Corporate Governance and Anti-Corruption

12.13.2005

Last week, CIPE’s partner Indonesia Business Links held a workshop in Banda Aceh. The workshop – “Anti-Corruption and Corporate Governance” – is the first in a series of 24 the organization will host in different Indonesian cities throughout the next year to promote good corporate citizenship.

This workshop set out to discuss two concepts, the link between which may not be evident at first sight. Nonetheless, the link exists and has important implications in economic reform. As CIPE’s Executive Director John D. Sullivan has put it, “like a constitution is to a nation, so corporate governance is to a company, establishing a code of conduct and standard operating procedures in order to protect the rights of shareholders.” Taken in that sense, corporate governance becomes an effective tool in combating corruption because when it is implemented, it becomes more difficult for a company to pay bribes, practice nepotism, and indulge in illegal campaign financing or other forms of corruption.

For more information on the linkages between these two concepts, see CIPE and its partners’ presentations at the 10th International Anti-Corruption Conference held in Prague, Czech Republic in 2001.