Integrity and transparency: The essence of business governance

The Vietnam Chamber of Commerce and Industry (VCCI) recently conducted a survey with alarming results. Up to 68 percent of private enterprises surveyed admitted that they had to pay kickbacks to win contracts with State-owned enterprises (SOEs). Up to 70 percent of that 68 percent admitted to resorting to bribery voluntarily and proactively. Besides, as many as 60 percent said that informal charges were quite high for them and 57 percent believed that informal charges resulted in an inequitable business environment for businesses. In the rush of seeking profits at all costs, whether the values of integrity and transparency are respected?

What is the long-standing threat of losing integrity in business? This question is often not raised by business leaders because they are under heavy pressure for profitability. But, consequences of the lack of transparency and the lack of a practical element of integrity in business are the collapse of economic operating principles and the gradual formation of illicit business habits, which weakens the competitiveness of businesses and the overall economy.

Therefore, exercising integrity and transparency in business is the root of sustainable development. Operating in opposition to these principles, businesses will lose opportunities to sharpen their competitiveness and enhance labor productivity. And, more importantly, they will brush themselves out of understanding business operation trends on regional and international markets, especially as Vietnam is standing before a new level of integration.

Nevertheless, it is very difficult to convince businesses to practice integrity and transparency in business. They must find answers to such questions as: How can we compete when our companies are transparent and clean-fingered? And, should we practice such acts when retaliatory actions are entirely grounded? Indeed, corruption comes from both sides: Businesses and State officials. But, if businesses realize that their roles are not only to make money, but also to create greater values for the community and if they understand how to create the root of sustainable development, they will see that integrity and transparency are vital trends.

The fight against corruption requires a collective power. If integrity alliances are created in the business community as specified in Scheme 12 on promotion of integrity implementation in business initiated by the Office for Business Sustainable Development (VCCI), I believe that, the business community will shape a healthy business environment and combat corruption.

The workshop entitled: "Improving business competitiveness: Placing integrity at the heart of business"

Needless to say, practicing integrity and transparency in business has become an inevitable trend of this century. It is no longer only a matter of developed countries, and developing countries must be taken into account. Corruption has become a major problem in the world; it develops in increasingly sophisticated and serious forms and scales. Therefore, the World Economic Forum (WEF) and United Nations summits have focused on this issue. Vietnamese businesses also cannot stay out of this trend. Still, businesses need backing in the fight against corruption and exercise of integrity and transparency. Like institutions, like businesses. But, businesses also help build institutions. Once businesses are developed on honesty and integrity, they will help create a strongly developed nation.

Source: Vietnam Business Forum Magazine

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Integrity and transparency: The essence of business governance

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