In global business, business organizations and their representatives frequently encounter corruption and may be the perpetrators, victims, or simply participants in such acts. While international corruption has existed in multiple forms for several years, many individuals, companies, nations, and international organizations are currently attempting to reduce or eliminate corrupt acts because of their harmful effects on local economies and the quality of life of citizens. Several of these corruption curtailment efforts have been directed toward the (...) supply-side of corruption, i.e., those who make corrupt payments. In developing an understanding of corruption, however, and formulating strategies for its reduction, consideration must also be given to the demand-side of corruption, i.e., those who demand and accept corrupt payments. Accordingly, this study examined the demand-side of corruption and several related factors in the categories of government, economy and poverty, education, geography, and culture. Analysis of these factors employed the Corruption Perceptions Index (CPI), formulated annually by Transparency International (TI), and other sources. Several factors in each of the five categories were found to correlate significantly with perceived corruption, and strategies for addressing these issues were developed and discussed. (shrink)

This paper presents an academic project that addresses the issue of international corruption in the engineering and construction industry, in a manner that effectively incorporates several learning experiences. The major objectives of the project are to provide the students a learning activity that will 1) make a meaningful contribution within the disciplines being studied; 2) teach by experience a significant principle that can be valuable in numerous situations during an individual’s career, and 3) engage the minds, experiences, and (...) enthusiasm of the participants in a real ethical challenge that is prevalent in all of their chosen professional fields. The paper describes the full details of the project, the actual implementation of it during Winter Semester 2005, the experiences gained during the initial trial, and the modifications and improvements incorporated for future implementation. (shrink)

The purpose of this paper is to develop an understanding about the internal fraud and corruption problem in the Turkish construction industry. The reasons behind the internal fraud and corruption problem as well as the types of prevention methods were investigated; and as a result various recommendations were made. To this end, a risk awareness questionnaire was used to understand the behavioral patterns of the construction industry, and to clarify possible proactive and reactive measures against internal fraud and (...) corruption. The type of fraud experienced by Turkish construction companies was also surveyed in the questionnaire. The questionnaire was sent to 89 firms; and depending on the collected data, certain recommendations for construction industry professionals were provided. (shrink)

In the past two decades academic and research literature on “corruption” has flourished. During the same period organizations and initiatives fighting against corruption have also significantly expanded, turning “anti-corruption” into a new research subject. However, despite a few exceptions there is a division of labor between scholars who study corruption itself and those who study the global anti-corruption industry. Juxtaposing corruption’s local discourses and anti-corruption international practices, this article is an attempt to (...) bring together these two intertwined research dimensions and explore how an ethnographic approach might contribute to framing them together. Firstly, it describes how corruption in Romania is often conceptualized and explained in terms of national heritage, something related to old and recent cultural history, including traditional folklore. Secondly, it explores how anti-corruption works in practice, focusing on international legal cooperation projects monitoring the progress and shortcomings both prior to and post Romania’s accession to the European Union. Finally, revealing the articulations of these two apparently unrelated research fields, the article argues that corruption’s local explanations and the circular logic of auditing observed within the anti-corruption industry share a common developmental ideology mirroring the crypto-colonialist structure of power relations and dependency among European nation-states emerging out of the Cold War. (shrink)

Transparency International (TI) is a coalition of individuals that has served as a facilitator against corruption for the past 20 years. The organization first approached its task with a focus on laws concerning corruption and whistleblowing, but corruption does have the capability to win against this institution as well. TI has produced well-known initiatives such as the annual Corruption Perception Index; other formal monitoring includes the Global Corruption Barometer, the Bribe-Payers' Index, the East African (...) Bribery Index, National Integrity Studies, and social auditors present in many nations. Diverse less-familiar initiatives noted here include integrity work in Kenyan election campaigns, monitoring of international professional sports, and integrity clubs at schools and colleges. TI is a coalition of individuals bound together by a common vision of a corruption-free world. A focus on business, a focus on integrity for those within each nation's political system and process, and a truly internation.. (shrink)

"This book discusses political corruption and anticorruption as a matter of a public ethics of office. It shows how political corruption is the Trojan horse that undermines public institutions from within via the interrelated action of the officeholders. Even well-designed and legitimate institutions may go off track if the officeholders fail to uphold by their conduct a public ethics of office accountability. Most current discussions of what political corruption is and why it is wrong have concentrated either (...) on explaining and assessing it as a matter of an individual's corrupt character and motives or as a dysfunction of institutional procedures. The book investigates the common normative root of these two manifestations of political corruption as a relationally wrongful practice that consists in an unaccountable use of the power of office by the officeholders in public institutions. From this perspective, political corruption is an internal enemy of public institutions that can only be opposed by mobilizing the officeholders to engage in answerability practices. In this way, officeholders are responsible for working together to maintain an interactively just institutional system"--. (shrink)

Has there already been a Grotian Moment for corruption? If not, what would it take for new legal rules and doctrines on corruption to crystallise? This article seeks to answer these two questions by reviewing the relevant history of international legal scholarship, the current public international law framework for anticorruption, and recent developments in international legal practice. We conclude that a Grotian Moment may have been reached for a narrow concept of corruption, focused on (...) petty corruption and bribery, with the proliferation of international anticorruption law following the Cold War. However, a Grotian Moment for a broadened understanding of corruption, based on other forms such as institutional, political, and grand corruption, ought to emerge to comprehensively address all forms of corruption. Given the range of challenges, including resistance from political elites and the indeterminacy of criminal liability, a Grotian Moment for a broadened concept of corruption remains improbable. (shrink)

