.
BIR
DPWH
BOC
23
NCR/C/D, 2008: CITATIONS OF CHANGE IN CORRUPTION COMPARED TO 5 YEARS AGO (OPEN-ENDED, VOLUNTEERED)
Less Corrupt
DTI SSS DOH DepEd Supreme Court LGUs DOF AFP DENR LTO GSIS DOTC DA Office of the President BIR DPWH BOC 13% 12 11 12 5 7 4 4 3 8 3 2 4 1 6 1 1
More Corrupt
1% 1 3 6 1 4 1 5 6 10 6 7 11 18 32 27 44
Net*
+12 +12 +8 +6 +4 +3 +3 -1 -2 -2 -4 -5 -7 -17 -26 -26 -43
*Net figures (% Less corrupt minus % More corrupt) correctly rounded.
24

12
NCR/C/D: LESS CORRUPT CITATIONS MINUS MORE CORRUPT CITATIONS (OPEN-ENDED, VOLUNTEERED)
2006
DTI SSS DOH DepEd Supreme Court LGUs DOF AFP DENR LTO GSIS DOTC DA Office of the President BIR DPWH BOC +2 +7 +5 +9 +4 +5 +1 -3 -6 +6 +1 +1 -7 -9 -7 -16 -29
2007
+8 +7 +6 +5 +3 +2 +1 -4 -2 +4 +2 -1 -3 -4 -3 -20 -29
2008
+12 +12 +8 +6 +4 +3 +3 -1 -2 -2 -4 -5 -7 -17 -26 -26 -43
Steadily improving
Steadily worsening
*Net figures (% Less corrupt minus % More corrupt) correctly rounded.
25
Government Efforts to Fight Corruption:
26

13
FEELINGS THAT THE GOVERNMENT CAN BE RUN WITHOUT CORRUPTION ARE WEAKENING.
100%
80% 43 42 44 40 44 44
52
42 42 46 58
40 42 50 58 53 50 58 Part of the way govt. works Govt. can be run w/o corruption
60%
40% 55 57 56 60 56 55 20% 57 58 54 42 60 57 49 42 47 41
48
50
0%
00 01 03 04 05 06 07 08
04 05 06 07 08
04 05 06 07 08
NCR
Cebu
Davao
27
PROVISION OF INFORMATION ABOUT BIDDING FOR A GOVT. CONTRACT HAS APPARENTLY IMPROVED IN CEBU.
100% 8 12 80% 21 60% 9 16 16 8 16 8 15 15 23 23 17
14 9
13 15 STRONGLY DISAGREE SOMEWHAT DISAGREE UNDECIDED
40%
36
36 35
43
31
30
SOMEWHAT AGREE STRONGLY AGREE
20% 19 0% 20 17 18 21 25
07
NCR
08
07
Cebu
08
07
Davao
08
Q3. Statement: Compared to about 5 years ago, it is now easier for anyone who wants to bid on a government contract to get information about the bidding.
28

14
MOST DISAGREE THAT COMPARED TO ABOUT 5 YEARS AGO, GOVERNMENT OFFICIALS ARE NOW DOING MORE TO AVOID CORRUPT PRACTICES (2008)
100% 31 24 30 STRONGLY DISAGREE 29 30 40% 8 28 20% 24 7 29 11 12 9 22 SOMEWHAT DISAGREE UNDECIDED SOMEWHAT AGREE STRONGLY AGREE
80%
60%
0%
NCR
Cebu
Davao
29
Enterprises Solicited For A Bribe
30

15
NCR/C/D, 2008: ENTERPRISES ASKED LAST YEAR BY ANYONE IN GOVT. FOR A BRIBE ON THE FOLLOWING TRANSACTIONS:
71% 49%
Any of the listed bribes Getting Local government permits and licenses Getting National government permits and licenses Assessment and/or payment of income taxes
47% 46%
31%
Complying with import regulations including payment of import duties Supplying government with goods/services Collecting receivables from government Availing of government incentives The 2008 SWS Surveys of Enterprises on Corruption
29%
24% 22%
31
NCR/C/D: SOLICITATIONS FOR BRIBES PEAKED IN 2008

