Bribery

Raphaëlle Barlier, Magalie Kerdiles, Armand Marcireau, Adeline Selle

Causes, Consequences

Corporate Social Responsibility

Master 2 – International ManagementInstitute of Business Administration, Poitiers

Introducing corruption

• « Corruption involves behavior on the part of officials in the public and private sectors, in which they improperly and unlawfully enrich themselves and/or those close to them, or induce others to do so, by misusing the position in which they are placed. » (World Bank, 2005)

• Transparency International (leading NGO dealing with corruption)

• Corruption hardly measurable

• Scoring by using standardized questionnaires

• Getting more and more broadcasted by the media

Consequences of corruption

Decrease in economic growth by :

• Lowering incentives to invest• Weakening public infrastructures and quality of services• Altering the composition of governments expenditures

Analysis shows that an improvement from 6 to 8 on the corruption index would experience a 4% increase in investments rates

Consequences of corruption

• Social effects : frustration and disillusions result in a weak civil society. Loss of truth in the political system.

• Obstacle to democracy and the rule of law.

• Environmental degradation : careless exploitation of natural resources.

Fighting corruption

• NGO and Churches in action : West Africa

• Rules of conduct from private firms : EDC (Canada)

• OECD Convention against Bribery of Foreign Public Officials in International Business Transactions

• Recent improvement, but there is much more to do