EDITORIAL: New EAC business code of conduct will boost integration

A business ethics study conducted by the East African Business Council (EABC) has cited high levels of unethical conduct within the business community of the East African Community (EAC). The report, among others, found that there was unethical business behaviour and pointed out that bribery to access a service, to avoid regulation and to win a tender was the most problematic factor in doing business in the private sector within the bloc. Consequently, the regional states came up with measures to address the problem leading to the formulation of a new Code of Conduct for Business to guide business operators within the EAC. The bloc’s Heads of State endorsed the new code recently. This is a laudable step towards streamlining of business operations within the EAC, which will help spur regional integration. However, the success of this effort will depend on concerted efforts to enforce the code by the stakeholders in the respective member states. The code of conduct should be adhered to by the private sector and those found flouting it should face disciplinary action. Individual companies should ensure that this code of ethics is part of their responsibility if unethical business behavior is to be stamped out of the region. Also, the business community in the region should be sensitised about the code and why it is important to respect and enforce it. Committing to the code will reduce the cost of doing business, and promote integrity and good business practices to help prevent corruption. It is estimated that corruption adds up to 10 per cent to the total cost of doing business globally, and up to 25 per cent to the cost of procurement contracts in developing countries. As such, the importance of the newly adopted EAC code of conduct for businesses cannot be overemphasized.

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EDITORIAL: New EAC business code of conduct will boost integration