The revelation of widespread corruption in the Oil-for-Food Programme (the “Programme”) and the recent scandal involving the British arms manufacturer BAE Systems threatens to unravel the fragile global consensus on combating corruption. This paper outlines the emerging global consensus and legal framework on corruption and assesses the extent to which this consensus has been undermined by the above mentioned revelations of corruption. Both incidents provide an interesting context in which to analysesome of the difficult issues presented (...) in the regulation of transnational corruption. The regulation of transnational corruption provides a framework for analyzing the critical dimensions of the interaction between the norms in various domestic communities and the transnational context of these interactions. The paper argues that the current framework of multilateral efforts to curb transnational corruption is unable to tackle the problem effectively and concludes that the liability framework for engaging in transnational corruption has almost exclusively been the result of political expediency rather than that of empirical information. By examining the multilateral efforts by the international community to combat corruption, the paper generates questions about the status and future direction of thefight against corruption under international law. (shrink)

International government and corporate corruption is increasingly under siege. Although various groups of researchers have quantified and documented world-wide corruption, apparently no one has validated the measures. This study finds a very strong significant correlation of three measures of corruption with each other, thereby indicating validity. One measure was of Black Market activity, another was of overabundance of regulation or unnecessary restriction of business activity. The third measure was an index based on interview perceptions of (...) class='Hi'>corruption (Corruption Perceptions Index or CPI) in that nation. Validity of the three measures was further established by finding a highly significant correlation with real gross domestic product per capita (RGDP/Cap). The CPI had by far the strongest correlation with RGDP/Cap, explaining over three fourths of the variance.Corruption is increasingly argued to be a barrier to development and economic growth. Business students often do not see ethics courses as being as relevant as other value-free disciplines or core courses. The data in this study suggests otherwise. Sustainable economic development appears very dependent on a constant, virtuous cycle that includes corruption fighting, and the maintenance of trust and innovation, all reinforcing each other. (shrink)

Over the past decade, we have witnessed some early signs of progress in the battle against international bribery and corruption, a problem that throughout the history of commerce had previously been ignored. We present a model that we then use to assess progress in reducing bribery. The model components include both hard law and soft law legislation components and enforcement and compliance components. We begin by summarizing the literature that convincingly argues that bribery is an immoral and unethical (...) practice and that the economic harm it causes falls most heavily on those least able to absorb it. The next section summarizes the main provisions of anti-bribery legislation including the Foreign Corrupt Practices Act (FCPA), the Organization for Eco nomic Development's Convention on Combating Bribery of Foreign Officials in International Business Transactions, the United Nations Convention Against Corruption and the laws of selected countries. We conclude this section with a discussion of the "moral imperialism" argument for not imposing Western laws and values on other cultures. The next section focuses on the roles played by NGOs including Transparency International (TI), the World Economic Forum (WEF), and the International Chamber of Commerce. We review trends in enforcement and prosecution, including a review of the United States' enforcement processes, mechanisms for cross-border legal assistance, a discussion of the distinctive nature of FCPA cases, and an assessment of what the future holds for enforcement. The final section focuses on compliance processes for corporations aimed at reducing the risk of FCPA and related violations. This section also addresses the ethics of gift giving and "grease" payments. The article concludes with a summary and suggestions for further research. Throughout the article, we reference important bribery cases and include comments from several authorities who are on the front lines of the battle against international bribery. (shrink)

Academic institutions aim at achieving the highest standards of education and learning. Consequently, they prohibit academic corruption such as cheating or plagiarism. This article examines how international accreditation and quality assurance standards embody academic integrity as a main factor in deciding whether an academic institution should be accredited, and what ranking should an academic institution acquire in a competitive contest for educational excellence. Academic integrity is broadly defined to include, in addition to cheating and plagiarism, compliance with standards (...) of human rights, labor rights, corporate social responsibility, ant-corruption measures, environmental protection, social media usage, protection of underage students, anti-radicalization and extremism, avoidance of conflict of interest, faculty professionalism, students codes of conduct and human experimentation. Academic institutions should adopt policies that are designed to address these diverse standards and accommodate diversity and enhance access to education for all without discrimination. Academic institutions should also strictly require the highest standards in teaching and research. This article will discuss the different policies, laws, rules and regulations adopted by Qatar University as a model for incorporating academic integrity, which may be of interest to the international higher education community. This article will ask two main questions; are accrediting institutions asking the right questions to find out whether an academic institution strictly adheres to a policy of academic integrity, and whether policies adopted by academic institutions, Qatar University as a model, are adequate to address various violations of academic integrity. (shrink)

This study explores the general problems associated with marketing across international markets and focuses specifically on the role of corruption in deterring international marketing success. The authors do this by introducing a broader conceptualization of corruption. The dimensions of corruption and their importance in explaining the exporters’ successes in international markets are developed empirically. Partial Least Squares formative indicators are used in a comprehensive model including consumer resources (wealth and information resources), physical distance (kilometers (...) and time zones), and cultural distance (linguistic and values differences) as alternative explanatory variables. Finally, differences in the model’s performance across data from three exporting countries (France, Japan, and the US) are delineated and discussed. For example, the successes of French and Japanese exporters in international markets are in part determined by the levels of corruption in target countries. Alternatively, corruption in target countries does not appear to affect the successes of American exporters in global markets. The conceptualization of corruption in this study extends the more narrow view of corruption solely as bribery. (shrink)

This paper analyzes the likelihood that recent conventions against corruption signed by the OECD and the OAS will be effective in Latin America. It begins by looking at the cultural context of corruption in Latin America and examines efforts by Latin American signatories to implement both agreements. It then evaluates the extent to which these efforts will prove successful. It concludes with suggestions for the development of culturally sensitive policies that will be effective in the fight against (...) class='Hi'>corruption in Latin America. (shrink)

