Business Ethics - Corruption

1. Prepared By:
Praveen Venugopal
MBA, BIMS
CORRUPTION

2. Misuse of public power
for private gains.
- A form of dishonest or unethical conduct by a person
entrusted with a position of authority, often to acquire
personal benefit.

3. Selfishness and greed are at the root of it
It also implies lack of integrity and honesty.
A corrupt society is characterized by immorality and lack of fear or
respect for the law.
When it stops valuing integrity, virtue or moral principles it starts
decaying.
Corruption is the abuse of public power for private gain. Corruption
comes under many different guises: bribery, misappropriations of
public goods, nepotism (favoring family members for jobs and
contracts), and influencing the formulation of laws or
regulations for private gain.

4. An act of bribery or
misuse of public position
or power for the
fulfilment of selfish
motives or to gain
personal gratifications. It
has also been defined
as "Misuse of
authority as a result of
consideration of
personal gain which
need not be
monetary".

5. Corruption is wrongdoing on the part of an
authority or powerful party through means that are
illegitimate, immoral, or incompatible with ethical
standards. Corruption often from patronage and is
associated with bribery.

6. Corruption
Ethical
values
“Ethical values in general
have drastically come
down and society has
become permissive and
accepts corruption as
normal.”
- CFO of a leading pharmaceutical
company

7. “Corruption threatens the integrity of markets,
undermines fair competition, distorts resource
allocation, destroys public trust and undermines
the rule of law”.
– G-20 Summit, Seoul

8. A corrupt society stops valuing integrity,
virtue or moral principles.
“Corruption = Monopoly + Discretion –
”Accountability”
Corruption tends to increase
when an organization or
person has monopoly (M)
power
over a good or service, which
generates income, has the
discretion (D) on its
allocation,
and is not accountable (A).

9. 1. Personal greed
2. Decline of personal ethical sensitivity
3. No sense of service when working in
public or private institutions.
4. Low awareness or lack of courage to
denounce corrupt behaviour
5. Lack of effective management and
organization of administrative
mechanism

10. 6. Low Pay scales/ Wages
7. Low Job opportunities
8. Lack of Strict and fast punishments
9. Lack of ill fame
10. Lack of Unity in public
11. Lack of accountability
12. Option of many political parties

11. there are two forms of corruption:
Administrative Corruption: Corruption that alters
the implementation of policies, such as
getting a license even if you don’t qualify for it.
Political Corruption: Corruption that influences the
formulation of laws, regulations, and policies,
such as revoking all licenses, and gaining the sole
right to operate some public utility with
monopoly.

12. Extortion
Embezzlement
ScamsFraud
Bribery

13. one-sided where in the
public servant extorts
bribe from the beneficiary
on the pretext of the
threat of denial of service.
Extortionary Corruption
can be defined as
corruption where money
has to be paid to acquire
services that are
legitimately due and
honestly entitled.

14. Extortion (also
called
blackmail, shakedo
wn, outwresting) is
a criminal offence of
unlawfully obtaining
money, property, or
services from a
person, entity, or
institution,
through coercion.

15. Act of giving money,
goods or other forms
of recompense to a
recipient in exchange
for an alteration of
their behaviour (to the
benefit/interest of the
giver) that the recipient
would otherwise not
alter.

16. Act of withholding assets
for the purpose of
conversion (theft) of
such assets, by one or
more persons to whom
the assets were
entrusted, either to be
held or to be used for
specific purposes.

17. A fraudulent scheme performed by a
dishonest individual, group, or company in
an attempt obtain money or something else
of value.
Scams traditionally resided in confidence
tricks, where an individual would
misrepresent themselves as someone
with skill or authority, i.e. a
doctor, lawyer, investor.

18. India has earned a place
among the THREE most
corrupt countries in the
world. Corruption in India is
a consequence of the nexus
between Bureaucracy,
politics and criminals.

21. C K Prahalad
estimated that almost Rs. 2.5 lakh
crore is earned by politicians
over a 5 year term.

22. Source: KPMG’s Bribery and Corruption Survey 2011

24. What should common people do?
Common people should use RTI
to expose corruption. With
informed collective assertion,
common people can over years
transform the extent of
corruption in India. Common
people should elect clean
politicians.