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Small and Medium-Sized Businesses take Steps to avoid Manifestations of Corruption

15.03.2019

On 15 March, the Armenian Lawyers’ Association (ALA) organized a training on “Ant-Corruption Compliance in Business” for the representatives of Small and Medium Business Companies working in Gavar in the scope of the “Armenia: Promoting Anti-Corruption Conduct and Reforms” Project.

The Project is implemented by the “Centre for International Private Enterprise”, the “Armenian Lawyers’ Association” NGO, the “Corporate Governance Centre” NGO and the “Yerevan Chamber of Commerce and Industry” with financial support of the National Endowment for Democracy.

Ms Liana Makvetsyan, Lawyer, Head of Gavar branch of the Armenian Lawyers’ Association, welcomed the participants saying that anti-corruption measures will greatly promote business development in Gegharkunik marz and make their activities more protected. “During the project implementation as well as in the future, our organization will continue providing support for strengthening of business companies, provide advice when introducing the anti-corruption compliance program,” she said.

While speaking about their understanding of the notion of corruption the participants mainly described it as giving bribes, which usually occurs in the relationship between the state bodies and members of the society. According to them, although there is no definition of corruption as such in the Criminal Code, there is a responsibility for corruption manifestations.

Ms Mariam Zadoyan, Project Manager of the ALAs Component of “Armenia: Promoting Anti-Corruption Conduct and Reforms” project, presented the notion of corruption, its manifestations and mentioned the money, repayment of debts, performance of certain actions in favor of a person, and refraining from performing certain actions in favor of a person and etc.

Further, she then presented the components of the anti-corruption compliance program and the major international anti-corruption initiatives.

Project expert Lusine Nalbandyan conducted a group work with the participants. They found out through the game why businesses need to introduce the anti-corruption compliance program.

It should be noted that at the beginning of the training the participants completed the tests, which included a number of questions about corruption schemes, anti-corruption compliance program, information on which is provided during the whole course. At the end of the training, the participants completed the same test for the second time to compare what knowledge they gained from the course.

Ms Varduhi Badalyan, representative of “Tsaghkavank” inter-community children’s center, said in a conversation with us that corruption is one of the greatest catastrophes for Armenia and especially for business. “If the business field is clean, chances for conducting good business will increase. Such trainings create a healthy business environment where it is moving forward in healthy competition environment and there is no need to resort to additional corruption activities as other similar businesses are corrupted,” she said. According to Varduhi Badalyan, monopolies are created in the unhealthy business environment, and the small and medium-sized business immediately “drowns” and the economy experienced regress.

“The training provided necessary and practical knowledge, as I would never think that corruption risks can be assessed, the current or future staff should be designed in a manner which will minimize the corruption risks both internal and external relations. Now, as a result of this training course, I’ve discovered new risks for me that I have not previously evaluated, and I shall be able to fight those risks more effectively,” she said.

Ms Shushan Khachatryan, Accountant/Program Coordinator of the “Mantashov” Union, noted that the training was interesting first of all because it provided information that according to the organizational-legal form of the organization they may be difference from the aspect of corruption. “This provides an opportunity to understand what bargains we are carrying out. Maybe we do not understand that it involves corruption in itself, and it can be risky for us in the future. One of the reasons for participating in the training course is the relationship with the partners: what you should pay attention to when finding a new partner.  I have learned recently that many organizations pay attention to whether their partner has an official website or a Facebook page or not,” she said.

This material has been prepared in the scope of the “Armenia: Promoting Anti-Corruption Conduct and Reforms” Project implemented by the “Centre for International Private Enterprise”, the “Armenian Lawyers’ Association” NGO, the “Corporate Governance Centre” NGO and the “Yerevan Chamber of Commerce and Industry” with financial support of the National Endowment for Democracy. The contents of this material are the sole responsibility of the “Armenian Lawyers’ Association” NGO and can in no way be taken to reflect the views of the National Endowment for Democracy.

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