Abstract

Corruption (bribery, extortion, blackmail, favor‐currying, abuse of insider information, nepotism, favoritism, mafias, protection rackets, siphoning off funds, laundering illicit money) is a source of concern for governments, entrepreneurs, private individuals, non‐governmental organizations, companies – indeed, for society as a whole, on a number of levels; economic, sociopolitical, and ethical. The purpose of this article is primarily to explain why corruption is a cause for concern for companies. It begins by explaining what corruption is, describing how it occurs and offering a causal explanation, and then goes on to describe how it occurs in companies and why it is a cause of concern for them.