While the situation in the Middle East is fluid and the future is quite uncertain, it is clear that good governance and transparency will be key ingredients for a successful transition to more representative political systems. Just as the political leadership must rise to reach this higher threshold, so too will the private sector as it responds to the backlash against corrupt businesspeople who siphoned millions from the public.
As a resource for businesses looking to reach that higher threshold, CIPE and the Global Corporate Governance Forum have just released a new guidebook and accompanying video, Advancing Corporate Governance in the Middle East and North Africa: Stories and Solutions. The rampant corruption, self-dealing, and lack of accountability that corporate governance seeks to address are exactly the problems that have enraged prompted thousands of ordinary Egyptians, Tunisians, Yemenis, Bahrainis and others to take the streets and demand reform and political change.
The new governments that emerge in the wake of these revolutions – and existing ones that pledge reform – will need to respond to the legitimate demands of its citizens and be accountable for its decisions and actions. With tainted business tycoons and crony capitalists of the regimes under attack by opposition movements and protesters, it is critical that business leaders engaged in legitimate and productive economic activity –which is the vast majority of the business community — demonstrate firm commitment to transparency and combating corruption. CIPE’s partners in Egypt and elsewhere are leading the charge.
One way for businesses to achieve that is by incorporating sound corporate governance practices that ensure proper mechanisms are in place to uphold the core principles of fairness, accountability, responsibility and transparency. Such practices include equal and fair treatment of shareholders, disclosure of financial records, addressing conflicts of interest, and setting clear employment policies based on merit not connections. The resource that CIPE and GCGF developed is a practical guide that describes how companies of different types and sizes in the Middle East and North Africa region were able to overcome challenges and improve their corporate governance practices through a gradual process.
As these new governments increasingly look to the private sector to respond to pressing economic needs and stimulate job growth, the business community has a unique part to play in promoting values of accountability, fairness, and responsibility. This new role will help to advance democratic institutions and strengthen business ethics to the benefit of the public sector, the private sector, and the general public.