By Andy Dennis of Coburg Consultants

This time four years ago there was a buzz of excitement across the nation. The 2010 Winter Olympic Games were about to begin on home soil and Canadians couldn’t wait to cheer on their favourite athletes as they fought for gold.

Fast forward to today. We are only a few days from the Opening Ceremonies of the Winter Olympics in Sochi and something feels different. The lead up to this year’s Games has been one of controversy as much as competition.

Russia is an emerging country highly publicized for its shaky business environment, particularly with respect to corruption.  A recent article in the National Post estimates that these games will cost $51 billion – a staggering $44 billion higher than initial estimates. The Fisht Olympic Stadium alone was estimated to cost $49 million but has already surpassed the $500 million mark.

The Sochi Olympics are so far on pace to be the most expensive Games of this century and it wouldn’t be a stretch to hypothesize that a portion of the sum was used for ethically questionable purposes.

But Russia isn’t alone. In a recent survey by the World Economic Forum, corruption is highlighted as one of the greatest barriers to conducting business in India, China, and South Africa, in addition to Russia.

Some may argue that bribery and corruption are a just a part of doing business in these areas of the world. But the public is becoming increasingly aware of the systemic issues it causes.

Corruption damages the fundamental trust between a company, its customers, and its employees, which can reduce competitiveness in the long term. Recent research shows that even though multinationals with strong anti-corruption policies and culture grow more slowly in corrupt counties, they are ultimately more profitable.

Harvard Business Review contributor James Allworth proposes that corruption can even strangle innovation as is evident in the US automotive, transportation, and telecom industries.

So what can be done?

The Internet has been a powerful tool for grassroots movements looking to blow the whistle on corrupt practices in business and the government. In Russia, the website RosPil seeks to expose corruption and has claimed to prevent deals as large as US$1.3 billion.  Other publications such as Caijing and Caixin in China take an investigative approach to bringing corruption to light.

In the CRMBA we understand the importance of ethical leadership and integrity. Through CSR and Business Ethics courses we are taught how to apply a critical lens to the business environment, while events such as the Ethics in Action conference provide the medium for open discussions around ethics in the workplace.

Corruption is not just an emerging market problem. Business leaders of today and tomorrow must be acutely aware of the social and economic costs associated with these practices – as one day we may encounter challenges similar to those in Sochi.