In order to shed light on the issue of crony corruption in the context of economic transition, I focus on the puzzle of China's unique experience of economic transition characterized by the duality forms and effects of crony corruption underlying local corporatism in a dual-track (i.e., market and political tracks) transition. I argue that the duality of local corporatism derives from the duality of crony corruption. First, the early form of local corporatism as state-business (...) public alliance is embedded in informal crony corruption as positive for the purpose of wealth growth in the initial phase of economic transition with public and private interests aligned as compatible. Second, the later form of local corporatism as official-manager private collusion is embedded in quasi-formal crony corruption as negative for the purpose of wealth transfer in the later phase with public and private interests in conflict as incompatible. The duality of crony corruption in the two phases of economic transition is caused by the interplay between formal and informal factors and between economic and political factors. My contribution is twofold. First, I explain China's transition in terms of crony corruption underlying local corporatism. Second, I develop an integrated framework of crony corruption concerning its content, process, antecedent and consequence. (shrink)

Corporate social responsibility (CSR) has become increasingly popular in advanced economies in the West. In contrast, CSR awareness in Asia is rather low, both on the corporate and state level. However, recent events have shown that the CSR is receiving more attention by corporations in Asia. Recent development in CSR in Taiwan is one example of such a trend. A 2005 survey on the 700 publicly listed companies in Taiwan on␣CSR has highlighted the current CSR situation. Concurrently, the numbers of (...) corporate scandals and corruption have dramatically increased over the past 6 years. Corporate CSR activities co-existing with pervasive corporate scandals create a phenomenon of contradictions. This article aims to report via the survey findings the current development of business ethics in corporate Taiwan; and to interpret the findings in context of Taiwan’s business ethos, especially its Confucian familism and crony capitalism. (shrink)

This article provides some reflections on the problem posed by ostensibly perverse phenomena like political patronage, corruption and crony capitalism for modernising narratives, which are currently enjoying a renewed popularity. In the light of an ethnographic example from Indonesia, it is argued that the continual attempt to relocate such phenomena to terrains not properly modern precludes the possibility of serious analysis or moral/political assessment of these phenomena. The starting point for any genuine engagement with these issues is the (...) recognition that these phenomena are as internal to modernity as the modernist discourses that seek to externalise them. (shrink)

National decline is typically blamed on special interests from the demand side of politics corrupting a country's institutions. The usual demand-side suspects include crony capitalists, consumer activists, economic elites, and labor unions. Less attention is given to government insiders on the supply side of politics - rulers, elected officials, bureaucrats, and public employees. In autocracies and democracies, government insiders have the motive, means, and opportunity to co-opt political power for their benefit and at the expense of national well-being. Many (...) storied empires have succumbed to such inside jobs. Today, they imperil countries as different as China and the United States. Democracy - government by the people - does not ensure government for the people. Understanding how government insiders use their power to subvert the public interest - and how these negative consequences can be mitigated - is the topic of this book by Mark A. Zupan. (shrink)

I argue that, although education should have positive effects on students’ epistemic character, it is often actually damaging, having bad effects. Rather than cultivating virtues of the mind, certain forms of education lead to the development of the vices of the mind - it is therefore epistemically corrupting. After sketching an account of that concept, I offer three illustrative case studies.

Twelve detailed essays were assembled by editor Sarah Armstrong, to help students obtain a balanced understanding of corporate corruption. Students will read whether global efforts against corruption are working, whether corporate profiteering is a source of environmental violence, and whether corporate rights work against the individual's rights.

Dishonesty is ubiquitous in our world. The news is frequently filled with high-profile cases of corporate fraud, large-scale corruption, lying politicians, and the hypocrisy of public figures. On a smaller scale, ordinary people often cheat, lie, misreport their taxes, and mislead others in their daily life. Despite such prevalence of cheating, corruption, and concealment, people typically consider themselves to be honest, and often believe themselves to be more moral than most others. This book aims to resolve this paradox (...) by addressing the question of why people are dishonest all too often. What motivates dishonesty, and how are people able to perceive themselves as moral despite their dishonest behaviour? What personality and interpersonal factors make dishonesty more likely? And what can be done to recognize and reduce dishonesty? This is a fascinating overview of state-of-the-art research on dishonesty, with prominent scholars offering their views to clarify the roots of dishonesty. (shrink)

