Corruption and Networking in the U.S.

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Corruption:|
Relationship Between the Practice of Guanxi and Corruption| |
Already established business or non-business ties , also known as networking may be the direct causation of bribery and corruption in the United States. | |

Laura ChilianBusiness and Commercial Law 332Spring 2013, Section 2 PM| 5/3/2013|
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Research question:
Is the practice of Guanxi (networking in US) a leading social and/or cultural factor for corruption?

Importance of this analysis:
Recognizing what factors determine individuals to engage in the practice of corruption is important as it might impact the performance of the organization as a whole .

Audience:
Educated adults

Purpose of the paper:
To discover whether corruption is more likely to occur between individuals and/or businesses that already have developed relationship ties.

Thesis:
Networking translated as already established business or non-business ties may be the direct causation of bribery and corruption in the United States.

Table of Contents
Thesis Topic: Does Networking /Guanxi lead to corruption in the United States? Abstract ………………………………………………………………………………….4 Introduction ……………………………………………………………………………..5 Purpose of the paper …………………………………………………………………...5 Hypothesis ……………………………………………………………………………..5 Definition of terms …………………………………………………………………….5 Corruption, Guanxi and Social Norms …………………………………………………..5 Types of Corruption: Bribery, Extortion & Misappropriation ………………………...5 Definition of terms …………………………………………………………………….6 Trust …………………………………………………………………………………6 Guanxi ……………………………………………………………………………….6 Networking ………………………………………………………………………….6 Social values ………………………………………………………………………...6 Cultural factors and ethics ……………………………………………………………....6 Masculinity ……………………………………………………………………………6 High-power distance, Table 1 …………………………………………………………7 Individualism ………………………………………………………………………….7 Ethicality of networking and guanxi …………………………………………………..7 Types of negative externalities ……………………………………………………...8 Networking in the U.S. ………………………………………………………………….8 Types of trust: affect and cognition based …………………………………………….8 Fiduciary relationships ………………………………………………………………8 Interpretation of CPI scores ………………………………………………………….9 Current Corruption Perception Indexes ………………………………………………..9 Background of Transparency International ………………………………………….9 1998, 2005 & 2010 CPI results, Table 2 ……………………………………………..10 Analysis of data ……………………………………………………………………...10 Socio-economic demographic elements of the U.S. …………………………………...10 Population growth ……………………………………………………………………10 Relation between growth and CPI, Chart 1 ………………………………………….11 Elements affecting growth …………………………………………………………..11 Economic factors …………………………………………………………………….11 Legal factors …………………………………………………………………………12 Foreign Corrupt Practices Act ………………………………………………………....12 Background …………………………………………………………………………..12 Sections of the FCPA ………………………………………………………………...12 How it correlates to corruption ………………………………………………………13 Sarbanes-Oxley Act ……………………………………………………………………13 Background …………………………………………………………………………..13 Title VIII ……………………………………………………………………………..13 Title IX ……………………………………………………………………………….13 International Anti-Corruption Conventions …………………………………………14 OECD, OAS & UN ………………………………………………………………..14 Conclusion …………………………………………………………………………….14 Bibliography …………………………………………………………………………16

Abstract

In recent years, researchers conducted many studies to determine the causes and leading social and cultural factors of corruption in the United States. While most agree that corruption is an issue at an international level, the question is what determines individuals to engage in illegal...
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