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Essay / Corruption as a Normal Practice in Contemporary Business
Table of ContentsIntroductionCorruption in Contemporary BusinessWhy Do Employees Pay a Bribe?When Do Compliance and Ethics Programs Help Prevent paying bribes?What should businesses do to overcome corruption?ConclusionIntroductionCorruption is a phenomenon that the whole world is facing today, whether it is a third world country or of a superpower, everyone is impartial in the face of corruption. However, it is only in recent years, when corruption has been brought into the spotlight, that people have started to recognize unjust behavior. The question then arises as to what corruption really is and why has it not been discovered. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayCorruption is like a quid pro quo process between public officials and business leaders. It is an illegitimate process of granting favors as a means of accomplishing tasks illegally, such as granting business rights, licenses, permits, allocation of industrial land, tax breaks, l awarding contracts, tendering and changing laws to suit businesses. interest. Corruption was previously categorized as political and legal studies, which many people avoided studying, but now, after the OECD Anti-Bribery Convention in 1999 and the disintegration of several companies, corruption and other illegal and illegitimate aspects of the conduct of business activities. attracted the interest of critics. As a result of this recognition, approximately 25 articles in the Journal of Business Ethics and six articles in Business Ethics Quarterly were published dealing with the illegal, illegitimate and corrupt aspects of business. The Strategic Management Journal has also published a few publications focusing on the various reasons why corruption exists in contemporary business, but until now no work has been done on the angle from which corruption appears as a problem of “management decision making”. CRDM is a potential contribution to the contemporary process of reconceptualizing the role of business and the market economy in management theory and practice. Corruption in contemporary business determine its severity should be the impact it leaves on the stakeholder community. The definition of corruption is generally limited to the simple fact of deviating from norms, laws, jumping a queue or benefiting from an undue favor. But what decision-makers fail to understand are the far-sighted stakeholders who are affected indirectly or in the longer term. One wrong decision made in compelling circumstances and leaders find themselves participating in acts of corruption leading to human rights violations, environmental degradation and endangering sustainable development. Just as cells are the building blocks of a life, businesses are the building blocks of a life. economy. The more business a country does domestically and internationally, the more success, fame and power it gains. However, if under such conditions, rather than promoting respect for human rights, environmental protection and sustainable development as a duty to society, businesses begin to deny them, then the core of civil society is at stake, because on the part of a stakeholder In this perspective, thisNot only individuals are at stake, but morals, ethics and society are also affected. Why do employees pay bribes? The most effective way to combat a problem is to first understand why it exists. Now that it has been established that corruption is a practice in contemporary business, it is time to find ways to eliminate this practice. Amid growing concern over corruption, several companies have launched anti-corruption campaigns to control the problem. However, despite this, some employees continue to pay bribes. What needs to be understood in this context is that not all employees do it out of bad intention or in order to get ahead, but sometimes this is induced by the pressure surrounding an employee to succeed, to do their job, and to be compatible and competent. Most people choose the easiest route to be able to get the star of the month reward. Additionally, statistics show that employees at several companies do not take the employee code of conduct seriously, making it easy for them to break the rules. The combination of these two factors disrupts the overall environment of a workplace to the point where it becomes unmanageable. Ashforth and Anand propose a three-step model for controlling the spread of illicit practices. Firstly, he makes management understand the position of employees in the practice of corruption; that it is not always intentional. Some employees do it under pressure and when the latter succeeds, others follow suit. In this regard, while the employee who commits a corrupt act wins, gets the reward and does not get caught, the second stage of the model continues where other employees approach the illicit behavior assuming that management will do so. encourages. And finally, in the third stage, corruption becomes a practice rooted in the roots of a company where neither employees feel remorse for having done wrong, nor their ethics are questioned. This implies that simply hiring ethical employees is not enough, rather the important thing is to practice ethical behavior as part of a comprehensive compliance and ethics program. When do compliance and ethics programs help prevent the payment of bribes? The goal of these programs is to educate employees that paying a bribe is an illegal act that is not supported by the company. When they identify a wrong action rather than justifying or rationalizing it, they should contact authorities and managers to tackle the problem so that it is not subsidized rather than resolved. Ethical climate and ethical culture are two terms proposed by social psychologists who study the influence of ethical behavior on organizational contexts. An ethical climate is employees' views on appropriate behavior within an organization, and on the other hand, ethical culture refers to the organizational aspects of pursuing ethical behavior; like reward systems. The researchers concluded that ethical climate and ethical culture are strongly correlated and that their simultaneous existence within an organization promotes the ethical behavior of its employees. A meta-analytic review showed that simply publishing a code of ethics and conduct is not enough to ensure its enforcement, but rather employees must be assured of an ethical culture; that the company was strict about its implementation, only then can an organization be successful in reducing acts of corruption. Similarly, Spahn (2013) discussed that when employees perceive that aorganization complies with the ethics program just to protect its image and save its management from blame, then employees act in reverse and an increase in illegal activities is detected compared to the case where a company implements a compliance and management program. ethics to promote overall ethical behavior, punish wrongdoing, and reward legitimate workers. In addition to this, Gutterman (2015) proposed another scenario that leads employees to lose the legitimacy of an ethics program; this is when companies implement it to meet external demands. As a result, employees are usually so motivated that they do not even consider the relevant ethical issues that were actually being addressed; in this case, corruption. This simply shows that implementing a compliance program is not enough, but the technique and direction with which it is inaugurated has great value for employees. So, whenever there is talk of corruption; Corruption is being fought. Every manager should first focus on enforcing an ethical culture. What are companies doing to overcome corruption? So far, the reasons why corruption; Payment of bribes is practiced and the reasons why it could not be overcome have been discussed in this article. Now it's time to discuss how the problem can be resolved to root it out. In this regard, the first opinion that emerges is that organizations analyze what corruption is for them and what responsibility do they think they have towards the society in which they operate. Corporate social responsibility (CSR) is what can lead a company to overcome corruption. . The subject of CSR has already been discussed before; that every company is responsible for its society to ensure the implementation of human rights, sustainable development and environmental protection. According to this concept, if each staff of an organization as well as the personal vision of the organization is structured according to the importance of preserving CSR, then the job is done and the company is free from corruption. However, if everyone's morals and ethics are of no use then the forced path is obviously to opt for anti-corruption programs initiated by the government. These programs are designed to increase transparency and accountability within the organization; from its officials to the office boy. Alongside the programs, emphasis is also placed on strengthening and enforcing relevant laws associated with corruption. But researchers debate that these policies are ineffective until the fundamental problems that lead a person to engage in bad behavior are addressed. To certify their success, one must first address the issues of poverty and inequity, enact and enforce anti-corruption laws, improve democracy, ensure civil service, and reform dysfunctional dimensions or aspects of government. fully combat corruption in contemporary businesses, by designing respective cultures, systems and structures in a way that institutionalizes the fight against corruption. Yacobian (2014) argues that an effective framework for controlling corruption could be to start educating from the earliest levels on the harms of corruption, detection of corruption and deterrence through embedding corporate culture , organizational structure and compliance system. And in the fight against corruption, organizations must structure the framework in accordance with their vision..