The book Anti-Corruption in Management Research and Business School Classrooms aims at presenting the topic of anti-corruption activities throughout management research as well as in the process of educating future business leaders and practitioners in business schools in different parts of the globe. Simultaneously the book deepens the topic of anti-corruption in selected cultures and societies. The volume consists of four parts and includes three themes. The first part is the "Introduction" and subsequent parts are as follows: (...) "Teaching business ethics and anti-corruption--across curriculum and beyond", "Fostering integrity in higher education", and "Anti-corruption as a topic of research." This book is authored by a range of international scientists and experts in management research and management education, with a diversity of cultural and professional backgrounds. It is therefore believed that this broad experience and expertise will give the readers the new light for the significance of teaching and researching in the area of anti-corruption. (shrink)

The corruption of public officials and institutions is generally regarded as wrong. But in what exactly does this form of corruption consist and what kind of wrong does it imply? This article aims to take stock of the current philosophical discussion of the different senses in which political corruption is wrong in a general sense, beyond the specific negative legal, economic, and social costs it may happen to have in specific circumstances. Political corruption is usually presented (...) as a pathology of the public order. Therefore, the senses in which political corruption has been presented as wrong have varied depending on the normative theory of the public order that is presupposed. In this article, we offer a critical presentation of two major interpretations of the wrongfulness of political corruption that draw respectively on a neo-republican and a liberal account of the public order. Finally, we show how the analytical distinction between these approaches has important normative implications for the identification of relevant cases of political corruption. (shrink)

High levels of police corruption have been a persistent historical tendency in police services throughout the world. While the general area of concern in this book is with police corruption and anti-corruption, the focus is on certain key philosophical and ethical issues that arise for police organisations confronting corruption. On the normative account proffered in this book the principal institutional purpose of policing is the protection of legally enshrined moral rights and the principal institutional anti-corruption (...) arrangement is what is referred to as an integrity system. The latter includes oversight bodies with investigative powers and internal affairs departments as well as specific devices such as early warning indicators, professional reporting mechanisms and integrity tests. Key concepts analysed in the book include corruption, noble cause corruption and collective moral responsibility. The key ethical issues analysed include investigative independence, professional reporting, covert operations and integrity tests. (shrink)

Criticism plays an essential role in the growth of scientific knowledge. In some cases, however, criticism can have detrimental effects; for example, it can be used to ‘manufacture doubt’ for the purpose of impeding public policy making on issues such as tobacco consumption and greenhouse gas emissions (e.g., Oreskes & Conway 2010). In this paper, we build on previous work by Biddle and Leuschner (2015) who argue that criticism that meets certain conditions can be epistemically detrimental. We extend and refine (...) their account by arguing that such criticism can be epistemically corrupting—it can create social conditions that are conducive to the development of epistemic vice by agents operating within them. (shrink)

Corruption is a pervasive problem across the world and is regularly ranked as among the greatest global challenges. Considering the role that corruption plays in exacerbating deprivation and fuelling social tension, peaceful and just societies are unlikely to come about without tackling corruption. Addressing corruption should be a high priority for those concerned with poverty eradication, peace, security, and justice. Yet, curiously, corruption has not yet been the focus of any books by philosophers working on (...) global justice topics. Corruption and Global Justice does so. Author Gillian Brock offers a normatively justified account of how to allocate responsibilities for addressing corruption across the many agents who can and should play a role. In order to know who should take responsibility and how they should do so, we need to understand multiple forms of corruption, the corruption risks associated with various activities, the interventions that tackle corruption effectively, and current policy and legal frameworks in place for addressing corruption. In addition, Brock proposes a new framework for navigating responsibility to address injustice, one that is action-oriented and forward-looking. Adopting an agent-empowering approach and harnessing the power of joining forces in effective collective action, Corruption and Global Justice addresses a significant global problem in a comprehensive way, providing the tools we need for progress as we collaborate to tackle this global scourge. (shrink)

