MSMES hinge economic growth on collaborative efforts to stem corruption

Corruption is an all too familiar concept in Nigeria, considered to have contributed to the level of underdevelopment in virtually all spheres of the society but now, Micro, Small and Medium Enterprises (MSMES) are resolving to “fight against corruption” so as to be unshackled and get the freedom to grow.

This initiative is been driven by the UN Global Compact (UNGC), described as the world’s largest corporate sustainability initiative advocating responsible business practices and UN values among the global business community, make a difference and work with others across all dimensions of corporate sustainability – economic, social, environmental and ethical practices.

Olajobi Makinwa, chief, Africa & G77 Engagement, UN Global Compact remarked that while government has done a lot in terms of ease of doing business, for MSMES, more needs to be done in order for them to also thrive as much as they should.

The Nigeria Anti-Corruption Collective Action Workshop which brings MSMEs together has for several months, grown in membership, as more companies commit to international best practices and ethical standards.

Makinwa explained that “What has changed (in the past months) is the fact that we are having more MSMEs that are aware that in terms of fighting corruption which is the foundation of most of the problems they are having, there is a need to work together.”

“You can also see that from when we started the number of MSMEs attending and participating in these workshops is more. This is not a project that will just have one workshop here today and another tomorrow but rather is about action, and impact,” Makinwa said.

The UNGC asserts that corporate sustainability starts with a company’s value system and a principled approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption. Responsible businesses enact the same values and principles wherever they have a presence, and know that good practices in one area do not offset harm in another. By incorporating the Global Compact principles into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success.

This corroborates Makinwa, who also said that “Many small businesses appear to be getting more conscious of being involved in bribery and corruption as awareness is increasing. Some have decided to be supplier of choice only to companies working with the global compact, while some large companies have also decided that, unless you clean your act, you are not going to be a supplier of choice.”

The UN Global Compact’s Ten Principles are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption.

Degun Agboade, president, National Association of SMEs Nigeria, on his part, described corruption in Nigeria “as a cankerworm which has eaten to the psyche of the average person”.

Agboade advocated the need for increase in automation on private-public interactions so as to limit human interaction to the barest minimum, as this according to him, has often bred corruption.

“If everything is automated, it will reduce the need for human interaction and the need for bribery will be eliminated,” Agboade said.

He further lamented the corruption involved in the process of SMEs putting up their products on display in big stores, saying “even as an SME desirous of taking products for display in some big stores, one needs to know people, which shouldn’t be. It is corruption. If you’re qualified and have followed the required steps, products should be accepted for display.”

The workshop highlighted the need for MSMEs to make conscious efforts to resist participation in acts of corruption, and utilizing the whistle blower platform when confronted with requests to bribe.

CALEB OJEWALE