Set the Proper Tone at the Top
Executive management and those charged with governance should unequivocally make it clear to employees and stakeholders that they will not tolerate corruption. Their deeds should always support their assertions regarding corruption averse business practices. Otherwise, corruption will hit somewhere in the organization’s operations sooner or later. Executive management and those charged with governance should ensure that the organization:
- Implements efficiently current and effective systems of internal control
- Adopts and implements anti-corruption policy
- Instills good governances practices in its management, decision-making processes, and operations
The board of directors should be financially literate. They should have proper oversight of the organization’s business conduct and its corruption averse environment. They should also listen to executive management and employees and discuss with them their concerns about fraud and corruption that may exist in the organization. Their engagement would lessen the chief executive officer dominance of the board (if any). The board members are expected to know what business they oversee and make surprise visits to major operational facilities. Such visits will provide them with invaluable first-hand information about several aspects of the organization’s business.
The audit committee’s mandate, structure, and qualifications of its members would directly affect its deterrence effect. As it is the conduit between the organization’s monitoring departments and the board, its effectiveness has a paramount impact on the organization’s corruption deterrence environment. Because the board may have executive members, executive management should always lead by example. They should reiterate their commitment to integrity and ethical business values at business meetings with managers and employees. They should make such commitment present and visible enough on the organization newsletters, website, blogs, and social media.
Anti-Corruption By Results
Tone at the top has leadership, business, and management facets. The easiest part is to establish and adopt cutting-edge systems, policies, and procedures.
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