Corruption is a serious economic, social, political, and moral blight, especially in many emerging countries. It is a problem that affects companies in particular, especially in international commerce, finance, and technology transfer. And it is becoming an international phenomenon in scope, substance, and consequences. That is why, in recent years, there has been a proliferation of international efforts to tackle the problem of corruption. One such international cooperative initiative is the United Nations Convention against (...) Corruption, signed in 2003, which came into force in December 2005. This is the first truly global instrument to prevent and combat corruption, built on a broad international consensus. The purpose of this article is to explain the origin and content of the Convention, what it adds to existing international instruments for combating corruption, and its strengths and weaknesses, mainly from the point of view of companies. (shrink)

Last year marked the 20th anniversary of the Foreign Corrupt Practices Act (FCPA) of 1977. The FCPA is the first and only statute prohibiting bribery and other corrupt business practices by U.S. citizens and companies conducting business overseas. This paper provides an overview of the FCPA during the two decades of its existence. More specifically, the objectives of this paper are four-fold. First, the paper provides background information about the FCPA of 1977 and subsequent amendments in 1988. Second, the paper (...) discusses the enforcement of the FCPA since its passage by examining the number of cases prosecuted under the FCPA and the respective penalties imposed. Third, the paper discusses the economic impact of the FCPA by addressing whether the FCPA places U.S. firms at a competitive disadvantage. Fourth, the paper provides public policy recommendations to expand the reach and scope of the FCPA. It covers efforts to criminalize bribery through multilateral organizations, such as the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO), and the Organization of American States (OAS). It also covers bilateral arrangements and efforts by non-governmental organizations such as Transparency International. (shrink)

This article discusses the effects of the OECD Convention on Combating the Bribery of Foreign Public Officials, which was signed in 1997 and is due to be implemented by the signatory nation‐states this year. The Convention represents the expansion of legal measures to combat the bribery of foreign public officials by individuals or corporations, and it has been accompanied by the Organisation of American States’ Convention Against Corruption. Previously the Foreign Corrupt Practices Act , which applied only to United (...) States individuals or corporations, ‘stood alone in the world as a legal barrier to transnational bribery’ . This article proceeds in stages to evaluate implications of the Convention. Firstly the Convention is placed in the context of the increased focus on transnational business bribery in recent years. Second, the main points of the Convention are outlined. Third, the issues and problems posed by the Convention for business are discussed. Finally some themes regarding enforcement by the relevant authorities are outlined. (shrink)

This study looks at how discourses of corruption in Bangladesh are discursively constructed within the official documents of Transparency International (TI), a non-profit organization that monitors corruption worldwide. It explores how an orientalist notion regarding Bangladesh is appropriated in neoliberal global discourse through TI’s corruption surveillance process. A postcolonial analysis of TI’s publications demonstrates a symbiotic relation between orientalism and neoliberalism. TI sets up a binary of ‘corrupt’ global South vs. ‘clean’ global North, reinforcing the uneven (...) power relations between nation-states that can be seen as a neocolonial move for maintaining Western hegemony and enabling neoliberal ideology over non-Western territories. Philosophy and Progress, Vol#67-68; No#1-2; Jan-Dec 2020 P 49-76. (shrink)

High levels of police corruption have been a persistent historical tendency in police services throughout the world. While the general area of concern in this book is with police corruption and anti-corruption, the focus is on certain key philosophical and ethical issues that arise for police organisations confronting corruption. On the normative account proffered in this book the principal institutional purpose of policing is the protection of legally enshrined moral rights and the principal institutional anti-corruption (...) arrangement is what is referred to as an integrity system. The latter includes oversight bodies with investigative powers and internal affairs departments as well as specific devices such as early warning indicators, professional reporting mechanisms and integrity tests. Key concepts analysed in the book include corruption, noble cause corruption and collective moral responsibility. The key ethical issues analysed include investigative independence, professional reporting, covert operations and integrity tests. (shrink)

The book Anti-Corruption in Management Research and Business School Classrooms aims at presenting the topic of anti-corruption activities throughout management research as well as in the process of educating future business leaders and practitioners in business schools in different parts of the globe. Simultaneously the book deepens the topic of anti-corruption in selected cultures and societies. The volume consists of four parts and includes three themes. The first part is the "Introduction" and subsequent parts are as follows: (...) "Teaching business ethics and anti-corruption--across curriculum and beyond", "Fostering integrity in higher education", and "Anti-corruption as a topic of research." This book is authored by a range of international scientists and experts in management research and management education, with a diversity of cultural and professional backgrounds. It is therefore believed that this broad experience and expertise will give the readers the new light for the significance of teaching and researching in the area of anti-corruption. (shrink)

The aim of this Web-based survey of 15 German companies with an international profile was to identify which higher-level values serve as a basis for a company culture that promotes integrity and can thereby also be used to promote crime prevention. Results on about 2000 managers in German parent companies and almost 600 managers in Central and North European branch offices show that a major preventive role can be assigned to a company culture that promotes integrity. This requires a (...) ‘tone from the top’, ‘ethical leadership’ from the direct superior, and a general set of values that can be encouraged through training courses. Moreover, employees have to perceive these values as promoting their careers. The survey reveals that the companies in this study have basically succeeded in establishing their system of values in their Central and North European as well as their Asian branch offices. Moreover, it shows that the main values preventing crime on the management level are trustworthiness and consistency. Open communication is an important value on all levels of a company, and this is supplemented by transparency, compliance with the rules, and a rejection of behaving in one’s own interest. It is concluded that in spite of regional differences, major international companies can possibly make an important contribution to bringing about cultural change in regions with an affinity for corruption by implementing a culture that promotes integrity in both their company and their daily business. (shrink)

