The Contributions of Multinational Corporations
Accountancy Business and the Public Interest 2012
A Critical Examination of the Multinational Companies’ Anti-Corruption Policy in Nigeria by *Olatunde Julius Otusanya Department of Accounting, University of Lagos, Nigeria Sarah Lauwo Kent Business School, University of Kent, UK Gbadegesin Babatunde Adeyeye Department of Accounting, University of Lagos, Nigeria
*Address for Correspondence: Department of Accounting Faculty of Business Administration University of Lagos P. O. Box 354, Unilag Akoka, Yaba Lagos State, Nigeria Tel: 234 (0) 7051827072 Email: jotusanya@unilag.edu.ng; sanyaoj@yahoo.ac.uk
Abstract In contemporary enterprise and organisational culture, many companies are increasingly willing to increase their profits and to gain competitive advantages through indulgence in bribery, corruption, money laundering and other anti-social practices that shows little regard for social obligations and even laws. Companies cemented their social relations by claims of socially responsible and of ethical conduct, but the evidence in practice proves otherwise. The bourgeoning corporate social responsibility literature rarely examines predatory practices of MNCs even though the practices affect a variety of stakeholders. This paper draws attention to the gaps between corporate anti-corruption policy and acts. The paper used publicly available evidence to provide case studies to show that companies engaged in bribery, corruption and money laundering as against their claims of responsible social conduct. The paper argued that MNCs have used the political elite in developing countries to seek to advance their global earnings and competitive advantages by offering bribes and other inducements to secure government contracts in Nigeria. It also encourages reflections on endemic corrupt practices and offers some suggestions for reform.
Keywords: Corruption, CSR, Code of Conduct, Corporate policy, Bribery, Multinational 1
Accountancy Business and the Public Interest 2012
A Critical Examination of the Multinational Companies’ Anti-Corruption Policy in Nigeria by *Olatunde Julius Otusanya Department of Accounting, University of Lagos, Nigeria Sarah Lauwo Kent Business School, University of Kent, UK Gbadegesin Babatunde Adeyeye Department of Accounting, University of Lagos, Nigeria
*Address for Correspondence: Department of Accounting Faculty of Business Administration University of Lagos P. O. Box 354, Unilag Akoka, Yaba Lagos State, Nigeria Tel: 234 (0) 7051827072 Email: jotusanya@unilag.edu.ng; sanyaoj@yahoo.ac.uk
Abstract In contemporary enterprise and organisational culture, many companies are increasingly willing to increase their profits and to gain competitive advantages through indulgence in bribery, corruption, money laundering and other anti-social practices that shows little regard for social obligations and even laws. Companies cemented their social relations by claims of socially responsible and of ethical conduct, but the evidence in practice proves otherwise. The bourgeoning corporate social responsibility literature rarely examines predatory practices of MNCs even though the practices affect a variety of stakeholders. This paper draws attention to the gaps between corporate anti-corruption policy and acts. The paper used publicly available evidence to provide case studies to show that companies engaged in bribery, corruption and money laundering as against their claims of responsible social conduct. The paper argued that MNCs have used the political elite in developing countries to seek to advance their global earnings and competitive advantages by offering bribes and other inducements to secure government contracts in Nigeria. It also encourages reflections on endemic corrupt practices and offers some suggestions for reform.
Keywords: Corruption, CSR, Code of Conduct, Corporate policy, Bribery, Multinational 1
Accountancy Business and the Public Interest 2012
References: Accountancy Business and the Public Interest 2012 Central Bank of Nigeria (2006) Central Bank of Nigeria Statistical Bulletin, Volume 17 Online Accountancy Business and the Public Interest 2012 US District Court Southern District of Columbia (2008) Securities and Exchange Commission vs Zakiuddin, A. and Haque, W. (2002) ‘Corruption in Bangladesh: An Analytical and Sociological Study’, Online. Available at: http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan004881 (accessed 28 October 2006).