While not recounting all that has happened in the past one year with regards to the Anti-Corruption crusade by the President Yar Adua Administration, do we consider the activities of the Anti-Corruption agencies to be more vibrant, compared to what we witnessed in the last democratic dispensation? Has our image fared better in the international scene with regards to our seriousness in fighting Corruption?
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Whereas the requirements for acceding to the Convention On Business Integrity are detailed and stringent, the benefits may also not be so obvious at first. However, there are several advantages, ranging from those that could profit individual signatories as well as the national economy as a whole. Some of these are listed below.
Enhancing company reputation
Less Uncertainty and Risks
Minimizing risk of criminal and civil sanctions
Heightening Employee awareness of Corporate policy
Protection of shareholders Assets
Enhancing company reputation - The public reputation of a company is obviously a very precious commodity to it if only to go by the volume and quantity of advertising that many firms undertake to boost their image. A company suffers severe damage to its reputation by being associated with corrupt practices in the public mind. Subscribing to the Convention On Business Integrity not only gives the positive image but also helps organisations to put checks in place to control errant employees or undertake needed reform of defective internal procedures. Conversely, a company or organisation can suffer damage to its reputation by being associated with corrupt practices in the public mind.
Less Uncertainty and Risks - The impact of corruption on the environment in which the private sector must operate is manifold. First and foremost, it introduces uncertainty on issue such as whether or not contracts will be honored, if impartial and competent adjudicators can resolve disputes, if future decisions can be predicted with requisite certainty. Where corruption introduces uncertainty, it also increases risk. Furthermore, corrupt relationships operate to keep newcomers out of the game, thereby inhibiting the growth of the private sector itself.
Minimizing risk of criminal and civil sanctions - The risk is real because where companies practice, condone or turn a blind eye to corrupt practices, they may find that they become entangled in infractions of the law and the possibility of criminal action being taken against them or their managers. For instance, a company that has not geared its corporate practices to fighting corruption may find that one of its employees has run foul of the law by receiving or giving bribe .Apart from the resulting poor publicity and the loss of business, the company risks other sanctions including prosecution or being blacklisted by industry regulators.
Heightening Employee awareness of Corporate policy - In organisations where the management are opposed to engaging in corrupt practices, it is useful for them to subscribe to a voluntary code of conduct like the Convention On Business Integrity Apart from preventing the embarrassment that may arise from the behavior of an errant employee, subscription to the convention is a means of heightening employee awareness of corporate policy. In addition to providing a framework in which the employee can situate his actions, it also amounts to giving training to company managers and staff in business ethics. It saves the firm the costs of having to develop separate codes of conduct for its employees especially as there is a need for some broad consensus on which actions are permissible and those that should be avoided.
Protection of shareholders Assets - It goes without saying that one of the key duties of management of a company is the protection of shareholder assets. Since corruption can erode such asset base through payment of bribes, uncompetitive tendering for supplies or outright fraud, it is of interest to a firm for there to be internal controls as well as external constraints on corruption. It helps to establish procedures that discourage corruption in-house and payment of graft to other entities and thereby contribute to protecting shareholders assets.
