PART 3: Creating an Ethical Organization
Chapter 15: Corruption
(Refer: Chapter 19 of Textbook)
Introduction
Corruption refers to the misuse of public office or entrusted power for personal
gain. It includes taking bribes, giving bribes, abusing official position, or using
illegal means to influence decisions.
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Broadly, corruption can be classified as
Collusive
Harassment
General classification of administrative corruption
Transactive
Extortive
Defensive
Investive
Nepotistic
The normalization of corruption in organizations
Further reading: 30 The normalization of corruption in organizations
Institutionalization
Further reading: 30 The normalization of corruption in organizations
Rationalization
Legality
Denial of responsibility
Denial of injury
Denial of the victim
Social weighting
Appeal to higher loyalties
Metaphor of the ledger
Refocusing attention
Further reading: 30 The normalization of corruption in organizations
Socialising into corruption
Further reading: 30 The normalization of corruption in organizations
Corruption in India
Corruption can be very much reduced if administrative decision making is
transparent, and when discretion is reduced, rent seeking opportunities shrink,
officials are penalized for deliberate delay and exemplary punishment awarded
without loop-holes or exception.
Corruption thrives in India due to
scarcity of goods and services,
lack of transparency
complicated rules and red tapesim which can be overcome and things got done only
through ‘speed money’,
the legal provisions that assume that everyone is innocent till proved otherwise, and
the sense of tribalism amongst the corrupt and the corrupted.
Ill effects of Corruption
corruption adversely affects the poor directly
as it pushes up the charges for public services, lowers their quality and more
often than not restricts their access to water, education, healthcare and many
other basic and key services.
Indirectly too corruption affects the poor
in as much as it acts as an impediment to economic growth and
development, besides reinforcing inequality of income and wealth and
causing unequal allocation of public expenditure. It is thus an obstacle to
poverty alleviation.
Indirect Effects of Corruption
On a macro economic level, corruption impedes a country’s propensity to attract
investment, makes the country’s institutions ineffective and vulnerable and does not
promote economic growth and poverty alleviation through an efficient system of
taxation and income generation.
It affects the way funds are allocated in the government budget diverting
expenditures away from less lucrative, but in more essential sectors such as
education, health care and public services to high kickback areas such as construction
“spending on operations and maintenance may also be squeezed out in favour of new
projects, leaving existing roads, hospitals and other public infrastructure to decay.
Corruption also feeds inequality while a corrupt free governance promotes growth
and public welfare.
Prevention of corruption Act 1988
To whom it applies
The Act applies to a wide range of public servants, including government employees, officials of government-
aided bodies, judges, arbitrators, university staff, and employees of public sector undertakings.
What Counts as an Offence
Accepting, obtaining, or attempting to obtain undue advantage (bribe).
Giving or offering a bribe to a public servant.
commercial organisation bribing to obtain business.
Public servants obtaining undue advantage without proper consideration.
Criminal misconduct such as misappropriation of property or possessing assets
disproportionate to known sources of income.
Amendments
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