What happened to good and fair competition?

In the world of business, a company strives to present deals that are the most attractive to potential customers. Part of the push that helps them achieve this lies in the existence of other companies presenting similar deals. Competition is the name of the game and even though being the best is easier said than done, without that pressure to outdo a rival, a company may never reach its true potential.

When the World Cup came to South Africa in 2010, several companies naturally saw this as a superb opportunity to expand their client base and to earn more. But some decided to achieve this by devious means.

Earlier this year, the Competition Commission of South Africa began investigating claims of rigged projects relating to the 2010 World Cup and just a few days ago, several construction companies which admitted to creating the illusion of competition are now facing fines totalling 1.4 billion. The names of the companies involved have been released. This fine was agreed upon the settlement of a deal with the Competition Commission. Some companies did not agree to the offer and are facing further investigation and prosecution.

Other issues have sprung from this. Some are saying that a fine is a light penalty to face for such fraudulent acts. It has been said that such behaviour warrants a complete ban from business. In all likelihood these companies are probably facing a bleaker situation in the near future since now that they have been revealed as dishonest, what are their chances of future projects?

Linking to what I said above, an article on enca.com quotes Competition Commissioner Shan Ramburuth saying that a competitive culture is essential since it would push competitors to strive for greater innovation and a more efficient approach to future business projects.

Integrity is a feature that should be intrinsic to any aspect of society, but it is clearly something that needs to present in business. In a business environment without a clear sense of right and wrong, emerging businesses would find it nearly impossible to be established. Besides that, a business that lacks integrity would lose its credibility and future opportunities in business. Honesty truly is the best policy. But it should be more than that. It should be the only policy.

What happened to these businesses’ integrity? And is a fine, regardless of its extent, a fitting punishment for what they did?

David Hendricks

Image credit: Lucas via Wikimedia Commons