1. Corruption on Business and
Administration
Shweta Mukherjee
JIMS, Kalkaji

2. Corruption
• Corruption is not a recent phenomenon. It has
precisely been defined as a deviant human
behavior, associated with the motivation of
private gain at public expense
• Corruption promotes illegality, unethicalism,
subjectivity, inequity, injustice, waste, inefficiency
and inconsistency in administrative conduct and
behavior.
• It destroys the moral fabric of society and erodes
the faith of the common man in the legitimacy of
the politico-administrative set up.

3. Corruption in Indian Administration
o In 70s, political leaders of India began instructing their
subordinate administrative officials to collect illegal
funds from the people.
o This gave free hand to the administration to oppress
and exploit people in all the ways they could.
o For eg:
• delays in working until a bribe was paid to them,
• illegal arrests until a protection fee was paid to the police,
• wrong billing by public utility companies if the officials are not
bribed.
o Gradually, the process percolated to the lower-
most levels of administration, and bribery
became a usual thing for any job by an official.

4. Corruption in Business
• Corruption is one of the worst enemies of
business because it can result in far-reaching
consequences, including total closure of the
company.
• The vice can be perpetuated by an individual or a
group of employees within a business
organization.
• Corruption in business involves misappropriation
of funds, bribery, misuse of office by company
officials and dishonesty in financial matters.
• Its magnitude notwithstanding, corruption can
hurt the image of the business and jeopardize its
profitability.

5. The Effects of Corruption on Business
• Inefficiency
• Lost Resources
• Weakened Development
• Increases Crime

6. Problem
• Heavy fines, damaged reputations and jail sentences – recent
scandals prove that corruption in business doesn’t always
bring profits. Almost a fifth of executives surveyed by Ernst &
Young claimed to have lost business to a competitor who paid
bribes. More than a third felt corruption was getting worse.
• Corruption distorts markets and creates unfair competition.
• Companies often pay bribes or rig bids to win public
procurement contracts.
• Many companies hide corrupt acts behind secret subsidiaries
and partnerships. Or they seek to influence political decision-
making illicitly.
• Others exploit tax laws, construct cartels or abuse legal
loopholes.
• Private companies have huge influence in many public
spheres. These are often crucial – from energy to healthcare.
So it’s easy to see how corruption in business harms
taxpayers’ interests.

7. Solution
Private sector corruption calls for a three-pronged
approach.
1. companies can take internal steps to prevent it.
They need a zero-tolerance policy towards bribery
and corruption. And it must be enforced through
specific anti-corruption measures.
2. But companies also need an honest operating
environment. So we must make sure that
governments enforce international anti-bribery laws
and conventions. This protects companies from
corruption across borders and down supply chains.
3. We need to help make sure these approaches are
effective. This means more transparency from
everyone involved with markets. Then we can hold
businesspeople to account for their actions.

8. Thank you