Ethics over profits: Corporate governance in the fight against corruption | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
July 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, JULY 11, 2025
Ethics over profits: Corporate governance in the fight against corruption

Thoughts

Ahmed Shamir Sakir
10 November, 2024, 05:55 pm
Last modified: 10 November, 2024, 05:59 pm

Related News

  • Economist Abul Barkat sent to jail in Tk297cr embezzlement case
  • Court imposes travel ban on 11 S Alam Group officials in Tk731 crore loan default case
  • How S Alam’s Global Islami Bank cooked Tk2,259cr loss into Tk128cr profit
  • ACC files two cases against KCC's ex-mayor Khaleque, wife for illegal wealth
  • Court orders seizure of two houses of ex-minister Zillul Hakim

Ethics over profits: Corporate governance in the fight against corruption

In today's competitive business landscape, corporate ethics, profit, and corruption are intricately connected. Companies face an ongoing challenge: how to achieve financial success while adhering to ethical standards

Ahmed Shamir Sakir
10 November, 2024, 05:55 pm
Last modified: 10 November, 2024, 05:59 pm
Illustration: TBS
Illustration: TBS

In our society, corruption is widespread, deeply ingrained, and often embedded within institutions. Ideally, any organisation's framework should prevent significant corruption from occurring unnoticed or persisting without the awareness of senior officials, unless they too are involved in the wrongdoing. Unfortunately, this often appears to be the case, as we see unlawful wealth accumulation by certain high-ranking members of the state apparatus.

Warren Buffett once said, "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." Corporate ethics refer to the principles that guide behaviour in the business environment, shaping organisational culture and influencing decision-making at all levels. Ethical corporations prioritise transparency, accountability, and integrity, often recognising that a strong ethical foundation can enhance their reputation and foster customer loyalty.

Profit is the primary driver of most businesses. The relentless pursuit of profit can sometimes lead companies to make decisions that prioritise short-term gains over long-term sustainability. This profit-centric mentality often creates a tension between ethical practices and the desire to maximise financial returns.

When profit becomes the sole focus, companies may resort to unethical practices, including corruption. Corruption can take various forms, such as bribery, fraud, and embezzlement. Although these practices may bring immediate financial gains, they often lead to severe long-term consequences, including legal penalties, loss of reputation, and reduced employee morale.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Effective corporate governance is crucial for fostering economic growth and development. The governance of financial institutions, particularly banks, is especially significant due to their essential function within the financial system.

Bank management is tasked with the dual responsibility of protecting depositors' funds while also enhancing shareholder value. A robust banking system necessitates stringent regulatory measures and a competitive banking landscape.

To maintain competitiveness, banks must prioritise effective corporate governance. There is no question that corporate governance is vital for economic advancement.

The governance of banks holds particular significance as they play a key role in managing public savings and serving as the primary source of financing for businesses. The repercussions of banking failures can lead to substantial economic costs.

Enhancing transparency, improving financial disclosure, strengthening regulatory oversight, and reinforcing corporate governance are essential for effective bank operations. This includes implementing measures that foster accountability and better alignment of shareholder and management interests.

The growing awareness among shareholders about the importance of sound governance, coupled with their willingness to ensure managerial accountability, is encouraging. Nonetheless, this effort remains complex and multifaceted.

Going forward, the focus should be on two key areas: corporate governance in banking and promoting reform initiatives at the international level, especially in developing countries.

Banks are vital to any nation's economy, serving as its lifeblood. Weak corporate governance can pose significant threats to both the economy and the sustainability of banking institutions.

Banks are places where individuals, regardless of their financial status, safely store their funds while also earning returns in the form of profit or interest. They act as custodians of depositors' money, which is then invested to meet shareholder expectations. To achieve this, banks must operate with transparency and accountability, ensuring strong corporate governance for sustainable growth.

Corruption undermines the foundations of a fair and competitive marketplace, distorting resource allocation, eroding trust, and fostering a culture of impunity. For example, a company engaging in bribery to secure contracts may see a temporary profit boost, but it ultimately risks its reputation with stakeholders and regulators.

While the temptations of corruption are present, many companies now embrace ethical business practices as a pathway to sustainable profit. The concept of "ethical profit" promotes the idea that organisations can achieve financial success without compromising their values.

Currently, Bangladesh's banking sector is undergoing a significant transition. To keep pace with evolving trends, banks must maximise earnings while meeting various stakeholders' needs. Ensuring the sector's positive progression requires adherence to regulatory requirements and compliance with both national and international standards.

As the banking industry expands into new products and services and navigates complex risks, a robust regulatory and governance framework becomes even more necessary. This framework must strike a balance: it should protect consumers and the broader economy while also encouraging appropriate risk-taking.

Although bank governance has received less attention than corporate governance, it raises equally important questions about effective governance practices.

A strong compliance program not only prevents unethical behaviour but also fosters a culture of integrity within an organisation. Companies that invest in training and ethical guidelines are better equipped to navigate the business environment's complexities.

