SlideShare a Scribd company logo
1 of 10
Download to read offline
R A N I A U W A Y D A H M A R D I N I , M B A , C P A , L C P A , C F E
UNDERSTANDING THE PRIVATE SECTOR
The corporation is “An ingenious device for obtaining individual profit
without individual responsibility”
- Ambrose Bierce; The Devil’s Dictionary
What drives the behavior of a business enterprise?
- Individuals - motivated by private interests
What drives the behavior of the individual?
- Desires more than punishment
THEREFORE:
To achieve true LT reform: incentives for business integrity – not only sanctions
MOST SIGNIFICANT INCENTIVE: OBVIOUSLY NOT SO OBVIOUS
To be protected from the mordant effects of corruption on the economy;
R A N I A U W A Y D A H M A R D I N I
UNDERSTANDING THE PRIVATE SECTOR
So, 1st recommendation : RAISE AWARENESS AS TO:
 the risks and costs of corruption,
 as compared to the benefits of business integrity - basically enhanced
 growth prospects & access to international markets.
 brand value, reputation, & firm value:
 recruitment and retention of principled employees
 profitability & sustainability
BUT: these are indirect, long-term benefits, AND
“In the long run we are all dead”, John Maynard Keynes
R A N I A U W A Y D A H M A R D I N I
UNDERSTANDING THE PRIVATE SECTOR
So, 2nd recommendation: CREATE DIRECT SHORT-TERM INCENTIVES:
 decreased cost of capital
 access to subsidies
 access to opportunities
 tax credits
 preferential conditions (reduced due diligence requirements, favorable
payment terms, etc…)
 Reputation: work on influencing the media agenda
A good strategy :
- 1st target the larger players in the market
- 2nd Mobilize them to drive change in smaller companies by:
 Serving as role models
 Providing ST incentives to the smaller co’s ex:
R A N I A U W A Y D A H M A R D I N I
UNDERSTANDING THE PRIVATE SECTOR
- INCENTIVES: a
- WHAT ABOUT CAPACITIES??
- PERCEIVED?
- ACTUAL?
R A N I A U W A Y D A H M A R D I N I
UNDERSTANDING THE PRIVATE SECTOR
PERCEIVED CAPACITY: People act on their perception of reality and not reality
itself.
Typically, the private sector sees itself as a victim, businesses do not
realize that:
 They actually have role in corruption,
 They might actually be fuelling the problem
 They expect change to start with the public sector.
So, 3rd recommendation: RAISE AWARENESS AS TO THE OPTIONS
AVAILABLE:
 Curb corruption
 Fuel it, or
 Take the sidelines
Along with the advantages and disadvantages of each.
R A N I A U W A Y D A H M A R D I N I
UNDERSTANDING THE PRIVATE SECTOR
ACTUAL CAPACITY imperative to implement reforms: far less than optimal particularly
for SMEs
- governance mechanisms
- ethics and organization culture that are once they are in place - is.
Some facts from PwC’s Global Economic Crime Survey 2016 - Middle East report:
• 17% of reported cases of economic crime were uncovered by accident, a rate much
higher than the global average (11%).
• Internal audit was able to identify more incidents in 2016 (10%) compared to 2014 (5%)
but still below the global average
• Internal Audit in the Middle East region is reactive and with limited resources
• Opportunity or ability to commit the crime – i.e. weak controls - is cited as the most
prevailing factor (63%)
• 1 in 4 respondents have never carried out a fraud risk assessment
• Economic crime reported through tip-off & whistleblowing decreased in 2016 compared
to 2014; this can be indicative of the culture and tone of ethics and compliance
R A N I A U W A Y D A H M A R D I N I
UNDERSTANDING THE PRIVATE SECTOR
• 79% of companies say they have a formal ethics and compliance
program but
 Only 60% support it with regular communications and training,
 More than 1 in 5 respondents are not aware of the existence of a such a
program &many are confused about its ownership - although it should be
everyone
 76% rely on Internal Audit to assess their program’s effectiveness.
So, 4th recommendation : PROVIDE THE ASSISTANCE AND TRAINING TO
BUILD THIS CAPACITY:
R A N I A U W A Y D A H M A R D I N I
UNDERSTANDING THE PRIVATE SECTOR
- INCENTIVES: a
- CAPACITIES a
R A N I A U W A Y D A H M A R D I N I
FURTHER RECOMMENDATIONS: PUBLIC-PRIVATE DIALOGUE
• Encourage conditions for dialogue: Initiating, promoting, supporting,
funding, and /or facilitating dialogue.
• Dialogue capacity building for business associations/chambers and
stakeholders
• Providing field support to projects in need of design/ re-engineering,
• independent evidence-based research
• Disseminating international best practice
• specialized training & technical assistance
• Providing expert policy advice
• Impacting the media agenda
THANK YOU
R A N I A U W A Y D A H M A R D I N I