Any of the listed bribes Getting Local government permits and licenses
44 37 42 40 49 64 62 65 71
47
Getting National government permits and licenses
32 31 31 31 27 31 25 24 19 18 23 29 34
46
Assessment and/or payment of income taxes Complying with import regulations including payment of import duties Supplying government with goods/services
2008 2007 2006 2005
Collecting receivables from government
Availing of government incentives
11 11
24 21 17 19 22 14
0%
20%
40%
60%
80%
32

16
SOLICITATIONS FOR BRIBES ARE HIGHEST IN NCR: 2008

83 Any of the listed bribes 46 29 59 Getting National government permits and licenses 27 Assessment and/or payment of income taxes 32 Complying with import regulations including payment of import duties Supplying government with goods/services 41 27 14 32 25 28 27 21 20 25 21 15 NCR Cebu Davao 55 41 42 64 53 60 Getting Local government permits and licenses
Collecting receivables from government Availing of government incentives
0%
20%
40%
60%
80%
100%
33
ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE LOCAL GOVERNMENT PERMITS/LICENSES

100%
80%
In NCR, the favorable trend in 2000-06 was reversed in 2006-08.

2000 2001 60 55 54 50 46 45 42 37 32 33 24 26 48 46 39 33 29 37
60%
2003 2004 2005 2006 2007 2008
40%
20%
0%
NCR
Cebu
Davao
34

17
ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE NATIONAL GOVERNMENT PERMITS/LICENSES

80%
60%
59 2000 2001 42 43 37 34 32 33 36 25 39 42 2003 2004 30 23 22 30 2005 27 2006 2007 2008 9
40%
27
20%
0%
NCR
Cebu
Davao
35
ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE ASSESSMENT OR PAYMENT OF INCOME TAXES
80%
In NCR, the favorable trend in 2000-06 was reversed in 2006-08.

60% 52 50 43 42 40% 36 38 33 34 36 24 24 23 29 41 32 32 55 2000 2001 2003 2004 2005 2006 2007 2008
22 20%
0%
NCR
Cebu
Davao
36

18
ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE COMPLYING WITH IMPORT REGULATIONS INCL. IMPORT DUTIES
60%
40% 31 28 25 20% 17 10 18 14
41
2000 2001 2003 25 27 2004 2005 19 16 16 2006 18 14 2007 2008
24 23
2 0%
NCR
Cebu
Davao
37
ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE SUPPLYING GOVERNMENT WITH GOODS/SERVICES
60%
40% 32 24 25 18 17 13 18 29 28 24 28
2000 2001 2003 2004 2005 2006 2007 2008
22 20% 15 14 18 13 15 18
0%
NCR
Cebu
Davao
38

19
ENTERPRISES ASKED FOR BRIBES LAST YEAR RE COLLECTING RECEIVABLES FROM GOVERNMENT
60%
40%
But there was a 10 pt drop in Davao.
2000 2001 2003
27 20% 13 9 8 10 19 15 12 15 13 19 21 13
26
28
30
2004 2005 20 2006 2007 2008
18
0%
NCR
Cebu
Davao
39
ENTERPRISES ASKED FOR BRIBES LAST YEAR RE AVAILING OF GOVERNMENT INCENTIVES

60%
2000 40% 2001 2003 2004 25 20% 11 13 9 6 2 9 14 11 21 17 10 6 0% 4 4 9 14 15 2005 2006 2007 2008
NCR
Cebu
Davao
40