To mitigate corruption risks, regulatory frameworks and corporate governance play crucial roles. Governments and organisations worldwide are implementing stricter regulations and compliance requirements to hold companies accountable for their actions.

In Bangladesh, there is a concerning trend of white-collar offenders who misuse their authority to engage in various alleged offences, such as intimidation, extortion, embezzlement, insider trading, and unlawful land acquisition—all in pursuit of rapid wealth accumulation. The scale of these financial gains and the abuse of power by certain figures have reached levels that exceed those of even the most notorious individuals.

In the 2023 Corruption Perceptions Index (CPI) released by Transparency International, Bangladesh has dropped two positions, now ranking 10th from the bottom. This is the lowest position the nation has held since 2008, sharing this ranking with the Central African Republic, Iran, Lebanon, and Zimbabwe.

The last government's failure to uphold its zero-tolerance pledge toward corruption, along with a rise in corrupt practices within the public sector and inadequate measures to curb money laundering, has contributed to what Transparency International Bangladesh describes as a "very serious corruption problem."

The relationship between corporate ethics, profit, and corruption is a critical aspect of modern business. While profit is essential for business survival, it must be balanced with ethical considerations. Companies that prioritise integrity and ethical practices can achieve sustainable success, proving that "ethical profit" is not just an ideal but a viable strategy. By choosing to operate ethically, organisations can foster trust, enhance their reputation, and contribute positively to society, paving the way for a healthier business ecosystem.

We must not fail the next generation by leaving behind a legacy of corruption and ethical lapses. Now is the time for our nation to marshal its resources and rise above these challenges. Overcoming deep-rooted issues of corruption and ethical failures will be difficult, but with dedicated efforts today, we can set the stage for a new generation to lead Bangladesh toward a brighter future.

 


Ahmed Shamir Sakir is a banker and he can be reached at ahmedshamir082@gmail.com.


Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.

 

Corruption / Ethics

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Kunming rising: China's emerging healthcare hub draws Bangladeshi patients
    Kunming rising: China's emerging healthcare hub draws Bangladeshi patients
  • Representational image. Photo: Collected
    2nd round of US-Bangladesh tariff talks set to conclude today as business leaders await breakthrough
  • Abul Barkat at Dhaka Metropolitan Magistrate Court on 11 July 2025. Photo: TBS
    Economist Abul Barkat sent to jail in Tk297cr embezzlement case

MOST VIEWED

  • Photo: Mohammad Minhaj Uddin/TBS
    SSC, equivalent results: Pass rate drops to 68.45%, GPA-5 also declines
  • In terms of stream of education, girls maintained their excellence as well. Photo: TBS
    SSC 2025: Girls dominate boys by over 5%
  • Govt vehicle purchase, foreign trip, new building construction banned: Finance ministry
    Govt vehicle purchase, foreign trip, new building construction banned: Finance ministry
  • Students sit for SSC exam at Motijheel Girls' High School on 10 April 2025. Photo: Mehedi Hasan/TBS
    SSC exam results out: Here's how you can check online and via SMS
  • The overall pass rate across all boards this year, 68.45%, is significantly lower than last year's. Photo: Focus Bangla
    SSC 2025: Rajshahi board records highest pass rate, Barishal lowest
  • Representational image. Photo: Collected
    35% tariff: Bangladesh, US 'agree on most issues' as first day of talks ends

Related News

  • Economist Abul Barkat sent to jail in Tk297cr embezzlement case
  • Court imposes travel ban on 11 S Alam Group officials in Tk731 crore loan default case
  • How S Alam’s Global Islami Bank cooked Tk2,259cr loss into Tk128cr profit
  • ACC files two cases against KCC's ex-mayor Khaleque, wife for illegal wealth
  • Court orders seizure of two houses of ex-minister Zillul Hakim

Features

Kunming rising: China's emerging healthcare hub draws Bangladeshi patients

Kunming rising: China's emerging healthcare hub draws Bangladeshi patients

2h | Panorama
Photo: Collected/BBC

What Hitler’s tariff policy misfire can teach the modern world

1d | The Big Picture
Illustration: TBS

Behind closed doors: Why women in Bangladesh stay in abusive marriages

1d | Panorama
Purbachl’s 144-acre Sal forest is an essential part of the area’s biodiversity. Within it, 128 species of plants and 74 species of animals — many of them endangered — have been identified. Photo: Syed Zakir Hossain/TBS

A forest saved: Inside the restoration of Purbachal's last Sal grove

1d | Panorama

More Videos from TBS

Renowned economist Abul Barkat imprisoned

Renowned economist Abul Barkat imprisoned

58m | TBS Today
All of Iran's uranium still intact, Israel claims

All of Iran's uranium still intact, Israel claims

28m | TBS World
Trump-Netanyahu in new strategy on Gaza issue

Trump-Netanyahu in new strategy on Gaza issue

2h | TBS World
Shocking science: why birds stay safe on electricity lines

Shocking science: why birds stay safe on electricity lines

3h | TBS Stories
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net