{"id":3877,"date":"2019-03-11T18:22:37","date_gmt":"2019-03-11T14:22:37","guid":{"rendered":"https:\/\/armla.am\/en\/?p=3877"},"modified":"2019-03-25T21:50:46","modified_gmt":"2019-03-25T17:50:46","slug":"the-destructive-impact-of-corruption-on-small-and-medium-sized-businesses-training-for-business-representatives-in-vanadzor","status":"publish","type":"post","link":"https:\/\/armla.am\/en\/3877.html","title":{"rendered":"The Destructive Impact of Corruption on Small and Medium-Sized Businesses: Training for Business Representatives in Vanadzor"},"content":{"rendered":"<p style=\"text-align: justify\">On 11 March, the Armenian Lawyers\u2019 Association (ALA) organized a training on \u201cAnt-Corruption Compliance in Business\u201d for the representatives of Small and Medium Business Companies working in Vanadzor in the scope of the \u201cArmenia: Promoting Anti-Corruption Conduct and Reforms\u201d Project.<\/p>\n<p style=\"text-align: justify\">The Project is implemented by the \u201cCentre for International Private Enterprise\u201d, the \u201cArmenian Lawyers\u2019 Association\u201d NGO, the \u201cCorporate Governance Centre\u201d NGO and the \u201cYerevan Chamber of Commerce and Industry\u201d with financial support of the National Endowment for Democracy.\u00a0Notably, the objective of the project is to combat corruption in the business sector, to introduce\u00a0the Anti-Corruption Compliance Standards within the Armenian business community,\u00a0and implementing Anti-Corruption Compliance Programs in SMEs.<\/p>\n<p>The Training started with the welcoming speech by Ms Zarine Hovhannisyan, Lawyer, Head of Vanadzor branch of the Armenian Lawyers\u2019 Association, who raised the importance of anti-corruption compliance in the light of creation of a more favourable business environment in Lori region.<\/p>\n<p style=\"text-align: justify\">In the interview with us, Ms Mariam Zadoyan, Project Manager of the ALAs Component of \u201cArmenia: Promoting Anti-Corruption Conduct and Reforms\u201d Project said that it is necessary to conduct \u00a0a lot of work with the representatives of the business sector for them to understand the importance of the fight against corruption as well as the reporting the corruption manifestations.<\/p>\n<p style=\"text-align: justify\">According to her, most of the participants had no idea about the anti-corruption compliance program.\u00a0\u201cDuring the first practical assignment of the course, the participants did not show much interest, which was the result of their uncertainty.\u00a0In the second part of the training, when they had some idea about the program, they brought examples and problems,\u201d Mariam Zadoyan said.<\/p>\n<p style=\"text-align: justify\">According to project expert Lusine Nalbandyan, business representatives initially expressed the opinion that changes should be made at the legislative level.\u00a0According to them, today there is a need for a number of tax and legal regulations in the business environment, so the state should focus first on these sectoral issues, and then contribute to the deepening of anti-corruption education.\u00a0\u201cIn the beginning the representatives of the business sector addressed the anti-corruption compliance program with reservation, and wondered whether it is necessary in practice.\u00a0However, when we presented that the program was aimed at improving the business environment, establishing long-term partnerships and business ties, raising the reputation of the organization and gaining international partners, their interest increased,\u201d Lusine Nalbandyan added.<\/p>\n<p style=\"text-align: justify\">Trainers presented what corruption is, its manifestations, explained what the anti-corruption compliance is, and the impact it may have on the company\u2019s activities.<\/p>\n<p style=\"text-align: justify\">Ms Tatevik Aghazaryan, representing the private entrepreneur \u201cEmma Arakelyan\u201d, said she was engaged in business of grocery store.\u00a0According to her, they had not faced serious corruption issues yet.\u00a0\u201cSuch programs in Armenia in general are really good, but currently it could hardly have great efficiency in our business.\u00a0May be in the future, it would be necessary to apply it in our organization,\u201d Tatevik Aghazaryan said.<\/p>\n<p style=\"text-align: justify\">Lusia Baratyan, head of the \u201cLucia Food\u201d organisation, noted that they constantly face corruption issues related with the development of market.\u00a0\u201cThe problem is that large companies are pressing upon the small companies both in terms of financial, price policy and competition.