Promoting Integrity in Bhutan's Cottage and Small-scale Industries: Challenges, Opportunities, and Policy Implications for Private Sector Governance

Private sector integrity refers to the ethical conduct and adherence to principles of honesty and accountability within business operations. It encompasses practices that promote transparency, fairness, and ethical decision-making among businesses and their stakeholders. Integrity in the private sector is pivotal for fostering trust, enhancing reputation, and ensuring sustainable business practices. Bhutan's private sector is characterized by a predominance of small and cottage-scale businesses and sole proprietorships. This paper presents the unique challenges faced by Bhutan’s private sector, including a lack of corporate governance structures and limited resources. It also explores the potential to leverage cultural context and community-based approaches to promote ethical practices. Key examples of unethical business practices are highlighted, demonstrating the need for targeted integrity frameworks tailored to the country’s industrial landscape.