Being a member of The Blue Company’s Ethics Committee that assesses potential new members and also their qualification for membership renewal, I was delighted to be part of last Friday’s “Going Blue” event at the Serena Hotel.
It was a gathering of members, potential members and others interested in the anti-corruption theme of the Blue Company.
The programme was launched by Mr Ken Oyolla, the Nation Media Group’s chief commercial officer, and next was keynote speaker, Dr Julius Kipng’etich, a Blue Company Advisory Board Member and Jubilee Holdings Group CEO, who described corruption as the big reason why Kenya is stuck with its low per capita gross domestic product.
This corruption de-energises society, and unless the tone at the top is right, rewarding good people and punishing bad ones, we will continue where we are.
He was followed by Davis & Shirtliff Group CEO George Mbugua, who talked about how they live the integrity ideals of the Blue Company.
He confirmed that “Going Blue” is a good idea, ie that integrity is. He emphasised the importance to Davis & Shirtliff of its values, about which they talk all the time… and which they live.
Next, we heard from a panel, with Mr Benard Kiragu, the managing partner of Scribe Services, Dr Joyce Omina, the CEO of the Institute of Internal Auditors, and Dr Aysha Edwards, the CEO of AAR Hospital, who talked about the emergence of policies, regulations and codes of conduct which bulletproof organisations against corruption.
It’s important to get active participation in all this, we heard, so as to obtain buy-in; and also, that auditors should be partners and consultants, and hence preventers, rather than characters who just inspire fear.
They were followed by Alexandre Baron, the EU head of section for governance and macro-economics. He explained how the EU is promoting international standards for integrity and compliance, rightly describing it as a global challenge.
Ms Catherine Musakali, the managing partner of Dorion Associates and founder chairperson of Women on Boards Network, then explained why there’s an urgent need for the private sector to “Go Blue”, and she started by telling us a story of how she was once on her daily walk when she saw a police officer seeking bribes from matatus.
She approached her, looked her in the eye and instructed her to “leave”, which she did—showing one doesn’t need to be just an impotent observer.
Corruption increases costs and undermines competition, she confirmed. Dealing with it is no longer optional, as today’s regulations demand it.
It’s not just for Blue Chip companies now, as the modern consumer expects all those from whom they buy to be ethical.
Customers are willing to pay a premium for products from suppliers whose values align with theirs, and they become loyal.
Increasingly, if one is unethical, one risks fines, reputational damage and having a monitor imposed. There is a cost to such compliance, but it pays off in the long run.
Investors too are prioritising these issues, as it enhances resilience and sustainability. The biggest obstacle to progress is mindsets, for they determine a company’s culture. But it is this that delivers the long-term benefits.
Now Blue Company founder and advisory board member Nizar Juma spoke, and he told us Jubilee has done very well despite being ethical. It’s difficult to prove corruption, he admitted, but everyone knows who is corrupt and who isn’t.
“So many of our children see their parents behaving corruptly, as a result of which they enjoy a new Mercedes, a new big home,” he said, “but we want our children to grow up saying their parents were corruption-free.”
He concluded by suggesting that there is light at the end of the tunnel, however dim, and we must be brave in working on brightening that light.
Chief guest, Dr Habil Olaka, chairman of the centre for corporate governance, quoted former President Uhuru Kenyatta’s estimate that we lose Sh2 billion a day to corruption, suggesting that the private sector has a very important role to play here, as it is the supplier.
Over the last few years, the Assets Recovery Agency and the Financial Reporting Centre, have been established to combat this corruption.
We need well-structured decision-making, said Dr Olaka, which is only possible where there is good governance.
He made the point that beyond focusing on long-term profits there must also be short time profitability to fund immediate sustainability, with a balance between the two.
Finally, before James Sogoti, Nation Media Group’s general manager commercial, gave the vote of thanks, it was my turn—for ‘closing remarks and next steps’, as the programme described it.
It’s what I will write about in my next column. This one was about the “what”. Next will come the “so what”.
The writer is the chairman of management consultancy The DEPOT, and co-founder of the Institute for Responsible Leadership. →[email protected]
