Norway is holding on to its position on the Top 5 less corrupt countries in the world, but barely. It’s Corruption Perceptions Index (CPI) has been declining since 2021, and at 81/100, it’s as low as it’s ever been since 2012.
What is the Corruption Index by Transparency International (CPI)?
The CPI is a global benchmark tool which evaluates and ranks the prevalence of corruption in 180 countries worldwide. Gathering data from multiple sources, it’s ultimate purpose is to measure how the public sector in each of the analysed countries is perceived to be.
Why is the CPI Important?
The CPI is the culmination of multiple assessments and surveys carried out by institutions such as the World Bank and the World Economic Forum. A minimum of 3 data sources are used to calculate a country’s score, which is expressed as a number from 0 to 100.
How has Norway’s position deteriorated?
In the past nine years, Norway’s in the CPI has been eroded by 7 points, going from 88 points in 2015 to 81 in 2024. Sweden’s decline has been even worse (9 lost points since 2015), signalling that this is not strictly about one country, but a general trend of increased perception of corruption across Scandinavia and Western Europe. The outlined reasons for this decline are manifold:
- Climate efforts: corporate lobbyists have been relatively successful in weakening climate commitments, with the European Green Deal being a particular target.
- Vulnerabilities in public procurement: unlike other countries, corruption in public procurement is not regarded as a systemic problem in Norway. Nevertheless, there have been publicized instances of corruption using taxpayers’ money, with both political figures (Espen Teigen) and private companies (Boligbygg) being convicted.
- Legal gaps: Norway needs a national strategy for anti-corruption and lobbying groups should be held to higher standards of accountability.
Opportunities and Challenges for Businesses
Opportunities:
- Market Differentiation: Companies that proactively screen any potential suppliers are more easily able to stay clear of corrupt practices and lower their risk of infringement.
- Streamlined Reporting: By showcasing their compliance with the Norwegian Transparency Act, companies indicate that they’ve taken their due diligence obligations seriously.
- Enhanced Supply Chain Visibility: The DPP fosters deeper collaboration across supply chains, enabling better risk management and ethical sourcing.
Challenges:
- Data Collection: Gathering detailed company data across the value chain —from material sourcing to recyclability—requires robust systems and stakeholder collaboration.
- Compliance Costs: Small and medium-sized enterprises (SMEs) may face financial hurdles.
- Accountability: Increased transparency exposes businesses to scrutiny over labor practices, governance, and environmental impacts.
How to keep corruption at bay
- Regularly engage with internal and external stakeholders : Assess the availability and quality of your existing governance data. Identify gaps and establish priorities for data collection.
- Engage Suppliers: Collaborate with suppliers to improve data sharing and ensure your supply chain is free of bribery and corruption.
- Leverage Technology: Invest in digital tools that give you full transparency across your supply chain, through Chain Survey and Network Effects.
- Promote best practices: Create avenues to prevent instances of corruption, such as a Whistleblower mechanism.
- Stay Informed: Keep an eye on both national and global corruption trends.
Factlines’ Role in fighting corruption
At Factlines, we have over a decade of experience in helping businesses staying one step ahead of their compliance obligations. Our platform provides both out of the box solutions to comply with the Norwegian Transparency Act, the CSDDD, EU Taxonomy and CSRD, as well as accommodating customized questionnaires and pre-qualification of suppliers and projects.
Norway needs to recover some ground in transparency and accountability in order to reclaim its place as a world leader against corruption. Thankfully, Norway has also produced innovative SaaS solutions to help companies and the public sector in their ongoing fight against bribery and corruption.
Ready to strengthen your anti-corruption efforts?
Book a meeting with our team to explore how Factlines can help you navigate compliance — or get started with a free trial today.
