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Research Article Private-to-Private Corruption
In this paper, the author focuses on private-to-private corruption. He considers the topic as a relatively neglected one and attributes the lack of previous interest in its study to a number of assumptions: the private sector is considered as more able to protect its own interests; the incentives for this type of behavior are viewed as limited in the private sector; the social, economic, and ethical impact is estimated as less serious than that of private-to-public corruption. The author explains that this phenomenon has become increasingly important in recent years due to the intensification of competition, the removal of trade barriers, and the extent of privatization. The author provides examples of this type of corruption and presents the forms that it might take. He also includes a discussion on the ethical aspects of the phenomenon and the harm that it provokes to the company, the competitors, and society as a whole. The paper also presents the legal treatment that private-to-private corruption receives in different countries. This type of behavior has been criminalized on the basis of the breach of fiduciary duties or duty of loyalty, the defense of the competition, and the protection of corporate assets. The author suggests a few preventive and corrective measures that companies should consider in order to deal with this problem.
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Research Article Corruption and wage-inequality?
Does corruption worsen wage distribution?
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Research Article chemical/x-pdb Financial liberalization, bureaucratic corruption and economic development
This study examines the relationship between international financial integration and economic development in a small economy where government-appointed bureaucrats may be corrupt. It finds that financial liberalization may cause an increase in corruption and hurt economic development when a small close economy liberalizes its financial markets.
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Research Article Lawful but Corrupt: Gaming and the Problem of Institutional Corruption in the Private Sector
In this paper Malcom S. Salter provides a new perspective on institutional corruption in businesses through the concept of “gaming”, which refers to the act of subverting the intent of rules or laws without technically breaking them. The paper puts forward three main hypotheses. First, lobbying by business interests during the rule-making process not only aims to minimise regulatory constraints, but also to ensure future gaming opportunities. Second, the gaming of rules is often fueled by the short-term incentives of both corporate executives and investment managers. Third, corporate boards become complicit in gaming when they allow these practices to take root and persist as an acceptable organisational norm.
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Research Article The Silence of Corruption: Identifying Underreporting of Business Corruption through Randomised Response Techniques
This World Bank research paper propose a new methodology to improve firm-level surveys for measuring corruption in businesses. This study suggests that there is a thorough underreporting of corruption in firm-level surveys. Although the authors admit the limits of their methodology, the Randomised Response Technique is interesting as it allows us to examine the types of firms providing systematic false answers to questions on corruption.
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Research Article 'Performing' Bribery in China - Guanxi-Practice, Corruption with a Human Face
This article analyses the entangled relationship between corruption and the so-called guanxi-practice, which is a form of reciprocal conduct that is ubiquitous in China. Unlike most current academic studies on corruption in China which focus on the theme of how the political, economic and social environments have caused corruption at the macro-level, this paper takes a micro-view. It concentrates on how corruption, notably bribery, takes place between a briber and the bribed and challenges the conventional view on the causal relationship between bribery and guanxi-practice.
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Research Article D source code A Trio of Perspectives on Corruption: Bias, Speed Money and “Grand Theft Infrastructure”
Drawing upon the freshly expanded World Bank’s Enterprise Survey (ES), Kenny, Klein and Sztajerowska present an original paper examining three themes: corruption measurement pitfalls, corruption as efficient grease, and corruption in infrastructure. The Enterprise Survey now covers 125 countries and provides interesting insights, depicting an alternative picture from Transparency Internaional’s CPI or the World Bank’s Doing Business data – the latter portraying a de jure description of firm's environment, focusing on the institutional background.
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Research Article PS document Corporate Governance and Corruption: Ethical Dilemmas of Asian Business Groups
In this recent paper from the Journal of Business Ethics, the author explores the relationship between corporate governance and corruption in family-owned business groups in the Philippines. The study is based on 40 semi-structured interviews of elite business managers, academics, and government officials carried out in 2007.
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Research Article Identification and Quantification of the Proceeds of Bribery
This study conducted by the OECD and the World Bank analyses the identification and quantification of the proceeds of active bribery in international business transactions. Active bribery is defined as the “…criminal offence committed by paying, offering or promising a bribe or an undue advantage to an official”. The authors contend that while international efforts thus far has put a lot of emphasis on quantifying the amount of bribe, its financial equivalent, and even the indirect proceeds accrued by corrupt public officials, much less emphasis has been placed on the proceeds of active bribery, i.e. the benefit gained by the bribe payer, which is often more substantial than the actual amount of the bribe paid.
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Research Article Do Political Blogs Matter? Corruption in State-Controlled Companies, Blog Postings, and DDoS Attacks
This working paper probes to what extent net-activism can influence corruption behavior in non-democracies. The authors analyse the impact of anti-corruption blog posts on the stock prices of state-controlled firms in Russia. Their research uncovers a negative correlation between stock prices and blog posts both in the short and medium term. Moreover, they provide evidence that the relationship between stock prices and blog posts is causal, using an instrumental variable and placebo tests.
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