More Related Content

Similar to Building a sustainable public private dialogue to promote integrity

EB4_Tom McLeod
EB4_Tom McLeodEB4_Tom McLeod
EB4_Tom McLeodTom McLeod
 
CSR in Global Context and in International Business
CSR in Global Context and in International BusinessCSR in Global Context and in International Business
CSR in Global Context and in International BusinessNiña Mae Alota
 
FCF June 2014 - 02 fraud facts 2 p securing board level support for anti fra...
 FCF June 2014 - 02 fraud facts 2 p securing board level support for anti fra... FCF June 2014 - 02 fraud facts 2 p securing board level support for anti fra...
FCF June 2014 - 02 fraud facts 2 p securing board level support for anti fra...#TheFraudTube
 
Humans first—a Hootsuite guide to social media strategy
Humans first—a Hootsuite guide to social media strategyHumans first—a Hootsuite guide to social media strategy
Humans first—a Hootsuite guide to social media strategyJames Mulvey
 
How PR Can Help You To Win More Business
How PR Can Help You To Win More BusinessHow PR Can Help You To Win More Business
How PR Can Help You To Win More BusinessSara Paine
 
Corporate Fraud & Corruption Annual Review 2018 - entrevista a Rafael Huamán
Corporate Fraud & Corruption Annual Review 2018 - entrevista a Rafael HuamánCorporate Fraud & Corruption Annual Review 2018 - entrevista a Rafael Huamán
Corporate Fraud & Corruption Annual Review 2018 - entrevista a Rafael HuamánEY Perú
 
The role of Public Relations in Risk and Reputation
The role of Public Relations in Risk and Reputation The role of Public Relations in Risk and Reputation
The role of Public Relations in Risk and Reputation Aura PR
 
Types Of Reorganization Of A Company Essay
Types Of Reorganization Of A Company EssayTypes Of Reorganization Of A Company Essay
Types Of Reorganization Of A Company EssayRebecca Evans
 
Ottawa Business Summit Clearing Muddy Waters
Ottawa Business Summit Clearing Muddy WatersOttawa Business Summit Clearing Muddy Waters
Ottawa Business Summit Clearing Muddy WatersKaren McNaughton
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibilityRajesh Neithilath
 
Victoria Tattersdill - Young Risk Professional interview
Victoria Tattersdill -  Young Risk Professional interviewVictoria Tattersdill -  Young Risk Professional interview
Victoria Tattersdill - Young Risk Professional interviewFERMA
 
Crisis campaigns and_social_media_selected_findings
Crisis campaigns and_social_media_selected_findingsCrisis campaigns and_social_media_selected_findings
Crisis campaigns and_social_media_selected_findingsEthical Corporation
 
Navigating todays complex_business_risks
Navigating todays complex_business_risksNavigating todays complex_business_risks
Navigating todays complex_business_risksntpinto
 
The Academy of Marketing
The Academy of MarketingThe Academy of Marketing
The Academy of Marketingzenuity
 
David Jones Strategy And Branding
David Jones Strategy And BrandingDavid Jones Strategy And Branding
David Jones Strategy And BrandingSandra Ahn
 
Corporate Social Responsiblity, Ethics & Sustainability
Corporate Social Responsiblity, Ethics & SustainabilityCorporate Social Responsiblity, Ethics & Sustainability
Corporate Social Responsiblity, Ethics & Sustainabilitypercydeigh
 

Similar to Building a sustainable public private dialogue to promote integrity (20)

EB4_Tom McLeod
EB4_Tom McLeodEB4_Tom McLeod
EB4_Tom McLeod
 
CSR in Global Context and in International Business
CSR in Global Context and in International BusinessCSR in Global Context and in International Business
CSR in Global Context and in International Business
 
FCF June 2014 - 02 fraud facts 2 p securing board level support for anti fra...
 FCF June 2014 - 02 fraud facts 2 p securing board level support for anti fra... FCF June 2014 - 02 fraud facts 2 p securing board level support for anti fra...
FCF June 2014 - 02 fraud facts 2 p securing board level support for anti fra...
 
