Corruption still a key political and business issue, says expert

Corruption is one of the key political issues of our time according to Cobus de Swardt, global programmes director at Transparency International (TI).

Head of the world's leading non-governmental anti-corruption organisation, he says corruption is also a key issue for business and that business has an important role to play in the suppression of corruption.

Corruption distorts markets, introduces instability, and creates additional costs for business.

Dr de Swardt, a South African and an underground ANC activist during the Apartheid era, says the issue is high on the international agenda for a number of reasons.

"Globally, there is more information available to local populations. It is part of the information age. Also, the issue has become politicised. Governments are elected and governments are thrown out over concerns to do with corruption," he explains.

Whereas 15 years ago, the practice was to ignore or try to censor mention of corruption, these days it is more the practice to talk about the work that is being done to combat corruption.

"Humanitarian organisations still have a mountain to climb in this regard. The attitude there is still one of trying to hide the issue," he says.

A further reason for the attention being given to corruption is that more is now known about the extent of the damage it causes.

Whether it be unwarranted public spending, poor service delivery or straightforward material suffering by some of the poorest people on the globe, much is now known and publicised about the effects of corruption. "It is not just a moral issue but one that threatens development. Corruption has real victims," says Dr de Swardt.

Major companies are aware that involvement in corruption carries a huge reputational risk. Exposure can cause enormous brand damage. "Companies know that for the public at large, corruption matters . . . There is a good business case to be made for having effective anti-corruption measures in place."

He insists that companies standing their ground and refusing to get involved in corruption can do business in societies where corruption is rife. While it is his experience that business is willing to listen to the arguments against corruption, "turning that into an active crusade is not the same thing".

As a result of recent scandals and discussion about corporate governance, "business has become more schooled in saying the right thing".

Dr de Swardt finds politicians are much more defensive than business people about the issue. His organisation, which is active globally, has found that the public is most concerned about corruption in politics. He cites the links between business and politicians in such areas as political funding, or politicians leaving office and immediately taking up positions with companies with which they have had dealings while in office. His organisation is concerned about "the abuse of entrusted power for personal gain".

A number of global organisations are now involved in the battle against corruption. These include the UN, the EU, and the Organisation for Economic Co-operation and Development (OECD).

"I believe the private sector has a pivotal role to play. The UN's millennium goals are not being achieved because the private sector was not sufficiently included," says Dr de Swardt.

Ireland has ratified the OECD's Convention on Combating Bribery of Foreign Public Officials in International Business, though it seems the State has never investigated a suspected case of bribery abroad by an Irish company. It also seems it is by no means alone in this.

Ireland has signed the UN's Convention Against Corruption but has yet to ratify it. "It is absolutely in Ireland's interest to ratify it and get it through parliament as quickly as possible," says Dr de Swardt.

A conference due in Jordan at the end of this year will decide on how the convention should be monitored and enforced, but only those countries that have ratified the convention can have an input into this process.

France, the UK and China have already ratified it. The US has signed but not yet ratified it.

TI has an Irish chapter, and earlier this week it announced that it had entered into a partnership with the school of business at Trinity College Dublin. The two groups are to work together on delivering information on the causes and costs of corruption.