World Business Chicago adopts new ethics policy

World Business Chicago adopts new ethics policy


By David Roeder
Business Reporter
Last Modified: Nov 4, 2011 07:44PM

World Business Chicago, the agency that uses public and private money to promote the city to new businesses, said Friday its board has adopted an ethics policy to counter criticism about potential conflicts of interests.

One change is that the group will no longer advocate economic incentives for a particular company. Last summer, the city’s inspector general scolded World Business Chicago for campaigning for tax-increment financing deals for two companies represented on its board.

The companies, futures exchange owner CME Group Inc. and United Airlines parent United Continental Holdings Inc., got a combined $50 million for retaining jobs in Chicago or bringing them in.

The high-powered board of corporate leaders was doubled in size by Mayor Rahm Emanuel, who is its chairman. Emanuel ordered its members to knuckle down and use their contacts to promote Chicago to new businesses.

Under the new policy, they’ll be prohibited from voting on or contributing to decisions by the organization that might benefit their own employer.

Also, World Business Chicago will begin publishing audited financial statements and document all funding sources and the amounts they give.

“We have an obligation to show the taxpayers that this is a good investment,” said Michael Sacks, vice chairman of the group and chief executive of Grosvenor Capital Management LP.

He emphasized the policy was endorsed unanimously and that the directors have “fully embraced” accountability and transparency of operations. Sacks said the board approved the policy Thursday night.

It draws on recommendations by attorney David Hoffman of the firm Sidley Austin LLP. Hoffman, a former inspector general for the city and onetime candidate for the U.S. Senate, worked for free on the topic.

Sacks said the city is expected to provide $1 million for the group next year, a third of its budget. The balance comes from private donations. City funding used to constitute more than half of its spending.

Hoffman said that eliminating the advocacy role on incentives won’t affect World Business Chicago’s promotional efforts. Most of the group’s activities are informational, such as referring companies to available locations and providing market research, he said.

“This policy recognizes that there needs to be a different approach and heightened sensitivity whenever WBC is talking about direct economic incentives from the city,” Hoffman said.

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http://www.suntimes.com/business/8622538-420/world-business-chicago-adopts-new-ethics-policy.html

Editor's note: Your ProbateShark has questioned Gen. Hoffman previously on this blog and media commentary as to the problem with a Cook County court system reputed worldwide to a criminal enterprise. What business would want to exist in a business environment where corrupt judges try cases based on the highest bidders rather than merit? Lucius Verenus, Schoolmaster, ProbateSharks.com