Corruption: An Impending Doom on Investments
Bribery and corruption are a form of abuse to the progress of the economy. It has far-reaching consequences that hinder the development of individuals, businesses and the nation. The impact of corruption and bribery go beyond discernment and can lead to financial losses, withdrawal of investors, dissuasion of shareholders, perpetuation of fraud, reputational damages, business inefficiency and numerous other factors that deter economic growth.
Business leaders have been constantly aspiring to bring their businesses to greater heights. A resilient foundation needs to be created in which every aspect of their work is accounted for, each part of their operations is monitored, and all kinds of procedures and processes are rationalised. If the corporation, community or country is not protected by the policies against bribery and corruption, then the evolution of the nation is deferred. This kind of negligence breeds bribery and corruption and corrodes the substance of the organisation. It decreases the fuel of the economy which is not only its people but the investments that improve the standard of living in the country.
It is true when they say that ‘beauty is in the eyes of the beholder.’ Corrupt countries are always viewed as less attractive to investors compared to nations that practice more transparency. Due to ambiguous government activities, investors enter the market through joint ventures with a local or existing company that understands regional rules and regulations and is able to assist them in the acquisition of local licenses and permits. Through the partnership, the local establishment prepares the foreign company to pass through the bureaucratic maze with ease and at a lesser cost in order to adapt to the local conditions of the nation.
The bureaucratic maze is a puzzle filled with many twists and turns. The size, employees, nature of business and economic circumstances affect the growth of the conglomerate. If not protected by secure laws, the company falls into the trap of defeat where the heads might give in to unreasonable demands which may be detrimental to the advancement of the establishment. The demand may be in the form of bribe or corrupt activity which poses a risk and is against the company’s vision. Thus, bribery and corruption have a negative impact on investments in the country which are distinguished by its kind, form, level and quality.
In short, foreign companies lack confidence in doing business in a new country or in a state where bribery and corruption are common. If the firm does not find a reliable local partner, stable resource or suitable support system, they are likely to pull out their investment and look for other partners or countries that will comply with their requirements. Hence, the local companies need to create a strong international ethical standard to boost the confidence of their potential partners for future business affiliations.
No individual, enterprise or economy is immune to bribery and corruption. Appropriate risk management measures need to be created that are on par with the demand of the global economy. The ISO 37001:2016 is an internationally recognised standard for the execution of an Anti-Bribery Management System (ABMS) that helps to combat illegal activities and prevent its repeated occurrence. It is a structural tool that is specifically formulated to strengthen organisation’s anti-bribery policies and procedures. An investment in the ISO 37001:2016 is equal to an investment in the organisation’s betterment which is one of the prime building blocks of the nation.
In the United Arab Emirates, CRI Group’s Anti-Bribery and Anti-Corruption (ABAC®) Center of Excellence is the only independent accredited certification body established for ISO 37001:2016 Anti-Bribery Management System, providing training and accredited certification.
Through the principles of detection, prevention and protection, ABAC Center of Excellence advocates stringent methods and rigorous initiatives to ensure the cooperation of top-level leaders and their affiliates. Having a global network of audit teams and subject specialists with training in risk management, financial controls, due diligence, investigative analysis and other assessment areas, ABAC Center of Excellence provides the best compliance framework to distinct organisations in any part of the world to sustain the future of the global economy.
Who is CRI Group?
Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening,
In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.
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