Pearl Initiative Launches a 3-part Compliance Guidebook Series to advance Corporate Governance and Ethics in the Gulf Region
• LRN Benchmark of Ethical Culture: Strong Ethical Cultures Boost Business Performance by 40% – across all measures including levels of customer satisfaction, employee loyalty, innovation, adaptability, and growth.
Riyadh, KSA – 10 December 2023: The Pearl Initiative, a business-led non-profit organisation focused on promoting a corporate culture of transparency and accountability in the Gulf Region, partnered with industry leaders stc group, Siemens, Chalhoub Group, SABIC and CCC, to launch a Compliance Guidebook Series. Numerous studies highlight the significance of ethical culture in enhancing organizational performance; notably, the LRN Benchmark of Ethical Culture points out that companies with strong ethical cultures see a 40% boost in business performance.
This underscores the vital importance of the topics addressed in this three-part series, focusing on leadership engagement and accountability, speak-up culture, and communications. The series is designed to offer accessible resources on key compliance areas with the aim of equipping organizations with practical insights for navigating the intricate landscape of corporate ethics and integrity.
The event is part of Pearl Initiatives’ Anti-Corruption Best Practices Programme deliverables, that is co-developed and funded by stc group. The programme emphasizes the importance of integrity, accountability, and transparency in business operations.
The event kicked off with a panel discussion titled ‘Steering with Integrity: Navigating Corporate Ethics and Governance,’ featuring a special talk by Dr. Basmah Al Zamil, Consultant at LGA Advisors and Former General Manager of Corporate HR at Zamil Group. Moderated by Mr. Omran Al Zamani, Board Secretary and Senior Legal Counsel at Dana Gas, the discussion provided an exploration of the role of family governance in guiding family businesses in KSA toward ethical excellence.
Dr. Basmah shared her extensive knowledge on family governance: “The ethical groundwork laid by founders is the cornerstone of family businesses, with the family constitution ingraining these values deep within the company’s culture. Adherence at every level is necessary to ensure that a legacy of integrity persists through generations.”
The event then showcased the launch of the Compliance Guidebook Series with a panel comprising members of Pearl Initiative’s Anti-Corruption Working Group and subject matter experts: Mr. Jaleel Ghani, Compliance & Corporate Ethics Senior Advisor at stc group; Mr. Naveed Ansari, SVP & Compliance Head Middle East at Siemens; Mr. Fadi Jabbour, Chief of Country Managers at Chalhoub Group; Mr. Jihad Hakamy, General Manager and Chief Counsel at SABIC; and Ms. Mashael Al Dawsari, Legal Advisor & Compliance at CCC.
The discussion spanned various facets of corporate ethics. Topics included the pivotal role of leadership in fostering an ethical culture, the importance of a speak-up culture where employees feel empowered to report misconduct, and the effectiveness of communications, particularly storytelling, in reinforcing ethical behaviors.
During the discussion, Mr. Naveed Ansari distinguished between ethics and compliance in his insightful remarks “Ethics and compliance, while often used interchangeably, address distinct aspects of organizational conduct. Ethics and integrity are about the cultural fabric of an organization, the moral principles that guide our decisions and actions. It’s the ethical culture that fosters trust and respect within and beyond the organization. On the other hand, compliance is specifically concerned with adherence to applicable laws and regulations. Understanding this distinction is crucial because it shapes how we approach both areas. While compliance ensures that we meet external legal standards, ethics are about our internal commitment to doing what is right, beyond just what is required. With all the rapid changes around us it has never been more important to create spaces where people feel comfortable speaking up and talking openly about successes, failures and learnings. Speak Up is beyond whistleblowing it is the culture of openness.”
Echoing the sentiment on the importance of ethics in corporate culture, Mr. Fadi Jabbour added “Corporate ethics not only help organizations protect their reputations but also foster an environment conducive to personal growth, self-advocacy and a strong sense of responsibility among employees”
Ms. Danah Abboud, Anti-Corruption Best Practices Programme Manager at the Pearl Initiative, facilitated the development of the 3 guidebooks with the Anti-Corruption Working Group members. As moderator for the guidebook launch panel, she underscored the value of these resources: “These guidebooks are meticulously crafted to be introductory, ideal for organizations embarking on their compliance journey. They stand out by providing practical methods, drawn from the experiences of participating organizations, to facilitate a transition from theoretical understanding to actionable practice.”
The guidebooks presented were:
• Leadership Engagement and Accountability Guidebook: Underscoring the crucial role leaders play in setting and maintaining ethical standards within their organizations, asserting that the tone at the top dictates the moral climate of the enterprise.
• Speak-Up Culture Guidebook: Advocating for an organizational culture that encourages employees to express concerns, this guidebook fosters a supportive and non-retaliatory environment, crucial for maintaining transparency and integrity.
• Communications Guidebook: Highlighting the importance of effective communication, this guidebook emphasizes reinforcing a company’s commitment to ethical practices and integrity, ensuring that core values are not just understood but adhered to by every employee.
This series signifies and actively fortifies the collaborative commitment of regional and international organizations toward fostering an ethical business environment. It stands as a testament to the united effort of these entities to raise standards and reinforce the ethical fabric of the Gulf’s business community, establishing a benchmark for corporate integrity in the region.
