Posted: October 17th, 2013
Role of Companies in fighting Corruption
Companies are entities in the business environment and they provide products and services to customers. In addition, they are vital in providing employment opportunities through their recruitment plans. As branches of industries, they boost a country’s economy. A company’s foundation is based on a mission and vision that direct its initiatives in the business environment. Therefore, its success depends entirely on its management in all departments and among its employees. In recent days, innovation and technology has stiffened competition among related companies and on a bid to outdo each other, each employs strategies. However, lack of financial management can cause chaos, misappropriation or embezzlement of funds by the company’s personnel. Such improper practices in handling the company’s assets and finances can be detrimental to the whole company, affecting even the innocent employees negatively when they are laid off because of cost reduction. Corruption is a major impediment to a company’s success.
Corruption in a company affects its performance negatively, destroys employee morale because of little remuneration or retrenchment, allows for recruitment of unqualified personnel and screens the company’s competitive advantage. Lack of clear financial statements and balance sheets create loopholes for the senior and junior managers to embezzle the company’s money and therefore, the company experiences financial strain in key aspects of its initiatives. This also limits ventures that have potential for substantial returns. If the company’s poor business performance is persistent, employees become frustrated because they perceive their efforts as futile and they experience fear of losing their jobs when the other workers are laid off by the company. Unqualified personnel do not perform their tasks as required, and with that, the company cannot realize its competitive advantage. In the end, it fails regardless of the degree of its reputation.
Developing a positive business culture will ensure that business practices are conducted according to the requirements. The initiation of a company should entail a detailed code of ethics and management should ensure that it is in the business culture. This will act as guidelines for everyone in the company since they will apply every rule in their practices. The initial business culture should encourage teamwork and willingness to incorporate the company’s vision in every developed strategy. The managers should be divided properly according to their line of specialization. Moreover, the financial department should always present financial statements and balance sheets to illustrate the company’s efforts in achieving its goals. Policies such as the recruitment policy must be set to ensure the criteria are justified and explicable. If during evaluation people in authority are found to be corrupt, they should face the law.
Individuals who indulge in corruption do not observe the long-term implications after the company fails. Since a company’s success depends largely on the management’s transparency, integrity and leadership skills, managers must employ teamwork and practices that upholds the company’s image. If a positive business culture is inculcated in the company in its early stages, everyone will put substantial effort to prevent it from failing and from lagging behind in the competitive business environment. A company’s culture is dictated by its core values, code of ethics and departmental policies. Hence, companies should take an initiative of fighting corruption so that they enjoy good revenue.
Place an order in 3 easy steps. Takes less than 5 mins.