Just earlier this year His Majesty the Sultan and Yang Di-Pertuan in his new year Titah (speech), had made it clear that fighting corruption is everyone’s responsibility. Here I want to make a case that fighting corruption should also be borne by the private sector. Your NO to corruption also count.
In 2004, at the UN Global Compact Leaders Summit it was announced that the UN Global Compact should include a tenth principle against corruption. The principle states that "Businesses should work against corruption in all its forms, including extortion and bribery." This principle makes it clear that the business community must also play its part in the fight against corruption. It’s all too easy for one to blame that it is inefficiencies and too much red tape in the delivery of public service that encourage corruption in the public sector. Whilst I do not deny this fact but I have seen that the resulting corruptions are often described as petty bribes which of course are still punishable under our laws. I find it however very difficult to attach the same blame when it comes to corruptions that occur in the procurement sector. All too often I am seeing that it is pure greed that drives why business vendors are willing to commit corrupt practices. There are those who are willing to go all the way at any cost to ensure that they would get the Government tenders even at the expense of ignoring whether their conduct is ethical or not. Their argument is simple “if we don’t do it, others will”
There are more businesses in Brunei which are registered as self-proprietorships under the Business Names Act as opposed to companies registered under the Companies Act. Few actually audit their accounts and the businesses registered under the Business Names Act are not required to file any tax returns. Good governance is therefore still a foreign word to most of these businesses let alone having anti-corruption policies. I realise convincing these businesses to place ethical business conduct such as having anti corruption policies as part of their core business values would be an uphill task. However, all is not lost. Bigger companies here especially big MNCs like international financial institutions which have branches here and the international oil companies have already put in place good business ethics as part of their core values and internal policies. I am hoping that they will become examples in this good cause. Already we are constantly engaging the private sector through the chambers of commerce and inculcate in them on the need to jointly fight corruption. We are encouraging companies to disclose what they pay in accordance with internationally generally accepted accounting principles. Here, I am laying out my case to businesses and business owners alike on why you must get on board and jointly fight with us against corruption.
The ethical argument
Corruption is inherently wrong and you dont have to wait until the Bureau catches you. You can look in any religion or faith or in any language that you know, it is just plainly unethical. It undermines the integrity of all involved and damages the fabric of the society to which you belong. The reality that laws making corrupt practices criminal may not always be enforced is no justification for accepting corrupt practices. Just like being honest and trustworthy as universal values that everyone must have irrespective of your religious view, fighting corruption in all its forms is simply the right thing to do.
The business argument
There are many reasons why it is in any company's business interest to ensure that it does not engage in corrupt practices. All companies, large and small, are vulnerable and the potential for damage to them is considerable. The following are just key reasons on why you should avoid involvement in corrupt practices:
Risks of getting caught
Regardless of what form a corrupt transaction may take, there are obvious legal risks involved. The Bureau places strong emphasis on law enforcement as an effective deterrent measure. We will detect corrupt practices where ever they occur and we will strike hard. This is an intended strategy. We want to send a strong message that you will get caught and once you get caught, you can be guaranteed on the prospect of you facing the court and jail term plus hefty fines and possibly your assets confiscated. You will lose your reputation as an honest businessman and your family will also suffer consequently. The message is all too clear: DO NOT GET INVOLVED IN CORRUPTION!
Reputational risk
Based on the experience of recent years, companies whose policies and practices fail to meet high ethical standards, or that take a relaxed attitude to compliance with laws, are exposed to serious reputational risks. Often it is enough to be accused of malpractice for a reputation to be damaged even if a court subsequently determines that they have not been involved in corrupt practices. It is of critical importance for a company to be able to quickly quash any unfounded allegations by demonstrating that it acts in a transparent manner and has in place policies and procedures designed to prevent corruption. The argument that although what they may have done may have been against the law or international standards, it was simply the way business was done. Nor is it good enough to claim that other companies and competitors have engaged in similar practices.
Financial costs
There is now clear evidence that in many countries corruption adds upwards of 10 per cent to the cost of doing business and that corruption adds as much as 25 per cent to the cost of public procurement. Your cost of doing business would increase unnecessarily. I often heard that in our neigbouring countries you can be sure to add between 10-15% in your business overheads simply to pay for “entertainment costs” which are basically bribes-in-disguise. To the Government, the costs of corruptions would simply divert public resources from legitimate sustainable development. Just imagine if $100 million was allocated for public development and 25% of that amount was taken out just to pay bribes to various public officials then the Government would have lost in terms of an opportunity cost of using that 25% ($25 million) for other useful projects. For a start a school could be built for $5-10 million or a school computer lab for less than $1 million each!
'Known as clean' and repeat demands
There is a growing evidence that a company is less likely to be under pressure to pay bribes if it has not done so in the past. Once a bribe is paid, repeat demands are possible and the amounts demanded are likely to rise. Once you have the habit of paying bribes, you have become a habitual accomplice in the wrongful enterprise and it will become more difficult for you to say NO. Conversely a company which takes a firm and principled stand against all forms of corruption will become known for this and the risk of its employees being exposed to demands will lessen. 'Zero tolerance is the only practical solution'.
What goes around will come around
If a company engages in or tolerates corrupt practices, it will soon be widely known, both internally and externally. Unethical behavior erodes staff loyalty to the company and it can be difficult for staff to see why high standards should be applied within a company when it does not apply in the company's external relations. Internal trust and confidence is then eroded. If you as the business owner can cheat the Government or behave dishonestly then your employees will then try to justify that they can also cheat or behave dishonestly against your company too.
Companies have a vested interest in sustainable social and economic development as part of nation building as it will also benefit you in the long run
It is now clear that corruption has played a major part in undermining the world's social, economic and environmental development. Many poorer countries are getting poorer because of rampant corruptions. In fact the World Bank estimates the the worldwide cost of corruptions now exceed $1 trillion. If countries are poorer and the people are poorer, what business opportunities could there be? Would you be willing to set up your businesses in the most corrupt countries say in Rwanda or Chad? So it is in everyone’s interest to ensure that Brunei remains and continues to be prosperous. I have visited many countries and see for myself on the impact of corruption that affect the very person on the street. Resources were diverted to improper use and the quality of services and materials used for development seriously compromised. Businesses have a vested interest in social and political stability and in the economic growth of the country. Just look at the countries around us, many of their peoples have lost confidence in their Governments because of their corrupt officials and people in power. This has led to countless public discontent and numerous public demonstrations. Once that happen the countries become destabilized and foreign investors lost their confidence. The business opportunities would therefore become reduced.
So please, come and join me. Say NO to corruption!
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