This book represents the first systematic qualitative analysis of a new type of collective anti-corruption initiatives. The author describes how companies can take responsibility in the fight against corruption and which six success factors play an important role in this difficult endeavor. Despite great international efforts throughout the last two decades, corruption has not significantly decreased on a global level. In light of globalization, private actors increasingly cooperate in the fight against corruption in the context (...) of sector-specific coordinated governance initiatives. In this study, this new collective approach is examined in view of its potential to curb corruption. Contents - Introduction - Theoretical Background: Self-Interest as a Means of Preventing Corruption - Methodological Approach - Multiple-Case Study Analysis - Cross-Case Analysis and Discussion - Summary and Conclusions Target Groups - Researchers and students in the fields of politics, economics, and business ethics - Practitioners such as compliance managers and other anti-corruption specialists The Author Berta van Schoor works as a compliance manager at a major German company. She wrote her doctoral thesis at the Business Ethics Chair of the Technical University Munich. As a co-leader of the regional chapter of Baden-Wuerttemberg of Transparency International Germany, she regularly speaks on topics like corruption prevention and the role of business in combating corruption. While working on her thesis she also gave lectures in business ethics and sustainability management. (shrink)

Corruption is a major problem in many of the world’s developing economies today. World Bank studies put bribery at over $1 trillion per year accounting for up to 12 of the GDP of nations like Nigeria, Kenya and Venezuela. Though largely ignored for many years, interest in world wide corruption has been rekindled by recent corporate scandals in the US and Europe. Corruption in the developing nations is said to result from a number of factors. Mass poverty (...) has been cited as a facilitating condition for corruption just as an inability to manage a sudden upsurge in mineral revenues has been credited with breeding corruption and adventurous government procurement among public officials in countries like Nigeria and Venezuela. Virtually all developing nations that have serious corruption problems also have very limited economic freedom and a very weak enforcement of the rule of law. In such nations, corruption represents a regressive taxation that bears hard on the poor. It has a dampening effect on development and it could result in the production of inferior goods as companies find ways to accommodate under-the-table payments. Finally, corruption is a dangerous threat to the legitimacy of the governments of some of the developing nations themselves. It is suggested that new urgent initiatives are needed to deal with the dangers posed by corruption in the developing economies. They include making the economies of these nations more open by the withdrawal of the government from the productive sector and by the abolition of unnecessarily stringent restrictions on business conduct. The rule of law needs to be strengthened in these nations and those countries like Nigeria and Venezuela should ignore scruples over sovereignty and seek foreign assistance in the management of their oil wealth. Finally, multinationals should be made to disclose all the payments they make in developing nations to such organizations like International Chamber of Commerce or Transparency International where they can be reviewed by anyone interested. (shrink)

While most discussions of corruption focus on administration, institutions, the law and public policy, little attention in the debate about societal reform is paid to the “internalities” of anti-corruption efforts, specifically to character-formation and issues of personal and corporate integrity. While the word “integrity” is frequently mentioned as the goal to be achieved through institutional reforms, even in criminal prosecutions, the specifically philosophical aspects of character-formation and the development of corporate and individual virtues in a rational and systematic (...) way tend to be neglected. This paper focuses on the “internalities” of anti-corruption work with special emphasis on the pre-requisites that need to be ensured on behalf of the social elites in order for proper individual and collective character- formation to take place throughout the society. The author argues that a systematic pursuit of socially recognised virtues, both those pertaining to society as a whole and those specific to particular professions and social groups, is the most comprehensive and strategically justified way of pursuing anti-corruption policy, while institutional and penal policies can only serve an auxiliary role. The pursuit of institutional and criminal justice policies against corruption in a society that is subject to increasing relativism with regard to values and morality is at best ineffective, and at worst socially destructive. Thus the paper suggests a re-examination of the social discourse on the level of what the author calls “value strategy” and the gradual building of a plan to create and solidify specifically designed features of “corporate character” for key sectors of the society. This approach can serve as the main long-term strategy to improve the public profile of integrity and reinforce morality in both the public and civil sectors. (shrink)

AbstractCorruption is one of the most intractable problems that the world is faced with and its reported impact is widespread and pervasive. Since the mid-1990s, international efforts to combat this problem expanded significantly, driven by the involvement governments, international financial institutions and non-governmental organisations. The objective of this article is to use Michel Foucault’s work in a critical analysis of the international fight against corruption. This analysis is centred on Foucault’s concept of governmentality, as well as (...) his notions of knowledge, power and ethics. The primary focus is on the role played by the World Bank, the International Monetary Fund and Transparency International in the proliferation of international anti-corruption discourse and practices. Furthermore, South Africa will be used as a case study to unpack the historical and contextual factors that play a role in the legitimisation of corruption. As will be shown in this assessment, without adequately understanding the local factors that stimulate corruption and the other societal characteristics that serve to compound its pervasiveness, internationally driven anti-corruption initiatives have limited scope for success. Corruption will persist where there is a lack of resonance between international anti-corruption ideals and local norms, values and ideologies. (shrink)

Corruption continues to be a considerable challenge for internationally active companies. In this article, we examine personal and socioenvironmental antecedents of corrupt behavior in organizations. In particular, we aim to illuminate the links between Machiavellianism, on-the-job experience with corrupt behavior at work, neutralization, and the attitude of business professionals toward corruption. The empirical analysis is based on the responses of 169 professionals. At first, a positive relationship between both Machiavellianism and on-the-job experience and the acceptance of corruption (...) appears in the model. However, an in-depth mediation analysis shows that neutralization is the keystone linking both Machiavellianism and on-the-job experience to the likelihood to condone corruption. Based on these results, we offer avenues for further research and implications for practitioners. (shrink)

