Good Governance Practices to prevent corruption

Now- a- days corruption is on the higher side and Government is doing immense efforts to prevent /curb the corruption through implementing laws and spreading awareness for the same. 

Ex- President of India Mr. Pranab Mukherjee described that “Corruption affects the growth of a Nation, reduces the Government’s income and creates inequalities in distribution of income and wealth. It is a major factor hindering development,” He added, “Corruption needs to be treated like a disease and focus should be on prevention.” 

Corruption is an issue of prime importance in today’s developing India. If India wants to digitize itself and achieve the status of a developed nation, it has to first abandon corruption. Good Governance Practices may help in combating corruption to a better extent.

What is corruption?

There is no globally accepted definition of corruption. In philosophical, theological or moral discussions, corruption is the abuse of bestowed power or position to acquire a personal benefit. The word Corruption has a broader meaning and may include many activities including bribery and embezzlement. Government or political corruption occurs when an office-holder or other Governmental employee acts in an official capacity for personal gain.

Economist Ian Senior defines corruption as an action to

• Secretly provide
• A good or a service to a third party
• So that he or she can influence certain actions which
• Benefit the corrupt, a third party, or both
• In which the corrupt agent has authority.

Daniel Kaufmann from the World Bank extends the concept to include ‘legal corruption’ in which power is abused within the confines of the law—as those with power often have the ability to make laws for their protection.

What is Governance?

Governance is “the process of decision-making and the process by which decisions are implemented (or not implemented)”.

The term Governance can apply to Corporate, International, National, local Governance or to the interactions between other sectors of society.

The concept of “Good Governance” often emerges as a model to compare ineffective economies or political bodies with viable economies and political bodies. The concept centers on the responsibility of Governments and Governing bodies to meet the needs of the masses as opposed to select groups in society.

According to the United Nations, Good Governance has eight characteristics.

• Consensus Oriented
• Participatory
• Following theRule of Law
• Effective and Efficient
• Accountable
• Transparent
• Responsive
• Equitable and Inclusive
  

Good Governance and the Fight against Corruption

World Bank President Dr. Jim Yong Kim wrote the critical importance of good governance for all countries, arguing that “when [good governance] doesn’t exist, many Governments fail to deliver public services effectively; health and education services are often substandard; corruption persists in rich and poor countries alike, choking opportunity and growth.”

For fighting against the corruption Dr. Kim stress on the transparency, accountability, and citizen empowerment and called the people in both developed and developing countries to share their experiences with anti-corruption or governance programs.

Good Governance Practices which may be helpful in preventing corruption:

• Set the Strategy and objectives;
• Select and oversee personnel;
• Protect the interests of stake holders , meet shareholder obligations, and take into account the interests of other recognized stakeholders;
• Align corporate culture, corporate activities and behavior with the expectation that the Institution will operate in a safe and sound manner, with integrity and in compliance with applicable laws and regulations; and establish control functions.
• Improvement in regulatory and supervisory oversight of corporate and risk governance.

“Three lines of defence”, may be implemented

• First line of defence – has “ownership” of risk whereby it acknowledges and manages the risk that it incurs in conducting its activities.

• Second line of defence – should further identify measure, monitor and report risk on an enterprise-wide basis. Risk management function and compliance function may be the part of the second line of defence.

• Third line of Defence is the audit function.

The Board of the Institution has the prime responsibility to oversee the implementation of the strategic objectives, governance framework and corporate culture. The Board is also responsible for providing oversight of senior management. A robust communication within the Institution is required and for reporting to the Board and Senior Management.

The above list is only illustrative and not exhaustive. We can conclude that only Good Governance in the Institutions, Government and even in the personal life may prevent / curb the corruption.