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To prevent corrupt activities, companies should develop clear guidelines and implement corruption prevention measures to deter employees from abusing their authority and getting involved in corrupt activities. This can further win the trust and confidence of investors, business partners, customers and employees as well as improve the company's reputation.
The most fundamental component is a company's code of conduct. It sets out the standards of behaviour expected from the company and the guidelines on how to handle different situations in business dealings. A clearly written company code of conduct can help avoid risk and liability, establish trust and increase competitiveness by:
- Reducing incidents of corruption, fraud and other malpractices;
- Reducing conflict of interest situations;
- Enhancing the credibility of buyers and salespersons;
- Enhancing goodwill within the company
Areas to be covered by code of conduct
- Soliciting, offering and acceptance of advantages
- Observing local laws when working in another jurisdiction
- Entertainment, loans and gambling
- Outside employment/investment
For a company to develop an ethical culture, besides having a comprehensive company code of conduct, an elaborate system of control and appropriate training is also essential to enhance employees' anti-corruption understanding, awareness and skills.
Sources of information:
- Corruption Prevention Materials for the business sector, Hong Kong ICAC - including guidelines for SMEs and other specific industries
- Business Ethics - Your Way to Success, Hong Kong ICAC - an information kit for business organisations
- Practical Guide on Corporate Ethics Programme, Hong Kong ICAC
- Corruption Prevention Materials for the Business Sector (Small and Medium Enterprises)
- Issue Brief Corruption and Bribery, Business for Social Responsibility (BSR)
- Transparency International - an international non-governmental organisation devoted to combating corruption
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