The number of corporate scandals that hit Mauritius recently clearly shows that any country - however big or small - is at risk. Boards of directors have to shoulder most of the responsibilities for those major scandals by either failing to retain control in management or by failing to provide management with a framework that encourages sound and ethical practices thereby creating an environment for proper business conduct. Mauritius should strongly consider implementing the various codes of ethics which have been in place both for the public and private sectors for some time now.

It is worth mentioning that 91% of the FTSE 100 companies (compared to 73% four years ago) have a code of ethics. According to a recent survey, 26% of boards and CEOs in the UK see themselves as directly responsible for championing ethical behaviour compared to 16% and 12% in 2001 and 1998 respectively.

While such high levels of enthusiasm may look good, they often fail to translate into reality through lack of training and enforcement. Merely devising the code of ethics and publishing it with a sigh of relief will not be of any use. Boards should take responsibility for implementing and monitoring ethical codes and ensure that they are not delegated too low down the organisation.

The central ethical issues facing organizations tend to change over time with the top 10 most common being:

? Bribery and corruption

? Supply chain management

? Money laundering

? Whistle-blowing

? Gifts and entertainment

? Conflicts of interest

? Facilitation payments

? Harassment and discrimination

? Work/home balance

? Security and data protection

Ethical issues have achieved a higher profile because of increasing media coverage of corporate scandals, pressure from investors, questions from employees and the corporate governance movement. If business does not take ethics seriously then more legislation will creep in, e.g., to control insider trading. In the UK, up to 5 years ago, it was in the realm of discretion but now it comes under criminal law.

Ethical behaviour must be led from the top. Leaders anxious to discourage skiving, pilfering and scamming at work should first examine their own behaviour and ethics for others to follow suit. In the past few years, bribery and corruption have become part of business ethics. Companies in Mauritius should heed the likes of BP and Shell who have taken a very proactive stance of zero tolerance of bribes because top management decided they were committed to ethics.

In Mauritius, following the corporate scandals and news of corruption of civil servants, it is high time for both the public and private sectors to show commitment to applying the various codes. However, it is not just having a code of ethics, but making sure there is compliance and that a system exists within the organisation. A code of ethics must be communicated to the whole workforce, brought to life through practical examples tailored to day-to-day experiences and enforced regularly.

However, implementation is often more difficult than setting up the code, either because of internal conflict or because the organisation finds it has to do substantial work on adjusting a model code to fit its own circumstances. But if Mauritius is to attract major investors, we must do everything to retain our credibility and show to the international community that we are committed to ?clean? business. The dividends reaped will outweigh all costs and benefit Mauritius. The hard work starts with our political and business leaders effectively demonstrating that commitment in implementing the codes of ethics.

<B>Y. RAMDHONY, ACIS</B>