Thriving, Not Just Surviving: Integrity as a Competitive Advantage for SMEs
For many small and medium enterprises (SMEs), creating integrity systems and complying with anti-corruption and anti-bribery regulations is often seen as costly. However, SMEs that build anti-corruption and anti-bribery measures into their operations gain a competitive advantage. Integrity is not just a means of surviving in a global marketplace; it is a powerful asset.
Strong Integrity Programs Help SMEs Stand Out
Multinational corporations face high levels of scrutiny and expect SMEs in their supply chain to demonstrate their capacity to understand, identify, and mitigate corruption risks. This means compliance is about more than following rules; it is a strategy SMEs need to thrive. Markets prioritize ethical supply chains, and SMEs with strong reputations for integrity and compliance programs can clearly demonstrate that they are reliable and trusted partners. Compliance is more than a way to mitigate risks; it is a selling point that SMEs can use to build and expand their business.
Building Compliance Programs as an SME
SMEs often have limited resources and need effective and efficient compliance programs. The program must also signal an SME’s commitment to transparency and accountability to partners. Building a compliance program requires dedication. Here are ways SMEs can build their integrity programs.
Develop Clear Policies: Ensure the team is on the same page by providing written guidance to employees. As a bonus, give these guidelines to potential business partners.
Educate Employees: Train employees to identify and respond to corruption red flags.
Conduct Due Diligence: Conduct a complete review of suppliers and partners to decrease the risk of partnering with an unethical business.
Leverage Technology: Use cost-effective digital tools to communicate regularly with employees about ethics. Create a digital space for internal discussions on ethics and compliance.
Engage Private Sector Networks: Join a local business association and engage in discussions about ethics and compliance.
Compliance is often seen as a means of avoiding fines and legal issues. However, the real value of compliance and integrity is the business opportunities it creates for SMEs. An SME with strong integrity policies and procedures signals reliability and lowers the risk of reputational and financial damage for business partners.
Anti-Corruption and Governance Expert