Is the corrupt behaviour of public officials a politically relevant kind of wrong only when it causes the malfunctioning of institutions? We challenge recent institutionalist approaches to political corruption by showing a sense in which the individual corrupt behaviour of certain public officials is wrong not only as a breach of personal morality but in inherently politically salient terms. To show this sense, we focus on a specific instance of individual corrupt behaviour on the part of public officials entrusted (...) with the power to implement public rules in a liberal democracy. Although not necessarily unlawful, their behaviour is politically wrong qua corrupt when it contradicts surreptitiously the requirement of public justification that undergirds the public order. Then, we distinguish this form of corruption as surreptitious action from such unlawful but publicly justifiable kinds of political misbehaviour as civil disobedience. (shrink)

The corruption of public officials and institutions is generally regarded as wrong. But in what exactly does this form of corruption consist and what kind of wrong does it imply? Recent proponents of the “institutionalist approach” to political corruption have concentrated on those occasions when incentive structures distract institutions from their essential purpose and weaken public trust. The corruption of individual public officials has been less relevant to their work, except for when it leads to the (...) erosion of the functioning of institutions. From this perspective, a clear emphasis has been put on the consequences of corruption. In contrast, I argue that political corruption, whether individual or institutional, can be more fundamentally understood as a form of political injustice in which someone has violated the logic of mutual accountability that undergirds all relations of justice in rights-based systems. In this sense, political corruption occurs when public officials use their entrusted power of office for the pursuit of an agenda whose rationale may not be vindicated as coherent with the terms of their mandate. By focusing on the inherent qualities of corrupt political relations, I lay out a novel relational and deontological understanding of the inherent wrongness of political corruption as a form of unaccountable action. (shrink)

Despite a strong sensitization to the corruption problem and a large body of interdisciplinary research, scientists have only rarely investigated which motivational, volitional, emotional, and cognitive components make decision makers in companies act corruptly. Thus, we examined how their interrelation leads to corruption by proposing an action model. We tested the model using a business simulation game with students as participants. Results of the PLS structural equation modeling showed that both an attitude and subjective norm favoring corruption (...) led to a desire to act corruptly. Given high perceived behavioral control, this desire was transformed into an intention that finally resulted in corrupt action. Components related to general private and professional goals did not allow for any prediction. Based on these results, we discuss preventative measures and methods for combating intra- and inter-organizational corruption. (shrink)

We examine the responses of South African multinational enterprises to corruption in African markets in the context of institutional voids. Corruption is a source of uncertainty and additional transactional costs for MNEs and it necessitates a strategic response. The research employs a qualitative study of a sample of MNEs with experience in internationalising into Africa. The results indicate that corruption in African markets is pervasive and closely associated with the institutional voids in these countries. MNEs see themselves (...) as ‘institution takers’ responding to countries’ institutional makeup at the organisational and individual level but fail to fully appreciate their impact on institutions both positively and negatively. Rather MNEs focus on strategic responses at the organisational level to address corruption operationally in the host country. We add to the existing literature by providing a dynamic framework of the complex webs of association between institutions, MNEs and corruption in conditions of economic underdevelopment. The research suggests that MNEs do not need to get caught in a vicious cycle whereby they perpetuate corruption in conditions of underdevelopment and institutional voids but instead can contribute towards a virtuous cycle through which they institutionalise ethical foundations. (shrink)

In this book, Seumas Miller develops distinctive philosophical analyses of corruption, collective responsibility and integrity systems, and applies them to cases in both the public and the private sectors. Using numerous well-known examples of institutional corruption, he explores a variety of actual and potential anti-corruption measures. The result is a wide-ranging, theoretically sophisticated and empirically informed work on institutional corruption and how to combat it. Part I defines the key concepts of corruption, power, collective responsibility, (...) bribery, abuse of authority and nepotism; Part II discusses anti-corruption and integrity systems, corruption investigations and whistle-blowing; and Part III focuses on corruption and anti-corruption in specific institutional settings, namely policing, finance, business and government. Integrating theory with practical approaches, this book will be important for those interested in the philosophy and ethics of corruption as well as for those who work to combat it. (shrink)

