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Global damage of corruption

Cost of corruption on a global scale

June 5, 2013 2:03 by

The World Bank estimates that worldwide annual losses due to corruption amount to between one and four trillion US Dollars or 12 per cent of the world’s gross economic.

Regional business leaders at the Pearl Initiative’s Good Corporate Practices roundtable emphasised that top management should implement anti-bribery and corruption policies.

The initiative, which is a regional network of business leaders from the Gulf’s leading corporations, also highlighted the need for organizations to embed values and the fight against unethical behavior throughout a company’s culture and code of conduct.

HM British Ambassador Dominic Jermery, chief visionary officer of OBE, recommended that MENA companies should be clear about activities to enable investors to feel confidence in the firm’s ethos.

He stated that installing policies and processes that facilitate transparency would contribute to higher ratings and enable potential foreign investors to understand how the company operates, and perhaps facilitate their decision.

Riad Al Sadik, Chairman of Habtoor Leighton Group stated preventing corruption in the future should be made a priority for the business community and suggested that university students are taught the importance of good corporate governance so the ethos of good corporate practice is carried through their careers as they become business leaders of the future.

Michael Adlem, fraud investigation partner at Ernst & Young, said that reputation and trust are key components to any successful company. He demonstrated that high-profile corruption and fraud cases have shown that, over and above fines and damage done by unforeseen rogue incidents, the loss to reputation and business can be devastating.

Marcelo Cardoso of Petrofac told that audience that clearly setting out the company’s position leaves employees across the business in no doubt as to what is not tolerated and therefore ambiguity and the potential for questionable behavior is reduced.

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