BUSINESS research reveals that one of the greatest causes of corruption in the corporate sector is largely due to the ethical dilemma that some managers face.
As we saw last week, corporate businesses are inevitably faced with ethical dilemmas on an almost daily basis.
Such dilemmas usually arise as these businesses explore strategic business opportunities locally, abroad and overseas.
Once again, I am grateful to the Organisation of Economic Development (OECD) for their express permission for me to tap into their research for the benefit of this column.
The way corporate leaders face and resolve an ethical dilemma largely determines how far the corporate business world can effectively handle corruption.
Its complexities are such that companies and their leaders must continuously balance business objectives with a host of risks.
Such decisions range from whether to take up certain business opportunities to decisions around which companies they do business with.
The starting point for the corporate business world is written policies and effective risk management policies and reviews of high-risk areas.
This will inevitably provide a necessary foundation for an organisation’s anti-corruption efforts.
However, we should note from the onset that written policies and risk management policies can only go up to an extent.
Strong leadership, a corporate resolve, and vigilance too, are critical to combating corruption.
Conversely, when leaders fail to espouse compliance, it out-rightly sends a contradictory message about whether the commitment to ethical business practices is truly important.
A leader who exhibits a “win at all cost” mentality may unintentionally communicate to employees that compliance is a mere talk and dampens the spirit and culture of control.
We are living in an age when corporate managers feel intense pressure to hit revenue targets and satisfy shareholders.
This, therefore, calls for a balancing act: anti-corruption efforts versus hitting high revenue targets.
Effective leadership may mean missing out on a sizable business opportunity in pursuit of ethical and professional conduct.
By walking the talk, a corporate leader can set an example for employees.
Business leaders should always live by example. Such an example serves as a reference point on how to act ethically when a challenging situation arises.
Battling corruption requires much more than just complying with laws and staying out of negative publicity.
It requires leaders to demonstrate a visible and active commitment to dealing with this threat.
Leaders must be the principal figures who set the tone in the organisation for upright conduct.
In a recent research study carried out overseas, the results reveal that 85 per cent of companies indicated their industry is exposed to corruption risk.
More than one in five (22 per cent) revealed that they have lost business as a result of a situation involving illicit payments to authorities.
Navigating a company through corruption risks and dilemma implores that leaders must take an active and visible role in setting the proper tone at the top.
Ethical behavior underpins good corporate governance, and encompasses business practices at all levels.
Today, more than ever before, tone at the top remains critical in  preventing and mitigating the risks associated with corruption.
Business leaders and other professionals are on the frontlines in the  battle against corruption.
Unfortunately, corruption has been escalating at an alarming rate in  the business world while professionals and business leaders look on.
Business leaders and professionals belonging to leading professional associations  can take greater responsibility by publicly supporting anti-corruption laws and speaking out against corrupt practices in the corporate business world.
In setting the tone, we must ensure that our stakeholders understand the types of conduct that are desirable and those that are not.
Companies can pursue steps such as conducting thorough background  checks on suppliers and reference checks during the hiring process.
Leadership and good corporate governance may not be a ‘quick fix solution’ to the scourge.
Nevertheless, these together with core values and a commitment to high  ethical standards can inevitably foster an environment in which corruption becomes an exception rather than the rule.
By having a robust ethics policy that is aligned to its business strategy, an undertaking can create a system of robust checks and balances on inappropriate business behaviour.
In today’s global village where we are more connected than ever before, business leaders carry great power and influence. Our actions can influence the way others conduct business.
Ethics and compliance can be instilled into organisational culture by promoting core values, setting expectations, and providing incentives.
Such measures can go a long way in achieving solutions to a problem that hinders the ability of businesses to show what they do best: innovate, create jobs, and promote fair and dynamic markets.
It is clear that written policies and risk management policies and reviews of high-risk areas provide critical bedrock for a corporate business firm’s anti corruption efforts.
Notably, strong and exceptional leadership, corporate resolve and vigilance are critical to combating corruption in the corporate business in our country.
Business professionals and corporate business leaders should increasingly awaken to the reality that they can make more meaningful contributions in the fight against the scourge.