The Handmaid’s Tale depicts a United States taken over by a fundamentalist dictatorship called Gilead that also resembles Plato’s ideal city. Attempts to explain Gilead’s debt to Plato face two challenges. First, aspects of Gilead that recall Plato also contain features that differ, at times dramatically, from the Platonic original. Second, Gilead invokes distorted versions of ideas from philosophies other than Plato’s. I explore two ways of making sense of Gilead’s distorted philosophical appropriations. The explanations differ over whether such distortions (...) are best explained by the nature of the philosophies they misrepresent, or by the nature of Gilead. The explanation that emphasizes Gilead’s own agency is ultimately best able to make sense of how illiberal regimes misappropriate philosophical concepts, both in the novel and in reality, in order to limit the political imagination of their subjects. (shrink)

Contemporary epistemologists of education have raised concerns about the distorting effects of some of the processes and structures of contemporary academia on the epistemic practice and character of academic researchers. Such concerns have been articulated using the concept of epistemic corruption. In this paper, we lend credibility to these theoretically-motivated concerns using the example of the research impact agenda during the period 2012-2014. Interview data from UK and Australian academics confirms the impact agenda system, at its inception, facilitated the (...) development and exercise of epistemic vices. As well as vindicating theoretically-motivated claims about epistemic corruption, inclusion of empirical methods and material can help us put the concept to work in ongoing critical scrutiny of evolving forms of the research impact agenda. (shrink)

Although theory refers to organizational culture as an important variable in corrupt organizations, only little empirical research has addressed the characteristics of a corrupt organizational culture. Besides some characteristics that go hand in hand with unethical behavior and other features of corrupt organizations, we are still not able to describe a corrupt organizational culture in terms of its underlying assumptions, values, and norms. With a qualitative approach, we studied similarities of organizational culture across different corrupt organizations. In this study, we (...) performed content analysis on interviews of 14 independent experts about their experience with corrupt organizations. With this approach, we gained insights about different corrupt organizations spanning different branches (e.g., government, foreign trade, pharmacy, sports, building industry). We found that corrupt organizations perceive themselves to fight in a war, which leads to their taken-for-granted assumption that “the end justifies the means”. This assumption inspires many values and norms of the organizational culture. An important value in a corrupt organization is “security”, and an important norm is punishment of deviant (i.e., non-corrupt) behavior. Furthermore, managers and employees differ in their perception of organizational culture. While the management endorses values, such as success, results, and performance, and implements these values in their norms of goal setting, employees make use of rationalization strategies and endorse values of security and team spirit. (shrink)

The aim of this work is to analyse the influence of sociocultural factors on corruption levels. Taking as starting point Husted (J Int Bus Studies 30:339–359, 1999) and Graeff (In: Lambsdorff J, Taube M, Schramm M (eds) The new institutional economics of corruption. Routledge, London, 2005) proposals, we consider both the interrelation between cultural dimensions and the diverse expressions of social capital with corruption. According to our results, the universalistic trust (linking and bridging social capital) constitutes a (...) positive social capital that is negatively linked to corruption. In contrast, the particularistic levels of trust (bonding) can constitute a negative social capital directly related to corruption levels. Furthermore, cultures which are favourable to the legitimation of dependency relations and the formation of closed particularistic groups (power-distance and community factors) create a breeding ground for the development of these amoral rent-seeking structures. (shrink)

Global Corruption and Ethics Management: Transforming Theory into Action is focused on integrating research from a diverse array of scholars and translating it into proactive skills; the empirical content is presented clusters of short chapters, each cluster or section is followed by a synopsis of skills for implementation based upon this new knowledge. The scope of the content encompasses the work of top scholars and experienced professionals from across the globe to strategically outline the mercurial nature of corruption, (...) its causes, the systems and practices that facilitate it, its short- and long-term consequences, new measures for assessing and diagnosing remedies, and steps that can be taken to prevent it. Scholars and students can use it as a jumping-off point for further research, and practitioners can immediately expand their repertoire of tools in preventing and fighting corruption through implementation of the skills synopses. Further, incorporating digital media resources such as a companion website offering links to measurements and assessments, and accessible instructors' tools will dramatically shift the benchmark for studying and implementing Global Corruption and Ethics Management; there is no other book on corruption AND ethics management with the empirical gravitas, variety of application tools, and with this level of accessibility. (shrink)

Institutional corruption is a normative concept of growing importance that embodies the systemic dependencies and informal practices that distort an institution’s societal mission. An extensive range of studies and lawsuits already documents strategies by which pharmaceutical companies hide, ignore, or misrepresent evidence about new drugs; distort the medical literature; and misrepresent products to prescribing physicians. We focus on the consequences for patients: millions of adverse reactions. After defining institutional corruption, we focus on evidence that it lies behind the (...) epidemic of harms and the paucity of benefits. (shrink)

I offer a working analysis of the concept of 'epistemic corruption', then explain how it can help us to understand the relations between epistemic vices and social oppression, and use this to motivate a style of vice epistemology, inspired by the work of Robin Dillon, that I call critical character epistemology.

