04.12.2018

Commercial corruption occurs as a result of improper dealings between state officials or companies. Anti-Corruption Compliance in business means the transfer of global anti-corruption principles and standards as well as national laws to local practice, as every country in the world has national legislation providing for criminal offenses.

One of the key elements of a reliable and effective compliance program is the rules of corporate behavior.

The Rules of Corporate Behavior are a company’s guideline in which the moral obligations of company owners, managers and employees are regulated towards one another and on other beneficiaries, including partners, customers, and public. Corporate behavior rules are based on universal values.

 

The need for Corporate Behavior Rules is highlighted in the following aspects.
Improving business reputation and image of the company. Given the fact that business reputation and image of any organization is an inseparable part of the assets, the introduction and adoption of the Code of Conduct can contribute to the increase of the company’s value.
	Effective risk management, forecast and prevention of crisis situations or effective overcoming of such situations.
Recognizing the importance of corporate values, improving corporate culture and applying relevant principles.
	Building effective relationships with stakeholders and strengthening trust in the company.

Source: Guide “Structure of Corporate Governance System”

It should be noted that On 1 October, the “Armenia: Promoting Anti-Corruption Conduct and Reform” project, which is implemented by the Center for International Private Enterprise (CIPE), the Armenian Lawyers Association, the Corporate Governance Center and the Yerevan Chamber of Commerce and Industry was launched.

In addition, The objective of “Armenia: Promoting Anti-Corruption Conduct and Reform” project is to introduce anti-corruption programs in Armenia’s businesses, which will contribute to the insemination of the values of corporate governance and ethics in Armenia.