Do you think the consequences are heavy enough to deter companies from engaging in bribery?
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In 2016, the International Monetary Fund estimated that corruption amounted to roughly 2% of global economic output — between $1.5 and $2 trillion globally. Consider that in India in 2016, nearly seven in 10 citizens reported paying a bribe to access basic public services such as public schools, public clinics or hospitals, access to official documents, and utilities, according to Transparency International. And despite the many laws against corruption, and increases in enforcement of those laws, bribery in particular continues to thrive and the costs to business and to society continue to escalate.
Since having laws on the books isn’t enough, anti-corruption and anti-bribery efforts need further traction from the private sector. Business needs to play a more powerful role in supporting responsible practices throughout every aspect of their operations. After all, those that find themselves embroiled in bribery scandals, for example, face a host of consequences, including business disruption, steep financial and legal costs, and harm to their brand and reputation.
Companies usually manage bribery and corruption risk through a mix of internal processes, certification requirements, and basic good practices throughout their operations — including with suppliers and vendors. External standards can also be a powerful tool in support of those efforts, helping companies strengthen ethics and compliance practices by offering a clear framework for action. One example of such an external tool is the ISO 37001 Anti-Bribery Management Systems Standard, published by the International Organisation for Standardisation in 2016 and designed by a committee of global business leaders and other stakeholders. The standard offers companies a structure for setting up or benchmarking an effective anti-bribery program aligned with its own risk profile, and building a culture that values ethical behavior. It outlines a program that can stand alone or be integrated into a company’s existing management system, and offers a common language and approach that stretches across borders and industries. It covers bribery in all of its forms — direct and indirect, inbound and outbound. It does not address fraud, cartels and other anti-trust/competition offenses, money-laundering or other activities related to corrupt practices.