Rankings of countries by perceived corruption have emerged over the past decade as leading indicators of governance and development. Designed to highlight countries that are known to be corrupt, their objective is to encourage transparency and good governance. High rankings on corruption, it is argued, will serve as a strong incentive for reform. The practice of ranking and labeling countries "corrupt," however, may have a perverse effect. Consistent with Social Labeling Theory, we argue that perceptual indices can encourage (...) the loss of needed investment and, thus, contribute to higher rates of corruption within unfavorably ranked countries. In effect, corruption indices may inhibit foreign direct investment, the effect of which is to encourage the status quo in terms of corruption ranking. Using an experimental study design, we test the effects of country corruption rankings on the assessment of country investment desirability and find ranking exposure causes shifts in country investment desirability for 10 of 12 countries studied. These findings suggest that corruption rankings, which are based on perceptions of corruption, may cause country isolation and a reduction in legitimate means of investment. (shrink)

AAA videogames often offer expansive experiences to the millions who engage with the medium, but they are vulnerable to disruption from neoliberal structures. The Corruption of Play explores how neoliberal ideology corrupts play in AAA videogames by creating conditions in which play becomes unbound from leisure, allowing play to be understood, undertaken, and assessed in economic terms, and fundamentally undermining the nature of play. Providing a cutting-edge and innovative approach to this problem, McMahon uses cognitive mapping to make neoliberalism (...) visible in play-space, showcasing a new way of seeing and understanding how play is enabled and how the player forms an understanding of themselves by it. How does the player form their sense of self in the videogame? What level of agency does the player have? How are AAA videogames consumed and what is the extent of the corruption of play? Offering a timely level-up to the existing critical work on videogames, McMahon's revelations that play in AAA videogames does not often occur under ideal conditions due to the influence of neoliberal ideology are a captivating read for communication and media scholars interested in videogames. Understanding that play should be a core activity, and a natural barrier to market and economic logics, McMahon sets the scene for equipping us to understand how the process of neo liberalisation can be resisted. (shrink)

Making use of facilitating payments is a very widespread form of corruption. These consist of small payments or gifts made to a person – generally a public official or an employee of a private company – to obtain a favour, such as expediting an administrative process; obtaining a permit, licence or service; or avoiding an abuse of power. Unlike the worst forms of corruption, facilitating payments do not usually involve an outright injustice on the part of the payer (...) as they are entitled to what they request. This may be why public opinion tends to condone such payments; often they are assumed to be unavoidable and are excused on the grounds of low wages and lack of professionalism among public officials and disorganisation in government offices. Many companies that take the fight against “grand” corruption very seriously are inclined to overlook these “petty” transgressions, which are seen as the grease that makes the wheels of the bureaucratic machine turn more smoothly. Despite this, facilitating payments have a pernicious effect on the working of public and private administrations: all too often they are the slippery slope to more serious forms of corruption; they impose additional costs on companies and citizens; and in the long run they sap the ethical foundations of organisations. Although many articles on corruption mention facilitating payments, there have been no systematic studies from a company’s point of view. This article thus focuses on facilitating payments from the point of view of the company that makes the payment, either as the active partner (when it is the company that takes the initiative) or as the passive partner (when the official or employee is the instigator). (shrink)

