CORRUPTION IN BUSINESS

Evening Star, Issue 18239, 2 April 1923, Page 5

CORRUPTION IN BUSINESS

BRITAIN’S REPUTATION JEOPARDISED. “ One of England’s greatest assets,” says Mr Harold Cox, in tho ‘ Morning Post,’ ” is tho reputation of her people throughout tho world for honesty in trade. That this reputation needs to bo strengthened it is tho purpose of tho present article to show. But as matters stand onr reputation is still high, and deservedly high, in comparison with tho records of most other countries. ‘‘The proof of that statement is to be found in the fact that Englishmen are trusted in business to ii greater extent than -is usual among foreigners in dealing with one another)! In South America, friends toll me, the phrase ‘ palabra lug lose ’—an Euglishman’.s word—is commonly used as a guarantee of tho honesty of a statement. All over tiic continent of Europe, as most travellers know by experience, an Englishman’s cheque is almost invariably accepted with pleasure as a convenient equivalent for cash. As a consequence of this relatively high credit, business comes to England that would otherwise go elsewhere, “ The fact that London is the banking centre of the world is not duo to accident. It is due partly to the excellent organisation of our' hanking system, which enables business to he done much more rapidly in an English than in any foreign bank, and, in addition, it is duo to tho world-wide faith that an Englishman’s word is his bond. The same consideration affects a very large part of our overseas commerce. Tho heads of English business firms have told me how they 'flroquout/ly get orders from abroad, leaving to them tlie responsibility of selecting the goods and fixing the price. They make it their practice to select suitable goods and to charge a fair price; repeat orders follow. STANDARD OF HONESTY. ‘‘To this extent it is certainly true to say that honesty is the best policy. But if that wore all, it is doubtful whether many people would long remain honest. For often occasions arise where more profit can bn made by dishonesty trickery than by straight dealing. The practice of honesty must finally rest on something higher Ilian the pursuit of gain. So fur as Englishmen are concerned, the relatively high standard of honesty with which we are credited is possibly due to tho Englishman’s sporting spirit, to his desire to play the game, or it may bo due to the spirit of tolerance which is certainly one of our national characteristics. In business, and to some extent even in war, that spirit sxpressed itself in reluctance to take full advantage of momentary opportunities. In rural England it is a very common saying that a bargain is never a good bargain unless both sides arc satisfied. THE DISHONEST TRADER. ‘‘These are tiro encouraging aspects of English methods of doing business. But there is another side to the picture. In addition to the honest trader, we have the dishonest trader, and a considerable part of the daily business of onr country is undoubtedly accompanied by flagrant corruption. Tradesmen give bribes to servants m private houses, in hotels, and in clubs ; manufacturers and wholesale merchants give commissions to the agents or buyers employed by retail firms; chauffeurs are bribed by the vendors of petrol; military officers, Civil servants, local government officials, and police constables are frequently offered, and sometimes accept, bribes or secret commissions.

“Ami these evils show little signs of abating. Indeed, there is reason to fear that the effect of the war has been to increase the amount of corruption in business. The immense purchases made by the Government during the war created opportunities for corruption on a scale that had never before existed, and it is notorious that some of the persons employed by the Government in buying or manufacturing the munitions of war secured large sums for themselves by flagrantly corrupt methods. THE LEGAL SITUATION. “ It was partly in view of this evil that the law against bribery and secret commissions was strengthened by an Act (Kissed in DIG. The first statute dealing with this matter—the L’reVcntion of Corruption Act—was passed in DOG, largely as the result of a campaign carried on for many years by the London Chamber of Commerce. That Act made it a misdemeanor for an agent corruptly to accept gilts for himself in relation to matters affecting his principal's business, and imposed penalties on conviction up to two years' imprisonment with hard labor, possibly witii a line in addition. The person who offers the bribe, or persons who prepare false documents in order to assist such frauds, are liable lo similar penalties. These penalties were considerably increased, so far as Government transactions arc concerned, by the Act of DIG, and a person win gives or offers a bribe in connection with a Government contract is now liable to seven years’ penal servitude. “ It is useless, however, for Parliament to pass laws of lids character unless there is some organisation for securing the enforcement of the law Therefore, the London Chamber of Commerce very wisely set to work in DOG to create the Bribery and Secret Commission Prevention League. That league has since steadily grown in strength, and has year- by year increased its useful activities. The President of the League is Lord Lambourne, and among its vice-presidents are. Lord Salisbury, Lori Desboronga, Lord Inehcape, and Lord Lcverhnlmc. The main business of the league is lo assist firms and private persons in tracking down corruption and in prosccutingvwhenovcr a case arises.” After quoting sonic had cases of bribery, Mr Cox says: “But the eases that come into court represent' a. very minute proportion of the total volume of corruption,” and suggests a further necessary step. NEED FOR DEFINITE CONTRACTS. “ A good deal of this kind of corruption is due not so much to an active desire, to bo dishonest, as to a passive acquiescence in a had custom—a custom which some minds even accept as justifiable merely heausc it is a custom. Therefore, it would he worth while if all employers of persons who are liable to this kind of temptation_ would specifically emphasise the dishonesty of the. practice in the contracts they make with their employees. It should bo definitely stated in writing # that the employee is under no circumstances lo receive any commission from persons with whom the, employer has business dealings. More generally still, the public mind needs awakening to the importance of this issue. It may seem a little thing that the chef in a AVe.-.t End club sf onld receive a commission from a local butcher, hut at the back of that practice lies the mental corruption which extends in .subtle, forms through all phases of commercial and public life, tarnishing the standard of national honor and lowering the repulution of England throughout the world.” ■