Humans first—a Hootsuite guide to social media strategy
Humans first—a Hootsuite guide to social media strategyHumans first—a Hootsuite guide to social media strategy
Humans first—a Hootsuite guide to social media strategy
 
How PR Can Help You To Win More Business
How PR Can Help You To Win More BusinessHow PR Can Help You To Win More Business
How PR Can Help You To Win More Business
 
Corporate Fraud & Corruption Annual Review 2018 - entrevista a Rafael Huamán
Corporate Fraud & Corruption Annual Review 2018 - entrevista a Rafael HuamánCorporate Fraud & Corruption Annual Review 2018 - entrevista a Rafael Huamán
Corporate Fraud & Corruption Annual Review 2018 - entrevista a Rafael Huamán
 
The role of Public Relations in Risk and Reputation
The role of Public Relations in Risk and Reputation The role of Public Relations in Risk and Reputation
The role of Public Relations in Risk and Reputation
 
Types Of Reorganization Of A Company Essay
Types Of Reorganization Of A Company EssayTypes Of Reorganization Of A Company Essay
Types Of Reorganization Of A Company Essay
 
Ottawa Business Summit Clearing Muddy Waters
Ottawa Business Summit Clearing Muddy WatersOttawa Business Summit Clearing Muddy Waters
Ottawa Business Summit Clearing Muddy Waters
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 
Swot analysis
Swot analysisSwot analysis
Swot analysis
 
Victoria Tattersdill - Young Risk Professional interview
Victoria Tattersdill -  Young Risk Professional interviewVictoria Tattersdill -  Young Risk Professional interview
Victoria Tattersdill - Young Risk Professional interview
 
Crisis campaigns and_social_media_selected_findings
Crisis campaigns and_social_media_selected_findingsCrisis campaigns and_social_media_selected_findings
Crisis campaigns and_social_media_selected_findings
 
Advertising
AdvertisingAdvertising
Advertising
 
Chapter 13
Chapter 13Chapter 13
Chapter 13
 
Navigating todays complex_business_risks
Navigating todays complex_business_risksNavigating todays complex_business_risks
Navigating todays complex_business_risks
 
The Academy of Marketing
The Academy of MarketingThe Academy of Marketing
The Academy of Marketing
 
David Jones Strategy And Branding
David Jones Strategy And BrandingDavid Jones Strategy And Branding
David Jones Strategy And Branding
 
Respect My Authoritah!
Respect My Authoritah!Respect My Authoritah!
Respect My Authoritah!
 
Corporate Social Responsiblity, Ethics & Sustainability
Corporate Social Responsiblity, Ethics & SustainabilityCorporate Social Responsiblity, Ethics & Sustainability
Corporate Social Responsiblity, Ethics & Sustainability
 

More from OECDglobal

Pocketbook: Competitiveness in South East Europe 2018
Pocketbook: Competitiveness in South East Europe 2018Pocketbook: Competitiveness in South East Europe 2018
Pocketbook: Competitiveness in South East Europe 2018OECDglobal
 
Making Things Happen: Transitioning to a Circular Economy
Making Things Happen: Transitioning to a Circular Economy Making Things Happen: Transitioning to a Circular Economy
Making Things Happen: Transitioning to a Circular Economy OECDglobal
 
Waste To Taste To 21st Century Food
Waste To Taste To 21st Century FoodWaste To Taste To 21st Century Food
Waste To Taste To 21st Century FoodOECDglobal
 
What is the Circular Economy?
What is the Circular Economy?What is the Circular Economy?
What is the Circular Economy?OECDglobal
 
SMEs’ financial challenges in Western Balkans to go green?
SMEs’ financial challenges in Western Balkans to go green?SMEs’ financial challenges in Western Balkans to go green?
SMEs’ financial challenges in Western Balkans to go green?OECDglobal
 
Project "Design Center Promo21” Croatia
Project "Design Center Promo21” CroatiaProject "Design Center Promo21” Croatia
Project "Design Center Promo21” CroatiaOECDglobal
 
