CORRUPTION AND INTEGRITY

Corruption and Integrity

Corruption and Integrity

Introduction

Corruption is dishonesty or deliberate dereliction of duty for personal gain by a government official or a private entity official. Corruption broadly includes fraud, bribery, or deliberate misreporting. In a corrupt act, a binding duty is violated by someone who receives an unwarranted personal benefit (Aidt, 2003). To define corruption concretely involves specifying the duty and the personal benefit and why and how the personal benefit is a violation of the duty.

Corruption and Corporate and Personal Integrity: A Discussion

When comparing the level of corruption within Pakistan and Afghanistan, we see that Afghanistan is more corrupt than Pakistan. In the case of a government official, corruption is violation of a sworn duty to uphold the public interest. In the case of a private entity official, corruption is violation of a contractual duty to uphold the lawful interests of the entity or its owners (Aidt, 2003). In either circumstance, corruption involves specifically an agent's violation of some duty toward a principal in exchange for private benefits (commonly but not necessarily money). Corruption is typically illegal misconduct. Such dishonesty or dereliction of duty is in any case immoral and socially illegitimate, since it involves an indefensible breach of oath or contract. Citizens and shareowners rightfully expect honest, trustworthy, and loyal agents.

Toke Aidt identifies the essential conditions for corruption as discretionary power, economic rents, and weak institutions or controls. Corruption flourishes in business or government when an actor or group of actors has some degree of monopoly power (often asymmetric information or decision discretion) due to official position to which economic rents can accrue and over which external controls are relatively weak (Aidt, 2003). Asymmetric information suggests secrecy or concealment: Disclosure and transparency is the natural enemy of corruption.

In August 2005, Jack Abramoff, a leading Washington, D.C., lobbyist, and a business partner were indicted on charges of wire fraud and conspiracy in connection with allegedly fraudulent purchase of a fleet of Florida gambling boats. The seller, a Miami businessman, was later killed in a gangland-style hit (Sanchanta, 2005). The indicted American, who had served felony fraud prison time, directed construction contracts to another American's three companies. That individual was indicted on various charges (Sanchanta, 2005).

Corruption is an ancient and widespread problem—for example, mordita (“bite”) in Mexico or baksheesh(“present”) in the Middle East. Baksheesh may cover alms giving, tipping, or gift as well as bribery. Tipping is a widespread commercial practice in the United States (taxi drivers and waiters work partly for tips), but regulated in other situations (i.e., minor gifts to business or government officials). A system of bribery/extortion can be distinguished from customary gift giving well-established in some societies. Traditional business transactions and relationships sometimes involve small gifts and gratuities given or exchanged before or after business. There is, however, a thin line between reward or thanks and bribe or extortion. Each case or situation must be examined on its own merits. A $20 gift of thanks to a helpful official is one thing, a $10 “fee” extorted ...