Can integrity processes help companies compete?

International Anti-Corruption Day on 9 December is an annual opportunity to reflect on progress made and the road ahead when it comes to tackling corruption – and why it also makes good business sense.

Twenty-five years ago, anti-corruption was mostly seen as a legal or moral issue. However, efforts were subsequently made to build an economic case for the impact of corruption. One 2005 study suggested that increased corruption by one index point can reduce gross domestic product (GDP) growth by 0.13 percentage points.

While further efforts are still needed today on data collection, some estimates of company stock performance correlated to good corporate governance suggest a tangible link between corporate success and integrity-based processes.

What can be learned from steps taken to date, and what should be prioritized around responsible business conduct going forward?

“The world has spent decades building the norms and institutions that enable integrity – but these gains are not irreversible. Rapid technological change, shifting regulatory priorities and growing politicization in some areas are creating new complexities,” says Maira Martini, Chief Executive Officer, Transparency International.

“Strong governance and ethical leadership remain essential. Clear integrity standards help companies compete fairly, innovate confidently and maintain the trust that markets rely on, safeguarding the progress made.”

Over the past few decades, the world has built a strong foundation for business integrity, including:

These developments have generated momentum – from the 50+ cities, regions and governments now adopting open contracting reforms, to the hundreds of foreign bribery cases prosecuted under the OECD Anti-Bribery Convention. Collective action models and integrity pacts have shown that integrity not only deters misconduct but also improves competitiveness and reduces risk exposure.

“Integrity and anti-corruption measures are too often seen as mere safeguards – if not dismissed as red tape – when in fact, they are the potential engines of performance, resilience and innovation,” says Nicolas Pinaud, Deputy Director of the Directorate for Financial Enterprise Affairs, OECD.

“At every level – national, local and corporate – they don’t just prevent fraud; they supercharge decision-making and create the conditions for ethical business and sustainable growth to flourish. The OECD calls this the ‘integrity advantage’: where strong enforcement, smart governance and agile compliance systems turn integrity into a competitive edge.”

Today, businesses are operating in an environment defined by geopolitical tensions, supply chain fragility and regulatory fragmentation. Some governments are tightening oversight while others are relaxing enforcement. In this context, it can be challenging to refer to external standards for how business should compete and conduct themselves.

At the same time, rapid technology advances are generating new corruption risks, especially around financial flows. Further, societal trust in governments and business alike has dipped. The Edelman Trust Barometer – a long-standing report based on annual surveys in 30 countries – in 2025 found that 61% of respondents have a moderate or high-sense of grievance, defined as a belief that government and business make their lives harder and serve narrow interests.

For companies, this creates a paradox. Norms and rules on responsible business conduct face cross-examination, even as the need to reinforce their social licence is pressing. Companies that build integrity processes can use these as an internal anchor amid external currents and doing so drives consistent assurance and communication with customers, investors and the public.

Here’s why integrity tools are key for business and what companies can do:

Integrity isn’t bureaucracy – it’s risk management. The Association of Certified Fraud Examiners (ACFE) 2024 global study finds a median $145,000 loss per fraud case, with total reported losses of $3.1 billion. By contrast, the U4 Anti-Corruption Centre’s 2025 analysis found that firms with robust integrity frameworks experience fewer incidents, lower risk exposure and lower operational costs.

Basic integrity tools work, with robust controls (surprise audits, data analytics, hotlines) linked to 50%+ reductions in losses and duration – turning integrity from cost centre into cost saver. Firms with strong ethics and compliance systems avoid the heavy toll of fines, debarment and reputational crises.

A 2024 Morgan Stanley Capital International (MSCI) study found that top-rated environmental, social and governance (ESG) performers borrowed at 6.8% on average, compared to 7.9% for lower-rated peers. Similarly, recent International Monetary Fund (IMF) analysis finds that countries with stronger corruption control attract significantly higher foreign direct investment (FDI) inflows, underlining how integrity and good governance strengthen not only firm performance but entire markets’ investment appeal.

In corruption-heavy environments, resources are wasted. Transparent systems free those resources – research on firm-level innovation across 24 countries shows that stronger integrity and lower corruption control significantly boost innovation output.

“Integrity is about more than compliance – it’s how we show up every day in our decisions, the way we treat people, and the example we set,” explains Ayanda Ntsaluba, Group Executive Director, Discovery.

“By embedding ethical practices into the fabric of business operations, we not only reduce risk but unlock growth, attract investment and build trust. For SMEs, this is transformative: integrity empowers them to compete and contribute to inclusive economic progress.”

Trust is the cornerstone of long-term relationships. Employees in high-integrity firms are more motivated and loyal; customers are more willing to buy and advocate for brands that share their values.

Research by the Institute for Corporate Productivity shows that trust accounts for up to 18% of the variance in organisational productivity, highlighting how cultures built on transparency and ethical leadership drive measurable business outcomes.

Meanwhile, Ethisphere’s 2025 World’s Most Ethical Companies report found that such firms outperformed a comparable global index by 7.8 % over five years. That performance premium suggests that businesses built on integrity weather storms better, innovate faster and retain talent longer.

"Integrity is what sets lasting organizations apart, especially when the world feels uncertain. Doing the right thing, even when no one is watching, is how we earn trust and create real value wherever we do business,” says Margery Kraus, Founder and Executive Chair, APCO.

Integrity practices are being implemented globally. In Lithuania, a municipal infrastructure project on the Neris riverside in Vilnius implemented an integrity pact between the contract authority and bidders, monitored by Transparency International.

A multi-stakeholder model opened the bidding process and created more trust in public spending. While Lithuania still ranks as having moderate corruption risk for smaller firms, proactive integrity initiatives can shift the dynamic.

“Lithuania’s journey shows that integrity is not only about preventing wrongdoing – it is about creating the conditions for trust, fair competition and resilient growth. By opening processes through various integrity initiatives, we proved that transparency strengthens confidence in how public money is spent,” says Linas Pernavas, Director of the Special Investigation Service of the Republic of Lithuania.

“When integrity leads, trust follows – and that trust is the foundation on which citizens, businesses and institutions can thrive together.”

Engineering service and nuclear organization AtkinsRéalis, previously known as SNC-Lavalin, illustrates how a company can rebuild trust and reputation through integrity.

Ian L. Edwards, President and CEO, AtkinsRéalis, explains: “Between 2001–2011, some individuals within our company were involved in unethical activities. Today, at AtkinsRéalis integrity is the cornerstone of how we operate.

“It comes from the highest levels of leadership and is embedded in every team member of AtkinsRéalis. Key elements of our transformation include the deployment of a top-tier integrity programme, an Integrity Officers and Ambassadors Network, rigorous third-party risk management and embedding ethical performance into our leaders’ incentives.”

Beyond single-company stories, collective action initiatives also show scale and system-change potential. The Center for International Private Enterprise (CIPE), for instance, highlights small businesses in Nigeria, Ukraine and Lithuania engaging in anti-corruption collective action pacts – joint commitments by firms, government and civil society to resist bribery, monitor procurement and establish peer accountability.

Corruption can be addressed and on this International Anti-Corruption Day, that’s something worth celebrating.

But as technology accelerates and new risks emerge, the next 25 years will demand even greater resolve – and smarter systems – to keep integrity at the core of global business.

As Delia Ferreira Rubio, Member of the Advisory Council, RiskHub Americas, states: “In an era where compliance frameworks are questioned and global standards fragment, integrity provides the strategic continuity that regulation alone cannot guarantee."

Special thanks to members of the Forum’s Global Future Council on Good Governance for their contributions to this piece.