Unethical practices remain the most significant constraint to the proper functioning of an efficient market-driven economy, due to their resulting major negative impacts on development, productivity, and growth in developed as well as developing countries.

On a worldwide level, corruption is currently the greatest single obstacle to financial and economic growth since it creates an uneven playing field with unfair advantages to the few on the detriment of the majority. Corrupt activities lead many companies and individuals to freeze their potential participation in new projects and investments, resulting in a major reduction in overall productivity.

Experts ‘guestimate’ the global financial cost of corruption at around 5% of GDP (even up to 25% of GDP in some cases) … recent economic data shows the level of the world’s nominal GDP at about US$ 140 Trillion … Therefore, Corruption costs at least US$ 7 Trillion yearly with wide-ranging negative impacts on all sectors, notably:

– Political; It obstructs the effective functioning of democratic practices and the proper application of the ‘rule of law’
– Economic; It erodes growth and stability, depletes national wealth, hinders the development of equality and fair market structures, distorts competition and deters investments
– Social; It undermines people’s trust in political systems, harms the reputation of the state, public institutions and leadership
– Environmental; It results in major degradation and severe damages to all types of natural resources

As a result, addressing corruption through the active involvement of all stakeholders has become increasingly urgent (governments, businesses, civil society and international institutions), along with coordinated joint programs that develop practical standards, apply quality principles and implement best practices.

It is to be noted that businesses in general aim to achieve positive profitably and sustainable development, while constantly combating to overcome adverse specific operating challenges and broad surrounding obstacles.

SMEs worldwide and especially within the Mediterranean region are a highly diversified and expanding productive base in the global economic scene. They act as the key growth engines that fuel the advancement of sustainable economic development, national GDP, world trade, job creation, innovation, and social integration.

In an increasingly competitive world, SMEs are more vulnerable to corruption than larger companies because they do not have adequate resources to deal with inefficiencies and bureaucracies, leading them to incur major lost opportunity costs or even more serious survival repercussions.

As a result, SMEs are collectively responsible to integrate a culture of integrity and anti-corruption into their overall business conduct. They must strive to achieve a level playing field with broad regulatory compliance that fosters various important factors providing consumer and investor confidence.

The timely practical path to fight against corruption is to proceed beyond conventional operating strategies or typical counselling services and to recommend solutions that do not concentrate solely on existing platforms and structures.

In order to progress effectively, business integrity is best achieved via the on-going dynamic adherence to righteous values that encompass the honest application of valuable concepts including:

– moral code
– ethical behaviour
– leadership skills
– corporate governance
– accountability measures
– transparency criteria
– consumer protection
– quality norms
– intellectual property rights
– excellence standards
– corporate social responsibility
– … other best business practices

Consequently, ASCAME in collaboration with other like-minded business organizations must urgently lead a collective initiative among their business networks, to efficiently allocate valuable tools aimed at providing tangible incentives and creating practical avenues towards the effective implementation of anti-corruption policies.

It is proposed that ASCAME members team up together in a strong alliance of successful companies and other associated stakeholders to proactively create global awareness about the importance of effectively adopting the highest standards of integrity and governance, that will lead to improving their business performance and financial profitability.

This initiative aims at establishing a conducive corporate culture promoting imperative business integrity values and building a trustworthy operating environment in the face of increasing obstacles. This proposed culture of business ethics will enhance the positive development of all corporations, and support their strive to successfully overcome competitive barriers.

In conclusion business ethics and integrity, values ensure that trust exists between various market participants, businesses, consumers and all other stakeholders.

Join ASCAME in the fight against corruption by participating in our new working commission promoting ‘Integrity Values and Business Ethics’.

07/02/2018