It is defined in the online Oxford dictionary as “dishonest or fraudulent conduct by those in power, typically involving bribery”.
Another definition of corruption is “the act or effect of giving or receiving a thing of value, in order that a person do or omit to do something, in violation of a formal or implicit rule about what that person ought to do or omit to do, to the benefit of the person who gives the thing of value or a third party”. (Argandona, 2005):
These definitions emphasize the following features of corruption (Argandona, 2005):
• It is an action, an omission, or an attempt to do such action.
• It consists of giving and receiving.
• It involves the exchange of something of value.
• It is done by an individual holding a position
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Consequences of corruption
Corruption takes place in industrialized countries, developing countries and less developed countries and seems to have been accepted as no more than a cost of doing business in many countries. As a result, corruption was identified as one of the greatest obstacles to social and economic development of nations. The effects of corruption are felt in monetary terms from a business point of view, as well as in social and political costs.
5. How to fight government corruption
i) Build strength from within
Strong internal controls and accountability mechanisms enable anti-corruption agencies to carry out their missions and avoid internal abuses that can damage their credibility ii) Cultivate influential alliances
External support is critical for anti-corruption agencies to outflank powerful opponents. Fostering effective alliances with different groups requires creativity and diligence, Kenya’s ethics and anti corruption commission for combating corruption and organized crime sought to gain media support by training its prosecutors in media relations, breaking down their reluctance to talk to the media while giving them the skills to do
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H., Gray, C. W., (2006). Anticorruption in Transition. Who is succeeding… and why? Washington DC: The International Bank for Reconstruction and Development/ The World Bank
Argandona, A., (2003). Private-to-private corruption. Barcelona: IESE Business School. Retrieved from http://www.iese.edu/research/pdfs/DI-0531-E.pdf
Argandona, A., (2005). Corruption and Companies: The use of Facilitating Payments, in Journal of Business Ethics, 60, 251-264
Nwabuzor, A., (2005). Corruption and Development: New Initiatives in Economic Openness and Strengthened Rule of Law, in Journal of Business Ethics, 59; 121-138
Dr Heather M., (2013). Corruption,Politics and Development: The Role of the World Bank. Palgrave Macmillan.
Arnold J. H., and Michael J., (2011). Political Corruption: Concepts and Contexts. Transaction Publishers.
Mr. Moses M., (2013). Conceptualising Corruption. Article retrieved from http://www.icac.org.hk/newsl/issue30eng/button4.htm
Wrong, M. (2014, May 6). Everyone is corrupt in Kenya, even grandmothers. Retrieved from www.foreignpolicy.com/.../everyone_is_corrupt_in_kenya Transparency International. (2014). Overview of corruption and anti-corruption. Retrieved from www.trasparency.org-Kenya
The Star
Chetwynd, Eric, Frances Chetwynd, and Bertram Spector. "Corruption and Poverty: A Review of Recent Literature." Management Systems International (2003): n. pag. Print.
Professor Nichols. “The list of countries that have been politically or economically crippled by corruption remains to develop, and businesses with continuing benefits abroad will ultimately be harmed by any plans that include bribery.”
When dealing with corruption, first question to ask or to clarify is what corruption is. NSW Research (2002) describes corruption anything from gaining materialistically by virtue of position (for eg. getting a special discount at stores) to engaging in ‘direct criminal activities’ (eg. selling drugs). Newburn (1999) believes that there is a thin line between the definition of ‘corrupt’ and ‘non-corrupt’ activities as at the end, it is an ethical problem. For common people, however, bribery generalises corruption.
Corruption is something that is motivated by greed and fraud. It’s a very threatening personality that controls and destroys people’s lives and makes them the kind of person other people don’t want to associate with.
Rose-Ackerman, Susan. Corruption and Government: Causes, Consequences, and Reform. N.p.: Cambridge University Press, 2007. Print.
Corruption is defined as the dishonest conduct one performs for illegitimate private gain (Paskal). To determine where corruption
Prenzler, T, Ransley, J 2002, Corruption and Reform: Global Trends and Theoretical Perspectives, Hawkins Press, Annandale.
Corruption is a severe problem that the world is facing at the moment and has been going on for quite a while now. “ The problem of business ethics is infinitely more complex in the international marketplace because value judgments differ widely among culturally diverse groups” (Cateora, Gilly and Graham, International Marketing). What American managers opinion as fundamental, others interpret as a sign of misuse. Performing in an ethically and socially accountable way should be the stamp of every business performance, international or domestic. There are many economic effect of corruption such as weakening the economic expansion, falsifying the competitive playing field and diminishing the excellence of government services and organization. As a business manager or employee if you knowingly know about a bribe it is best to report a
Green, Stuart P. (2005) What’s Wrong with Bribery in DEFINING CRIMES: ESSAYS ON THE CRIMINAL LAW'S SPECIAL PART, Oxford University Press (Oxford).
Bray, J. (2005). The use of intermediaries and other alternatives to bribery. The New Institutional Economics of Corruption, London und New York, 93-111.
While some of this bribery can simply expedite decisions and actions, other situations may involve a distortion of business outcomes. Meanwhile, government officials in positions to alter the firm’s overall profitability may receive substantial payments. Funds that rightfully belong to the public may be diverted into private hands. Firms that would have paid fees to the government may be able to reduce their financial obligations. Corruption distorts free market outcomes, resulting in business and government decisions that reduce efficiency and so reduce a nation’s aggregate production. Some investors may reject potential business dealings in certain cultures because of the presence of corruption. Recent years have witnessed global attempts to reduce corruption, and many nations now treat corruption as a crime. In this context, management encounters issues that challenge ethical positions and that involve risks of legal prosecution, as well as impacting potential
Olivier de Sardan, Jean-Pierre. 1999. A moral economy of corruption in Africa? Journal of Modern African Studies 37 (1): 25-52.
The development of a country depends generally on the work and values of its society. The image of a country can be severely damaged by certain actions and behavior of their citizens, like bribery. When a country is known as a corrupt nation, not only will the facade of the country be affected, but also the economy. Establishing measures to eradicate corruption are urgently necessary. Corruption has been around since the begging of time, but currently is more common in business, more specifically, international business. Although some organizations have been formed, and conventions have been signed in order to end it, corruption is still one of the mayor problems around the world. An ethical view might bring more insight to why bribery and corruption is not a moral act and why more severe measures should be taken into consideration.
In this essay,we have seen evidence that corruption leads to instability in the economy,increases the transactional cost,decreases efficiency, hinders the growth of a healthy marketplace and harms the social and economic development.Therefore,it’s fair to say that Corruption has had a serious effect on the Indian Economy.If left unchecked,India is bound to lose FDI investments as investors will lose trust in the economy. “Lost opportunities caused by corruption in regards to growth,jobs and investment; India has lost up to $45-50 billion a year”(Singh 2010).
SANDU, A., & NIŢU, M. (2013). CORRUPTION AND ORGANIZED CRIME. Contemporary Readings In Law & Social Justice, 5(2), 454-460.