The Bhutanese Leading the way.
The Anti-Corruption Initiative (ACI) Regional Seminar 2024 on Government Incentives for Corporate Anti-Corruption Compliance saw a strong emphasis on the crucial role of business integrity in Bhutan’s development.
Lyonpo Lekey Dorji, Minister of Finance, said that business integrity is not just a regulatory requirement, but a foundation of sustainable economic development.
He urged that while the Royal Government of Bhutan (RGoB) offers various incentives to empower the private sector’s role in socio-economic development, the participants should identify an appropriate mix of sanctions and incentives to further encourage business integrity both within the ACI and globally.
The Chairperson of the Anti-Corruption Commission (ACC) highlighted business integrity as the key to Bhutan’s government incentives in promoting ethical practices and fostering a culture of integrity within businesses. A regional collaboration, technology-driven solutions, and a balanced approach to corruption, combining punishment with rewards for integrity.
Representatives from the Organization for Economic Co-operation and Development (OECD) and Asian Development Bank (ADB) emphasized the need for a multi-stakeholder approach and reaffirmed their commitment to fostering a clean business environment through partnerships.
Discussions focused on incentivizing anti-corruption compliance and business integrity, including the use of public contracts and other public benefits such as subsidies, licenses, tax breaks, and development assistance.
Speakers shared the importance of these incentives as a tool for promoting transparency and accountability in the use of public resources, alongside fostering a culture of integrity within businesses.
Further discussions were on the use of reputational incentives, such as public recognition for businesses upholding integrity, along with the government’s role in providing training and guidance to enhance ethical behavior within the private sector.
Lyonpo Namgyal Dorji, Minister of Industry, Commerce, and Employment (MoICE) highlighted the importance of reinforcing ethical business practices alongside fostering a business-friendly regulatory environment as key strategies for building a robust economy in Bhutan and globally.
He said that as Bhutan transforms towards His Majesty the Druk Gyalpo’s vision of Gelephu Mindfulness City, we should aim for solutions to corruption, aiming to position Bhutan among the top nations in Transparency International’s Corruption Perceptions Index.
Mr. Ujjwal Deep Dahal, CEO of Druk Holding and Investments (DHI) emphasized the critical role of hiring individuals with strong ethical values for effective corporate governance. However, he acknowledged the challenge of truly measuring someone’s integrity.
He shared that DHI implements several best practices to mitigate this challenge, including a rigorous recruitment process and independent internal audits that report directly to the Chairman, rather than the CEO.
The 3-day seminar which commenced from 25 till 27 September, 2024 was co-hosted by ACC, in collaboration with the OECD and ADB. This marked the second time Bhutan co-hosted the seminar, after 2016.
The seminar highlighted collaborative efforts between government and the private sector to combat corruption, with businesses investing in anti-corruption programs and governments creating supportive environments.
It gathered 57 international anti-corruption experts and practitioners from 18 member economics, including 96 national stakeholders from government officials and representatives from the international organizations, civil society and private sector.