Corruption presents an assurance problem to businesses: all businesses are best off if none act corruptly but in the event that corruption occurs are better off if they act corruptly than if they do not, and because there is no assurance that other actors are not cheating a business does not know how to act. The usual solution to an assurance problem – criminal sanctions imposed on cheaters – does not work in a corrupt system. Integrative Social Contract (...) Theory suggests a solution to the assurance problem. Application of Integrative Social Contract Theory to corruption demonstrates that in the case of corruption it has advantages over international law, and that the theory's elegance lies in its recognition of norms generated by multiple communities. (shrink)

We propose that local corruption distorts the allocation of government-controlled resources and impairs the contract environment, thereby reducing firms’ use or suppliers’ provision of trade credit. We use a sample of Chinese-listed firms from 2007 to 2020 to examine the role of local corruption in firms’ access to trade credit and find that the level of local corruption is negatively related to firms’ trade credit use. This effect is more pronounced in firms with weak (vs. strong) internal (...) governance, slack (tight) external monitoring and high (low) supplier concentration. The results of path analysis show that local corruption extends short-term bank loans as well as government subsidies and impairs firms’ accounting quality, thereby inhibiting firms’ demand for or suppliers’ provision of trade credit. Moreover, the post-2012 anti-corruption campaign in China plays a significant role in correcting the misallocation of trade credit caused by corruption. The results of this study illuminate the negative external effects of local corruption on trade credit. (shrink)

Corruption is a complex system. Corruptors operate on the material and cognitive levels to insert corruption into the shared ethos.The aim is to reflect on corruption in Western democracy, through an ethical, philosophical-political and anthropological understanding, with regard to subjectification, linked to identity and belonging that psychoanalysis and political symbolism investigate.The methodology will be multidisciplinary.The fertile ground for corruption is the lack of development of “thoughtfulness”, an interior and relational space in which, starting from the caregiver’s (...) relationship with the infant, the conscious and responsible subject is built. For Mary Douglas it is necessary to study identity and belonging of a family or individualistic type. (shrink)

This paper extends the discussion of business ethics by examining the issue of corruption, its definition, the solutions being proposed for dealing with it, and the ethical perspectives underpinning these proposals. The paper’s findings are based on a review of association, think-tank, and academic reports, books, and papers dealing with the topic of corruption, as well as the pronouncements, websites, and position papers of a number of important global organizations active in the fight. These organizations include the World (...) Bank, the International Monetary Fund, the Organization for Economic Co-operation and Development, Transparency International, USAID, the United Nations, the International Chamber of Commerce, the Organization of American States, and the Council of Europe. Our discussion departs from prior analyses by adopting a Foucaultian theoretical framing and by incorporating insights found in the virtue ethics literature. Implications are provided for international business organizations. (shrink)

The systemic role of corruption and its link to low human development is explored. The extractive resource industry is presented as anarena where conditions for corruption—monopoly and discretion without accountability—are especially intense. Corruption is maintainedby a self-reinforcing cycle. Multiple stakeholders are involved in the maintenance of and/or opposition to the cycle: investing corporations, host country regimes and officials, inter-governmental bodies like the OECD, industry associations, non-governmental organization watchdogs like Transparency International, and international agencies facilitating global (...) investment like the World Bank. Complementarity of interests between the demand and supply sides provides strong incentives for entrenched players to maintain corruptive relationships, to protect past gains and sustain current ones. Compulsory international regulation, maximum transparency, effective detection, and enforcement are recommended to enhance accountability, thereby reversing the cycle. It is also necessary to create a corporate culture built on integrity, if regulation itself is to succeed. (shrink)

This paper questions the claim, advanced persuasively by Emanuela Ceva and Maria Paola Ferretti, that political corruption should primarily be understood as a “deficit of office accountability.” On the one hand, it identifies some ambiguities internal to their theory; these suggest that it underestimates the role of self-serving motives in corruption and overemphasizes the perversion of institutional mandates. On the other hand, it describes a form of “passive corruption” that their theory cannot easily accommodate. Passive corruption, (...) I argue, consists in an excess, rather than a deficit, of “office accountability” and typically arises when different institutions come into conflict with each other. (shrink)

Corruption is defined as private individuals or enterprises who misuse public resources for private power and/or political gains. They do so through abusing public officials whose behavior deviates from the formal government rules of conduct. Ethical behavior is defined as individuals or enterprises adhering to a non-corrupt work or business practice. A review of the academic literature is conducted drawing on perspectives from the political, economic, and anthropological sciences. Insights from a Danish research program are reported on. This program (...) identifies five different actions for dealing with corruption: (1) no action; (2) withdrawals from markets; (3) decentralized decision-making process; (4) establishment of an anti-corruption code; and (5) mutual commitment through integrity pact. The following aspects of ethical behavior should be regulated through an anti-corruption code: the company vis-à-vis political parties; gifts and entertainment expenses; political campaign contributions; and policy against small-scale corruption. Directions for future research are considered including the role of international organizations and multinational companies in fighting corruption and fostering ethical behavior; the role of countries and their governments; and the management systems. (shrink)

