Business Ethics and Corporate Social Responsibility Individual Report: Corruption

2908 Words Mar 3rd, 2013 12 Pages
Business Ethics and
Corporate Social Responsibility

Individual report: Corruption

February 2013

Friedrich Heinrich Zenzen
University of Greenwich

Introduction
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”.
Corruption can be distinguished regarding to where it happens: at the political or management levels of the public sector, or in the private sector between customer and supplier. It can be identified regarding
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Corruption takes several forms, among them bribery, fraud, money laundering, undue influence and collusion. The corruption issue is not only with receivers of bribery, the issue is also related to those authorising the payment.
The Bribe Payers Index 2011 detected the probability of companies from these countries to pay bribes in a foreign country. The scale is 0 – 10, 0 suggest that the country is perceived to always bribe and 10 that the country never bribes. The full index is available on Transparency International website. Country | Rank | Score | Country | Rank | Score | Netherlands | 1 | 8.8 | Taiwan | 19 | 7.5 | Switzerland | 1 | 8.8 | India | 19 | 7.5 | Belgium | 3 | 8.7 | Turkey | 19 | 7.5 | Germany | 4 | 8.6 | Saudi Arabia | 22 | 7.4 | Japan | 4 | 8.6 | Argentina | 23 | 7.3 | Australia | 6 | 8.5 | United Arab Emirates | 23 | 7.3 | Canada | 6 | 8.5 | Indonesia | 25 | 7.1 | Singapore | 8 | 8.3 | Mexico | 26 | 7 | United Kingdom | 8 | 8.3 | China | 27 | 6.5 | United States | 10 | 8.1 | Russia | 28 | 6.1 |

The correlation between Corruption Perceptions Index 2010 and Bribe Payers Index 2011 shows that, there is a robust correlation between corruption in the public and private sectors.

Moreover, the Transparency International offers the results by sector. The scale is 0 – 10, 0 indicating that the sector is perceived to always bribe and 10 that the sector never bribe. The

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