The companies borderless trade is the main guarantor of stability and security in the world. But to establish a company in a new market is also associated with obstacles. When SEB opened a banking office in Ukraine the bank became vulnerable to malicious rumors.
In 2005, SEB bought Aggio bank in Kiev, Ukraine. SEB has had a strategy to expand in the Baltic area and Eastern Europe for several years, where Ukraine is one of the largest countries with 47 million inhabitants.
- Most people in Ukraine do not even have their own bank account; instead many people pay their bills at the post office. Ukraine constitutes a huge potential, said Jan Persson, corporate security manager at SEB when he spoke at the Commercial and Industrial life safety delegations´, NSD, yearly meeting earlier this week.
He has previously won the NSD's security grant, which is distributed annually.
But the establishment in Ukraine was not entirely painless. After SEB bought another bank, Factorial Bank, in the second largest city of Kharkov and started integration efforts to merge the two acquired banks the rumors started to spread. Allegations of bribery, friendship corruption, buying CEO records and weak maintenance of the banking offices started to arise. The security manager Jan Persson was asked to sort out the false rumors before SEB's brand would suffer.
- It is important to distinguish between what you know and what you believe. When we began investigating the rumors closer, most proved to be lacking valid information, said Jan Persson, who nevertheless acknowledges that corruption is still a problem in Ukraine.
He wants, however, point out that the myth that the Mafia dominates the business life in the country is not true. That is not how it is according to Jan Persson, although companies that want to enter the Ukraine must be aware of the risks of crime. It is also possible to establish a company without having to pay bribes, he says. It only takes a little longer time to get things done. Jan Persson´s main lessons from SEB's establishment in Ukraine are therefore to be skeptical about rumors and just believe in what you really know. It is also to do a thorough background check on all suppliers, partners and managers and double-check with multiple sources and do follow up checks regularly.
But despite the difficulties, SEB has no plans to leave Ukraine – rather the opposite. And other participants in the NSD's yearly seminar agreed that Swedish companies’ overseas trade contributes to increased stability, democracy and security in the world.
- The companies are creating the future and shape the world. Therefore, companies must have a broad approach to their expansion abroad and engage in social issues, said Andreas von der Heide, former CEO of Business International Council, NIR, but now Senior Vice President at Saab.
He spoke in regards to Swedish companies to continue doing business in underdeveloped countries, in countries that are in conflict and countries with major health problems among the population.
But of course, companies must be aware of the risks and take measures such as the protection of their employees in different countries.
- We are dependent on the surrounding world, while we are creating the surrounding world. Businesses simply create peace, said Andreas von der Heide.
Source: Confederation of Swedish Enterprise
Anna Dalqvist
Anna.Dalqvist@svensktnaringsliv.se