20
NCR/C/D: REPORTING OF BRIBESOLICITATION IS LOW BUT GROWING

Base: Total solicited for a bribe
100%
80%
60% 93 40% 94 91
86
Did not report it Formally reported it to an anti-corruption authority
20% 7 9 14
0%
2005
2006
2007
2008
41
THE RATE OF REPORTING OF BRIBE-SOLICITATION IS MUCH HIGHER IN CEBU & DAVAO (2008)
Base: Total solicited for a bribe
100%
80% Did not report it 60% 90 40% 80 81 Formally reported it to an anti-corruption authority
20% 20 10 0% 19
NCR
Cebu
Davao
42

21
NCR/C/D: FUTILITY IS THE M AIN AND PEAK REASON FOR NOT REPORTING
Base: Total solicited for a bribe, who did not report it
Nothing would be done anyway Can not prove anything Will spend much
33 42 46 50 46 46 47 52 45 47 42 37 29 29 25 27 24 33 34 41 40 46 68 69 79
61 61 59 57
It is standard practice not to report Afraid of reprisal Too small a thing to bother Don't know how or whom to report Don't want to betray anyone
16
55 54 52
2008 2007 2006 2005
It is embarrassing
12
17 17
0%
20%
40%
60%
80%
Q55. IF DID NOT REPORT: Why did you not report this? (ENCIRCLE ALL THAT APPLY)
43
REASONS FOR NOT REPORTING, BY AREA, 2008

Base: Total solicited for a bribe, who did not report it
81 80
Nothing would be done anyway Can not prove anything Will spend much It is standard practice not to report Afraid of reprisal Too small a thing to bother Don't know how or whom to report Don't want to betray anyone It is embarrassing 24 21 28 37 29 30 43 51 51 60 61 57 58 54 56 60 65 65 65 65
72
40 40 43 40
NCR Cebu Davao
0%
20%
40%
60%
80%
100%
Q55. IF DID NOT REPORT: Why did you not report this? (ENCIRCLE ALL THAT APPLY)
44

22
NCR/C/D: WHAT AGENCIES DO YOU TRUST TO BRING A COMPLAINT TO?

Page 1 of 3 2006 22% 28 13 5 7 5 2 3 1 3 7 2007 2008 26% 32% 29 25 5 8 6 6 3 5 4 3 3 3 2 2 1 2 2 2 4 2
None Office of the Ombudsman Municipal/City Government National Bureau of Investigation (NBI) Dept. of Justice (DOJ) Dept. of Trade and Industry (DTI) Supreme Court Trial Courts Dept. of Finance (DOF) Phil. National Police (PNP) Office of the President
Note: Responses below 0.5% in the 2008 survey are not shown. Q44. If a company in your sector is being harassed by corrupt government officials, to which government agency can it trust to bring a complaint?
45

Page 2 of 3 2006 4% 2 1 5 3 1 2 0.2 1 2007 2008 2% 1% 1 1 1 1 3 1 3 1 1 1 0.4 1 0.2 1 1 1
Presidential Anti-Graft Commission (PAGC) Senate House of Representatives Sandiganbayan Dept. of Interior and Local Government (DILG) Commission on Audit (COA) Securities and Exchange Commission (SEC) Dept. of Energy (DOE) Bangko Sentral ng Pilipinas
46

23

Page 3 of 3 2006 --0.4 0.2 1 1 0.2 3 2007 2008 -0.5 -0.5 1 0.5 1 0.5 0.4 0.5 1 0.5 0.2 0.5 6 2
Commission on Higher Education (CHED) Government Service Insurance System (GSIS) Civil Service Commission Dept. of Transportation and Communication (DOTC) Phil. Commission on Good Governance (PCGG) Armed Forces of the Philippines (AFP) Phil. Economic Zone Authority (PEZA) Dont know/refused
47
Private Sector Corruption:
48

