Corruption, fraud, bribery… unethical behaviour seems to be rampant in business. One of the biggest questions that SMEs are left asking is how on earth can they survive without having to pay bribes to win tenders or make themselves guilty of other types of fraud. But there is hope. So says Muhammad Ali, managing director of World Wide Industrial & Systems Engineers (WWISE).
Addressing the question of whether or not businesses can combat corruption, Ali says there is, but it will take a long time to implement. “Singapore made an example of this by implementing strict regulations,” he points out. “It took them 40 years to remove corruption to the best of their ability.”
This indicates that it’s not only a worry that plagues South Africans. “All countries have corruption in them, more so First World countries, they just hide it better, as the media outlets are also part of the bigger cabals.”
However, Ali encourages small businesses to still drive anti-corruption and sound ethics in their own operations with employees, customers and suppliers. It might not be a fix-all, but ethics become a case of virtue, not survival. “In some Asian and African countries, if you don’t join the cabal, you may not survive. It is extremely sad that to sustain as a QSE or SMME in a beautiful country like ours, entrepreneurs are pressured to throw morals and etiquette out the door. Yet, resisting is a start, so doing so with the right intention of avoiding bribery allows you to sleep peacefully with a guilt-free conscience.
“My advice to people who are confronted with a ‘pay or lose a tender’ situation is: “DO NOT PAY!!!” It all starts with you. Losing one unethical opportunity is better than making yourself guilty. Just remain persistent for a door to be opened. Do not get caught in desperation or greed,” he highlights.
According to Ali, asking for bribes has become a culture that is going to take generations to overcome. It starts today with the company doing things the right way, not looking away when seeing corruption, and trusting the anti-corruption unit to take charge and action by protecting its source.
Proving Your Anti-Corruption Values
For businesses that are looking to indicate to investors and customers that they take pride in combating corruption, becoming ISO 37001 (anti-bribery management system) certified is an option. It is of particular interest to international businesses.
“South Africa is ranked number 82 out of 180, with 180 being the most corrupt country as per Transparency International, an independent research organisation that validates this using authentic data, interviews and statistics on convictions of corruption. Countries that are not included do not have a genuine source of data and are excluded. Based on these statistics, South Africa has been red-flagged by Foreign Investors and the World Bank as being a Corrupt Nation.”
In order to improve the country’s wealth, it is important to bring in investment to South African businesses. An ISO 37001 certification is able to restore faith in businesses operating in South Africa. “For Foreign Investors who are linked to the NYSE, NASDAQ, LSE etc., the requirement is around compliance with ESG requirements,” Ali explains. “Governance is the key concern, and to mitigate the risk of working with a corrupt nation, ISO 37001 becomes a requirement for shareholders and investors.”
On the International Standard itself, he shares that it was developed by ISO, and allows a set of requirements or specifications for an organisation to conform to and comply with. “It is aligned with the law using an anti-bribery management system, which controls and mitigates various risks and scenarios of bribery and corruption with tools such as policies, awareness training, monitoring company devices, a whistle-blowing process, etc.
“This allows a third-party certification body like TUV Rhineland, SABS, Bureau Veritas, or DQS to certify and create assurance of governance independently. This is now becoming a norm for any foreign company dealing with South Africans, to help mitigate the risk of reputational damage and losing market share due to corruption and bribery allegations,” Ali elaborates.
“Implementing the ISO 37001 anti-bribery management system benefits SMEs by giving them the right tools to combat and expose their involved parties and protected sources by running businesses in an ethical manner and with sound governance,” he concludes.
