By Horacio Arredondo*
The worst historical performance of Mexico in the 2024 corruption perception index, prepared by International Transparency (IT), leaves no doubt. In two years, the country has fallen five points (-5), standing with 26 points in 140 of 180 in the ranking. The United States (-4), France (-4) or Spain (-4), and two thirds of countries score less than 50, which places them at “extremely high” corruption levels ”have also fallen strongly. The efforts to combat corruption in the world have been clearly insufficient.
This year, in addition, the IT report plays special emphasis on the relationship between corruption and climatic crisis, warning that “millions of dollars of climatic funds run the risk of being looted or misused.” It is evident that, in a context of impunity, corruption triggers and the ability of countries to address climate change is reduced, with the corresponding cost it has for the credibility of institutions in affected countries.
But this is a transverse issue: it implies both governments and individuals, that is, it concerns us all. Traditionally, corruption (and its consequences) has been associated with the public sector. In December, INEGI revealed that 14% of the adult population in Mexico has experienced acts of corruption from public servants. However, corruption also seriously affects the private sector. There, acts of corruption can be committed in collusion with the public sector or between multiple -way actors, negatively impacting corporate culture, competitiveness, results and even business reputation.
According to the report Occupational Fraud 2024: A Report to the Nationsin Latin America, the most widespread labor fraud schemes involve corruption (55%), fraudulent billing (25%), non -monetary assets (23%), subtractions (15%), handling of checks and payments (11%) and reimbursement of fraudulent expenses (9%), among others. Most are discovered by an anonymous complaint (55%), an administrative review (23%) or an internal audit (15%), as well as other detection methods. These control mechanisms, coupled with codes of behavior and anti -arud policies, only partially dissuade corruption acts.
Therefore, in addition to strengthening internal controls, companies must reinforce their corporate governance, since the role of surveillance of the Board of Directors is vital in this regard. Having solid corporate governance practices, which strengthen transparency and accountability, can reduce the risk of fraud and corruption. These practices, in turn, increase the confidence of interest groups or stakeholders of the organization, especially that of investors.
Thus, the culture of ethics begins in the advice themselves, avoiding and declaring possible conflicts of interest, and establishing clear guidelines for management.
Also, senior management must promote a culture of integrity, where ethical dilemmas are addressed with transparency and responsibility. But these efforts cannot be left in the business dome, it is necessary that they permeate the entire organization through training and communication mechanisms that ensure their understanding and application in all areas, strengthening confidence between collaborators, clients and others stakeholders.
In short, corruption is a great obstacle to progress. As the IT report underlines, overcoming it is essential to build more peaceful, resilient and sustainable societies. The private sector plays a key role to combat corruption by activating corporate governance mechanisms that establish a culture of integrity, supervision and transparency within organizations.
About the author:
*Horacio Arredondo is Dean of Egade Business School of the Technological of Monterrey.
The opinions expressed are only the responsibility of their authors and are completely independent of the position and the editorial line of Forbes Mexico.
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