As rampant corruption continues
to plague developing nations, hampering democratic and economic
reform efforts, corporate governance is being pursued as a means
to combat this pervasive problem. Like a constitution is to
a nation, so corporate governance is to a company, establishing
a code of conduct and standard operating procedures in order
to protect the rights of shareholders.
This was the message presented by John Sullivan, Executive
Director of the Center for International Private Enterprise
(CIPE) this past October at the 10th International Anti Corruption
Conference organized by Transparency International in Prague.
Recognizing the importance of corporate governance in addressing
the supply side of corruption, CIPE's strategy emphasizes
the role the private sector must play in anti-corruption efforts.
CIPE's seminar, "Corporate Governance: An Antidote to
Corruption," proved extremely popular and was attended
by business leaders, policy makers, government officials,
and international experts in the field. The workshop focused
on the importance of improving corporate governance, especially
in establishing transparency in corporate transactions, accounting
and auditing procedures. "High levels of corruption make
a mockery of the rule of law and cause people to lose hope
in democratic and economic reform efforts," said Mr.
Sullivan. He then discussed effective strategies for anti-corruption
initiatives on the part of the private sector along with a
panel of experts from the United States and Central and Eastern
Europe, including: Despina, Pascal, of the Strategic Alliance
of Business Associations in Romania; Alexander Ikonnikov of
the Investor Protection Association in Russia; Peter Brew,
of the British International Business Leaders Forum; and Jane
Wexton of GE Capital-Global Consumer Finance in the US.
The International Anti-Corruption Conference's theme was
"Together Against Corruption - Designing Strategies,
Assessing Impact, Reforming Corrupt Institutions," and
drew roughly 1,300 participants from around the globe. CIPE
and the U.S. based National Endowment for Democracy were among
the major sponsors for this conference.
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