Corruption is the single greatest challenge that erodes and defeats efforts made by many nations, especially in the developing world, towards sustainable development and towards the promotion and strengthening of democratic institutions and values. This article lays out international norms of ethics and integrity, reflected also in Tanzanian norms. It argues that strategic decision is imperative and a ‘Good Governance Architecture' is meant to provide a working solution to curb unethical behaviour, corruption, and the culture of impunity. (...) This working solution – which involves economic and institutional reforms, prevention strategies, enforcement, political will, transparency, accountability, popular participation, the rule of law, and the democratic space – goes further towards the root cause of the problem than legal norms do. (shrink)

The literature on ‘institutional corruption’ has paradoxically missed what seems a central application of this expression, its application to institutions that are corrupt. In this article, I defend a view of what it is for an institution to be corrupt, in terms of the motivation of the institution’s rules. If an individual office-holder or role-occupant is corrupt when their actions are improperly motivated by private gain, then an institution is corrupt when the same can be said of its rules: (...) the institution’s rules are improperly motivated by private gain. Or if we should prefer a narrower account of corrupt conduct by individuals, as necessarily involving transactions with third parties, a correspondingly narrower account of an institution’s corruptness can also be given. Under either of these versions of my view, an institution’s being corrupt is to be distinguished from something else that might be called ‘institutional corruption’, namely the corruption of institutions, in the sense of their being degraded or undermined. I argue that some of the literature’s best-known accounts of ‘institutional corruption’ are best interpreted as being about the degrading of institutions, rather than about what it is for an institution to be corrupt. (shrink)

Abstract: The systemic role of corruption and its link to low human development is explored. The extractive resource industry is presented as an arena where conditions for corruption—monopoly and discretion without accountability—are especially intense. Corruption is maintained by a self-reinforcing cycle. Multiple stakeholders are involved in the maintenance of and/or opposition to the cycle: investing corporations, host country regimes and officials, inter-governmental bodies like the OECD, industry associations, non-governmental organization (NGO) watchdogs like Transparency International, and (...) class='Hi'>international agencies facilitating global investment like the World Bank. Complementarity of interests between the demand and supply sides provides strong incentives for entrenched players to maintain corruptive relationships, to protect past gains and sustain current ones. Compulsory international regulation, maximum transparency, effective detection, and enforcement are recommended to enhance accountability, thereby reversing the cycle. It is also necessary to create a corporate culture built on integrity, if regulation itself is to succeed. (shrink)

"Petty corruption and honesty in all health care systems" is the original title of one of the bioethics networks within the world-wide study projects of the International Association of Bioethics. As the co-ordinator of this network, it still puzzles me why the word "petty" is in the title when in the past few years - through interviews and questionnaires involving 18 countries - it has become evident to me that not only trivial but important, significant corruption exists (...) in many health care systems. (shrink)

Construction process stages are argued to be vulnerable to the prevalence of corrupt practices. However, the validity of this argument has not been empirically explored in the extant literature of construction management. Therefore, this study examines the stages of the construction process susceptibility to corruption and its most prominent forms of corrupt activities. A total of forty-four project-related professionals were involved in an expert survey to assess such susceptibilities and the criticality of the identified corrupt activities at each stage. (...) A comparative study of expert views from developing regions against experts from developed regions is conducted. Expert scoring results revealed that three stages are most susceptible, namely: project execution, pre-qualification and tender stages. Such results were confirmed by application of the Mann–Whitney U test statistics tool, showing wide disparities in seven out of eleven identical stages. This study is intended to incite polemic discussions and greater empirical, evidence-based research from scholars in both developed and developing countries. This study adds to the extant literature corruption-related works on the construction process through deeper understanding of the dynamic nature of corrupt practices involved in the stages of the construction process in developing countries. Practically, it intends to offer a veritable plethora of information on the critical stages of the construction process for industry practitioners, policymakers and anti-corruption bodies to careen their attention towards the fight against corruption. (shrink)

Corruption within the private sector has often not been dealt with in Brazil. Organizations may find corrupt acts in its operations or practices, but specific concepts and programs to avoid them are neither concrete nor clear. Some Brazilian stockholders have become aware of the risks involved in unethical procedures and are adopting the Best Practices of Corporate Governance initiative. International agencies have intensively supported organizations and governments in an effort to define policies that inhibit illegal or corrupt cultural (...) habits throughout the world, but Brazilian practitioners show insufficient response. Skepticism may indicate a lack of understanding about how an ethical leadership can guide employees, setting high standards for the organizational culture and climate, clearly defining limits of correct behavior, and creating appropriate codes of ethics. Transparency still has to be discovered as a significant tool to encourage professionalism in performance and reporting of data in Brazilian companies. In this article, we analyze the ethical behavior of the purchasing department of a multinational company in its host country, Brazil. It focuses specifically on the supplier–buyer relationship. The results indicate that despite the negative reputation Brazilians have in business ethics, a company can still develop a positive and ethical relationship with its stakeholders. Communication, transparency, compliance with the company’s code of conduct as well as the supplier’s awareness of the buyer’s code of conduct are the factors which influence the supplier–buyer relationship. Transparency can be used as a tool to reduce corruption, thereby increasing ethical behavior and company image. Good ethical behavior can help to build up a company’s image. (shrink)

International Perspectives on Pragmatism combines, in a very appealing manner, a pragmatist approach of democracy with practical politics and history of ideas. The result is a meditation on contemporary society, while in the background there is a continuous debate on the concept of democracy, as defining mark of Western culture. Both its critics and its supporters talk about a decay of democracy, which would not justify an idealist perspective anymore. Arguments for this transpire from both the practical politics section (...) of the volume, as well as from the second part that focuses more on the theoretical side of the discussion on democracy. On a more practical direction, there are contributors maintaining the idea that democracy is corrupt (and examples from today’s world are offered), while the theoretical perspective brings up the Rortian view, manifested through the well-known debate between the foundationalist and the anti-foundationalist perspectives. (shrink)