Environmental Financing in Estonia
Environmental Financing in EstoniaEnvironmental Financing in Estonia
Environmental Financing in EstoniaOECDglobal
 
Croatia’s experience in improving access to finance for green SMEs
Croatia’s experience in improving access to finance for green SMEsCroatia’s experience in improving access to finance for green SMEs
Croatia’s experience in improving access to finance for green SMEsOECDglobal
 
Incubation and Acceleration of High-Growth SMEs for a Greener Economy
Incubation and Acceleration of High-Growth SMEs for a Greener EconomyIncubation and Acceleration of High-Growth SMEs for a Greener Economy
Incubation and Acceleration of High-Growth SMEs for a Greener EconomyOECDglobal
 
SMEs in a Green Economy
SMEs in a Green EconomySMEs in a Green Economy
SMEs in a Green EconomyOECDglobal
 
Policy Instruments to Promote Better Enviromental Performance
Policy Instruments to Promote Better Enviromental PerformancePolicy Instruments to Promote Better Enviromental Performance
Policy Instruments to Promote Better Enviromental PerformanceOECDglobal
 
SME Policy Index: Main Challenges of SME Greening in the Western Balkans and ...
SME Policy Index: Main Challenges of SME Greening in the Western Balkans and ...SME Policy Index: Main Challenges of SME Greening in the Western Balkans and ...
SME Policy Index: Main Challenges of SME Greening in the Western Balkans and ...OECDglobal
 
Voice of the interests of small business in the EU
Voice of the interests of small business in the EUVoice of the interests of small business in the EU
Voice of the interests of small business in the EUOECDglobal
 
Study visit istanbul: PHOTOS
Study visit istanbul: PHOTOSStudy visit istanbul: PHOTOS
Study visit istanbul: PHOTOSOECDglobal
 
Session 7: Technology transfer capacity building and proof of concept instrum...
Session 7: Technology transfer capacity building and proof of concept instrum...Session 7: Technology transfer capacity building and proof of concept instrum...
Session 7: Technology transfer capacity building and proof of concept instrum...OECDglobal
 
Session 6 R & D and innovation and other related support programs in brief ...
Session 6   R & D and innovation and other related support programs in brief ...Session 6   R & D and innovation and other related support programs in brief ...
Session 6 R & D and innovation and other related support programs in brief ...OECDglobal
 
Session 6: EU support on competitiveness and innovation in Turkey
Session 6: EU support on competitiveness and innovation in TurkeySession 6: EU support on competitiveness and innovation in Turkey
Session 6: EU support on competitiveness and innovation in TurkeyOECDglobal
 
Session 4 pre-incubation and incubation - itu cekirdek
Session 4   pre-incubation and incubation - itu cekirdekSession 4   pre-incubation and incubation - itu cekirdek
Session 4 pre-incubation and incubation - itu cekirdekOECDglobal
 
Session 3: Introduction presentation - itu cekirdek
Session 3: Introduction presentation - itu cekirdekSession 3: Introduction presentation - itu cekirdek
Session 3: Introduction presentation - itu cekirdekOECDglobal
 
Session 2: ITU Ginova
Session 2: ITU GinovaSession 2: ITU Ginova
Session 2: ITU GinovaOECDglobal
 

More from OECDglobal (20)

Pocketbook: Competitiveness in South East Europe 2018
Pocketbook: Competitiveness in South East Europe 2018Pocketbook: Competitiveness in South East Europe 2018
Pocketbook: Competitiveness in South East Europe 2018
 
Making Things Happen: Transitioning to a Circular Economy
Making Things Happen: Transitioning to a Circular Economy Making Things Happen: Transitioning to a Circular Economy
Making Things Happen: Transitioning to a Circular Economy
 
Waste To Taste To 21st Century Food
Waste To Taste To 21st Century FoodWaste To Taste To 21st Century Food
Waste To Taste To 21st Century Food
 
What is the Circular Economy?
What is the Circular Economy?What is the Circular Economy?
What is the Circular Economy?
 
SMEs’ financial challenges in Western Balkans to go green?
SMEs’ financial challenges in Western Balkans to go green?SMEs’ financial challenges in Western Balkans to go green?
SMEs’ financial challenges in Western Balkans to go green?
 
