Integrity Initiative campaign gains support of over 40 CEOs

CEBU, Philippines - With its vision to level the playing field and its fight against corruption, over 40 chief executive officers and board of directors in Cebu signed  the Integrity Initiative which is a private sector-led pledge that is aimed at promoting ethical business standards and good corporate governance.

The Integrity Initiative is a multi-sectoral campaign that is committed towards the re-establishment of acceptable integrity standards among various sectors in the society where ethical and compliant companies enjoy competitive advantage in both government and private sector transactions. 

It also aims to diminish the cycle of corruption in the Philippines that has aggravated the poverty state in the country and obstructed the development of a competitive business environment.

The Makati Business Club (MBC) and the European Chamber of Commerce of the Philippines (ECCP) started the initiative in 2009.

Project coordinator Edward Gacusana from MBC said that business leaders and organization heads should be the first to establish the tone from the top in practicing ethical businesses.

He clarified that there is no requirement or a screening process to undertake prior to the commitment but said that signatories are expected to abide to the ethical business practices and maintain the unified code of conduct for businesses.

Other provisions they have to adhere to include the commitment to prohibit bribery, conduct integrity training programs, implement internal systems and controls, maintain appropriate financial reports, implement a whistleblowing system, enter into Integrity Pacts and refrain from dealing with unethical companies.

“An ethical company attracts good employees and partners to be able to sustain the business and earn loyal customers. This is all about commitment, believing that clean business is a good business,” Gacusana stated.

He said that the working group had identified the top management, human resources, procurement, sales and marketing, finance and logistics as the focus areas that are more susceptible to fraud and corruption.

Monette Mabanag-Flores, Visayas integrity officer, said they were expecting only 30 signatories but were surprised to found 48 chief executive officers and board directors have signed the pledge last Monday.

Among those who participated the signing include the organization leaders of the Canadian Chamber of Commerce of the Philippines, Cebu Business Club, Cebu Chamber of Commerce and Industry, Mandaue Chamber of Commerce and Industry, Cebu Filipino-Chinese Chamber of Commerce, Cebu Furniture Industries Foundation, Inc.,  Cebu Fashion Accessories Manufacturers and Exporters, Cebu Gifts, Toys and Housewares, Bosconian International Chamber of Commerce and Industry, Financial Executives of the Philippines, and University of San Carlos.

She revealed that the regional working group shall include government agencies and media outlets three months from now to also participate in the pledge.

Project director Henry Schumacher of ECCP said that the brains behind the initiative aim to level the playing field with the agenda on anti-corruption and competition policy.

From the 600,000 companies registered with the Securities and Exchange Commission, he said that at least 1,700 CEOs have signed the pledge for the private sector during the 2nd Integrity Summit held in Manila last September 2012.

There were also 32 government agencies who participated in the signing.

With the vision to engage the government, he cited that the House of Senate and the Bureau of Customs were among those institutions from the public sector that have not signed the pledge yet.

Schumacher added that they intend to expand in the Vis-Min area as they need more companies and organizations doing clean business.

He further noted that they plan to embark on a project beyond the movement, to form a non-stock profit organization that will evaluate the performance of the signatories in their commitment and shall provide incentives to those who are certified.

For his part, CCCI president Prudencio Gesta said that leaders initiating good governance and signing the pledge first shall encourage their members to do the same after.

“In creating a movement in the Visayas region, we should start from the top then the rest will follow. It is not an overnight process but a gradual implementation in the business.

ECCP Cebu Business Council Chairman Sabino Dapat, who is a signatory himself, believed that there should be no difficulty in good corporate governance but considered it as a continuing challenge for local businessmen.

“Restructuring takes time but Cebuanos should not be left behind,” he added. —(FREEMAN)