A bold new approach to combatting the inherent corruption of representative democracy This provocative book reveals how the majority of modern liberal democracies have become increasingly oligarchic, suffering from a form of structural political decay first conceptualized by ancient philosophers. Systemic Corruption argues that the problem cannot be blamed on the actions of corrupt politicians but is built into the very fabric of our representative systems. Camila Vergara provides a compelling and original genealogy of political corruption from (...) ancient to modern thought, and shows how representative democracy was designed to protect the interests of the already rich and powerful to the detriment of the majority. Unable to contain the unrelenting force of oligarchy, especially after experimenting with neoliberal policies, most democracies have been corrupted into oligarchic democracies. Vergara explains how to reverse this corrupting trajectory by establishing a new counterpower strong enough to control the ruling elites. Building on the anti-oligarchic institutional innovations proposed by plebeian philosophers, she rethinks the republic as a mixed order in which popular power is institutionalized to check the power of oligarchy. Vergara demonstrates how a plebeian republic would establish a network of local assemblies with the power to push for reform from the grassroots, independent of political parties and representative government. Drawing on neglected insights from Niccolò Machiavelli, Nicolas de Condorcet, Rosa Luxemburg, and Hannah Arendt, Systemic Corruption proposes to reverse the decay of democracy with the establishment of anti-oligarchic institutions through which common people can collectively resist the domination of the few. (shrink)

The purpose of this paper is to develop an understanding about the internal fraud and corruption problem in the Turkish construction industry. The reasons behind the internal fraud and corruption problem as well as the types of prevention methods were investigated; and as a result various recommendations were made. To this end, a risk awareness questionnaire was used to understand the behavioral patterns of the construction industry, and to clarify possible proactive and reactive measures against internal fraud and (...) corruption. The type of fraud experienced by Turkish construction companies was also surveyed in the questionnaire. The questionnaire was sent to 89 firms; and depending on the collected data, certain recommendations for construction industry professionals were provided. (shrink)

The book examines corruption control in post-reform China. Contrary to the normal perception that corruption is a type of behavior that violates the law, the author seeks to approach the issue from a social censure perspective, where corruption is regarded as a form of social censure intended to maintain the hegemony of the ruling bloc. Such an approach integrates societal structure, political goals, and agency into a single framework to explain dynamics in corruption control. With both (...) qualitative data from officials in power and officials in jail and quantitative data from university students, the book explores how the censure on corruption was created and has been applied from 1978 to the present. Though primarily intended for academics, the book is also accessible for general audiences, especially given its intriguing perspective and use of firsthand data on corruption that cannot be found anywhere else. (shrink)

While corruption has long been recognized as a major social problem, only relatively recently has the importance of a specific institutional form of corruption been noted. However, despite the fact that institutional corruption has come to be seen as very important, it remains a challenge to specify exactly what makes something a case of institutional corruption. To overcome this challenge, this paper argues that institutional corruption is the result of an individual or collective agent acting (...) in ways that prevent a social institution from partially or fully fulfilling its function. In turn, the function of a social institution is spelled out in line with what is shown to be the most compelling account of social functionalism in the literature: Presentist Social Functionalism. Presentist Social Functionalism sees the function of a social institution as those of its features that increase its expected reproductive or survival success in the current socio-cultural environment. This theory of institutional corruption is shown to have a number of highly desirable features: it is general, fully spelled out, situated in a wider functionalist approach towards the social sciences, and does justice to the complexity of institutional corruption. (shrink)

In response to calls to forget and unthink photography this article considers the computational environment and its consequences for the image making. What is there to know about images that are networked and generated with data processing techniques rather than with light and chemistry? How to analyse images and read what they are and what they represent, beyond what is visible in the picture? The article argues that glitches while aesthetically capturing errors in the machine point to broader conditions of (...) image making revealing systemic errors and not only its momentary technical failures. To explore digital images as affective phenomena to be sensed, the article looks at how glitch and its operations have been used by artists to generate digital images, and most importantly how they reveal computational systems as technical objects and affective infrastructures where discrimination is not an error but part of the system. (shrink)

Corruption as a non-market strategy for firms has gained increasing attention in the field of strategy management. However, the effect of corruption on innovation is unclear, especially in the context of transition economies. Using institutional theory, we examine the relationship between corruption and new product innovation and identify the contextual conditions of the relationship. Using the World Bank Enterprise Survey data from China, our empirical results show that corruption has a positive effect on firms’ new product (...) innovation. Moreover, we find that policy instability and competitive threats from the informal sector positively moderate the relationship between corruption and new product innovation. Using post hoc analysis, we find that the potentially positive effect of corruption on new product innovation is the consequence of inherent institutional weaknesses in transition economies; as the level of institutional development increases, the effect of corruption on firms’ new product innovation will gradually decrease. Overall, our findings provide new insights into understanding corrupt behaviors in transition economies and present managerial implications for firms’ ethical dilemmas in a transition economy context. We argue that the key to overcoming these ethical dilemmas lies in promoting pro-market institutional reform to reduce the potential benefits of corruption. (shrink)

