Oct 02, 2017 term paper 2

Bribery And Corruption Is Endemic And Unavoidable In All Societies

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Question:

Evaluate the regulations in place in the UK (Bribery Act 2010).Analyse and evaluate the conditions under which Bribery and corruption are most likely to occur Address the impact of supply-side and demand led Corruption.Evaluate the extent of bribery and corruption (Geographic (FCPA 1977) and their effectiveness In deterring bribery and corruption.

Answer:

Introduction

This essay highlights on the given topic of unethical practices such as bribery and corruption that is predominant in the public sectors. As per the topic provided it states that the two cases are endemic and unavoidable in all societies. This essay carries out a research on it and analyzes the statement critically. The work is based on several authentic and reliable sources forming the basic foundation of the research analysis. Also, the regulatory frameworks of US and UK are depicted. The essay provides us with some valuable information about the various measures that have been enacted globally and internationally to counteract this global problem of corruption and bribery. The essay ends with a vivid conclusion and recommendations regarding the concept of bribery and corruption within the context of public sector.

Corruption & Bribery in Public Sector

Corruption refers to the acts that are committed at the higher level of the government which distort policies of the central government of the state, thereby enabling national leaders to benefit at the cost of public  (Batabyal & Yoo, 2007). Corruption has been common almost everywhere in every nation, and this cast great impacts upon the societies. Bribery forms a kind of corruption that is quite common these days. To have a better understanding of the given topic, it is important to have an idea of some of the keywords like public sector, bribery, and impacts of corruption in public sector. Public sector refers to the government as well as its decentralized units involving that of police, public roads, military, and transit authorities, healthcare system, and primary schools which use all sorts of public funds and generate services based on encouragement to enhance the lives of citizens and not making profits (Campbell, 2013). Here itself, an image of corruption arises, that states any sort of abuse of entrusted power to get private gain occurring in government. The individuals who are entrusted with power, particularly those of public officials are exposed to benefit privately through some ways. Bribery forms one such way. The conditions that would lead by means of bribery as well as corruption would influence the results of all legal regulatory mechanisms by generating incentives to regulatory bodies not to be encouraged to take any action, when private parties on the other hand are in violation of laws.

Factors of Motivating Bribery & Corruption

With the rise in pressures, the corporate may feel agitated to utilize illicit processes for securing contracts (Escaleras, Anbarci & Register, 2007). All governmental officials are prone to be presented with bribes or other kinds of incentives for steering business to a particular direction. With reference to the given concept of bribery and corruption in the public sectors, an instance can be cited that of the United Kingdom. Though corruption is not really endemic in the nation, many significant issues exist that require to be addressed. The recent corruption in the UK report, Transparency International depicted vulnerabilities related to corruption in certain key sectors as well as institutions of Britain. Some of the recent scandals like phone hacking, controversy in political party funding, and corruption in the game of cricket have clarified the presence of corruption issues. As per the Transparency International, corruption is defined as the abuse of entrusted power to have personal gains. This, however, captures an extended range of unethical behavior within the public, private, and other sectors of the society. Corruption issues in the UK tend to be assumed complacently that this is common in the developing world. Just like any other countries, UK’s corruption too has victims. But, they may be less apparent in the nation since they belong to the marginalized groups of society or may be because corruption begins in intangible manner and so victims are not specific. To state the reality, corruption at times is against the laws and at times legal but unethical.

Across the globe, around 22% respondents from governmental as well as state-owned enterprises experiencing economic crime have been reporting cases of corruption as well as bribery since the last year. During the recent years there has been increased change globally within attitudes towards corruption and bribery, causing increased regulation. These two cases of corruption and bribery are not accepted as ‘business cost’, rather an economic crime which impacts adversely both individuals as well as related entities including that of the society. the trend is likely to continue since jurisdiction enhances anti-corruption legislation as well as enforcement actions in context to global pressures. According to sources, it has been however identified that counterbalancing strict enforcement are increasing financial pressures upon corporate that undertake business with public sector as well as government (Escaleras, Lin & Register, 2009). With the rise in pressures, the corporate may feel agitated to utilize illicit processes for securing contracts. All governmental officials are prone to be presented with bribes or other kinds of incentives for steering business to a particular direction.

UK and US Bribery Act: Corruption in Geographical reach

With reference to the given statement that bribery and corruption in public sectors are unavoidable, it may counteracted with explanation. To analyze the statement critically, it can be said that the two cases may be tough to be addressed and resolved but it is not completely unavoidable (Yeboah-Assiamah, Asamoah & Osei-kojo, 2014). The concepts of bribery as well as corruption are considered to be major hindrances in the socio-economic development including that of national and international relations. With respect to this, nation states as well as international bodies tend to draw up regulatory frameworks for combating corrupt practices. It is more of individual perception and attitude that lead to such intentions. Various factors of the society are responsible for the occurrence of unethical practices such as bribery or corruption (Goel, Budak & Rajh, 2014). These are more predominant in the public sectors as compared to that of the private sectors because of the active regulatory frameworks that exist in the private firms. On the other hand, situation in the public sectors is bit different. Here it may be mentioned that the most recent legislation of the UK is the Bribery Act (2010). The act bears extra-territorial jurisdiction unlike any other legislation. It is applicable to all nationals and firms of UK, and also others organizations in operational terms in the UK (Gorodnichenko & Sabirianova Peter, 2007).