\u00a0I would definitely say that I want to have the anti-corruption compliance program introduced in my company.\u00a0The more such programs are, the more developed the country will be.\u00a0In the case of introducing this system, organizations will not apply such type of practices to each other,\u201d she said.<\/p>\n<p style=\"text-align: justify\">As the organization operates not only for the production of semi-finished products, it also provides buffet service, as well as organises trainings.\u00a0According to Lusine Baratyan, their trainings will also focus on corruption in the future.\u00a0\u201cThe more informed are people, the more protected they will be.\u00a0Everyone must be aware of the laws to be able to protect personal rights even when signing contracts with the employees,\u201d she said.<\/p>\n<p style=\"text-align: justify\">Gayane Khachatryan, the head of \u201cApricot\u201d Company, noted that the company is a social entrepreneurship as well and some of the 40 employees are disabled people.\u00a0There is no anti-corruption compliance program in the organization, and employees are not aware of the topic.\u00a0\u201cThe program, if my business expands, will promote development, I would like to introduce it.\u00a0I have come to the training to make an idea about the program and to understand whether it is necessary for me or not.\u00a0This organization is engaged in the production of wooden souvenirs, silver jewellery, Armenian tea, chocolate, which is sold in a number of stores.\u00a0\u201cIt\u2019s a very difficult and complicated process to work with shops and collaborate.\u00a0There is a problem especially with regard to the types of taxes. There are shops that do not work with certain types of taxes.<\/p>\n<p style=\"text-align: justify\">According to the participants, the unemployment in Vanadzor also leads to manifestations of corruption, as people are trying to get employed in this or that organization through mediators, or as a result of some services provided.\u00a0Corruption elements are often encountered while engaging in commercial activities.<\/p>\n<p>It is worth mentioning that during the training\u00a0participants completed tests, which included a number of questions about corruption schemes, anti-corruption compliance program, information on which is provided during the whole course.\u00a0At the end of the training, the participants completed the same test for the second time to compare what knowledge they gained from the course. Participants also had groupworks on raising corruption risks in their businesses and devolooping risk prevention plans.<\/p>\n<p style=\"text-align: justify\"><strong>This material<\/strong>\u00a0has been prepared in the scope of the \u201cArmenia: Promoting Anti-Corruption Conduct and Reforms\u201d Project implemented by the \u201cCentre for International Private Enterprise\u201d, the \u201cArmenian Lawyers\u2019 Association\u201d NGO, the \u201cCorporate Governance Centre\u201d NGO and the \u201cYerevan Chamber of Commerce and Industry\u201d with financial support of the National Endowment for Democracy. The contents of this material are the sole responsibility of the \u201cArmenian Lawyers\u2019 Association\u201d NGO and can in no way be taken to reflect the views of the National Endowment for Democracy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 11 March, the Armenian Lawyers\u2019 Association (ALA) organized a training on \u201cAnt-Corruption Compliance in Business\u201d for the representatives of Small and Medium Business Companies working in Vanadzor in the scope of the \u201cArmenia: Promoting Anti-Corruption Conduct and Reforms\u201d Project. The Project is implemented by the \u201cCentre for International Private Enterprise\u201d, the \u201cArmenian Lawyers\u2019 Association\u201d &hellip;<\/p>\n","protected":false},"author":2,"featured_media":3878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[44],"tags":[],"class_list":["post-3877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/posts\/3877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/comments?post=3877"}],"version-history":[{"count":2,"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/posts\/3877\/revisions"}],"predecessor-version":[{"id":3896,"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/posts\/3877\/revisions\/3896"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/media\/3878"}],"wp:attachment":[{"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/media?parent=3877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/categories?post=3877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armla.am\/en\/wp-json\/wp\/v2\/tags?post=3877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}