Issue link: https://maltatoday.uberflip.com/i/1191618
12.12.19 9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS CONTRIBUTING JOURNALIST: MASSIMO COSTA BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 E thical business is beyond keeping in line with the rules and laws of the country. It should be a given that every business entity, company, service pro- vider and commercial player abide by the country's tax laws, labour and environmen- tal legislation, and market rules. Laws are there to be obeyed. ere is hardly the need to explain why this is im- portant but from a purely market consid- eration, the rules are there to ensure a level playing field that is a key component in a competitive environment. is is why corruption and bribery are a cancer on society. ey undermine the fine line of trust that keeps communities to- gether. Corruption distorts markets, puts jobs at risk, and can also kill, as we have come to learn from the Daphne Caruana Galizia case. A recent Eurobarometer survey on cor- ruption paints a worrying picture of Mal- ta. e results showed that 60% of CEOs and business leaders interviewed for the exercise believed that corruption was a problem on the island. Maltese businesses were the second most likely in Europe to see corruption as a problem in their country. is points to an erosion of morality that has to be fought back by all, including the business community. It is within this context that functioning in an ethical manner becomes as impor- tant as functioning in line with the coun- try's laws. is leader has no doubt that many in the business community appreciate and adhere to high ethical standards in the discharge of their duties, the provision of services and trade. But there needs to be a deeper reflection on the need of ethical standards that de- lineate the borders between business and politics. Understandably, Malta is a small country where everyone knows everyone and fa- miliarity between businesspeople and pol- iticians is unavoidable. In some cases, the proximity also contributes to the country's nimbleness in addressing problems and is- sues that may crop up from time to time. But familiarity can also breed compla- cency and create the expectation that peo- ple in power should close one eye. is is wrong because it leads to lax enforcement, gives those with access to power an unfair advantage and undermines the serenity required for a competitive environment to thrive. While rubbing shoulders and doing small talk during social occasions is the human thing to do, businesspeople must adopt ethical standards of what is acceptable or not. Transparency in business dealings and having an internal mechanism of checks and balances is one way of fostering eth- ical behaviour. e same holds for people in power at all levels of government. It beggars belief how ministries have no formalised, legally-binding register of meetings and visitors. is may seem a minor thing but it is a mechanism to en- sure transparency and make verification processes easier. Clear standards must be in place to en- sure elected officials and people in top po- sitions in the public service avoid potential conflicts of interest, not least if they have personal business interests. is call may jar with the Mediterrane- an character of this nation. But with all that has been happening in the aftermath of the Caruana Galizia murder investiga- tion it becomes incumbent on everyone to change things for a better Malta. When the demarcation lines between business and politics are obscured, the in- evitable outcome is a mess that benefits no one. Having a healthy line of communication between the business community and people in power is necessary but that line must be governed by a clear understand- ing of what is acceptable and not. Just as the political world has much to reflect on these days, so does the business community. Sweeping the challenges that are staring us all in the face under the car- pet is not an option. The need for ethical business