“Deutsche Bahn data scandal”, “Corruption at bioenergy company” – every day, headlines in the papers announce wrongdoings in business. Of course they are a good way for journalists to capture interest. We even start to wonder where all the meaty headlines have got to when they are not in print – or why there is only good news in the papers. Are our attitudes to news stories and headline grabbers changing?
Modern companies are now introducing compliance departments and recruiting anti- corruption officers. Government commissions are laying down codes of practice on corporate governance. Organizations such as Transparency International have sprung up as part of crusade to put in place preventative measures, avoid areas of risk and eradicate bribery. And all of this is becoming more and more transparent and thus open to public scrutiny.
But what does this all really mean to a civil society that is imposing regulations – on data protection, the fight against corruption, codes of ethics – on itself? Is modern society actually in a position to implement and adhere to practices it expects others to adhere to? What do companies and organizations mean when they say they are “compliant” and in a position to minimize – or even eliminate – risks to business operations? According to the recent findings of reputable studies on corporate (or “whitecollar”) crime, companies are not at all versed in issues such as governance, risk and compliance. If anything, all we seem to read about is corruptible civil servants and boardlevel managers, and even compliance officers ending up in court themselves for “corruption through neglect”. Unfortunately, to avoid such malheurs, many companies neither have the specialist knowledge nor the right contacts.
Thankfully, there is a way to solve this problem.
The state-approved Steinbeis University Berlin (SHB) was founded in 1998. Ever since, with each year that has passed, its student body has grown. One unit within the SHB is the School of Governance, Risk & Compliance (or “School GRC”) which is affiliated with three Steinbeis Transfer Institutes. Together, they offer courses on Corporate Governance, Risk, Compliance and Fraud Management. Each course comes under a uniform strategic umbrella, matched to the previous work experience and knowledge of both specialists and managers. Participants come on the courses from a variety of companies, associations and institutions with the aim of gaining new qualifications and honing their business skills. Students carry out a mixture of projects and research assignments which go towards a degree or certified course. This provides students, companies and the School GRC with a basis for sharing – or transferring – knowledge, plus a network specialized in business management and rule compliance. We believe this is the only way to help implement and enforce appropriate corporate codices and sustainable corruption controls while avoiding industry risks. To claim it complies to its own rules and remain competitive in the global context, a society needs the right knowledge and to relate this to everyday practice. This is the yardstick by which School GRC measures itself and its students, in keeping with the overall thought behind the Steinbeis network. As the saying goes – the head is round so that thoughts can change direction.
We hope you enjoy this latest edition of Transfer!
Birgit Galley
Birgit Galley is head of the School of Governance, Risk & Compliance at Steinbeis University Berlin. To find out more about the findings of the study on corporate crime in Baden-Württemberg, which was conducted by School GRC and FSTI for the Baden-Württemberg Security Forum:
70% of perpetrators come from within the ranks of the company