Project "Design Center Promo21” Croatia
Project "Design Center Promo21” CroatiaProject "Design Center Promo21” Croatia
Project "Design Center Promo21” Croatia
 
Environmental Financing in Estonia
Environmental Financing in EstoniaEnvironmental Financing in Estonia
Environmental Financing in Estonia
 
Croatia’s experience in improving access to finance for green SMEs
Croatia’s experience in improving access to finance for green SMEsCroatia’s experience in improving access to finance for green SMEs
Croatia’s experience in improving access to finance for green SMEs
 
Incubation and Acceleration of High-Growth SMEs for a Greener Economy
Incubation and Acceleration of High-Growth SMEs for a Greener EconomyIncubation and Acceleration of High-Growth SMEs for a Greener Economy
Incubation and Acceleration of High-Growth SMEs for a Greener Economy
 
SMEs in a Green Economy
SMEs in a Green EconomySMEs in a Green Economy
SMEs in a Green Economy
 
Policy Instruments to Promote Better Enviromental Performance
Policy Instruments to Promote Better Enviromental PerformancePolicy Instruments to Promote Better Enviromental Performance
Policy Instruments to Promote Better Enviromental Performance
 
SME Policy Index: Main Challenges of SME Greening in the Western Balkans and ...
SME Policy Index: Main Challenges of SME Greening in the Western Balkans and ...SME Policy Index: Main Challenges of SME Greening in the Western Balkans and ...
SME Policy Index: Main Challenges of SME Greening in the Western Balkans and ...
 
Voice of the interests of small business in the EU
Voice of the interests of small business in the EUVoice of the interests of small business in the EU
Voice of the interests of small business in the EU
 
Study visit istanbul: PHOTOS
Study visit istanbul: PHOTOSStudy visit istanbul: PHOTOS
Study visit istanbul: PHOTOS
 
Session 7: Technology transfer capacity building and proof of concept instrum...
Session 7: Technology transfer capacity building and proof of concept instrum...Session 7: Technology transfer capacity building and proof of concept instrum...
Session 7: Technology transfer capacity building and proof of concept instrum...
 
Session 6 R & D and innovation and other related support programs in brief ...
Session 6   R & D and innovation and other related support programs in brief ...Session 6   R & D and innovation and other related support programs in brief ...
Session 6 R & D and innovation and other related support programs in brief ...
 
Session 6: EU support on competitiveness and innovation in Turkey
Session 6: EU support on competitiveness and innovation in TurkeySession 6: EU support on competitiveness and innovation in Turkey
Session 6: EU support on competitiveness and innovation in Turkey
 
Session 4 pre-incubation and incubation - itu cekirdek
Session 4   pre-incubation and incubation - itu cekirdekSession 4   pre-incubation and incubation - itu cekirdek
Session 4 pre-incubation and incubation - itu cekirdek
 
Session 3: Introduction presentation - itu cekirdek
Session 3: Introduction presentation - itu cekirdekSession 3: Introduction presentation - itu cekirdek
Session 3: Introduction presentation - itu cekirdek
 
Session 2: ITU Ginova
Session 2: ITU GinovaSession 2: ITU Ginova
Session 2: ITU Ginova
 

Recently uploaded

My Burning Issue: "War in Ukraine" Cycle 54
My Burning Issue: "War in Ukraine" Cycle 54My Burning Issue: "War in Ukraine" Cycle 54
My Burning Issue: "War in Ukraine" Cycle 54mmazurak
 
For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.Christina Parmionova
 
World Happiness Report 2024- Full Report
World Happiness Report 2024- Full ReportWorld Happiness Report 2024- Full Report
World Happiness Report 2024- Full ReportEnergy for One World
 
Cause of Awareness Programs in rural areas
Cause of Awareness Programs in rural areasCause of Awareness Programs in rural areas
Cause of Awareness Programs in rural areasSERUDS INDIA
 
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxDB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxNAP Global Network
 
Water for Prosperity and peace - United Nations World Water Development Repo...
Water for Prosperity and peace -  United Nations World Water Development Repo...Water for Prosperity and peace -  United Nations World Water Development Repo...
Water for Prosperity and peace - United Nations World Water Development Repo...Christina Parmionova
 
What Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsWhat Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsSERUDS INDIA
 
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...JSchaus & Associates
 
Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Christina Parmionova
 
National Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonNational Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonAryaCapale
 
2024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 162024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 16JSchaus & Associates
 
