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Corruption/bribery

Seamless and transparent business can do without corruption

All businesses gain in being conducted in an ethical manner and with integrity. Many companies operating in weak rule of law countries and competing against companies with weak governance standards are still faced with the dilemma of paying bribes to win business or withdrawing from high-risk markets. Even if corruption is easy and seems a faster way to make business, on the long-term transparency in finance and practices seems to be more efficient. It provides a better way to distribute resources by a higher growth rate. More transparency is also a means for reassuring investors and buyers. Working in a corruption-free environment is healthier for employees and employers as it decreases stress on crime-related and illegal issues.

What is the risk in the supply chain?

It takes two to corrupt and bribe: one to give, one to receive. Be it with money, influence, blackmail or advantages, giving up to corruption leads to a shadow, under-cover business reality which entails many potential risks:

• Loss of profit: the time and money invested in hidden practices diminishes the possibilities to create a solid and efficient business. It diverts resources that could be exploited better collectively and prevents fair and vigourous competition
• Moral impact: adhering to a corrupt business system affects the motivation and empowerment of those involved or witness of these practices.
• Legal pursuits: from authorities or through court, the legal consequences of being discovered outweigh in most instances the short-term benefit reap.
• Image and reputation: at individual level, it can cost a job and a social network to lead into corruption; at company level, it impacts the entire organisation, the trust of clients, partners, customers and other stakeholders.

What can I do to fight against corruption in the supply chain?

By definition, corruption and bribery happen out of official practices. Some measures can be taken to detect, prevent and avoid dangerous situations:

• Know about low governance countries and sector practices to anticipate pressures
• Put in place a whistle blowing system, encourage workers, witnesses of these practices, to report and contribute to the fight against corruption without threat of reprisal, intimidation or harassment. Investigate and take corrective action if needed.
• Change the interlocutors in the business relationships in case of suspicion or danger. Even if it may seem counterproductive for efficient long-term relationship, in some cases it may help to avoid complicity or giving into the facility to privilege certain persons/partners/suppliers above other competent ones.
• Organise transparent, accurate and truthful advertising of orders and candidatures.
• Train the buyers and sellers to techniques and attitudes to adopt when faced to corruption situations, to anti-trust laws and ethic standards.
• Adopt a corporate policy and/or sign a code of conduct to express your willingness and determination to oppose practices that entail corruption and bribery. For instance, adhere to the Convention on Business Integrity (www.theconvention.org)

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