24
COMPARATIVELY FEW SAY THERE IS A LOT OF CORRUPTION IN THE PRIVATE SECTOR

40%
2000 2001
20%
14 9 13 10 11 8 9 7
2003 2004 2005 12 9 9 10 7 4 8 8 7 7 2006 2007 2008
0%
NCR
Cebu
Davao
Q45. How much corruption do you think there is in the private sector? (A lot, Some, A little, None) The 2008 SWS Surveys of
49
MOST/ALMOST ALL COMPANIES IN MY LINE OF BUSINESS GIVE BRIBES TO WIN PRIVATE SECTOR CONTRACTS
Base: Total who say there is corruption in the private sector
60%
50% 2000 2001 2003 30% 27 23 20% 29 24 22 18 18 22 27 24 20 18 18 20 18 27 28 27 2004 2005 2006 2007 10% 2008
40%
0%
NCR
Cebu
Davao
Q46. In your line of business, how many companies do you think give bribes to win private business sector contracts? (Almost all, Most, Few,The 2008 SWS Surveys of Hardly any, None)
50

25
MEDIAN PERCENTAGE OF CONTRACT ALLOTTED AS BRIBE FOR A PRIVATE BUSINESS CONTRACT

Base: Total who say there are companies, in their line of business, bribing to win private sector contracts 20%
15%
2000 2001 2003 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10
10%
2004 2005 2006
5%
2007 2008
0%
NCR
Cebu
Davao
51
Business Efforts to Fight Corruption
52

26
FEELINGS OF POTENCY IN FIGHTING CORRUPTION ARE SLIPPING

100% 13 80% 11 4 4 60% 32 30 40% 25 24 13 17 11 15 17 14 STRONGLY AGREE SOMEWHAT AGREE UNDECIDED SOMEWHAT DISAGREE 46 32 41 STRONGLY DISAGREE
22 3
20 9
20 4 13
22 6 17
20%
40
36
39
0%
07
NCR
08
07
Cebu
08
07
Davao
08
Q2. Statement: A person like me cannot do anything to reduce corruption in the government.
53
ONLY ABOUT HALF SAY BUSINESSES ARE MOVING TOWARDS PAYING TAXES MORE HONESTLY
100% 9 80% 20 28 60% 15 16 40% 44 29 20% 12 0% 14 19 36 22 10 13 13 STRONGLY DISAGREE SOMEWHAT DISAGREE UNDECIDED SOMEWHAT AGREE STRONGLY AGREE
NCR
Cebu
Davao
Q5. Statement: Compared to about 5 years ago, businesses are now doing more to avoid tax-evasion.
54

27
LESS THAN HALF SAY THAT BUSINESSES ARE DOING MORE TO AVOID SMUGGLING
100% 12 80% 30 60% 11 40% 38 20% 8 8 12 35 32 14 15 29 24 14 17 STRONGLY DISAGREE SOMEWHAT DISAGREE UNDECIDED SOMEWHAT AGREE STRONGLY AGREE
0%
NCR
Cebu
Davao
Q6. Statement: Compared to about 5 years ago, businesses are now doing more to avoid smuggling.
55
AWARENESS OF THE COALITION AGAINST CORRUPTION (CAC) IS GROWING STEADILY

100% 28 80% 49 45 41 45 43 52 37 46 54 Previously Not Aware 60% Previously Aware 44 33
40% 72 51 20% 55 59 55 57 48 63 54 46 56 67
0%
05 06 07
08
05
06 07
08
05
06 07
08
NCR
Cebu
Davao
Q62. Were you previously aware of the CAC, or is this the first time that you hear about it?
56

