BUSINESS ETHICS IS THE KEY TO SUSTAINABLE SUCCESS

DR. WINGCO LO, CHAIRMAN OF THE HONG KONG BUSINESS ETHICS DEVELOPMENT ADVISORY COMMITTEE OF THE INDEPENDENT COMMISSION AGAINST CORRUPTION

Dr. Wingco Lo, Chairman of the Hong Kong Business Ethics Development Advisory Committee (BEDAC) of the Independent Commission Against Corruption (ICAC), shares his thoughts on the importance of sustaining an ethical business environment in Hong Kong and his experience in promoting good governance as the Chairman of the CMA Testing and Certification Laboratories (CMA Testing).

What is the mission of the Hong Kong Business Ethics Development Centre (HKBEDC)? Why is its work significant to the sustainable development of Hong Kong?

HKBEDC was set up in 1995 under the auspices of the Community Relations Department of the ICAC with the aim to promote business and professional ethics in Hong Kong on a long-term basis. Its work is guided by the BEDAC, comprising representatives from ten major chambers of commerce including the British Chamber of Commerce in Hong Kong.

With the concerted effort of HKBEDC and local business community throughout the years, Hong Kong now enjoys a level-playing business environment and is widely recognised in many international surveys as one of the least corrupt and most competitive places globally. One example is the Transparency International’s Corruption Perception Index 2020 which ranked Hong Kong the 11th least corrupt place among 180 countries/territories. The clean and fair business environment has enhanced Hong Kong’s competitiveness as an international financial centre and a prime business hub that enables investors to tap into the multitude of business opportunities in China and neighbouring countries.

Should business ethics give way to other priorities such as financial gain and business survival in the economic downturn that we are facing today?

It is of vital importance for business organisations to strengthen their ethical governance in times of economic decline when financial difficulties could increase the incentive for unethical practices. Taking the testing industry as an example, I have come across incidents that clients might risk to bribe testing staff for their assistance in expediting the test procedures or even falsifying test results. These situations are not uncommon in adverse economic conditions where companies cannot afford financial losses due to delays or unfavourable test results. My experience is that strong ethical awareness of staff and high integrity standards of the company are the keys to mitigate these ethical risks.

Business ethics is indeed a long term investment and a valuable asset for business organisations. It helps companies maintain their reputation, gain customers’ trust, build a strong ethical workforce and achieve sustainable business growth in the long run. Even at times of adversities, business leaders should not surrender the value of integrity and take the risk of engaging in unscrupulous business practices, which will sacrifice the reputation of the company or even cause legal ramifications.

How can a business organisation strengthen its ethical governance? Any advice to business operators who cannot afford much resources in doing so?

Depending on the nature, size and needs, business organisations can adopt different measures to strengthen its ethical governance. Yet, the determination and commitment of the top management is pivotal in fostering an ethical culture in business organisations. Taking CMA Testing as an example, our top management firmly believes that integrity is the cornerstone of which our stakeholders' confidence could be built and shall not be in any way compromised. Noting that anti-bribery management has become the basic consideration for international and domestic bidding procurement, CMA Testing has established a robust anti-bribery management system according to the standard of ISO 37001 in 2018. The system not only helps us assess and monitor the possible ethical risks faced by the company, it also helps the company establish a culture of anti-bribery and integrity.

In fact, companies may not need to invest much and yet the benefit of good governance can be very notable and long lasting. As a start, I think companies must spell out its ethical principles and behavioural standards in its code of conduct or internal guidelines. They must also set up a sound internal monitoring system and take decisive actions against non-compliant staff. Finally, companies should enhance the awareness of their staff on integrity issues as well as their knowledge on the relevant laws and regulations. To have a quick check-up on the performance of your company on the above aspects, I highly recommend business leaders to go through the Corporate Ethics Health Checklist developed by HKBEDC and approach the Centre for their free services.

In what aspects does HKBEDC provide support to business organisations in strengthening their ethical governance?

HKBEDC provides free corruption prevention services to business organisations of different trades and sectors. Their services include assisting organisations formulating and reviewing their company’s code of conduct, conducting integrity training for directors and staff, and providing advice on system controls. HKBEDC also maintains a dedicated website providing useful reference and training materials on corruption prevention and business ethics.

The CMA Testing has indeed adopted ICAC services over the years in cultivating an ethical corporate culture and strengthening our governance. The various practical guides published by the ICAC also serve as good references for developing our own anti-bribery system and ethics promotion strategies. I heartily recommend their services to business organisations.

As the new Chairman of BEDAC, how would you advise the ICAC on sustaining its ethics promotion work for the business sector?

I am extremely proud of what HKBEDC has accomplished over the last 25 years and building on this momentum, I look forward to playing my role by offering advice and contributing new ideas to its work. On the way forward, I believe that HKBEDC should continue to enhance its collaboration with various professional bodies, trade associations and business organisations in its ethics promotion work for high risk sectors. To keep up with times in today’s digital world, HKBEDC may also adopt more vivid formats and explore new online platforms to widely disseminate its messages. I understand that HKBEDC will forge ahead an integrity promotion programme for the construction industry this year to enhance the corruption prevention awareness of construction practitioners. A new BEDC Channel which offers live-streamed training to different targets with integrity training needs has just been launched. These initiatives are definitely on the right track. Finally, I would also appeal for the continual support of your chamber and members to the work of HKBEDC in fortifying our clean business culture in Hong Kong.

HKBEDC was established under the auspices of the Community Relations Department of the ICAC in May 1995. It has a firm belief that maintaining high ethical standard in business is the best defence against corruption, and by doing so helps to sustain an open, clean and fair business environment in Hong Kong.