Bribes and corruption are a form of abuse of the progress of the economy. It has far-reaching consequences that hamper the development of individuals, businesses and the nation. The impact of corruption is beyond judgment and can lead to financial losses, investor withdrawal, shareholder deterrence, perpetuation of fraud, reputational damage, business inefficiency and many other hindering factors. Economic Growth.
Business leaders constantly aspire to elevate their business to greater heights. A resilient foundation must be created. Every aspect of their work is considered, every part of their operations is monitored and all procedures and processes are streamlined. If policies do not protect the business, community, or country from bribery and corruption, then the nation’s development is delayed. This neglect breeds bribes and corruption and erodes the substance of the organization. It decreases the fuel of the economy, which is its people, and the investments that improve the standard of living in the country.
It is true when they say that “beauty is in the eyes of the beholder.” Corrupt countries are still considered less attractive to investors than countries which practice more transparency. Due to ambiguous government activities, investors enter the market through joint ventures with a local or existing business that understands regional rules and regulations and can help them acquire local licenses and permits. Thanks to the partnership, the local establishment prepares the foreign company to cross the bureaucratic labyrinth with ease and at a lower cost to adapt to the local conditions of the nation.
The bureaucratic maze is a puzzle filled with many twists and turns. Size, employees, nature of business and economic circumstances affect the growth of the conglomerate. If it is not protected by secure laws, the company falls into the trap of defeat where leaders could give in to unreasonable demands, which can be detrimental to the establishment’s progress. The request can take the form of bribes or corrupt activity, which is risky and against the company’s vision. Thus, bribes and corruption have a negative impact on investments in the country, which are distinguished by their nature, form, level and quality.
In short, foreign companies lack the confidence to do business in a new country or in a state where bribery and corruption are common. If the company cannot find a reliable local partner, stable resource or suitable support system, it is likely to withdraw its investment and seek other partners or countries that meet its requirements. Therefore, local businesses need to create a strong international ethical standard to build the confidence of their potential partners for future business affiliations.
No individual, business or economy is immune to bribery and corruption. Appropriate risk management measures must be created to match the demands of the global economy. ISO 37001: 2016 is an internationally recognized standard for implementing an Anti-Corruption Management System (ABMS) that helps fight illegal activities and prevent their recurrence. It is a structural tool specifically formulated to strengthen an organization’s anti-corruption policies and procedures. An investment in ISO 37001: 2016 equates to an investment in improving the organization which is one of the main building blocks of the nation.
In the United Arab Emirates, the Anti-Corruption and Anti-Corruption Center of Excellence (ABACÂ®) is the only accredited independent certification body established to ISO 37001: 2016 Anti-Corruption Management System, offering accredited training and certification. We have expanded our range of ISO disciplines and standards to include ISO 31000: 2018 Risk management – Guidelines, ISO 37000: 2021 Governance of organizations, ISO 37002: 2021 Whistleblower Management System, ISO 37301: 2021 Compliance Management System (formerly ISO 19600), and Fight against money laundering (AML).
Through the principles of detection, prevention and protection, ABACÂ® Center of Excellence advocate rigorous methods and rigorous initiatives to secure the cooperation of high-level leaders and their affiliates. Having a global network of audit teams and subject matter specialists trained in risk management, financial controls, due diligence, investigative analysis and other areas of assessment, The ABACÂ® Center of Excellence provides the best framework for compliance to separate organizations in any part of the world to support the future of the global economy.