Children who live with Grandparents are really lucky
Children who live with Grandparents are really luckyChildren who live with Grandparents are really lucky
Children who live with Grandparents are really luckySERUDS INDIA
 
Managing Planning and Development of Citie- 26-2-24.docx
Managing Planning and  Development of  Citie-  26-2-24.docxManaging Planning and  Development of  Citie-  26-2-24.docx
Managing Planning and Development of Citie- 26-2-24.docxJIT KUMAR GUPTA
 
OECD Webinar - ESG to deliver well-being in resource-rich regions: the role o...
OECD Webinar - ESG to deliver well-being in resource-rich regions: the role o...OECD Webinar - ESG to deliver well-being in resource-rich regions: the role o...
OECD Webinar - ESG to deliver well-being in resource-rich regions: the role o...OECDregions
 
Item # 5&6 - 218 Canyon Drive replat prop.
Item # 5&6 - 218 Canyon Drive replat prop.Item # 5&6 - 218 Canyon Drive replat prop.
Item # 5&6 - 218 Canyon Drive replat prop.ahcitycouncil
 
Item # 1a - March 18, 2024 Special CCM Minutes
Item # 1a - March 18, 2024 Special CCM MinutesItem # 1a - March 18, 2024 Special CCM Minutes
Item # 1a - March 18, 2024 Special CCM Minutesahcitycouncil
 
Hub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationHub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationStephen Abram
 
Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Christina Parmionova
 
PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.ahcitycouncil
 

Recently uploaded (20)

My Burning Issue: "War in Ukraine" Cycle 54
My Burning Issue: "War in Ukraine" Cycle 54My Burning Issue: "War in Ukraine" Cycle 54
My Burning Issue: "War in Ukraine" Cycle 54
 
For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.
 
World Happiness Report 2024- Full Report
World Happiness Report 2024- Full ReportWorld Happiness Report 2024- Full Report
World Happiness Report 2024- Full Report
 
Cause of Awareness Programs in rural areas
Cause of Awareness Programs in rural areasCause of Awareness Programs in rural areas
Cause of Awareness Programs in rural areas
 
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxDB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
 
Water for Prosperity and peace - United Nations World Water Development Repo...
Water for Prosperity and peace -  United Nations World Water Development Repo...Water for Prosperity and peace -  United Nations World Water Development Repo...
Water for Prosperity and peace - United Nations World Water Development Repo...
 
What Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsWhat Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the Grandparents
 
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
 
Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.
 
National Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonNational Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO Quezon
 
2024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 162024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 16
 
Children who live with Grandparents are really lucky
Children who live with Grandparents are really luckyChildren who live with Grandparents are really lucky
Children who live with Grandparents are really lucky
 
Managing Planning and Development of Citie- 26-2-24.docx
Managing Planning and  Development of  Citie-  26-2-24.docxManaging Planning and  Development of  Citie-  26-2-24.docx
Managing Planning and Development of Citie- 26-2-24.docx
 
OECD Webinar - ESG to deliver well-being in resource-rich regions: the role o...
OECD Webinar - ESG to deliver well-being in resource-rich regions: the role o...OECD Webinar - ESG to deliver well-being in resource-rich regions: the role o...
OECD Webinar - ESG to deliver well-being in resource-rich regions: the role o...
 
Item # 5&6 - 218 Canyon Drive replat prop.
Item # 5&6 - 218 Canyon Drive replat prop.Item # 5&6 - 218 Canyon Drive replat prop.
Item # 5&6 - 218 Canyon Drive replat prop.
 
Item # 1a - March 18, 2024 Special CCM Minutes
Item # 1a - March 18, 2024 Special CCM MinutesItem # 1a - March 18, 2024 Special CCM Minutes
Item # 1a - March 18, 2024 Special CCM Minutes
 
Hub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationHub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspiration
 
Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024
 
How to Save a Place: Become an Advocate.
How to Save a Place: Become an Advocate.How to Save a Place: Become an Advocate.
How to Save a Place: Become an Advocate.
 
PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.
 

