BLSA CEO Busisiwe Mavuso
Business Leadership South Africa (BLSA) has provided funding for the Gordon Institute of Business Science (GIBS) to produce a guide for South African companies to fight corruption.
BLSA CEO Busisiwe Mavuso said in her weekly newsletter on September 4 that combatting crime and corruption, improving ethical conduct and promoting the rule of law were among BLSA’s top priorities and were essential to improving the business environment.
The guide, which was released last week, is available as a free download at: https://hub.blsa.org.za/wp-content/uploads/2023/09/Anti-Corruption-Working-Guide.pdf.
Mavuso explained that the guide drew on the detailed findings of the Zondo Commission, setting out an approach that will help companies build their resistance to corruption of all kinds.
It is aimed at giving companies a comprehensive, workable plan to tackle corruption.
The guide asks whether the Zondo Commission proved to be an inflection point in the fight against corruption.
“In decades to come, will we be able to look back at it as an important moment or merely a footnote in a sordid history? Other countries have managed to turn the tide against corruption, like Hong Kong and Singapore in the 1970s and Rwanda and Indonesia more recently. Will we be able to say the same of South Africa?” Mavuso asked.
She believes the business sector has a pivotal role to play.
She noted that, while corruption was often thought of as emanating from the public sector, prominent businesses were also deeply implicated in State capture. Corporate corruption scandals such as those at Steinhoff, Tongaat Hulett and EOH were notable examples of businesses that had endemic corruption at their core.
“Business must come together to proactively work against it. It will not happen without a concerted and deliberate effort. But it also needs effective law enforcement to operate, as the international examples of success against corruption make clear,” Mavuso said.
She noted that this was why BLSA strongly supported the criminal justice system through Business Against Crime and its agreement with the National Prosecuting Authority to provide resources.
The GIBS guide report draws on several international frameworks, from International Organization for Standardization ISO standards to the Organisation for Economic Cooperation and Development’s anti-bribery convention in developing proposals for companies to establish anticorruption guidelines.
It sets out eight key principles that should be incorporated into an anticorruption policy. Briefly, these are:
1. The tone from the top or the role of the board – ensuring that the right culture is set and insulating anti-corruption efforts in the business from outside pressure.
2. Adopting and publishing an anti-corruption policy – doing so publicly and demonstrating a commitment to zero tolerance.
3. Forming and structuring an anti-corruption function – an autonomous department with lines of reporting directly to the board.
4. Substance of the anti-corruption policy should cover rules on lobbying, donations, procedures for awards of large contracts, effective roles for internal auditors and more.
5. Regular risk assessments to assess how risks are shifting in a dynamic environment and reviewing live contracts for risks.
6. The role of whistleblowers – a clear process for handling whistleblowers, including protection.
7. The role of reparations – having an approach to determining reparations when something does go wrong.
8. Guidelines for ethical lobbying – any political activities by companies must have a clear board-approved policy.
The report provides more detail for these guidelines, which Mavuso has encouraged BLSA members to engage with and assess how they could be developed and applied to their businesses.
The report also calls for greater collective action in tackling corruption.
“BLSA . . . members have all signed our integrity pledge that is focused on crushing corruption. That pledge is consistent with many of the recommendations in the GIBS report. The efforts of BLSA in supporting the criminal justice system and developing guidance on corruption for business represent the collective actions of our members,” Mavuso stated.
However, she noted that the report called for further collective action including formal forums to coordinate efforts to combat corruption including managing reports of corruption.
“We have experience in coordinating business efforts against crime through, as an example, our Eyes and Ears initiative in partnership with the police. We will be engaging on these recommendations and how we can jointly act as business to combat corruption,” Mavuso said.