COMMENTARY

Peter Burgess

The Role of Business Associations, Civil Society And Media In Addressing Corruption

Subj:The Role of Business In Addressing Corruption 
Date:12/27/2002 1:49:53 PM Eastern Standard Time
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Center for International Private Enterprise

New Feature Service Article

The Role of Business Associations, Civil Society And Media In Addressing Corruption

By Mark T. McCord ... Chief of Party, CIPE, Romania

There is no doubt the private sector has a responsibility to combat corruption. The private sector must set an example by establishing fair and transparent practices as the way of doing business. Ethical behavior and transparent processes should not be the exception, but the rule. In many transitional countries, the private sector has continually lambasted government for failing to address corruption, while at the same time failing to address it in the private sector. A successful market economy cannot be built on a fractured foundation, which is why the private sector must play a critical and prolonged role in addressing the issue of corruption.

Of course, the most basic way for the private sector to be involved is through the establishment of fair and transparent processes. These include corporate governance and business ethics to name just two. In addition, the private sector, including the media of course, must demand accountability by those who don’t follow the rules, regardless of whether they are members of government or corporate CEOs.

The role that business associations play in the fight against corruption is an important one. Associations can provide information by creating an inventory of legal barriers and duplicative regulations; the can disseminate this information to government and the media as well as their members; through their advocacy actions they can create accountability; and they can continue to push for market reforms that will make corruption both unnecessary and undesirable. After all, to reduce corruption, countries must reduce the reasons it occurs in the first place: poverty, lack of transparency and commitment to market reforms.

  The full article is available online at:
http://www.cipe.org/publications/fs/articles/mccord.htm

CIPE is a non-profit affiliate of the U.S Chamber of Commerce and one of the four core institutes of the National Endowment for Democracy. CIPE has supported more than 700 local initiatives in over 80 developing countries, involving the private sector in policy advocacy, institutional reform, improving governance, and building understanding of market-based democratic systems. CIPE programs are also supported through the United States Agency for International Development.

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