28
EXPECTED CHANGE IN NET INCOME, IF CORRUPTION IS REDUCED TO THAT OF SINGAPORE, IS POSITIVE

100% 13 1 80% 32 60% 31 30 30 32 35 34 29 31 40 7 2 6 2 3 2 5 3 8 3 5 3 14 11 5 4 7 7 40 45 23 20 23 3 5 4 13 7 9 19 16 8
negative change
5 3
7 4
No ans/ref/not aware
45 52
no change positive change
40% 54 20% 65 60 62 60 54 57 50 56 46 54 46 57 52 53
47 39
0%
01 03 04 05 06 07 08
04 05 06 07 08
04 05 06 07 08
NCR
Cebu
Davao
57
MEDIAN % OF NET INCOME ENTERPRISES ARE WILLING TO PAY TO FUND A PROGRAM TO CUT CORRUPTION BY HALF IN 10 YEARS
6% 5 5 5 5 4 3 2.5 2% 1 0% 2 2 1 2 2 2 2 3 5 5 2000 2001 4% 2003 2004 2005 2006 2007 2008
NCR
Cebu
Davao
58

29
MEAN SPENDING IN THE LAST 2 YEARS & IN THE NEXT 2 YEARS TO COMBAT FRAUD AND CORRUPTION IN OWN COMPANY
Amount spent in the last 2 years Amount likely to be spent in the next 2 years
2007 2008
180 160 140 120 100 80 60 40 20 0
In pesos
180 In pesos 160 140 120 158,000
157,000
139,000 126,000 132,000 106,000 92,000 97,000
87,000 74,000 79,000
100 82,000 80 60 40 20 0
NCR
Cebu
Davao
NCR
Cebu
Davao
59
MEAN CONTRIBUTION IN THE LAST 2 YEARS & IN THE NEXT 2 YEARS TO A PRIVATE ANTI-CORRUPTION PROGRAM
100 In pesos 2007 2008
80
Amount willing to contribute in the next 2 years 74,000

64,000
In pesos
60 50 40 37,000 30 20 10 0
Amount contributed in the last 2 years

51,000
60 44,000 46,000
57,000
36,000 31,000
40 31,000
20 8,000 8,000
NCR
Cebu
Davao
NCR
Cebu
Davao
60

30
WAYS FOR PRIVATE BUSINESSES TO REDUCE CORRUPTION, 2008

Use honest business practices at all times 75 77 84 Know the laws and rules of government transactions Join a civil society organization whose mission is to fight corruption Report corruption to mass media 8 13 Campaign against corrupt political candidates Report government corruption to the Office of the Ombudsman 19 17 5 6 22 11 NCR Cebu Davao 25 17 23 19 68 62 62 83 82 88 Never pay bribes
0%
20%
40%
60%
80%
100%
61
ENTERPRISES THAT PUNISH CORRUPT EXECUTIVES ALMOST ALWAYS OR OFTEN

70% 60% 54 50% 44 40% 32 30% 20% 10% 0% 61 52 53 48 61 53 47 51 47 43 43 53 2004 2005 2006 2007 2008
NCR
Cebu
Davao
Q48. In your sector of business, how often do enterprises punish their corrupt executives? (Almost always, Often, Seldom, Almost never, Not applicable)
62

31
Honest Business Practices: Mixed Trends
63
ALMOST ALL COMPANIES IN MY LINE OF BUSINESS PAY TAXES HONESTLY

40%
30% 26 21 21 20% 17 15 10% 11 19 17 15 17 14 13 20 18 22 20 2003 2004 2005 2006 2007 2008
0%
NCR
Cebu
Davao
64

32
ALMOST ALL COMPANIES IN MY LINE OF BUSINESS ALWAYS ISSUE RECEIPTS FOR ALL REVENUES
50% 45 42 40% 35 30% 36 33 33 28 38 35 37 35 41 37 35 34 37 2003 2004 2005 2006 20% 2007 2008 10%
0%
NCR
Cebu
Davao
65
ALMOST ALL COMPANIES IN MY LINE OF BUSINESS KEEP ONLY ONE SET OF BOOKS
50%
40% 34 33 30% 25 20% 21 22 18 23 19 23 21 20 17 23 23 21 28 2003 2004 2005 2006 2007 2008
10%
0%
NCR
Cebu
Davao
66