This book represents the first systematic qualitative analysis of a new type of collective anti-corruption initiatives. The author describes how companies can take responsibility in the fight against corruption and which six success factors play an important role in this difficult endeavor. Despite great international efforts throughout the last two decades, corruption has not significantly decreased on a global level. In light of globalization, private actors increasingly cooperate in the fight against corruption in the context of (...) sector-specific coordinated governance initiatives. In this study, this new collective approach is examined in view of its potential to curb corruption. Contents - Introduction - Theoretical Background: Self-Interest as a Means of Preventing Corruption - Methodological Approach - Multiple-Case Study Analysis - Cross-Case Analysis and Discussion - Summary and Conclusions Target Groups - Researchers and students in the fields of politics, economics, and business ethics - Practitioners such as compliance managers and other anti-corruption specialists The Author Berta van Schoor works as a compliance manager at a major German company. She wrote her doctoral thesis at the Business Ethics Chair of the Technical University Munich. As a co-leader of the regional chapter of Baden-Wuerttemberg of Transparency International Germany, she regularly speaks on topics like corruption prevention and the role of business in combating corruption. While working on her thesis she also gave lectures in business ethics and sustainability management. (shrink)

Over the past 35 years, patients have suffered from a largely hidden epidemic of side effects from drugs that usually have few offsetting benefits. The pharmaceutical industry has corrupted the practice of medicine through its influence over what drugs are developed, how they are tested, and how medical knowledge is created. Since 1906, heavy commercial influence has compromised congressional legislation to protect the public from unsafe drugs. The authorization of user fees in 1992 has turned drug companies into the FDA's (...) prime clients, deepening the regulatory and cultural capture of the agency. Industry has demanded shorter average review times and, with less time to thoroughly review evidence, increased hospitalizations and deaths have resulted. Meeting the needs of the drug companies has taken priority over meeting the needs of patients. Unless this corruption of regulatory intent is reversed, the situation will continue to deteriorate. We offer practical suggestions including: separating the funding of clinical trials from their conduct, analysis, and publication; independent FDA leadership; full public funding for all FDA activities; measures to discourage R&D on drugs with few, if any, new clinical benefits; and the creation of a National Drug Safety Board. (shrink)

Political corruption imposes substantial costs on shareholders in the U.S. Yet, we understand little about the basic factors that exacerbate or mitigate the value consequences of political corruption. Using federal corruption convictions data, we find that firm-level economic rents and monitoring mechanisms moderate the negative relation between corruption and firm value. The value consequences of political corruption are exacerbated for firms operating in low-rent product markets and mitigated for firms subject to external monitoring by state (...) governments or monitoring induced by disclosure transparency. Our results should inform managers and policymakers of the tradeoffs imposed on firms operating in politically corrupt districts. (shrink)

Corruption is a complex system. Corruptors operate on the material and cognitive levels to insert corruption into the shared ethos.The aim is to reflect on corruption in Western democracy, through an ethical, philosophical-political and anthropological understanding, with regard to subjectification, linked to identity and belonging that psychoanalysis and political symbolism investigate.The methodology will be multidisciplinary.The fertile ground for corruption is the lack of development of “thoughtfulness”, an interior and relational space in which, starting from the caregiver’s (...) relationship with the infant, the conscious and responsible subject is built. For Mary Douglas it is necessary to study identity and belonging of a family or individualistic type. (shrink)

Taxation, Corruption and Reform; John Toye and Mick Moore.

