corruption : the international evolution Essay

It can be very confusing to decide that giving and accepting corporate gifts are ethical or not, it requires care and attention to understand the society’s sensitivities.

However, employees should take note that “bribery and corruption undermine society and can have a devastating impact on the economic prosperity of local communities” (WorleyParsons, 2014, p. 8). As noted by Shulman (2014), “bribery in international commercial transactions is an issues that deserves attention because of its far-reaching negative repercussions” (p. 719). Corruption involves the fraudulent acts performed by those typically with some authority, and using their power to undermine the legal business practices. Corruption and bribery could lead to fines and imprisonment for those who are involved, as well as it will tarnish the reputation of WorleyParsons. Therefore, it is in the best interest of employees to know the difference between accepting gifts and bribes and prevent corruption and bribery from

It would be convenient to start this research paper by stating that corruption is a challenge mainly for businesses in developing countries and that it is unrelated to the current affliction of the economy in the United States. It would also be convenient to claim corruption has declined in America as a result of awareness raising campaigns and the numerous anti-corruption laws. But none of those aforementioned statements would be true. Corruption is not the exception, but rather the rule in today’s business practices. In 2004, Daniel Kaufmann, a senior fellow at Brookings Institution and former director at the World Bank, calculated an index of "legally corrupt" manifestations which is defined as the extent of undue influence

The development of national and international bribery legislation and regulation has been a slow process spanning many centuries, stemming from the recognition of Piracy as the first and true international crime (Duhaime’s Law Dictionary, 2015). Although wide agreement exists on the detrimental impacts of bribery and corrupt practices, many individual countries and transnational industries (including that of civil engineering) fear implementation of tough anti-bribery legislation will cause unfair competitive disadvantages compared to their counterparts from countries where foreign bribery is not criminalised (OECD Observer, 2012).

Is not a surprise that society relationship with business continues to evolve over the decades, expectation of business can vary depending on what interest groups advocate. With more access to education, discussions emerge on whether there can be a solution to the problem. In society is expected that everyone acts ethically according to the standards of societies (11), but when corruption scandals erupts, demand for government action become prevalent. For Latin America corruption is a significant issue that continues to be affect the region in major proportions. According to The Economist corruption in the region has historic roots and continues to hold ground; however there are signs of moderate change (The Economist). When The Odebrecht scandal erupted for many it was the tip of the iceberg. Odebrecht is Latin Americas largest construction conglomerate; many had praised the company for its outstanding business practices. Unfortunately with emerging allegations that

If we read the News today, we could see that the government all over the world is corrupt. According to US Legal, government corruption is when government leaders abuse their political power to extract and accumulate for private enrichment (US Legal, Inc.)[1]. Technically, this is a bad thing because when government leaders use their power for their benefit, it does not necessarily mean that it is beneficial to the public and the society. To prove or disprove this argument, I decided to run an econometric analysis to see whether government corruption hinders or helps economic development.

Corruption is recognized as a contemporary problem in the international community currently. Corruption can take kinds of types that can include graft, bribery, embezzlement and extortion. For its influence, the United Nations international crime prevention center claimed that corruption has the threaten ability and negative impact on social, political and economic development and the value of morality, social stability and security of the world(Das, 2016). Corporate corruption is defined as any

The International Human Resource Management (IHRM) is about the global management of human assets (e.g. Adler and Ghadar 1990; Brewster 2002). The motivation behind IHRM is to empower the firm, the Multinational Enterprise (MNE), to be prosperous globally. This necessitates being competitive globally, efficiency, locally reactive, versatile and responsive within a moment’s notice, and proficiency in exchanging information and knowledge over extensively scattered units. These necessities are momentous, and the extent of the reality is undeniable: for instance, a significant number of companies worldwide are under perpetual competition from competitors (Bartlett and Ghoshal 1998). On the other hand, the majority of the developing markets are under constant barrage by foreign direct investments (FDIs) and by the MNEs of developed countries (UNCTAD 1999).

