The Time for Business to Fight Corruption
The Sri Lanka Institute of Directors (SliD) believes that the time for business is right to fight corruption and strengthen its internal resilience. There are several key aspects to consider in this area, including: Case studies, tools, approaches, and the impact on human rights. The SliD also advocates the creation of a global business anti-corruption framework.
Case studies
Case studies have become a popular tool for policy-making and campaigning. They are most commonly used in business schools and use the Harvard format, which is renowned for its practical analysis. Case studies of corruption are also useful for campaigning, as they allow systematic analysis of a specific case and judgement of its level of corruption. They also help present the relevant information in an easily-understood format. If you are interested in developing a case study of corruption, you should consult the CSC Case Study Template.
Many businesses struggle with the problem of corruption. This issue has a global scope, and a culture of compliance is required to tackle it effectively. The use of whistleblowers, antitrust laws, and civil society engagement is also important to combat global corruption. A return to good governance can help companies maintain their competitiveness and attract investment.
Tools
There are a variety of tools available to combat corruption in business. These include the OECD standard, which was developed by a global stakeholder group with no legal ties to any country. Because of this, some organizations may find this tool more acceptable as it provides a common language for anti-bribery efforts.
The TechSprint, which took place June 21 to 24, focused on improving due diligence and transparency in financial transactions. The event attracted 370 participants from over 70 countries, including several startup companies and governments. Participants were encouraged to collaborate and learn from each other. In addition to building prototypes, the organizers also invited a panel of experts to review the concepts. The results of the TechSprint will be made open-source, enabling other governments and organizations to use them for free.
Approaches
Effective approaches to tackling corruption are critical for companies. Corruption in the business world is detrimental to society and the bottom line. It poses significant financial, operational, and reputational risks. As a result, companies are increasingly implementing anti-corruption measures and policies. Here are some of the key approaches.
The first step to tackling corruption in the business world is to develop a culture of anticorruption in the workplace. This means developing a corporate culture that promotes anticorruption, sharing a code of ethics, and strengthening management and leadership skills. Those approaches can be effective if coupled with incentives to encourage compliance.
Impact on human rights
In an effort to improve the way business conducts itself, some companies are establishing a dedicated human rights function. But the key challenges are internal buy-in and coordination with other relevant functions. As a result, there is no clear ownership of the risk, and there is no board attention or oversight. Despite this, the majority of companies have defined human rights policies or are engaged in reviewing their existing policies.
The UN has set up a Special Rapporteur to examine the relationship between human rights and corruption. In its 2020 Report, the UN Working Group on Human Rights and Transnational Corporations examined the issue. And in Ukraine, the Independent Expert on the Effects of Foreign Debt on Human Rights addressed the issue in his 2019 Visit Report.
Cost of corruption in government procurement
The cost of corruption in government procurement is often overlooked, yet it affects many aspects of public spending. Rather than being an isolated problem, it impacts many different sectors, including military, technology, and social care. This lack of competition is often difficult to identify, but it affects the composition of budgets and the dynamics of markets.
Corruption in public procurement occurs when public officials have a conflict of interest. They may be bribed in exchange for the right to shape the rules for a tender, or may favor a company by giving it a higher evaluation. In addition, corrupt companies can manipulate their bids to gain an advantage over competitors, thereby increasing the cost of public services.
