Corrupcao em eticas nos negocios
Introduction 2
The Link between Corruption and Business Ethics 2
The Corruption Perceptions Index 3
The Classification: Types and Distinctions 4
Organizations Dealing with Corruption 5
Corruption from the Social Point of View 6
Integrative Social Contracts Theory 6
a) Violating a Microsocial Norm 7
b) Violating an Authentic Norm 8
c) Violating a Hypernorm 9
Corruption from the Legal Point of View 10
The Main Players 11
a) The State 11
b) The Media 11
c) The Society 12
Corruption from the Economic Point of View 13
The theory of the Second Best 13
a) Irremovable Constraint 14
b) The Second Best Optimum 15
Principal-Agent Model and Rent-Seeking 16
a) Limitation of the Principal-Agent Model 17
b) Complementary Rent-Seeking Model 17
Why “Suharto Model” is Wrong? 19
Conclusion 20
References 21
Introduction
Corruption can be defined in various ways. Antonio Argandona describes corruption as the following: “The act or effect of giving or receiving a thing of value, in order that a person does or omits to do something, in violation of a formal or implicit rule about what that person ought to do or omit to do, to the benefit of the person who gives the thing of value or a third party.”
When dividing the sentence into several parts the meaning of corruption may become clearer. “A thing of value” could be understood as money, a favour, a present, or a service. The “person” that “does or omits to do something” could be either active in the public sector such as a police officer or politician or be active in the private sector such as a manager or an employee of a company. The “violation of a rule” can for example be an action against the law or a moral value accepted in the society to the “benefit of the person” who gives the money or a relative or friend.
Transparency International, an organization fighting against corruption, defines corruption as the following: Corruption is “the abuse of entrusted power for private