Only a clear international convention can adequately tackle corruption in the international business arena, but individual companies do not need to wait for this to happen, especially when the main threat from corruption can be to the company itself. This description of how Lyonnaise des Eaux has taken steps to strengthen its inner workings against corruption shows how “business ethics, based on our values, is now our management’s top priority”. The author is Administrateur Directeur Général (...) of the company, and he first delivered this paper to the Ninth Annual Conference of the European Business Ethics Network which took place last year in Frankfurt. (shrink)

Political realism is frequently criticised as a theoretical tradition that amounts to little more than a rationalisation of the status quo and an apology for power. This paper responds to this criticism by defending three connected claims. First, it acknowledges the moral seriousness of rationalisation, but argues that the problem is hardly particular to political realists. Second, it argues that classical International Relations realists like EH Carr and Hans Morgenthau have a profound awareness of the corrupting effects of rationalisation (...) and see realism as an antidote to this problem. Third, it proposes that Carr and Morgenthau can help us to recognise the particular ways in which realist arguments may nonetheless rationalise existing power relations and affirm the status quo by default, if not by design. (shrink)

The expansion of international trade and global business competition in recent years has been accompanied by growth in corruption. While many factors may contribute to a person's willingness to participate in a corrupt transaction, the influence of religion may be significant, and leaders of religious organizations have become increasingly vocal in their condemnation of corruption. As honesty and fairness to third parties is universal to many religions, leaders of many faiths are united in their opposition to (...) class='Hi'>corruption. To better comprehend the relationship between religion and corruption, a study was conducted employing information related to religion and Transparency International's Corruption Perceptions Index (CPI), which ranks nations according to the perceived degree of corruption among public officials and politicians. The 133 countries that were included in the 2003 CPI were compared across a range of factors related to 1) the dominant religion practiced in each country, 2) perceived corruption, 3) the importance of religion to the citizens of each country, 4) religious freedom, and 5) the gross domestic product (GDP) per capita. Study results indicate that, when countries are grouped by dominant religion, the groups differ significantly with regard to perceived corruption, value of religion, religious freedom, and GDP per capita. Significant differences in the same factors also occurred when countries were grouped by corruption levels. (shrink)

Transparency International has consistently maintained two prominent assertions: that corruption remains a global threat because no human society in the world has a clean record, and that Africa is the most corrupt region in the world. These assertions raise some fundamental philosophical concerns. The former assertion re-opens the need to ascertain whether corruption is an essence of humans, or an acquired disposition. Howsoever this is resolved forms the fulcrum of concerns on the second assertion. This paper engages (...) these philosophical concerns. The paper takes two paths to achieve this goal. The first draws from Aristotle’s essentialism and Thomas Hobbes’ accounts on human nature to engage the debate on the relationship between human nature and corruption. The second derives and discusses the plausibility and fundamental implications of the claim that Africa is the most corrupt region in the world. It was found that neither on the basis of Aristotle’s nor Thomas Hobbes’, nor even a possible African cosmology as discussed, can it be said that official corruption is essential to humans. The paper concludes that what is at issue concerning corruption as measured by Transparency International pertains to different African expectations of recompense in a protective communalism from which relatives in public offices must have drawn care, now termed “corruption” by Transparency International, which is not so regarded in the African social order. (shrink)

Using a general model of corruption that explains and accounts for corruption across different corporate and professional activities, the paper will examine how certain practices in the media, especially in areas where journalism, advertising and public relations regularly intersect and converge, can be construed as instances of corruption. By applying this general model of corruption the paper will then offer a taxonomy of media corruption by identifying most if not all the major types of media (...) corruption. It will be argued that such corruption is regular and systematic. (shrink)

While most discussions of corruption focus on administration, institutions, the law and public policy, little attention in the debate about societal reform is paid to the?internalities? of anti-corruption efforts, specifically to character-formation and issues of personal and corporate integrity. While the word?integrity? is frequently mentioned as the goal to be achieved through institutional reforms, even in criminal prosecutions, the specifically philosophical aspects of character-formation and the development of corporate and individual virtues in a rational and systematic way tend (...) to be neglected. This paper focuses on the?internalities? of anti-corruption work with special emphasis on the pre-requisites that need to be ensured on behalf of the social elites in order for proper individual and collective character-formation to take place throughout the society. The author argues that a systematic pursuit of socially recognized virtues, both those pertaining to society as a whole and those specific to particular professions and social groups, is the most comprehensive and strategically justified way of pursuing anti-corruption policy, while institutional and penal policies can only serve an auxiliary role. The pursuit of institutional and criminal justice policies against corruption in a society that is subject to increasing relativism with regard to values and morality is at best ineffective, and at worst socially destructive. Thus the paper suggests a re-examination of the social discourse on the level of what the author calls?value strategy? and the gradual building of a plan to create and solidify specifically designed features of?corporate character? for key sectors of the society. This approach can serve as the main long-term strategy to improve the public profile of integrity and reinforce morality in both the public and civil sectors. Aktuelne rasprave o korupciji vecinom su usredsredjene na pitanja o administraciji, institucijama, pravu i javnoj politici. Istovremeno, nedovoljno paznje se poklanja raspravi o unutrasnjim faktorima antikorupcijskih napora u drustvenim reformama. S jedne strane, rec?integritet? se cesto pominje kao cilj koji institucionalnim reformama treba postici. S druge strane, medjutim, specificno filozofski aspekti formiranja karaktera i razvijanja korporativnih i individualnih vrlina, na racionalan i sistematski nacin, uglavnom se zanemaruju. Ovaj tekst se bavi unutrasnjim faktorima antikorupcijskog delovanja, sa posebnim naglaskom na pretpostavke formiranja individualnog i kolektivnog karaktera cije je ostvarivanje u rukama drustvenih elita. Autor argumentise da je sistematsko unapredjivanje drustveno prepoznatih vrlina, kako onih koji se odnose na celo drustvo, tako i onih koje su specificne za pojedine profesije i drustvene grupe, najobuhvatniji i strateski najopravdaniji nacin za sprovodjenje antikorupcijske politike, dok institucionalna, a posebno kaznena politika, mogu igrati samo dopunsku ulogu. Naglasavanje institucionalne, a posebno krivicno-pravne politike, u jednom drustvu koje inace karakterise moralni i vrednosni relativizam, u najboljem slucaju je neefikasno, a u najgorem slucaju drustveno destruktivno. Stoga se u tekstu sugerise preispitivanje drustvenog diskursa na nivou onoga sto autor naziva?vrednosnom strategijom? i postepena izgradnja i ucvrscivanje posebno odredjenih aspekata?korporativnog karaktera? za pojedine kljucne sektore drustva. Ovaj pristup moze biti dugorocna drustvena strategija za unapredjivanje javnog profila integriteta i za jacanje morala kako u javnom, tako i u privatnom i gradjanskom delu drustva. (shrink)

