Abstract
Across the world, corruption is endemic, a cause of growing inequality, and an impediment to economic growth. Many countries have attempted to curb corruption at the national level, with little success. Researchers have argued that, instead of initiate controlling corruption at national level, resisting corruption should be actively instigated within organisations. Specifically, Luo (Manag Organ Rev 1(1):119–154, 2005) suggests that corruption becomes entrenched in organisations through the task and institutional environments, and can therefore only be fought through changes in institutional architecture. Modification of Luo’s model, by putting in place anti-corruption systems at the start, shows how anti-corruption behaviours become established and can be resisted. In this paper, we explore the successful management of organisational corruption by the Grameen Bank, a leading microfinance institute that operates in Bangladesh. For many years, this bank has stood out against the generally accepted culture of corruption in Bangladesh. Using the case study method, this research explores the impact of the anti-corruption structures and processes implemented by Grameen Bank, as a unique illustration within Bangladesh of the value of this modified version of the Luo’s model. The bank has actively introduced policies and processes that have made it difficult for corruption to become established.
Similar content being viewed by others
Notes
Transparency International Corruption Perceptions Index, 2016.
References
Ampratwum, E. (2008). The fight against corrupt and its implications for development in developing and transition economies. Journal of Money Laundering Control, 11(1), 76–87.
Andersson, S., & Heywood, P. M. (2009). The politics of perception: Use and abuse of Transparency International's approach to measuring corruption. Political Studies, 57(4), 746–767.
Azim, M. I., Sheng, K., & Barut, M. (2017). Combating corruption in microfinance institutions: A case study on Grameen Banks. Managerial Auditing Journal, 32(4/5), 445–462.
Bernard, H. R., & Ryan, G. W. (2010). Analysing qualitative data: Systematic approaches. London: Sage.
Bryman, A. (2012). Social research methods (4th ed.). London: Oxford University Press.
Carr, I. (2007). Fighting corruption through regional and international conventions: A satisfactory solution? European Journal of Crime, Criminal Law and Criminal Justice, 15(2), 121–153.
Das, S. K. (2013). Anti-corruption commission of Bangladesh: Diagnosis of a fading hope. Masters of Arts thesis submitted at International Institute of Social Studies, The Hague, The Netherlands.
Davis, J. (2004). Corruption in public service delivery: Experience from South Asia’s water and sanitation sector. World Development, 32(1), 53–71.
Dion, M. (2010). What is corruption corrupting? A philosophical viewpoint. Journal of Money Laundering Control, 13(1), 45–54.
Doig, A., Watt, D., & Williams, R. (2007). Why do developing country anti-corruption commissions fail to deal with corruption? Understanding the three dilemmas of organisational development, performance expectation, and donor and government cycles. Public Administration and Development, 27, 251–259.
Eisenhardt, K. M. (1989). Making fast strategic decisions in high-velocity environments. Academy of Management Journal, 32(3), 543–576.
Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25–32.
Flick, U. (2009). An introduction to qualitative research. London: Sage.
Fowler, F. J. (2009). Applied social research methods: Survey research methods (4th ed.). Thousand Oaks, CA: SAGE Publications Ltd. doi:10.4135/9781452230184.
Gadowska, K. (2010). National and international anti-corruption efforts: The case of Poland. Global Crime, 11(2), 178–209.
Halcombe, S. (1995). Managing to empower: The Grameen bank’s experience of poverty alleviation. London and New Jersey: Zed Books.
Hulme, D. (2008). The story of the Grameen Bank: From subsidised microcredit to market-based microfinance. Brooks World Poverty Institute working paper.
Kaplan, R. S. (1986). The role for empirical research in management accounting. Accounting, Organizations and Society, 11(4/5), 429–452.
Khandker, S., Khalily, B., & Khan, Z. (1994). Is Grameen Bank sustainable? Working paper, Human Resources Development Operation Policy, Dhaka, Bangladesh.
Luo, Y. (2005). An organisational perspective on corruption. Management and Organisation Review, 1(1), 119–154.
Miller, S. (2010). The moral foundations of social institutions: A philosophical study. New York, NY: Cambridge University Press.
Misangyi, V., Weaver, G., & Elms, H. (2008). Ending corruption: The interplay among institutional logics, resources and institutional entrepreneurs. The Academy of Management Review, 33(3), 750–770.
Monir, N. R., As-Saber, S., & Mahrukh, N. (2015). The role of civil society in strengthening democracy and combating corruption: Bangladesh perspective. Working paper, Network of Asia Pacific Schools and Institutes of Public Administration and Governance.
Nieuwbeerta, P., Geest, H., & Siegers, J. (2003). Street-level corruption in industrialized and developing countries. European Societies, 5(2), 139–165.
Okogbule, N. (2006). An appraisal of the legal and institutional framework for combating corruption in Nigeria. Journal of Financial Crime, 13(1), 92–106.
Padhy, K. S. (1986). Corruption in politics (a case study). Delhi: BR Publishing Corporation.
Patton, M. Q. (2015). Qualitative research and evaluation methods: Integrating theory and practice (4th ed.). Thousand Oaks, CA: Sage.
Pillay, S., & Kluvers, R. (2014). An institutional theory perspective on corruption: The case of a developing democracy. Financial Accountability and Management, 30(1), 95–119.
Probohudono, A. N., Tower, G., & Rusmin, R. (2013). A risky tale of two countries. Asian Review of Accounting, 21(3), 257–272.
Rahman, M. (2013). Corruption in Bangladesh: A study on the attitudes of the civil servants and the politicians. University of Dhaka, M.Phil. thesis.
Roberts, J. (2015). The ‘subject’ of corruption. Critical Perspectives on Accounting, 28, 82–88.
Siddiquee, N. (2010). Combating corruption and managing integrity in Malaysia: A critical overview of recent strategies and initiatives. Public Organization Review, 10, 153–171.
Torsello, D., & Venard, B. (2016). The anthropology of corruption. Journal of Management Inquiry, 25(1), 34–54.
Transparency International. (2016). Corruption perception index 2016. https://www.transparency.org/whatwedo/publication/corruption_perceptions_index_2016.
Yin, R. K. (2014). Case study research: Design and methods. New York, NY: Sage.
Yunus, M. (2010). Building social business: The new kind of capitalism that serves humanity’s most pressing needs. New York: Public Affairs.
Zyglidopoulos, S. (2016). Toward a theory of second-order corruption. Journal of Management Inquiry, 25(1), 3–10.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Azim, M.I., Kluvers, R. Resisting Corruption in Grameen Bank. J Bus Ethics 156, 591–604 (2019). https://doi.org/10.1007/s10551-017-3613-4
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-017-3613-4