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Corruption

Corruption. Joop Remmé Maastricht School of Management. Personal & Systemic Integrity. Personal integrity Integrity is defined as an adherence to moral principles or values Alternatively: consistency between moral beliefs and behaviors Consistency between behaviors character

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Corruption

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  1. Corruption Joop Remmé Maastricht School of Management

  2. Personal & Systemic Integrity • Personal integrity • Integrity is defined as an adherence to moral principles or values • Alternatively: consistency between moral beliefs and behaviors • Consistency between behaviors • character • To be trustworthy • Systemic integrity • Integrity happens within a system • psychological forces next to social, organizational, ideological and other forces.

  3. Relevance of integrity Corporate governance Cooperation and teamwork Leadership Client-relationships

  4. Integrity is the basis of trust • Trust requires: • Capability • Interests • Behavior • Motivation • Not: friendship

  5. Corruption: definition Definitions: • Transparency International: “the misuse of power for private gain” • What does “misuse” mean? • Alternatively: “Corruption is the influencing of officials, either through bribery or other means, to deviate from the duties entrusted to them” • What does “deviate from duties” mean? What these definitions have in common is that corruption is seen as an impact on the behavior of the professional which leads him/her to deviate from expected duties.

  6. Types of corruption • Bribery • Nepotism • Conflict of interest • Otherforms of influencing/ coercion • “Small corruption” • “big corruption”

  7. Corruptionandappearance • Corruption is alreadydamagingwhensomething looks likecorruption • Ergo: dealingwithcorruption is about: • Dealingwith corrupt acts • Dealingwithappearances

  8. Myths on Corruption • “it is part of the culture” • “everyone is doing it” • “it is a victimless crime” • “it facilitates business” • “it honors relationships” • “it is part of the capitalist way of doing business”

  9. Causes of corruption • Bad leadership • Crime • Too much regulation • Inadequate supervision • Demotivation • Political developments? • Poverty?

  10. Consequences of corruption • Lower prosperity • Lower levels of security/safety • Lower trust in institutions • Waste of resources • Damage to governance • Image

  11. Different ways of doing business Bribe paying for multinational companies according to country of origin. Notes: scores based on 0 to 10, where a perfect score, indicating zero perceived propensity to pay bribes, is 10. Thus, those countries with a lower score have a higher perceived propensity to bribe Source: www.transparency.org

  12. Different ways of doing business Bribe paying for multinational companies according to sector Notes: scores based on 0 to 10, where 0 represents very high perceived levels of corruption, and 10 represents extremely low perceived levels of corruption Source: www.transparency.org

  13. Links on Corruption • Transparency International www.transparency.org • Transparency International CPI http://www.transparency.org/policy_and_research/surveys_indices/cpi • Transparency International Gobal Priorities http://www.transparency.org/global_priorities

  14. How to fight corruption • Deal with the excuses • Decide on a gradual, step by step process, over time • Change HR, in order to hire and promote the people less likely to be corrupted • Train people, so they understand corruption and recognize its symptoms • Organize in such a way that fewer people are in a fragile position • Code of conduct, monitored • (all of the above requires a systems approach)

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