Bribery and Corruption in the Public Sector is Endemic and Unavoidable in all Societies
Corporate Governance, Financial Crime, Ethics and Control Coursework
Bribery and Corruption in the Public
Sector, is Endemic and Unavoidable in all
Societies
UP715860
Corporate Governance, Financial Crime, Ethics and Control Coursework
In this paper we will be critically discussing the existence of bribery and corruption in the public sector, predominately critiquing the presence in all societies and the geographical span of the effects. Additionally, evaluating the regulatory framework put in place in order to prevent such actions occurring, such as in the UK “The Bribery Act 2010”; and in the United States “FCPA 1977”.
Transparency International defines corruption broadly as “the abuse of entrusted power for private gain”1. This suggests that corruption is in abundance when there are conditions that allow for powerful public officials to abuse rights. However this needs to be differentiated into “grand corruption” and “petty corruption”. Grand corruption are acts committed at a high level of government that distort policies or the central functioning of the state, enabling leaders to prosper at the expense of the public. An example of this is shown in 1996, two former South Korean presidents, Roh Tae-woo and Chun Doo-hwan, were found guilty in a corruption case linking them to the chaebols (large family-owned businesses with strong political ties), which had paid off top political leaders in exchange for unfair business advantages2. Alternatively petty corruption are the everyday abuse of entrusted power by low and mid-level public officials in their interactions with ordinary citizens. The effects of bribery in the water and healthcare sector represent the implicit costs of corruption. These incidents transform corruption into “regressive tax” on services that the poor cannot afford making basic services unattainable. Bribery is an offence advantage for the purpose of bringing about an improper performance of a function or activity. Evidently bribery exists
Bribery and Corruption in the Public
Sector, is Endemic and Unavoidable in all
Societies
UP715860
Corporate Governance, Financial Crime, Ethics and Control Coursework
In this paper we will be critically discussing the existence of bribery and corruption in the public sector, predominately critiquing the presence in all societies and the geographical span of the effects. Additionally, evaluating the regulatory framework put in place in order to prevent such actions occurring, such as in the UK “The Bribery Act 2010”; and in the United States “FCPA 1977”.
Transparency International defines corruption broadly as “the abuse of entrusted power for private gain”1. This suggests that corruption is in abundance when there are conditions that allow for powerful public officials to abuse rights. However this needs to be differentiated into “grand corruption” and “petty corruption”. Grand corruption are acts committed at a high level of government that distort policies or the central functioning of the state, enabling leaders to prosper at the expense of the public. An example of this is shown in 1996, two former South Korean presidents, Roh Tae-woo and Chun Doo-hwan, were found guilty in a corruption case linking them to the chaebols (large family-owned businesses with strong political ties), which had paid off top political leaders in exchange for unfair business advantages2. Alternatively petty corruption are the everyday abuse of entrusted power by low and mid-level public officials in their interactions with ordinary citizens. The effects of bribery in the water and healthcare sector represent the implicit costs of corruption. These incidents transform corruption into “regressive tax” on services that the poor cannot afford making basic services unattainable. Bribery is an offence advantage for the purpose of bringing about an improper performance of a function or activity. Evidently bribery exists
Bibliography: Argandona, A. 2001. Corruption: the corporate perspective. Business Ethics: A European Review 10: 163-175. Hines, 1995, Hines, J., 1995. Forbidden Payment: Foreign Bribery and American Business. NBER Working Paper 5266. Krueger, 1974, The Political Economy of the Rent-Seeking Society, American Economic Review, 64 (3) (1974), pp Krueger, 1974, The Political Economy of the Rent-Seeking Society, American Economic Review, 64 (3) (1974), pp Miller, S. 2005. Corruption. In E. N. Zalta (ed.). The Stanford Encyclopedia of Philosophy. Available from: URL: http://plato.stanford.edu/archives/fall2005/entries/corruption/ (retrieved May 2009). Mauro, P. 1998. Corruption and the composition of government expenditure Olken, B Schleifer and Vishny, 1993 Seyf, A Seyf, A. 2001. Corruption and development: a study of conflict. Development in Practice 11: 597605. Transparency International. 2010. Corruption Perceptions Index. Available from: URL: http://www.transparency.org/cpi2010/results (retrieved July 2012).