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

174 Managing Conflict of Interest•••••Low organizational loyalty or feelings of ownership;Unreasonable budget expectations or other financial targets;Less-than-competitive compensation (low salaries);Poor training and promotion opportunities; andPoor communication practices or methods.Organizations can combat these factors and cultivate a workenvironment that promotes good corporate governance by:••••••Conclusionsetting an appropriate tone at the top (leading by example);creating a positive workplace environment;engaging in fair and transparent hiring and promotionpractices;providing training (fraud awareness, ethical values, fraudreporting);establishing a code of conduct that instills core values;clearly communicating and enforcing disciplinary measures;andenforcing a policy of zero tolerance for wrongdoing.•Pakistan’s experience offers insights for other countries interestedin strengthening their own corporate regulatory and administrativeframeworks to promote good corporate behavior andto reduce corporate fraud and conflict of interest. Governmentsshould take a holistic approach to establishing a comprehensivelegal framework, which can be effectively enforced and monitoredby capable regulators in a coordinated manner. Working in tandem,government and the private sector can develop a culture ofhonesty and ethical behavior and promote good corporate governancepractices through prevention as well as enforcement measures.These efforts will ultimately help minimize corporate fraudand ensure profitability and productivity in the long term.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific