Firms Can Realize Business Strategies with IC and CoC

10:00:52 AM | 9/9/2019

Internal control (IC) and codes of conduct (CoC) are currently the two most effective solutions to help small and medium enterprises (SMEs) improve their governance - management capacity towards transparency and efficiency, ensure the rights and interests of investors and shareholders, and enhance their reputation and images. They help businesses realize their strategic vision and core values and demonstrate this commitment in writing.

To finalize the draft of manual internal control mechanism and codes of conduct in business, the Vietnam Chamber of Commerce and Industry (VCCI) and the United Nations Development Program in Vietnam (UNDP Vietnam) recently organized a consultation workshop, attracting nearly 100 delegates from governmental agencies, businesses and social organizations. This was one activity of the Government - Business Integrity Initiative (GBII), implemented by VCCI within the framework of the UNDP’s “Promoting Fair Business Environment” Project, funded by the United Kingdom Prosperity Fund.

Applying internal control and codes of conduct in business will substantially benefit businesses because they help improve risk management and crisis response; and establish an effective and transparent business management mechanism. Besides, reputation and images of companies are improved and investor and shareholder rights are guaranteed.

Notably, applying codes of conduct and internal control in business requires all company members to comply with internal rules, operating procedures and general laws and, at the same time, uphold core values ​​of integrity, ethics and responsibility, which shape a corporate culture and lead the company to a common goal.

According to VCCI General Secretary Nguyen Quang Vinh, Decree 59/2019/ND-CP officially came into effect on August 15, 2019, considered an appropriate time for businesses to make changes in actions to prevent business risks.

Ms. Sitara Syed, Deputy Chief Representative of UNDP Vietnam, said that the Anticorruption Law of 2018 encourages businesses to enact and implement internal control and code of conduct to resist corruption and build a healthy business culture. “We know that the code of conduct cannot solve all problems, but it will be able to support to us to solve. There are many companies around the world that have issued these codes,” she said.

In the current context of extensive international integration, success criteria of a company are not only based on business performance but also on transparency, integrity and corporate governance in line with domestic and international standards.

In the coming time, UNDP will work closely with VCCI to support the business community to deploy code of conduct and internal control by delivering training courses, tools and technical support for those seeking to adopt and apply these instruments.

Besides, according to Ms. Dinh Thi Bich Xuan, Deputy Director of the Business Office for Sustainable Development of VCCI, the project will design a variety of activities to support businesses to deploy internal control and codes of conduct mechanisms in 2019-2020 like perfecting the instruction manual and sharing it widely with the business community; training and establishing an IC and CoC specialist network (workshops set to open in Da Nang City in September and in Vinh Phuc province in October), delivering training-based capacity building (training programs are expected to be held in November 2019 and February 2020). Last but not least, the agency will also provide technical assistance to build demonstration models for internal control and code of conduct at two companies in Hanoi (executed from October 2019 to March 2020), and promote collective actions through signing commitments to business integrity.

Anh Mai