33
ALMOST ALL COMPANIES IN MY LINE OF BUSINESS ALWAYS DEMAND RECEIPTS FOR ALL PAYMENTS FOR EXPENSES
70% 62 60% 53 50% 49 55 50 50 52 50 52 49 53 49 2005 40% 2006 2007 30% 2008
20%
10%
0%
NCR
Cebu
Davao
67
The Business Climate
68

34
SATISFACTION WITH THE NATIONAL GOVERNMENT IN PROMOTING A GOOD BUSINESS CLIMATE HAS FALLEN
100% 10 80% 15 9 11 22 21 41 60% 19 22 40% 15 43 20% 28 0% 6 9 0 4 10 9 37 50 46 35 18 26 25 11 5 13 27
Very Dissatisfied Somewhat Dissatisfied Undecided Somewhat Satisfied Very Satisfied
11
07
NCR
08
07
Cebu
08
07
Davao
08
Q81. How satisfied or dissatisfied are you with the National Governments performance in promoting a good climate for business in the Philippines?
69
SATISFACTION WITH THE CITY/MUNICIPALITY IN PROMOTING A GOOD BUSINESS CLIMATE IS HIGHER, AND STABLE
100% 6 17 80% 18 60% 53 40% 50 20% 27 0% 9 6 11 13 27 50 60 57 48 18 4 21 15 4 10 4 15 11
Very Dissatisfied Somewhat Dissatisfied Undecided Somewhat Satisfied Very Satisfied
1 9 10
3 8 14
07
08
07
08
07
08
NCR Cebu Davao Q82. How satisfied or dissatisfied are you with the City/Municipal Governments performance in promoting a good climate for business in this City/Municipality.?
70

35
NCR/C/D: BUSINESS EXPECTATIONS HAVE TURNED DOWN

100% 6 21 31 40 60% 40 40% 53 41 20% 25 3 6 5 9 6 44 33 40 43 Very Poor Poor Fair Good Excellent 2 10 2 9 2 5 3 13
80%
0%
2004
2005
2006
2007
2008
Q83. In the next 2 years, do you expect that business conditions will be . . .
71
BUSINESS EXPECTATIONS IN THE NEXT 2 YEARS, BY AREA

100% 2 5 6 18 80% 34 42 60% 42 40% 50 40 20% 29 8 0% 11 9 12 64 54 33 2 3 20 30 47 Very Poor Poor Fair Good Excellent 2 8 2 4 0 8
07
NCR
08
07
Cebu
08
07
Davao
08
Q83. In the next 2 years, do you expect that business conditions will be . . .
72

36
Summary of Findings
73
Summary of Findings-1
The TAG8 survey reports views of 402 enterprises in NCR, Cebu and Davao. 3/5 see a lot of corruption in the public sector; no improvement here. Anti-corruption ratings up: LGUs, COA, AFP, Senate, PNP, Comelec. Anti-corruption ratings down: Sandiganbayan, GSIS, PAGC, DOTC, OP, PCGG. Feelings that the govt. can be run without corruption are weakening.
74

37
7 of 10 companies were asked for a bribe in an index-transaction -- a peak, since 2005. Most bribe-solicitation trends are up; previous downtrends in NCR re LGU permits and income tax transactions were reversed. Reporting of bribe-attempts rose slightly, but is still low.
75
Less than 10% see a lot of private sector corruption. The usual allotment for a bribe in a private deal is still 10%, vs. 20% in a public deal. Managers feelings of efficacy in fighting corruption have declined a bit. At most 1/2 see business becoming more honest in taxpaying and importing. Financial contributions to private anticorruption programs are going up. At most 1/2 punish their corrupt executives.
76

38
Trends in using four honest business practices are mixed. Satisfaction with national govt. promotion of a good business climate dropped in 2008. Satisfaction with local govt. promotion of a good business climate is higher, and stable. Business expectations are now only Fair, compared to Good in 2005-07.
77
Surveys of Enterprises on Corruption 2008 PROJECT STAFF

