Fighting Corruption and Global Management

Paper Summary:

This paper discusses how corporations must create a corporate culture that refuses bribe requests and establish clear corporate codes that employees unwaveringly adhere to. They must also assure managers that the company will back them when they refuse to pay. The paper explains that the potential, in terms of criminal liability, skewed relationships, lost contracts, disqualification from government contracts, loss of reputation is simply too great to ignore. Because bribery is illegal, it is conducted behind closed doors, with those involved expending time and resources to keep their secret. It discusses how companies also face the very real possibility of being pushed to pay more and more bribes as their reputation as a bribe-payer spreads. The writer argues that there are international trade implications surrounding corruption - corruption degrades markets, and increases transaction costs. Corruption also drastically affects economic development by causing a mis-allocation of resources. But more damaging is the fact that in endemically corrupt systems, regular people are not getting served by the government; they don't trust the government so they don't interact with the government. The paper concludes that third world countries suffer the most at the hand of corrupt business managers and politicians - as companies strive to eliminate corruption, economic globalization for all countries will no doubt improve.

Table of Contents
Introduction
Historical Background of the Importance of Business Management
Direct Effect of Global Corruption on Business Management
The Emerging Global Anti-corruption of Management
Global Business Management Leadership Practices & Studies
Motorola
General Electric (GE)
Corruption in Third World Countries
Globalization in Third World Countries
Corruption and Business Management
Future Measures
Bibliography

From the Paper:

"Increasing, in many parts of the world, companies and governments alike have recognized that corruption raises the costs and risks for doing business. Corruption has a corrosive impact on both market opportunities overseas and the broader business climate. During the last 10 years, dramatic new imperatives have emerged for companies to take action against corruption and bribery. Once viewed by many firms as an awkward but necessary requirement of doing business, corruption and bribery are emerging instead as a form of business malpractice. Corruption also deters foreign investment, stifles economic growth, and undermines legal and judicial systems. The risks of exposure have become greater, the costs of exposure more substantial, and a compelling body of evidence demonstrates that engaging in corruption and bribery damages company integrity, degrades the business environment, and fails to create enduring competitive advantage.
As a result of this problem, and to obtain a competitive advantage in the global markets of the twenty-first century, a growing number of businesses are taking proactive steps to detect and prevent corruption. With respect to the emerging international anti-corruption environment, the unifying concept in all of the global and regional processes is that effective action to prevent, detect, and punish corruption must be taken by each individual government and company. Leadership companies have responded to these imperatives by establishing comprehensive anti-corruption and bribery programs that include strong written policies, extensive training, and rigorous auditing and internal controls. In the later 1990's, a consensus emerged among businesses, governments, academics, and ordinary citizens that bribery and corruption are not defensible in either economic or cultural terms. Recent times have shed light on a number of companies that have experienced serious corruption and bribery incidents and have suffered reputation damage and enforcement actions as a result."

More papers on Fighting Corruption and Global Management:

• Case Study # 118302 : "Global Management Consulting"
• Research Paper # 112889 : "Global Management of Information Systems"
• Analytical Essay # 130239 : "Corruption and Economic Development"

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