Building a sustainable public private dialogue to promote integrity

  • 1. R A N I A U W A Y D A H M A R D I N I , M B A , C P A , L C P A , C F E
  • 2. UNDERSTANDING THE PRIVATE SECTOR The corporation is “An ingenious device for obtaining individual profit without individual responsibility” - Ambrose Bierce; The Devil’s Dictionary What drives the behavior of a business enterprise? - Individuals - motivated by private interests What drives the behavior of the individual? - Desires more than punishment THEREFORE: To achieve true LT reform: incentives for business integrity – not only sanctions MOST SIGNIFICANT INCENTIVE: OBVIOUSLY NOT SO OBVIOUS To be protected from the mordant effects of corruption on the economy; R A N I A U W A Y D A H M A R D I N I
  • 3. UNDERSTANDING THE PRIVATE SECTOR So, 1st recommendation : RAISE AWARENESS AS TO:  the risks and costs of corruption,  as compared to the benefits of business integrity - basically enhanced  growth prospects & access to international markets.  brand value, reputation, & firm value:  recruitment and retention of principled employees  profitability & sustainability BUT: these are indirect, long-term benefits, AND “In the long run we are all dead”, John Maynard Keynes R A N I A U W A Y D A H M A R D I N I
  • 4. UNDERSTANDING THE PRIVATE SECTOR So, 2nd recommendation: CREATE DIRECT SHORT-TERM INCENTIVES:  decreased cost of capital  access to subsidies  access to opportunities  tax credits  preferential conditions (reduced due diligence requirements, favorable payment terms, etc…)  Reputation: work on influencing the media agenda A good strategy : - 1st target the larger players in the market - 2nd Mobilize them to drive change in smaller companies by:  Serving as role models  Providing ST incentives to the smaller co’s ex: R A N I A U W A Y D A H M A R D I N I
  • 5. UNDERSTANDING THE PRIVATE SECTOR - INCENTIVES: a - WHAT ABOUT CAPACITIES?? - PERCEIVED? - ACTUAL? R A N I A U W A Y D A H M A R D I N I
  • 6. UNDERSTANDING THE PRIVATE SECTOR PERCEIVED CAPACITY: People act on their perception of reality and not reality itself. Typically, the private sector sees itself as a victim, businesses do not realize that:  They actually have role in corruption,  They might actually be fuelling the problem  They expect change to start with the public sector. So, 3rd recommendation: RAISE AWARENESS AS TO THE OPTIONS AVAILABLE:  Curb corruption  Fuel it, or  Take the sidelines Along with the advantages and disadvantages of each. R A N I A U W A Y D A H M A R D I N I
  • 7. UNDERSTANDING THE PRIVATE SECTOR ACTUAL CAPACITY imperative to implement reforms: far less than optimal particularly for SMEs - governance mechanisms - ethics and organization culture that are once they are in place - is. Some facts from PwC’s Global Economic Crime Survey 2016 - Middle East report: • 17% of reported cases of economic crime were uncovered by accident, a rate much higher than the global average (11%). • Internal audit was able to identify more incidents in 2016 (10%) compared to 2014 (5%) but still below the global average • Internal Audit in the Middle East region is reactive and with limited resources • Opportunity or ability to commit the crime – i.e. weak controls - is cited as the most prevailing factor (63%) • 1 in 4 respondents have never carried out a fraud risk assessment • Economic crime reported through tip-off & whistleblowing decreased in 2016 compared to 2014; this can be indicative of the culture and tone of ethics and compliance R A N I A U W A Y D A H M A R D I N I
  • 8. UNDERSTANDING THE PRIVATE SECTOR • 79% of companies say they have a formal ethics and compliance program but  Only 60% support it with regular communications and training,  More than 1 in 5 respondents are not aware of the existence of a such a program &many are confused about its ownership - although it should be everyone  76% rely on Internal Audit to assess their program’s effectiveness. So, 4th recommendation : PROVIDE THE ASSISTANCE AND TRAINING TO BUILD THIS CAPACITY: R A N I A U W A Y D A H M A R D I N I
  • 9. UNDERSTANDING THE PRIVATE SECTOR - INCENTIVES: a - CAPACITIES a R A N I A U W A Y D A H M A R D I N I
  • 10. FURTHER RECOMMENDATIONS: PUBLIC-PRIVATE DIALOGUE • Encourage conditions for dialogue: Initiating, promoting, supporting, funding, and /or facilitating dialogue. • Dialogue capacity building for business associations/chambers and stakeholders • Providing field support to projects in need of design/ re-engineering, • independent evidence-based research • Disseminating international best practice • specialized training & technical assistance • Providing expert policy advice • Impacting the media agenda THANK YOU R A N I A U W A Y D A H M A R D I N I