Corruption is a pervasive problem across the world and is regularly ranked as among the greatest global challenges. Considering the role that corruption plays in exacerbating deprivation and fuelling social tension, peaceful and just societies are unlikely to come about without tackling corruption. Addressing corruption should be a high priority for those concerned with poverty eradication, peace, security, and justice. Yet, curiously, corruption has not yet been the focus of any books by philosophers working on (...) global justice topics. Corruption and Global Justice does so. Author Gillian Brock offers a normatively justified account of how to allocate responsibilities for addressing corruption across the many agents who can and should play a role. In order to know who should take responsibility and how they should do so, we need to understand multiple forms of corruption, the corruption risks associated with various activities, the interventions that tackle corruption effectively, and current policy and legal frameworks in place for addressing corruption. In addition, Brock proposes a new framework for navigating responsibility to address injustice, one that is action-oriented and forward-looking. Adopting an agent-empowering approach and harnessing the power of joining forces in effective collective action, Corruption and Global Justice addresses a significant global problem in a comprehensive way, providing the tools we need for progress as we collaborate to tackle this global scourge. (shrink)

The expansion of international trade and global business competition in recent years has been accompanied by growth in corruption. While many factors may contribute to a person's willingness to participate in a corrupt transaction, the influence of religion may be significant, and leaders of religious organizations have become increasingly vocal in their condemnation of corruption. As honesty and fairness to third parties is universal to many religions, leaders of many faiths are united in their opposition to (...) class='Hi'>corruption. To better comprehend the relationship between religion and corruption, a study was conducted employing information related to religion and Transparency International's Corruption Perceptions Index (CPI), which ranks nations according to the perceived degree of corruption among public officials and politicians. The 133 countries that were included in the 2003 CPI were compared across a range of factors related to 1) the dominant religion practiced in each country, 2) perceived corruption, 3) the importance of religion to the citizens of each country, 4) religious freedom, and 5) the gross domestic product (GDP) per capita. Study results indicate that, when countries are grouped by dominant religion, the groups differ significantly with regard to perceived corruption, value of religion, religious freedom, and GDP per capita. Significant differences in the same factors also occurred when countries were grouped by corruption levels. (shrink)

Corruption continues to represent a tenacious challenge to internationally active companies. According to prevailing international anti-corruption standards, a company can be held criminally liable if it does not put all necessary and reasonable organizational measures in place to prevent corruption. The regular training of employees is considered one of the most effective ways to prevent corruption. Employee training is considered helpful in efforts to minimize the risk of employees becoming involved in corrupt behavior. With this (...) idea in mind and building on the fraud triangle model and neutralization theory, this paper examines whether business professionals who have undergone anti-corruption training are more likely to reject prevailing justifications of corrupt practices than are those who have not undergone such training. The empirical analysis in this paper is based on regression models using data obtained from a unique dataset that includes 200 business professionals. The findings provide evidence that training is positively linked to the likelihood of rejecting justifications of corruption. However, the research also suggests that methods of training must become more specific in order to tackle challenging questions regarding the gray areas of ethics and compliance. (shrink)

Last year there was a heated debate regarding clinical trials with AZT carried out in developing countries. AIDs vaccine trials also posed various dilemmas and ethical problems. In this paper I will consider the possibility of corruption in bioethics, and international multi‐centre research will be taken as an example. International clinical trials will be seen from another perspective. I will try to show that the possibility of systemic corruption should be considered when designing an international (...) multi‐centre research trial which may involve countries in very different situations regarding corruption. I will analyze three different approaches to this problem and suggest some strategies regarding their capacity to exclude the possibility of corruption. (shrink)

Previous studies have shown that individuals in collectivist cultures may be more corrupt than those in individualist cultures when they are interacting with outgroup members. The countries that are least corrupt, according to the Transparency International Corruption Perceptions Index, tend to have horizontal individualist cultures, with Singapore being a prominent counterexample. Can findings at the cultural level of analysis be replicated at the individual level of analysis? To answer this question the authors examined the relationship between deception and (...) cultural orientation in a Singaporean sample. The results indicate that, despite the fact that Singapore is very low in corruption on the Transparency International Corruption Perceptions Index, vertical collectivism was still able to account for the variance in deception. Theoretical and practical implications are discussed. (shrink)