Kenya Association of Manufacturers and The Global Compact Network Kenya with support from Center for International Private Enterprise have today launched an Anti-Corruption Compliance training program aimed at instilling ethics and integrity in day-to-day business activities for local companies. The launch event, which was presided by The Attorney General, Hon. Prof. Githu Muigai, targeted companies in a bid to equip them with knowledge on adherence of sound business principles to increase their competitiveness.
Addressing the private sector during the event, AG Prof. Githu Muigai said, “This is a ground-breaking initiative that is indeed much needed for local businesses today. Corporate culture must change from conducting business as usual and align itself with the vision of a better world for all citizens. It is commendable that you have decided to embark on this training program, because it is the first major step in a long but eventually worthwhile journey. It is essential for us to realize that as much as this is about making local businesses more lucrative, it is more about raising our country’s profile as the choice destination for investment”.
The Anti – Corruption training will target top and middle level managers working in procurement, finance, compliance & legal, internal audit, risk management, sales & marketing, supply chain, human resources and Corporate Social Responsibility (CSR) functions to develop systems on a range of anti-corruption issues such as risk assessment, reporting and ethical supply chain management.
KAM CEO and local representative for Global Compact Network Kenya, said in her statement “Adopting integrity and ethical business practices will open doors for Kenyan companies to make global partnerships. The Lack of integrity and unethical practices have costed our businesses dearly, leading to major loss of revenues. Hence putting these measures in place will not only seal corruption loop holes and boost revenues for their companies, but also make fighting corruption a personal responsibility for every single person in an organization.”
A research by Ernest and Young on private sector bribery found that 27% of managers in Kenyan businesses cited high fraud levels in their organizations, with middle level managers; especially men aged between 35 and 45 the main perpetrators. Kenya is losing Kshs. 608 million to corruption annually. Corruption impedes business growth, escalates costs and poses serious legal and reputational risks. It also raises transaction costs, undermines fair competition, impedes long-term foreign and domestic investment and distorts development priorities
Speaking at the event, CIPE representative, Anna Kompanek reiterated the above statements adding that, “In today’s global economy, ethical companies tend to have higher valuations, are more attractive to potential investors and employees, and are more likely to be engaged in long-term arrangements with their business partners. Increasingly, companies are expected to ensure not just the integrity of their own operations but also the conduct of their suppliers, distributors, and agents wherever they may be.”
So far the business community has shown great commitment in the fight against corruption with notable milestones such as drafting and sponsoring the Anti-Corruption bill 2015 in Parliament. In addition 300 companies are now signed up to the Code of Ethics for Business in Kenya and UN Global Compact Principles committing to fight corruption in all its forms. The Anti-Corruption training will be offered three (3) times annually with first commencing in April 2016.