Bribery and Corruption: an Impending Doom on Investments

Bribery and corruption are a form of abuse to the progress of the economy. It has far-reaching
consequences that hinder the development of individuals, businesses and the nation. The impact
of corruption and bribery go beyond discernment and can lead to financial losses, withdrawal of
investors, dissuasion of shareholders, perpetuation of fraud, reputational damages, business
inefficiency and numerous other factors that deter economic growth.
Business leaders have been constantly aspiring to bring their businesses to greater heights. A
resilient foundation needs to be created in which every aspect of their work is accounted for,
each part of their operations is monitored, and all kinds of procedures and processes are
rationalized. If the corporation, community or country is not protected by the policies against
bribery and corruption, then the evolution of the nation is deferred. This kind of negligence
breeds bribery and corruption and corrodes the substance of the organisation. It decreases the
fuel of the economy which is not only its people but 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 always
viewed as less attractive to investors compared to nations that practice more transparency. Due to
ambiguous government activities, investors enter the market through joint ventures with a local
or existing company that understands regional rules and regulations and is able to assist them in
the acquisition of local licenses and permits. Through the partnership, the local establishment
prepares the foreign company to pass through the bureaucratic maze with ease and at a lesser
cost in order to adapt to the local conditions of the nation.
The bureaucratic maze is a puzzle filled with many twists and turns. The size, employees, nature
of business and economic circumstances affect the growth of the conglomerate. If not protected
by secure laws, the company falls into the trap of defeat where the heads might give in to
unreasonable demands which may be detrimental to the advancement of the establishment. The
demand may be in the form of bribe or corrupt activity which poses a risk and is against the
company’s vision. Thus, bribery and corruption have a negative impact on investments in the
country which are distinguished by its kind, form, level and quality.
In short, foreign companies lack confidence in doing business in a new country or in a state
where bribery and corruption are common. If the firm does not find a reliable local partner,
stable resource or suitable support system, they are likely to pull out their investment and look
for other partners or countries that will comply with their requirements. Hence, the local
companies need to create a strong international ethical standard to boost the confidence of their
potential partners for future business affiliations.
No individual, enterprise or economy is immune to bribery and corruption. Appropriate risk
management measures need to be created that are on par with the demand of the global economy.
The ISO 37001:2016 is an internationally recognized standard for the execution of an Anti-
Bribery Management System (ABMS) that helps to combat illegal activities and prevent its
repeated occurrence. It is a structural tool that is specifically formulated to strengthen
organisation’s anti-bribery policies and procedures. An investment in the ISO 37001:2016 is
equal to an investment in the organisation’s betterment which is one of the prime building blocks
of the nation.
In the United Arab Emirates, CRI Group’s Anti-Bribery and Anti-Corruption (ABAC®) Center
of Excellence is the only independent accredited certification body established for ISO
37001:2016 Anti-Bribery Management System, providing training and accredited certification.
Through the principles of detection, prevention and protection, ABAC Center of Excellence
advocates stringent methods and rigorous initiatives to ensure the cooperation of top-level
leaders and their affiliates. Having a global network of audit teams and subject specialists with
training in risk management, financial controls, due diligence, investigative analysis and other
assessment areas, ABAC Center of Excellence provides the best compliance framework to
distinct organisations in any part of the world to sustain the future of the global economy.