Business Ethics and
Corporate Social Responsibility
Individual report: Corruption
February 2013
Friedrich Heinrich Zenzen
University of Greenwich
Introduction
Corruption is a complex political, social, and economic anomaly that negatively affects developing and developed countries. It weakens democratic institutions, holds economic development, widening the rich-poor gap and certainly leads to governmental instability. The World Bank definition of corruption states that “…the abuse of public office for private gain”.
Corruption can be distinguished regarding to where it happens: at the political or management levels of the public sector, or in the private sector between customer and supplier. It can be identified regarding
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Ford and Richardson (1994) the model of ethical decision-making is generally detached by individual factors and situational factors, which in situational factors is the most important.
Individual factors helps to understand the reason for some people perceive specific action to be unethical whiles others do not. However, the decision-making cannot simply be explained in terms of these individual factors, because after all several people seems to have ‘multiple ethical selves’ (Trevino and Nelson 2007:180) – that is, they make different decisions in different situations. Situational factors accepted to be the most important.
Individual Factors | Situational Factors | Age and gender | Issue-related | Moral intensity | National and cultural characteristics | | Moral framing | Education and employment | | Rewards | Psychological factor: | | Authority | Cognitive moral development and Locus of control | Context-related | Bureaucracy | Personal values | | Work roles | Personal integrity | | Organisational culture | Moral
Explain how the criminal justice system (Cops, Courts, or Corrections) is establishing and maintaining ethical standards to address unethical behaviors. The criminal justice system is comprised of three major institutions which process a case from inception, through trial, to punishment. Though a number of rights derived from the Constitution protect the accused from abuses and overreaching from law enforcement officer. Much like the law enforcement stage of a case, there are dozens of restrictions on the court's ability to prosecute a case, including the right to confront one's accusers, the right against incriminating one's self.
According to this framework ethical/unethical decisions are controlled/moderated by three independent variables, which are individual factors, significant others in an organizational setting, and opportunity for action. According to Ferrell & Gresham the three variables can be further categorized into individual and organizational contingencies. Individual factors like attitudes, knowledge, values, and intentions are assumed to be interacting with organizational factors, such as significant others and opportunity factors to influence an individual involved in an ethical/unethical dilemma. In the following paragraphs we will analyze how these individual as well as organizational factors interplayed in Courtland Kelley’s situation at GM.
“Ethical decision-making is deeply rooted in cultural values. Cultural norms concerning what is “right” and “wrong,” “acceptable” and “unacceptable,” “good” and “bad”, and “important” and “unimportant” shape one’s beliefs regarding the world around us, including the business environment,” (Geiger, M.A., Quirvan, C. & Hazera, A. 2007).
Corruption. What is corruption? Corruption is dishonest or illegal behavior by powerful people, such as government officials
Sound ethical decision making is a vital part of the foundation for any organization and its individuals looking for stability and longevity in their respective industries. In other words, it is extremely important for organizations, managers, and employees to practice ethical decision making. The course textbook provides a significant piece of evidence to support this:
From the reading, I understand that people think and act differently when faced with ethical issues. For one to make a rational decision, an extensive process of judgment is required (Bandura, Caprara, & Zsolnai, 2000). For an individual to be responsible, he or she should put into consideration the magnitude of the consequences of the actions, social
Corruption can be defined as “the abuse of entrusted power for private gain. It can be classified as grand, petty and political, depending on the amounts of money lost and the sector where it occurs.” Bribery, extortion and embezzlement are the three principle versions of corruption. For instance, an employee of a firm who is in charge of purchasing functions takes some amount of money from a supplier (bribery), in which that same employee ensures the payment for the products to be above the usual price. Then the residuary amount between the actual price and the turgid price after bribery would get siphoned off by the employee and the supplier (embezzlement). If it’s the case of political corruption, an exemplifying scenario can be, some government officials use their positions to extort payments from some government regulated firms. Expectably, economic corruption impairs development and political corruption depraves prospering governance. Unfortunately, both of these types of corruption continuously persist all around the world .
