Regardless of whether former president Chen Shui-bian’s (陳水扁) secret offshore bank accounts involve political donations from companies or adjustments in government policy, the corruption scandal has severely damaged Taiwan’s international image and has made the future of well-known Taiwanese corporations highly uncertain. The scandal is affecting not only Chen, his family and the Democratic Progressive Party (DPP), but also the people’s trust in the government and the international market’s faith in the business ethics of Taiwanese companies.
If authorities fail to come up with remedies or reform the system, Taiwan will inevitably receive even further negative exposure in the evaluations of government corruption and business management carried out by international organizations. Under such circumstances, no responsible government or party would have an excuse to obstruct social justice at the expense of their own interests.
We are glad to see Taiwan’s major parties reaffirming their support for the “sunshine bills.” However, prompt and thorough legislation and implementation of the proposed bills is not sufficient, because the bills are merely basic steps to boost society’s trust and the market’s confidence in government. Crackdowns on corruption in Taiwan have always been selective because they have been political in nature and departed from the old saying: “You cannot clap with one hand.”
Strengthening self-regulation within government agencies and reducing the temptation for civil servants to take bribes are only part of the solution. Reforms would be incomplete if we failed to eliminate the incentives for businesses to practice bribery and neglected to make anti-bribery practices part of our agenda.
The prevention of bribery within business is fundamental in the fight against corruption. Therefore, the recent calls from the Ministry of Justice to get businesses to confess to any bribery they may have engaged in is a delayed response and not part of any systematic approach to weeding out corruption. Given the current political situation, this is not a wise move, as businesses and people would most probably avoid confessing to any crimes for fear of the potential consequences.
Even if we can put aside the potential risks of stock market fluctuations and the national financial disorders that such confessions may cause, getting businesses to confess to crimes would be of little benefit to anti-bribery mechanisms and the constant improvement of social trust and competitiveness between businesses. Therefore, the government must pay attention to one of the latest trends in international society, whereby businesses are viewing anti-corruption as a matter of social responsibility.
The joint introduction of Business Principles for Countering Bribery by Transparency International and the Social Accountability International, the establishment of the UN Global Compact, the World Economic Forum’s Partnering Against Corruption Initiative and the Electronic Industry Citizenship Coalition are all examples of the recent realization that businesses need to make anti-corruption their responsibility.
All these measures urge companies not to practice bribery — directly or indirectly — while proposing anti-corruption guidelines. The government must realize that in the era of economic globalization, it must assist companies in managing the business risks caused by corruption, as this is not only vital to their sustainable operation, but also to the enhancement of national competitiveness.
If the government hopes that businesses would assume their social responsibility in the battle against corruption, it should employ a reward and punishment mechanism based on market operation and take the initiative in creating a corruption-free business environment. To achieve this, the government should first refer to international standards on corporate responsibility. It should draw up information disclosure regulations that would be effective in improving anti-bribery policies, risk management for countering bribery, training of employees, political donations by companies and policy lobbying and apply these to every Taiwanese company.
It should also consider getting an independent third party to establish an anti-corruption index, publishing evaluation results regularly as references for financial investors and the public. The Labor Pension Fund and other public pensions should also be included in such evaluations.
In conclusion, the “sunshine bills” are the best way to clean up our government. When our government and political parties handle the issue of political corruption, they must also clean up businesses. Through this, we can wipe away the disgrace we have experienced as a nation, become the least corrupt country in East Asia and set an example of clean business for international investors who value anti-bribery measures. By doing so, Taiwan could give the old saying “clean business is good business” resonance.
Tseng Chao-ming is secretary-general of Corporate Social Responsibility Taiwan.
TRANSLATED BY EDDY CHANG
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