Page 227 - SBL Integrated Workbook STUDENT 2018

Professionalism, ethical codes and the public interest

The business argument

For example:

 Legal risks – most forms of corruption illegal.

 Reputational risk – organisations whose practices do not meet high ethical
standards ae exposed to reputational damage e.g. VAG.

 Financial costs – adds to the cost of procurement undermining business
performance.

 Pressure to repeat offend – once a bribe is paid, repeat demands are possible.

 Blackmail – security of staff and other assets are put at risk.

 Impact on staff – erodes staff loyalty and makes recruitment and retention of
quality personnel difficulty.

 Impact on development – undermines the world’s social, economic and
environmental development.

Illustrations and further practice

Now try TYU questions 4 and 5.

221