One of the biggest global challenges of our time, Corruption chokes development, hinders economic growth, impedes fight to alleviate poverty by giving birth to lawlessness, adulterated eatables, spurious drugs and costs economy billions of pounds every year by syphoning off funds and distorts political, economic and social life. Corruption diminishes morality and credibility of officials and destabilizes the government and makes people more susceptible to the poisonous ideology of extremists. India’s growth would have been 5 percent faster since 1970s and could have been a trillion economy nation had there been no corruption. The number of corruption cases is quite shocking. Bribery to obtain government contracts, the sale of national assets and enterprises all show bitter abuse in their positions of power for their private gain in presence of electoral democracy.
Political corruption has existed throughout the ages. It believed to be most prominent in positions of power, because of the role money plays in getting people power. However, over the centuries, corruption has changed so much so as to not match a particular definition of corruption, perpetually growing deceptively harder to find (Ebbe).
In studying the apparent intractability of corruption in many countries V (values) has risen to the fore along with other vital linkages that help present a more comprehensive picture of the nature of corruption in any given country. The link between poverty and corruption is one of these vital relationships and, as you shall find in chapter 2, corruption is an important cause of poverty because it promotes unfair distribution of income and inefficient use of resources. DEFINING CORRUPTION It is not intrinsically useful to make qualitative distinctions between corruption in various parts of the world. At the end of the day it often means the same thing: the abuse of public office for private gain. However, this can be broken up into petty corruption, grand
It is pertinent to note that corruption affects the security situation of the countries in Southern Asia and the entire world (Lewis 2011). It is because crime entails the misuse of power to achieve selfish gains to the detriment of the poor and the innocent people. As such, it negatively affects the economic situation of a country and weakening their stability at all levels. When the economic conditions of a country are not doing well, then it will be difficult to perform the duties required of them. It is because most of the funds will be lost in corrupt activities hence hindering the final output to the people. Additionally, corruption weakens the legal system of any country hence making it difficult for the people to receive justice.
According to Wong (2012), there are two basic forms of corruption. First, there is grand corruption which embodies greed and lust for power by those who already posses considerable wealth and power, and thus, large sums of money is typically involved in triggering grand corruption. And second, there is petty corruption which arises largely from economic necessity among
need of entitlement; their sense of privilege becomes private. Even honest individuals unquestionably accept their position and consequent of power without realizing its impact on their role. Their intelligence, diligence, strategic planning and hard work to reach the higher ends of their organization may propel them to believe that their position and privilege are well deserved. Such feelings may result in double standards and consequent corruption. Corruption should not allow to run continuously. Though the remedy of corruption is not an easy task, it is a crying need to stop for the greater interest of society. To make countries free from corruption, citizens of all classes should be responsible, accountable, dutiful and considerate. Nepotism, favoritism, etc. should be dealt with up most seriousness. To lead in peace in the society it is essential to stop it. This curse should not be allowed to continue. Anti-corruption commission must be given more freedom to take place. Public awareness must be raised to stop corruption. The mass media can play a significant role in this regard to stop corruption from the society. There are so many reasons for corruption and so many solutions. But, none of the solutions are welcomed by others as to do so. Every type of corruption has reached new heights in the world today. As a result, the places, and their people, suffer greatly while some thrive from evil. Before solving a problem, the first step to solving it is admitting there is
One of the major tasks of government is to provide goods and services to the people. There are however many factors that hinder the smooth delivery of goods and services. Corruption is one of the factors. A link has been established between corruption and economic stagnation. Corruption leads to misallocation of resources meant for uplifting of the majority members of the public for the benefit of a few. It is a universal scourge that has been described differently by various schools of thought. It tends to limit citizens access to free goods and services and reduces freedom of political choice in elections. It can also be linked to the escalation of poverty, as the prevalence of corrupt practices socially excludes the poor
One of the major tasks of government is to provide goods and services to the people. There are however many factors that hinder the smooth delivery of goods and services. Corruption is one of the factors. A link has been established between corruption and economic stagnation. Corruption leads to misallocation of resources meant for uplifting of the majority members of the public for the benefit of a few. It is a universal scourge that has been described differently by various schools of thought. It tends to limit citizens access to free goods and services and reduces freedom of political choice in elections. It can also be linked to the escalation of poverty, as the prevalence of corrupt practices socially excludes the poor