Corruption: The International Evolution of New Management Challenges
I – New and Difficult Challenges Brought by Corruption
A- Introduction B- ‘Guanxi’ phenomena C- Impact of Corruption D- Laws against Corruption E- MNEs’ role in Fighting against Corruption
II- General guidelines to include in a code of conduct for a Canadian Multinational company entering the Indian Market A- Definition of Codes of Conduct
B- Code of Conduct regarding Indian laws
C- Code of Conduct regarding Indian society and environment
D- Code of conduct regarding Corruption E- Conclusion
New and Difficult Challenges brought by corruption MNEs need to interact with various host country organisations, including the government and its bureaucracy. Government bureaucrats have the opportunity of trying to bend or even break rules and regulations for personal gains. This type of corruption has the strongest effect on MNEs‟ activities in the host country. Corruption is usually a way to avoid the complex system of government‟s approval to sell a new product or offer a new service, and to reduce time delays. In many countries, business is based on personal relationships, trust and friendship and exchanging gifts. That‟s what we call „Guanxi‟ in China. Usually when MNEs are going international, their destination is mainly the least-developed countries (LCDs) which all involve phenomena similar to „guanxi‟. Many cultural aspects encourage corruption such as the high level of power distance, the high level in individualism and many others. So „Guanxi‟ has become a cultural norm in almost all the LCDs and some of the developed western countries (i.e. Italy) (based on the statistics of Transparency and World Bank).therefore, „guanxi‟ has become a part of achieving successful business and it is not seen as „corruption‟. Corruption affects everybody. Corruption reduces the overall wealth in a country since it can discourage businesses from...