Susan Gordon, Staff Reporter
WASHINGTON DC.
CARIBBEAN AND Latin American companies should pay more attention to transparency so that they don't make themselves a liability to other organisations," said Latin America programme officer for the Centre for International Private Enterprise (CIPE).
Mr. John Zemko's advice came while he was addressing the foreign press tour group, from Central and Latin America and the Caribbean at a press meeting at the CIPE in Washington DC recently. The event was organised by the United States Embassy in collaboration with the Washington Foreign Press Centre.
GREATER SCRUTINY
As multinational companies come under greater scrutiny, he said United States-based companies are taking more care on the standards of their suppliers. With good corporate governance, standards for best practices can be achieved regionally to meet those requirements.
"Extra security is a huge cost to business," explained Mr. Zemko identifying kidnapping, robbery and fraud as common threats to businesses.
A function of his firm was to create security in business transactions, he said. To this end the organisation is conducting a journalist training programme on corporate governance and fraud detection. "One of the hallmarks of a fair and competent private sector is corporate governance," Mr. Zemko emphasised.
"If there is a non-functioning judicial system or there is no recourse for dispute resolution, investors will not want to invest," he continued.
He said his company has recently supported the drafting of corporate governance practices and principles within the Eastern Caribbean, organised by the Eastern Caribbean Central Bank. Although the western Caribbean countries have not yet linked CIPE, Mr. Zemko said they will in the future. He said that Jamaican business representatives have also been actively involved in this drafting exercise of the Eastern Caribbean.
An affiliate of the Unites States Chamber of Commerce, CIPE and was formed in 1983. Its sole office in the United States is located in Washington D. C. , but it has offices in other parts of the world. CIPE works with international business associations, non-governmental organisations and other private sector organisations to improve the international business environment.