The problem this article focuses on is not the isolated individual act of corruption, but the systematic, pervasive sub-system of corruption that can and has existed across historical periods, geographic areas, and political-economic systems. It is important to first understand how corrupt and unethical subsystems operate, particularly their network nature, in order to reform and change them while not becoming what we are trying to change. Twelve key system elements are considered that include case examples from Asia, Latin (...) America, the Mediterranean, and North America. A key operating feature of corruption sub-systems is that they are relatively stable networks rather than exceptional, independent, individual events. Drawing on social network, social movement, and action-learning theories, six theory building propositions concerning ethical corruption reform are developed. (shrink)

This article argues that the misalignment of private profit-maximizing objectives with public health needs causes institutional corruption in the pharmaceutical sector and systematically leads firms to act contrary to public heath. The article analyzes how financial incentives generate a business model promoting harmful practices and explores several means of realigning financial incentives in order to foster therapeutic innovation and promote the rational use of medicines.

In the medical practice in China, giving and taking “red envelopes” is a common phenomenon although few openly admit it. This paper, based on our empirical study including data collected from interviews and questionnaires with medical professionals and patients, attempts to explore why “red envelopes” have become a serious problem in the physician-patient relationship and how the situation can be improved. Previous studies show that scholars tend to correlate the spread of “red envelopes” in health care sector to the commercialization (...) trend, the general erosion of traditional values, and the lowering of the moral level in the medical field. However, in this paper, the authors argue that medical professionals’ choice of taking “red envelopes” is actually more a way to compensate for their problematic self-image and marred dignity in real practice. Medical professionals in China as a whole are in an embarrassing situation where the work pressure and income, and the sense of pride that used to be part of their profession are not comparable to each other. Under this circumstance, we believe that the effective way to deal with the “red envelopes” issue does not lie solely in introducing more stringent regulations or granting medical professionals higher payments, but rather in protecting and enhancing the professional dignity of all those working in healthcare. And on top of that, there must also be effort to cultivate a more favorable moral environment. (shrink)

Using a nationwide survey of provincial institutional quality and a sample of private manufacturing small and medium scale enterprises, this paper contributes to the literature by considering for the first time the effects of corruption on the financial performance of Vietnamese private SMEs. Interestingly, contrary to previous findings, we find that corruption when measured by a dummy variable, does not affect firms’ financial performance after controlling for heterogeneity, simultaneity and dynamic endogeneity. However, the intensity of bribery and the (...) majority of the forms of corruption were found to have negative impacts on firms’ financial performance. Hence, a typical approach using only a dummy variable for bribery might not adequately evaluate the impact of bribe intensity or even ignores the negative impacts of some types of bribes on firms’ financial performance. The findings suggest that anti-corruption measures are vital for the development of the Vietnamese private SMEs. (shrink)

In the past two decades academic and research literature on “corruption” has flourished. During the same period organizations and initiatives fighting against corruption have also significantly expanded, turning “anti-corruption” into a new research subject. However, despite a few exceptions there is a division of labor between scholars who study corruption itself and those who study the global anti-corruption industry. Juxtaposing corruption’s local discourses and anti-corruption international practices, this article is an attempt to bring (...) together these two intertwined research dimensions and explore how an ethnographic approach might contribute to framing them together. Firstly, it describes how corruption in Romania is often conceptualized and explained in terms of national heritage, something related to old and recent cultural history, including traditional folklore. Secondly, it explores how anti-corruption works in practice, focusing on international legal cooperation projects monitoring the progress and shortcomings both prior to and post Romania’s accession to the European Union. Finally, revealing the articulations of these two apparently unrelated research fields, the article argues that corruption’s local explanations and the circular logic of auditing observed within the anti-corruption industry share a common developmental ideology mirroring the crypto-colonialist structure of power relations and dependency among European nation-states emerging out of the Cold War. (shrink)

This paper presents a conception of corruption informed by epistemic democratic theory. I first explain the view of corruption as a disease of the political body. Following this view, we have to consider the type of actions that debase a political entity of its constitutive principal in order to assess corruption. Accordingly, we need to consider what the constitutive principle of democracy is. This is the task I undertake in the second section where I explicate democratic legitimacy. (...) I present democracy as a procedure of social inquiry about what ought to be done that includes epistemic and practical considerations. In the third section, I argue that the problem of corruption for a procedural conception of democracy is that the epistemic value of the procedure is diminished by corrupted agents’ lack of concern for truth. Corruption, according to this view, consists in two deformities of truth: lying and bullshit. These deformities corrupt since they conceal private interests under the guise of a concern for truth. In the fourth section, I discuss the difficulties a procedural account may face in formulating solutions to the problem of corruption. (shrink)