Abstract
This chapter begins with an understanding of the concept of corruption, showing categories, typology, and characteristics of corrupt actions. Subsequently, the issue is reviewed through looking at corruption in organizations, referring to the relationship that exists between organizational culture and corruption. Later on, the impact of corrupt actions at different levels is presented and exemplified with some real cases that allow a better understanding of the subject. Some suitable concrete strategies and actions are submitted to promote an anti-corruption culture in organizations, beginning with a process of business self-diagnosis of its current situation regarding corruption and possible risks through the participation of interest groups. The importance of applying the collective action methodology in which all the actors participate is highlighted, thus there will be different views to analyze risks that could exist of corruption and proposing actions that mitigate corruption.
TopWhat Is Corruption?
Corruption is a complex phenomenon, so it is important to understand the concept.
From the etymological point of view, the word corruption comes from the Latin ‘corruptio’ which means: action or effect to destroy or alter, debauch, the concept is associated with the deterioration of values. (RAE, 2023).
The Organization for Economic Co-operation and Development (2007) defines corruption as:
“The abuse of a public or private position for personal gain”.
For its part, The Association of Certified Fraud Examiners (2018) defines corruption as:
“Scheme in which an employee misuses his influence in a business transaction in a way that violates his duties to the employer in order to obtain a direct or indirect benefit.” (p.5)
Corruption is a term that generally indicates the misuse of the authority and rights entrusted to a person, as well as actions associated with connections that are used to take advantage for personal gain, contrary to the law and moral principles. Corruption is a social phenomenon that involves three fundamental elements: obtaining a particular benefit, power diversion, and a relationship of trust. (UNDOC, 2014).
Klitgaard (1991) explains that the corruption thrives in environments that has some common conditions, such as: monopoly, which consists of making decisions with wide freedom without sharing power with other instances; the high degree of discretion that is understood as the absence of controls of any kind necessary and convenient to avoid excessive power; and the low level of responsibility, a circumstance that facilitates actions that are not transparent and those who respond do not assume their political, economic, social and cultural commitment to society.
For its part, the United Nations Development Program refers to corruption as:
“The misuse of public power or authority for private benefit, through bribery, extortion, influence selling, nepotism, fraud, money trafficking and embezzlement” UNDP (2004).
In 2015, with the Global Compact initiative, the United Nations Organization and its member countries established 10 Principles to fight against corruption.
Key Terms in this Chapter
Embezzlement: An act that is based on unfair administration or misappropriation carried out intentionally by an authority or an official, whether an employee or a public official in the exercise of his position.
AECP: Anti-Corruption Ethics and Compliance Program.
Bcc: Bogota Chamber of Commerce
Bribery: The crime of bribery consists of requesting, offering, or accepting gifts, favors or compensation from a public official to commit an administrative offense in the exercise of his position. Bribery is a crime against the Public Administration. Bribery is understood as a payment of an authority or public official through a gift or a favor in exchange for performing or omitting an act inherent to their position, and when an act is unjustifiably delayed that you should practice.
Impunity: It is the impossibility of being punished. It is an exception to a sentence or a way to escape justice. It is common in some countries where there is a lack of an honest police system and that has repercussions in a corrupt and weak judicial system.
SFP: School Feeding Programs
Influence peddling: It consists of getting a person who holds a public office to issue a resolution knowing its injustice, to profit from the influencer or a third party.
UNODC: United Nations Office on Drugs and Crime.
Extortion: A crime that consists of forcing a person, through the use of violence or intimidation, to carry out or omit an act or legal business for profit and with the intention of causing a patrimonial damage or a specific damage to the passive subject.
Scam: It is a patrimonial crime in which deceit is used to cause an error in the victim that leads him to carry out an act to the detriment of himself or a third party. The final intention of a fraud is profit. Whoever commits the crime of fraud intends to obtain a profit or benefit from deceit.
Bribe: The act of offering money, services, or other valuables, in order to persuade a person to do something in exchange. Bribes can also be called kickbacks, tips, secrecy, protection fees, gratuity, etc. Bribe is considered a crime in national and international laws.
Tax Evasion: A fraudulent action that seeks to avoid the payment of a tax and consists of consciously and voluntarily not paying a tax established by law. It can be practiced in several ways: Hiding income, showing an illegal increase in deductible expenses or through unjustified subventions.
ACFE: The Association of Certified Fraud Examiners.
Supervision: The act of watching a person or activity and making certain that everything is done correctly, safely, etc.; technical, administrative, financial, accounting, and legal monitoring on the fulfillment of the object of the work of the organization or of the contract.
Peculation: It is an act of illegally taking or using money, especially public money, that you are responsible for managing.
Fraud: It is an illegal act carried out by one or more of the natural or legal persons who oversee monitoring compliance with public or private contracts to obtain some benefit, harming the interests of another.
Organizational Culture: Set of shared beliefs, values and practices that allows a group of people to focus all their activities on the same goal to fulfill the objectives of the organization to which they belong.
Collective actions: Provision of public goods and collective consumption, through the collaboration of two or more individuals and the impact of externalities on group behavior.
United Nations Global Pact: It is a call to companies around the world to align their operations and strategies with Ten Universal Principles in the areas of human rights, labor, environment, and anti-corruption, and to take measures in support of the goals of the United Nations. With more than 12,000 companies and headquarters in more than 160 countries, the United Nations Global Pact is the world's largest corporate sustainability initiative: a Global Pact uniting business for a better world.