Dubai: Transparency, accountability, sustainability, and corporate governance — these are all terms that are repeated through communications, strategies, and outlooks time and time again. Particularly in the years following the crisis, when long-standing, trust-bearing relationships between financial institutions and their stakeholders crumbled.
Yes — these words have been embedded and ingrained into everyone’s minds. But, rightly so. Without these ideals and without their significance being perpetuated throughout the business world, we might not have emerged from the crisis.
Transparency within an organisation helps to drive, maintain, and successfully communicate a good governance practice, and sets the tone from the top down. This is the only way to ensure companywide adherence and acceptance, as it clearly shows that an organisation is fully committed to upholding and executing the highest of standards.
Transparency International’s recently announced results of the ‘2014 Corruption Perception Index’ placed the UAE at 25th, uncovering the country as the least corrupt in the region. So we are certainly doing something right.
But there is more to be done if we are to rise in the ranks, and achieve a rank alongside the likes of some of the world’s most developed — and least corrupt — economies, such as Denmark and New Zealand who topped the list this time around.
By enhancing the levels of transparency, corporate governance, and business practices across the Arab world, we can prevent losses for the good of our economies, in turn benefiting business itself. Maintaining a positive reputation is paramount and instilling a benchmark of trust are both key components to any successful company, helping to align company credentials with international best practices.
In an increasingly competitive economic environment, it is up to organisations to do whatever they can to demonstrate international corporate governance standards rather than wait for legislative guidance. The World Bank estimates that corruption causes annual losses of between $1-$4 trillion.
This estimate equates to 12 per cent of the world’s gross economic output. Looking at these figures, the scale of the situation faced by the global economy due to corruption is clear, and this situation can be improved. By raising levels of transparency, corporate governance and business practices across the GCC and the Arab world, we can prevent these losses for the good of our economies and the benefit of business itself.
The business sphere must work together to promote the inherent need for global consistency when it comes to transparency. Transparency should be embraced because it is the right thing to do, not just because there are rules in place making it a must.
The benefit of enhanced transparency to both businesses and the wider economy is clear, and I can only hope that organisations will continue to value it is an integral part to growth and success.
The writer is Executive Director and CEO, dunia Finance.
