Time to take a stand!

International Anti-Corruption Day has special significance for Sri Lanka as it takes tentative steps to minimise rampant bribery and corruption that has been normalised in society and end the culture of impunity that allowed it to flourish for decades. 

Corruption has become an epidemic in Sri Lanka and while the inclination is to blame politicians for it few can deny the public have played a huge role in legitimising bribe paying in Sri Lanka. Even though blame is frequently doled out to the carrot takers there is massive need to change the mindset of the carrot givers as well. One of the biggest carrot givers is the private sector who usually uses facilitation fees as a way to avoid harassment and delays. Even though some companies have steadfastly refused to pay bribes to Government departments such as Customs the prevailing situation and protective laws give the culprit the upper hand.

The Bribery and Corruption Commission has said it will roll out fresh legislation in 2016 targeting corporates handing out bribes to government departments as part of a sweeping seven step plan to reduce bribery. Internationally there is good news with more companies understanding that anti-corruption practices are improving the bottom line. 

Volkswagen, caught up in two devastating emissions scandals, is belatedly embracing whistle-blowers, according to a recent report in the Economist. Desperate to put the mess behind it, the carmaker set a deadline of this week for employees to come forward with information, even if self-incriminating, in return for avoiding dismissal or damages claims. 

As VW began to process the results of its amnesty, whistle-blowers were making headlines elsewhere, too. It was reported that Takata, a Japanese firm mired in scandal over defective airbags, might have avoided the worst of its problems if it had paid more attention to American employees who rang alarm bells a decade ago. An investigation aired this week by BBC Television alleged that British American Tobacco had bribed officials from a World Health Organisation tobacco-control programme. Its conclusions were supported by documents provided by a manager who had participated in the alleged palm-greasing. BAT said it does not tolerate corruption.

Whistle blowing has been on the increase since the 2007-08 financial crisis sparked a crackdown on corporate corruption and collusion. The number of tips received by the “Whistleblower Office” of America’s Securities and Exchange Commission (SEC) has risen steadily since it was opened in 2011, to nearly 4,000 a year.

The confidentiality agreements that many firms ask employees to sign however are seen as disincentive. Examples include preventing them from consulting outside lawyers, requiring notice before they report anything to an outside body and demanding waivers of any future whistle-blower awards.

Ideally, firms would put in place a formal system for hearing and noting complaints—for their own sakes, as well as those of whistle-blowers. When people fail to report wrongdoing, the main reason is often not the fear of retaliation but the suspicion that nothing will be done about it. Companies often see whistle-blowers as motivated by revenge or greed. But studies consistently show that most are driven to right a wrong. That is why more than 90% of them sound the alarm internally first, rather than running straight to the authorities or newspapers. Given the choice, they would rather warn than accuse. So it is time for the private sector to take a stand.