Abstract
Corruption presents an assurance problem to businesses: all businesses are best off if none act corruptly but in the event that corruption occurs are better off if they act corruptly than if they do not, and because there is no assurance that other actors are not cheating a business does not know how to act. The usual solution to an assurance problem – criminal sanctions imposed on cheaters – does not work in a corrupt system. Integrative Social Contract Theory suggests a solution to the assurance problem. Application of Integrative Social Contract Theory to corruption demonstrates that in the case of corruption it has advantages over international law, and that the theory’s elegance lies in its recognition of norms generated by multiple communities.
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Acknowledgments
Tom Dunfee, as a scholar, created an intellectual framework that accounts for multiple communities, in disciplines that often seem preoccupied with simplification and universality. Tom Dunfee, as a colleague, person and friend, exemplified community. He contributed to the growth of dozens of young scholars; he nurtured the creation and growth of academies of business law and of business ethics. His kind words and wry smile irresistibly invited friendship; in conversation he found that which was held in common; he shared what he loved and wanted to share in the joy of others. The impact that Tom Dunfee has had on the academy is self-evident. I would like to gratefully acknowledge the profound impact of Tom Dunfee in my own life and growth.
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Nichols, P.M. Multiple Communities and Controlling Corruption. J Bus Ethics 88 (Suppl 4), 805–813 (2009). https://doi.org/10.1007/s10551-009-0320-9
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DOI: https://doi.org/10.1007/s10551-009-0320-9