Another mentionable aspect is that of the US Foreign Corrupt Practices Act (FCPA) which possesses international jurisdiction in a limited manner. Parties belonging to any nationality may be prosecuted under this FCPA if they cause bribery directly or indirectly within the territory of the US. Besides, UK Bribery Act (2010) includes business-to-business bribery whereas FCPA relates to corrupt payments towards foreign officials (Tas, 2012). This bribery act of UK includes offences like bribing another individual, being bribed personally, bribing any foreign official, and negligent failing to prevent bribery. Just mere regulatory approaches are not enough to manage the cases of bribery as well as corruption. For increasing effectiveness at any particular sector or in individual firms, these are required to be complemented by those of the private sector commitments (Islam, 2014). According to various research studies, it is a common phenomenon in the current trend that businesses recognize the advantages of ‘zero tolerance’ on corruption as well as bribery. Amidst various other things, it lessens uncertainties for organizational employees in pressure situations for paying or accepting bribe and thereby supporting in creation of a more stable environment along with positive outcomes (McKoy, n.d.).

Conclusion

Thus from the study it can be concluded that corruption refers to a problem that must not be ignored. Many organizations have been developed for dealing with the issues of developing countries and also organizations that fail to take up anti-corruption measures. Transparent International organization is exclusively means for combating corruption. Another arrangement is that of the World Bank’s Anti-Corruption Thematic group that is engaged into prevention of corruption situations (Michael, 2012). Corporate Watch is also responsible to fight such a problem. This aims at encouraging democratic control over organizations as well as ensures respect of human rights including that of environmental justice within developing countries. The concepts of bribery as well as corruption are considered to be major hindrances in the socio-economic development including that of national and international relations. With respect to this, nation states as well as international bodies tend to draw up regulatory frameworks for combating corrupt practices (Porter & Graycar, 2013). It is more of individual perception and attitude that lead to such intentions. Thus, corruption refers to a much complicated process having far reaching impacts upon all societies. These impacts cannot be ignored, particularly in the developing countries whereby the process takes a greater toll. As a result, efforts are to be given to attempt to change the present state of the globe.

References

Batabyal, A., & Yoo, S. (2007). Corruption, Bribery, and Wait Times in the Public Allocation of Goods in Developing Countries. Review Of Development Economics, 11(3), 507-517. doi:10.1111/j.1467-9361.2007.00419.x

Campbell, K. (2013). A Statistical Analysis of Public Sector Corruption and Economic Growth. Lux,2(1), 1-19. doi:10.5642/lux.201301.06

Escaleras, M., Anbarci, N., & Register, C. (2007). Public sector corruption and major earthquakes: A potentially deadly interaction. Public Choice, 132(1-2), 209-230. doi:10.1007/s11127-007-9148-y

Escaleras, M., Lin, S., & Register, C. (2009). Freedom of information acts and public sector corruption.Public Choice, 145(3-4), 435-460. doi:10.1007/s11127-009-9574-0

Goel, R., Budak, J., & Rajh, E. (2014). Private sector bribery and effectiveness of anti-corruption policies. Applied Economics Letters, 1-8. doi:10.1080/13504851.2014.975326

Gorodnichenko, Y., & Sabirianova Peter, K. (2007). Public sector pay and corruption: Measuring bribery from micro data. Journal Of Public Economics, 91(5-6), 963-991. doi:10.1016/j.jpubeco.2006.12.003

Islam, M. (2014). Bribery and corruption in Australian local councils. Public Money & Management,34(6), 441-446. doi:10.1080/09540962.2014.962372

McKoy, D. An Agency Cost Approach to Public Sector Corruption. SSRN Journal. doi:10.2139/ssrn.1021614

Michael, B. (2012). Issues in Anti-Corruption Law: How Can Code of Conduct Laws Be Drafted in Order to Reduce Corruption in a Public Sector like Romania`s. European Law Journal, 18(2), 289-322. doi:10.1111/j.1468-0386.2011.00598.x

Porter, L., & Graycar, A. (2013). Hotspots of corruption: Applying a problem-oriented policing approach to preventing corruption in the public sector. Security Journal. doi:10.1057/sj.2013.38

Tas, D. (2012). Endemic corruption in the Iraqi public sector. J Of Money Laundering Control, 15(4), 458-482. doi:10.1108/13685201211266033

Yeboah-Assiamah, E., Asamoah, K., & Osei-kojo, A. (2014). Corruption Here, Corruption There, Corruption Everywhere: A Framework for Understanding and Addressing Public Sector Corruption in Developing African Democracies. Jpag, 4(3). doi:10.5296/jpag.v4i3.6406



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