Project Director Survey Consultant Project Manager and Publication Editor Project Coordinator Field Manager Data Processing Manager Data Processing Assistant Linda Luz B. Guerrero Mahar Mangahas Leo Laroza Anne Abcede Germelita Caron Gerardo Sandoval Malou Laxamana Lhuz Borja

39
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E-mail: sws_info@sws.org.ph
Tels: 926-4308, 924-4456, 924-4458, 924-4465

40

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Transparent Accountable Governance:

The 2008 SWS Surveys of Enterprises on Corruption

The 2008 SWS Surveys of Enterprises on Corruption

SOCIAL WEATHER STATIONS

The 2008 SWS Surveys of Enterprises on Corruption

The 2008 SWS Surveys of Enterprises on Corruption

SOCIAL WEATHER STATIONS

SWS SURVEYS OF TOP/MIDDLE MANAGEMENT OF ENTERPRISES ON CORRUPTION, 2000-2008

The 2008 SWS Surveys of Enterprises on Corruption

SOCIAL WEATHER STATIONS

NCR/C/D NCR METRO CEBU METRO DAVAO

402 202 100 100

The 2008 SWS Surveys of Enterprises on Corruption

Public Sector Corruption

The 2008 SWS Surveys of Enterprises on Corruption

SOCIAL WEATHER STATIONS

2004 2005 2006

In NCR, the downtrend stopped. Davao has a new low.

SOCIAL WEATHER STATIONS

MEDIAN PERCENTAGE OF CONTRACT ALLOTTED AS BRIBE FOR A PUBLIC SECTOR CONTRACT

Higher allotment now in NCR than in Cebu or Davao.

Apparent downtrend in Davao only.

SOCIAL WEATHER STATIONS

Sincerity in Fighting Corruption

The 2008 SWS Surveys of Enterprises on Corruption

NCR/C/D 2008: RATINGS OF SINCERITY IN FIGHTING CORRUPTION

MODERATE (+11 to +30)

The 2008 SWS Surveys of Enterprises on Corruption

SOCIAL WEATHER STATIONS

NCR/C/D 2008: RATINGS OF SINCERITY IN FIGHTING CORRUPTION

MEDIOCRE (-10 to +10)

The 2008 SWS Surveys of Enterprises on Corruption

NCR/C/D 2008: RATINGS OF SINCERITY IN FIGHTING CORRUPTION

POOR (-11 to 30)

The 2008 SWS Surveys of Enterprises on Corruption

SOCIAL WEATHER STATIONS

NCR/C/D 2008: RATINGS OF SINCERITY IN FIGHTING CORRUPTION

BAD (-31 to -50)

VERY BAD (below -50)

The 2008 SWS Surveys of Enterprises on Corruption

NET SINCERITY IN FIGHTING CORRUPTION, 2008

The 2008 SWS Surveys of Enterprises on Corruption

SOCIAL WEATHER STATIONS

NCR/C/D: Moderate to Very Good Sincerity Ratings

LGUs and COA improve. Moderate

Filipino SSS Business Assns.

NET SINCERITY IN FIGHTING CORRUPTION

DTI Supreme City/ Court Municipal Govt.

The 2008 SWS Surveys of Enterprises on Corruption

NCR/C/D: Mediocre Sincerity Ratings

AFP Trial Courts -5 DBM

The 2008 SWS Surveys of Enterprises on Corruption

SOCIAL WEATHER STATIONS

NCR/C/D: Poor Sincerity Ratings, Part 1 of 2

-10 -12 -20 -26

-8 -17 -20 -21 -25 -34 -17 -18 -21 -23

-40 NET SINCERITY IN FIGHT ING CORRUPT ION

The 2008 SWS Surveys of Enterprises on Corruption

NCR/C/D: Poor Sincerity Ratings, Part 2 of 2

-15 -23 -22 -27 -36 -39

-15 2006 -27