Everyday U.S. managers in developing countries face the dilemma of furthering their business concerns in countries such as India, China, Russia and Mexico where bribery is commonplace while at the same time trying to ensure that they do not violate their companies code of conduct or worse the government’s Foreign Corrupt Practices Act (FCPA). It is a fine line they walk. This paper will help those managers by explaining what bribery is, why it is thought to be an issue, show recently where companies have bribed and been caught as well as offer suggestions that will enable the U.S. manager in Mexico to accomplish what bribery accomplishes but is not unethical or illegal or in violation of a company policy that prohibits bribery.

Corruption is not new, existing from the beginning of time, affecting not only public officials, but all human interaction in many different forms (Choi et.al. 2010). It is believed that developing countries are at a higher risk for corruption which ultimately limit investment and growth, leading government to face major challenges in financing its day to day operation (Rose-Ackerman, 1999). However, corruption is not only found in developing countries, democracies such as the USA, France, Germany and Japan have also seen several corruption scandals over the past decades and had also fought against changes that could eliminate or reduce the perception of corruption, for example, over 70 elected members of Chicago local government have been charged and imprisoned on corruption charges . In 2016 New York airwave exploded when three high ranking NYPD police officers were arrested and charged for corruption and the mayor currently under investigation (Cohen et.al 2016). Many argued that campaign funding had led many politicians to become corrupt, therefore to reduce this power, more transparency is need. However, when this reform was introduced in the USA Senate through a campaign reform bill, the US senate voted against it (Beckel, 2010). This demonstrate that politicians around the world (develop and developing countries) are unwilling to reform legislation therefore ensuring they are in a position of power even if this is gain through favours.

Mauro (1995) conducted a research based on a cross-country data to evaluate causes of corruption worldwide. In “Corruption and Growth”, he describes the relationship between corruption and economic growth of different countries over the period 1971-1979 and 1980-1983. In his research, Mauro used indices related to corruption from Business International Corporation which sells indices to banks, companies, and investors. The indices are based on the responses of the BI’s analysts from more than 70 countries, and they reflect analysts’ perspective on conditions in a country. The indices have values between 1 and 10, and higher values correspond to a better quality of institutions. Mauro has used nine indices, which, in his opinion, are the best determinants of institutional efficiency: political change (a change in institutional framework due to elections), political stability (disintegration of political activities), probability of opposition group takeover (probability of the opposition to gain power), stability of labor (possibility of labor disruption), relationship with neighboring countries, terrorism, legal system (efficiency of labor environment), red tape (bureaucracy), corruption. Mauro separated those nine indices into two groups based on how closely the indices are correlated. The first group is labeled as bureaucratic efficiency and includes variables such as legal system, red tape, and corruption. The second group of variables is labeled as political stability and

International businesses need to be cautious of the risk of damaging their reputation and any corruption they can be involved in. Inefficient regulations and bribes are a few examples of activities that would be considered corruptions and it can cause great harm to the business and everyone who works for them.

There are various reasons why corruption takes place and takes hold. Sometimes it is due to the fact that officials are simply not paid very much and so they need to supplement their salaries with money from bribes. Sometimes the bureaucratic system is set up in such a way that officials simply refuse to carry out their duties unless they are ‘encouraged’ by being offered bribes. In other cases it is actually part of the tradition and culture of a country to give and receive ‘gifts’ in order to get anything done. In some cases companies from less corrupt countries allegedly engage in bribery in order

In recent years due to the factors like globalization and removal of trade restrictions have created fierce competition in the domestic market for the well-established domestic firms. So, this competition has encouraged many domestic producers to enter into the international business through exporting their product to the different parts of the world or licensing or joint ventures to gain higher profit. By following the paths of international business may encounter the new challenges that are coming along with international human resource management. International human resource management is the set of distinct activities, functions and processes developed by MNC’s, to attract, develop and maintain their human resources. (Taylor et al, 1996) The IHRM mainly deals with six core activities. They are recruitment and selection, training, career development, compensation, performance management and employee relation management.

Corruption is one of the major problems of the globalized world and the effects of it are devastating. Instead of the globalization of the economy having been able to find ways to crack down the corruption, the effects have been the opposite, and it is growing unstoppable. Corruption can ruin countries, distort the market, democracy and human rights, and limit investments, for example, and the only solution to this big problem seems to rely on the ethical and legal instruments of the businesses.