CORRUPTION CONTINUES TO TAKE A TOLL ON PAKISTAN

We're all well-aware of the high cost of corporate corruption. From damaged reputation and negative investor perception, to legal action, stiff financial penalties and jail terms for corporate directors, bribery and other forms of corruption -- even at the third-party level -- can devalue brand and stock, and devastate a thriving organization.

And on a nationwide basis, corruption leaves weakened governments in its wake, fuels organized crime, stifles economic growth and discourages development. 

Systematic corruption in Pakistan continues to be a substantial obstacle in both the public and private sectors. From corrupt government leaders to bribed businessmen to spot-fixing cricket players, Pakistan continues to be rife with bad actors who look at themselves as above the law, while having the necessary means and resources to stay above it. 

As many see it, corruption here is a cultural issue that will only change as future generations are educated and made aware of the detrimental impact corruption has on our society. 

On a positive front, the country's International Corruption Perception Index ranking has decreased steadily over the past several years, thanks to effective anti-corruption programs and policies, increased awareness, self-policing, and ever-stringent enforcement measures. 

Such efforts are being led by agencies such as the National Accountability Bureau, whose tireless efforts to combat corruption, financial crime and economic terrorism have succeeded in establishing a increasing culture of responsibility in the public and private sectors. 

And those front-line anti-corruption efforts are paying off. NAB Chairman Justice Javed Iqbal recently stated that the numbers of corruption-related complaints, inquiries and investigations nearly doubled from 2017 to 2018, with as many as 1,210 corruption references involving Rs900 billion at various stages of prosecution.  

The NAB's goals, and other agencies like it, are to eradicate corruption nationwide through a number of public initiatives that are: 

• Creating public awareness of this endemic problem through the power of the media, citizen journalism and social media, all of which serve as effective tools to hold the nation's political and business leaders accountable; 
• Educating younger generations on the detrimental outcomes and numerous implications of corruption;
• Instituting at the corporate level dramatic changes in culture in a concerted effort to hold organizations accountable for their questionable business practices. 

That last initiative relies heavily on the talents and resources of corporate compliance, legal and risk management professionals who must be ever-vigilant in protecting the vitality of the organizations that they represent and serve. 

Passive engagement is simply not enough anymore. An organization where leadership, management and workforce fail to take corruption seriously will never be adequately protected from the innumerable business, reputation, legal and financial risks.  

Successful organizations must dedicate themselves to building a culture in which every employee -- from the corner office on down -- feels personally invested in the risk management of the operation. Employees must feel empowered and encouraged to report red flags without feeling threatened or intimidated.  

As a leading consulting firm in Pakistan's risk management industry, CRI Group's goal is to supply the tools that professionals need to continue building a corporate culture that values ethical behavior, while providing the knowledge, information and solutions necessary to protect the organization from the many risks associated with bribery and corporate corruption.