Managing Conflict of Interest - Organisation for Economic Co ...

Chapter 5Codes of conduct in theprivate sectorThe environment in which COI occurs is rapidly changing.Today, there are new forms and approaches to delivering and managingpublic goods and services, blurring the lines between publicand private sectors. This in turn has made it more difficult to define,detect, and manage COI. Good governance standards, ethicalbusiness practices, and transparent disclosure systems are necessaryin both the public and private sectors to combat public sectormalfeasance and corporate fraud.In the wake of recent corporate corruption scandals, corporatesocial responsibility, good governance practices, and a culture ofethics and honesty are increasingly recognized as vital to protectingboth a company’s reputation and its bottom line. In this chapter,practitioners working in the private sector share their diverse experiencesin establishing regulatory frameworks and codes of conductto minimize corporate fraud and establish an organizational andcorporate culture of ethics.Asad Ali Shah, Partner with Deloitte Pakistan and Council Memberof the Institute of Charted Accountants of Pakistan, presentsan overview of corporate fraud and shares Pakistan’s experiencein regulating the financial sector to minimize and prevent corruption.Hans-Josef Schill, President Director of PT Bayer, Indonesia,outlines Bayer’s approach to instilling a corporate culture of ethicsthat is based on values and zero-tolerance compliance and thatdirectly links business sustainability to compliance in a multinationalbusiness context. Cliff Rees, Senior Partner with Pricewaterhouse-Coopers, relates the challenges of conducting business in Indonesia,where the lack of sound regulations and adequate law enforcement,coupled with cultural resistance to change, results in actionsADB/OECD Anti-Corruption Initiative for Asia and the Pacific