The paper "Business Ethics - Corruption in International Business" is a good example of business coursework. Corruption in International business affects the local economies as well as the overall business environment. Continuous efforts have been made from many decades globally to curb this problem by improving regulations and codes of conduct; however, not much success has been achieved in eradicating this problem completely. In this paper, an attempt has been made to take a closer look at the real root of the problem of corruption, from where it emerges, its possible causes and overall effect and impact on the business scenario and national and international economy.
It has been recognized that it would not be an easy task to eradicate the problem of corruption completely but can definitely be reduced to make the international business scenario more efficient. Introduction Corruption is found in all walks of life. One of the fields which are adversely affected by rising corruption is an international business scenario. It affects all aspects of international business from the cost of operation, business relationship, and government-to-government and country to country relationship.
Many studies and data have established the adverse effect of corruption in the international business scene. Main Body Business Ethics With the end of communalism and coming of the modern era and growing developments in technology and growing economies, the world has become a global platform and opportunities for companies to expand business world-wise has increased manifold. However, with increasing modernization and globalization many obstacles for business activities have increased too. Some of the obstacles that are surrounding businesses worldwide are organized crime and corruption. Increasing corruption and criminalization cast a negative influence not only on the country itself but also at other organizations and multinational corporations from other countries that intend to do business with the country. Let us try to first analyze the definition of corruption in the context of international business. Corruption- Various writers and scholars have given various definitions of the term- “ corruption. ” The simplest definition of corruption states it as alleged misuse of public office for private profit motives.
Various authors have distinguished business corruption into three broad compartments- commercial, political, and personal. Examples of political corruption include bribery, gaining personal motives by using government office, and changing norms of public decision making for meeting personal needs.
Examples of personal corruption include insider duty, violation of fiduciary duty and so on. Examples of commercial include bribing the purchasing agent by the supplier to grow sales, bribing the newspapers to get favorable business reports, or bribing the top-management of an organization to get inside financial information. As we can see from the above examples that corruption in business ethics is always aimed at using illicit or anti-social behavior for gaining personal profit motives.
Corruption in context of international business can be seen or divided into three factors or actors, primarily: The principal or primary authority that has the power to grant or approve projects, for example, government agencies or high profile ministry office. Second, is intermediately agent that represents the principle and help the customer or client get required permissions from the principle. Third, one is the client or customer that who seek favors from the principal in the form of some permit for projects or investments (Klitgaard, 1991).
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