by: Harriet Kemp
Bribery, corruption and facilitation payments were the most commonly reported issues recorded by the Institute of Business Ethics’ media monitoring during 2013. They accounted for 13% of all the stories on business ethics. The sectors most frequently mentioned were extractives (70%), defence and security (63%), pharmaceuticals (47%) and broadcast/media (33%).
Businesses still have some way to go to embed anti-bribery and corruption mechanisms effectively into their culture. This gap between saying and doing is also reflected in external studies. A survey by Control Risks and the Economist Intelligence Unit found that 25% of companies felt there was at least a “somewhat likely chance” their company would be required to investigate a suspected violation of anti-bribery laws involving an employee in the next two years.
The cost of corruption
The effects of corruption on society are well documented. Politically it represents an obstacle to democracy and the rule of law; economically it depletes a country’s wealth, often diverting it to corrupt officials’ pockets and, at its core, it puts an imbalance in the way that business is done, enabling those who practise corruption to win.
The language of bribery also deceives, implying that what is being offered or expected is of no consequence. But corruption is not a victimless crime; it leads to decisions being made for the wrong reasons. Contracts are awarded because of kickbacks and not whether they are the best value for the community. Corruption costs people freedom, health and human rights and, in the worst cases, their lives. It may also cost companies, as the UK Anti-Bribery Act takes force, making an organisation culpable if it fails to have “adequate procedures” in place to stop bribery and corruption.
The challenge for companies
Most companies offer employees some guidance on anti-bribery and corruption. However, the global nature of today’s business means that organisations can have difficulties when trying to embed policies around the globe.
Mao Zedong said “food before ethics”. While no one would suggest that bribery and corruption are good things, if you believe your job is dependent on offering or paying a bribe, the corruption policy sent round by head office may have little bearing on your decision in the moment.
Employers need to provide relevant support to staff to help them recognise, understand and respond to the ethical challenges they may face.
Creating a culture that influences employees’ actions, decision making and behaviour can be a challenging and lengthy process, requiring sensitivity, patience and resources. Corruption can be so ingrained into a company’s culture as to be considered “the way business is done”.
This can be the case especially for companies who use agents, or who operate in countries where enforcement of anti-corruption regulation is poor and facilitation payments are seen as the norm. Getting staff to see that a backhander is actually a form of corruption takes time and requires regular communication and training.
Support for staff
Difficult decisions for employees often arise in everyday situations, when travelling, when offering or accepting gifts and hospitality or when negotiating with customers and suppliers. Anyone can offer or be offered a bribe. Being clear about what can and can’t be accepted is good business practice and reduces the risk of corruption.
The Institute of Business Ethics has developed a free app, the Say No toolkit, which provides the practical guidance to recognise a difficult situation and to do the right thing in response. It has been designed to help employees have the confidence to make the right decision in situations which could lead to accusations of bribery.
Tone at the Top
But even with the support of a decision-making tools and apps, it is one thing to know the “right” decision to make, but often another to be able to apply that decision. Factors such as fear, ignorance, and real or perceived pressure to meet business targets, or pressure from a more senior figure, can make ethical decision-making harder.
Visible support from leadership is critical; the impact of leading by example should not be underestimated. If senior management declare a zero-tolerance approach to bribery and corruption, they must demonstrate that they will support staff if they lose contracts or business in the short-term as a result. Creating a culture of integrity and openness – where ethical dilemmas arising from doing business in corruption hotspots are discussed, and employees feel supported to do the right thing – is a powerful way to help mitigate against the risk of an ethical lapse.
The culture of an organisation is ultimately set by people at the top. Leaders who regularly talk about ethical issues, support staff to uphold ethical standards and behave in an open and transparent way send the message to all employees, and to the wider world, that the fight against corruption is taken seriously.
Source: theguardian
