| Overview : Corruption in the private sector interferes with market mechanisms and results in economic loss through inefficiency and misallocation of resources. In lieu of this, on the 30th August 2001 a workshop was convened by the Directorate on Corruption and Economic Crime (DCEC), and Business Botswana (Formerly BOCCIM) and the Commonwealth Business Council (CBC) as part of a programme by CBC to encourage greater cooperation between the Government of the Republic of Botswana and the Private Sector in fighting corruption. In preparation for the workshop a number of interviews were conducted to highlight how corruption affects business activity and the investment climate and to review the legal constitutional and administrative arrangements currently in place to counter the threat of corruption. The workshop participants (representatives from all sectors) felt that “while Botswana rightly enjoys a good reputation for the integrity of the business environment, corruption and mal-administration remain significant problems within the Government and private sector”. Concerns were also raised regarding issues of conflict of interest, which arise as a result of links between the public servants, private companies and politicians. Following the workshop an Agenda for Change was endorsed and agreed upon. Recommendations in the Agenda included the development of comprehensive guidelines on corporate governance, which could be encompassed in a Code of Conduct for the Private Sector, recommendation on how Government might simplify and rationalize public administration in order to eliminate the scope of corruption. Following the thorough stakeholder engagement, the Code of Conduct for the Private Sector was launched in 2011. The purpose of the code is to guide the private sector against unethical behavior when conducting their business activities. At the launch, about 15 companies signed the code, subsequent, a further 60 companies signed. The implementation of the code was unsatisfactory as BB members and all businesses were not adhering to set guidelines. During the consultative meetings, members always enquired if there was an incentive for signing the code and this was an indication that incentives must be put in place for those businesses that sign the code. Since the adherence was voluntary, there was low take up by businesses. Business Botswana and DCEC with the assistance of UNDP have agreed to review the code of conduct and to ensure that it is aligned with international standards and local standards and brings in an element of an incentive. There is also a need to recognize those who have signed and adhere to the code. |
