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Monday, February 04, 2008

 

BEYOND THE BUZZWORDS
By Reylito A.H. Elbo
Opacity index: Business has its corruption level too

 
LET me Tickle your mind again and again with corruption issue. And you know there are plenty of people who would be reminded, particularly in this time of the year when we renew business licenses in some agencies manned by corrupt and inefficient bureaucrats.

Under their system, if you want to pay your taxes, some lowly-paid government officials wearing Hugo Boss designer clothes and Christian Dior jewelry will look at each other with a funny wink as they write some secret code that neither you nor the CIA could understand.  But that’s not the weird thing. 

The most difficult part is queuing in some government offices that have become a very popular contact sport these days, attracting hundreds of thousands of taxpayers, every single one of whom is standing in line ahead of me.

Even if I ask my messenger to do it for me, I feel it’s inhumane to force somebody who has the sincerity of paying taxes and yet suffer the agony of waiting in line behind some taxpayers who are willing to pay bribes and at the same time view it as some kind of recreational activity.  

Then we wonder: What does corruption cost us? The Opacity Index, developed by Price Waterhouse Coopers may provide some answers.  The index measures levels of opacity—defined as “the lack of clear, accurate, formal, easily discernible, and widely accepted practices.”

The most popular equivalent of Opacity Index is Transparency International’s Corruption Perception Index (CPI).  It measures bribes received by governments and their officials, except that it reflects only one aspect of a very complex picture, according to Christos and Mary Papoutsy, founders and publishers of Hellenic Communication Service in Greece.

They say that the “potential for opacity exists in five principal areas, and no country is likely to earn a perfect score.  There may be corruption in government bureaucracy that allows bribery or favoritism. The laws governing contracts or property rights may be unclear, conflicting, or incomplete.

“Economic policies—fiscal, monetary, and tax-related—may be vague or change unpredictably.  Accounting standards may be weak, inconsistent, or irregularly applied.  Together, these five areas create the acronym CLEAR.”

Let’s go back to CPI.  In its 2007 regional highlights in the Asia-Pacific region, Transparency International ranks 32 countries resulting to the CPI clearly demonstrating that “corruption remains a serious challenge.”

TI reported that “out of the 32 countries ranked, 22 register scores below 5 indicating that most of the countries in the region face serious perceived levels of domestic corruption.”

In the regional level, the Philippines is ranked as number 22 out of 32 countries with a CPI score of 2.5.  Internationally, it is ranked 131 out of 179 countries surveyed.

While some of you may have resigned from this issue in government, wait until we’ve broaden this by examining the level of corruption in business.  Yes, we must include those in the private sector as well. 

I mean, let’s find answer to one intriguing question:  Why do some private companies continue to favor some suppliers even if they’re not competent to serve as its outsour-cing partners?  Look at your own operations and you’ll find value to this question.

Meanwhile, back in the line, there’s a growing impatience among those of us who just want transparency in governance in both business and our government so that the needed revenue will go to where it was intended.

You know what I mean.  I myself developed the habit of asking this question many times in the past wherever I was—be in some filthy government offices or in swanky private executive suites.

I must stay awake to write phenomenal and irreverent stories against corruption.  But here’s the last point, at least for this piece.  I’m now beginning to suspect that there are some big companies out there that are also big with corruption stories.  You can imagine there’s no difference with what’s happening in some government agencies.

You know how sometimes, when you’re really skeptical about something, but then you finally discover it by accident.  Maybe, it’s about time to consider Opacity Index?  Check it out.  But I must tell you pointblank that I’m not selling it for Price Waterhouse Coopers. 

So let me just say—let the buyer be aware.

__

Rey Elbo is a management consultant specializing in human resources and total quality as a fused specialty.  Reader’s feedback may be sent to kairoshq@infocom.ph.

  
 

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