Corruption

First, it is important to define what corruption is. The term, “corruption” covers a broad range of human actions,

Corruption can take many forms and can be found in many countries, but mainly in the emerging ones. The main form of corruption is the bribery in the form of payments demanded by the government or ministry officials in exchange for a favor (granting a service, awarding a business).Corruption affects all the businesses that interfere with the government, but studies have shown that certain industries are more exposed to it. These industries are construction, airline manufacturing, power plants, and oil and gas production.

or not. Each country may view bribery under different societal conditions and circumstances. In most

Ethical issues such as bribery and corruption in a cultural context are sometimes systemic and cause much harm to organizations and society as a whole. Societies or countries heavily in depth of corruption lose all of their moral values and standards. Developing countries need leaders who are committed to ethical issues, support their people to uphold ethical standards and behave in an open and transparent ways to send the message that the fight against corruption is taken seriously. Bribery is unethical because it results in distortion of the marketplace. As a result, people who deserve to gain something actually gain very little or nothing. Bribery means that someone gives another person something that they want in order to change the recipient's behavior. For example, if someone is running for office and they give people money in exchange for votes, this is a form of bribery. It gives the one accepting bribery

Public corruption involves a breach of public trust and/or abuse of position by federal, state, or local officials and their private sector accomplices. By broad definition, a government official, whether elected, appointed or hired, may violate federal law when he/she asks for, demands, solicits, accepts, or agrees to receive anything of value in return for being influenced in their performance of their official duties( Myint, 2006). The majority of public corruption cases fall into one of five categories: legislative, judicial, regulatory, contractual, and law

Bribery has become a common term in the corporate world, specifically when international business deals are discussed. Until 1977, it was legal in the United States to bribe foreign officials in order to receive preference or a better business deal. But, the passing of the Foreign Corruption Practices Act of 1977 and its subsequent amendments made it a criminal act for any organization within the U.S. or foreign organization doing business in the United States, to practice any form of bribery and also required the President of the United States to engage other nations in creating similar laws. Since, many nations have chosen to band together against bribery and have formed the Organization for Economic Cooperation and Development that ultimately created the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. This now makes it illegal to practice bribery in any of the countries that are part of this organization. While the United States and the world has come a long way in stamping out bribery, there are still some organizations that think they can get away with it but end up with massive fines and prison time. But, with so many nations banding together, one can still be hopeful for a world in which we can do business ethically with other ethical businesses around the world.

The negative economic impacts of corruption have grown rapidly, and major international organizations have claimed that corruption hinders economic growth (world bank 2006). Although there are claims that corruption is harmful to economic growth, economists have not really agreed with the argument from a theoretical point of view. Theoretical studies suggest that corruption may counteract government failure and promote economic growth in the short run, given externally determined suboptimal bureaucratic rules and regulations. As government failure is itself a function of corruption, however, corruption should have

Corruption. What is corruption? Corruption is dishonest or illegal behavior by powerful people, such as government officials

Ahmad N. (2002). Corruption and Government Regulations : An Empirical Analysis. The Bangladesh Development Studies , Vol. 28, No. 4 pp. 29-51.

Kwok and Tadesse suggest the regulatory pressure effect, demonstration effect, and the professionalization effect. Corruption exists in local governments in less developed countries across the globe, a circumstance that is extremely difficult to prevent. Since it is normal business practice for local businesses to engage in corrupt activity, it is difficult for them to refrain from doing so, since it is common practice. Most MNCs are unwilling to accept bribes in order for host countries to attain an advantage. For the sake of making things easier, let us focus on MNCs from the United States. Host institutions looking for business partners in the United States are presented a dilemma. Either they continue to divulge in corrupt practices in their local government, or they strive for internal legitimacy since these MNCs are likely to have adopted norms and practices that outlaw the use of corruption and bribery from their affiliates. This can be attributed to the observance of acts such as the US Foreign Corrupt Practices Act of 1977. The act outlaws US firms from coercing a host country’s government to enter into a business advantage through the use of materialistic items, such as money. Violating this act can be costly for individuals and firms alike. To add in 1997, 33 countries had signed the Convention on Combatting Bribery of Foreign Public Officials in International Business Transactions. There is an agenda to combatting corrupt practices in global business. Regulatory

Therefore, Corruption is defined as an abuse of public office for personal interest.(Chetwynd, Chetwynd & Spector, and 2003 pp 6). Additionally, corruption

Governments are very sensitive to political corruption. Therefore, there are many types of corruption such as illegitimate use of inside information, drug trafficking, patronage, extortion, bribery, fraud, embezzlement, and many more. Bribery could be one of the common corruption in the country. It

The broadest, most suitable definition which exists today simply states that corruption is any illegal act performed by a politician to produce results which would have been otherwise impossible (Ebbe). In some cases, government, politicians, and criminals entwine for the sake of amassing money in order to secure their own jobs. This form of corruption was apparent in the mafia’s association with the

While corruption is said to generate inefficiency and retard growth in a country (Ackerman, 1997), China manages to deliver astronomical economic growth amidst rampant corruption (Li, Peng, 2001). To explain China’s puzzle, the essay first focuses on the causes of corruption and why it has yet to be eradicated, and then analyzes its economic impact in the short and long run.

Corruption is a complex political, social, and economic anomaly that negatively affects developing and developed countries. It weakens democratic institutions, holds economic development, widening the rich-poor gap and certainly leads to governmental instability. The World Bank definition of corruption states that “…the abuse of public office for private gain”.