CORRUPTION
BY RAKSHIT KAKRAN
BA LLB 8TH A
2521039
CORRUPTION
Corruption happens when one abuses power entrusted to them for
personal gain. This misuse of power erodes the trust between two
or more parties and makes a democracy weak. Not only that, but
corruption can also hinder the economic growth of a nation and
aggravate poverty and inequality. It is essential to understand how
corruption works to be exposed and the corrupt can be held
responsible for creating a corrupt system.
Who can be involved in
corruption?
Anyone can be involved in corruption. It can include a politician, public
servant, school administrator, government officials, managers in a firm,
coach of a sports team, and more.
Types of Corruption
• Misuse of public money is when politicians use their power to
steal money that they should be spending on their constituents.
• Bribery is defined as giving something such as money or gifts in
order to influence someone’s actions with an intent to either
covertly extract information or blatantly gain favors.
• Cronyism is often referred to as cozy relationships between
businesspeople and government officials.
• Favoritism can take many forms but most commonly it refers to
using your position for personal benefit.
• Nepotism is when you give someone preferential treatment based
on family relationships instead of merit.
• Sabotage can take many forms, but one example would be
wasting resources for malicious purposes.
Causes of Corruption
• Lowering wages for civil servants compared to those in the private sector. Certain
employees may resort to taking bribes in order to compensate for the difference in
wages.
• Price controls. Corruption thrives when governments intervene by putting these in
place to keep prices lower for certain goods and services.
• Eliminating foreign competition through trade restrictions, tariffs, and trade barriers,
thereby opening up the possibility of a semi-monopoly by domestic players. The
latter are more likely to resort to corrupt behavior to keep restrictions in place for
foreign companies to keep their place in the market.
• Corporations and groups may receive government grants and subsidies when they
aren't the intended recipients.
Corruption Prevention
• Education: A strong educational focus must reinforce best business practices and alert managers and
employees where to look for corruption. This can be achieved by introducing mandatory education such
as anti-money laundering (AML) courses. Senior executives and managers must set a strong culture of
honesty and integrity by leading by example.
• Environment: A robust control environment reduces the risk of corruption as do thorough
background checks before hiring or promoting employees.
• Accountability: When there are mechanisms in place, there's a likelihood of reinforcing a culture that
fosters strong ethical behavior while holding those to account who violate the norms.
• Regulation: Setting up codes of conduct and ethics can help avoid situations that can create
conflicts of interest. This is common in areas like the financial industry, where chartered financial analysts
and other financial professionals must adhere to these rules or be penalized.
• Reporting: Corruption can further be reduced by making it easy to report, whether by managers,
employees, suppliers, and customers. It's also important to ensure that those reporting are able to do so
safely and securely.
Conclusion
Corruption is a major problem in many countries, because it
undermines the foundations of democracy, good governance,
social justice, and economic development. Corruption has many
consequences. One of them is that it increases poverty by
diverting public funds from programs like healthcare or education
to pay for the lavish lifestyles of corrupt officials. Another
consequence is that it undermines democracies because people
don’t trust their [Link] it is hard to determine
the effectiveness of many of these approaches, there is no doubt
that all of them are necessary for fighting corruption. The
government must take these measures now so that they may
progress in developing their country.
THANKYOU