Lesson 11 Flashcards
(21 cards)
is dishonest behavior by those in positions of power. Those who abuse their power may be individuals or they may belong to organizations, such as businesses or governments.
Corruption
Causes of Corruption
International Monetary Fund (IMF)
Price controls
subsidies
tariffs, and trade barriers
cites several key factors that contribute to corruption. These include government intervention in the economy, the liberalization of policies, and the deregulation and privatization of certain industries.
International Monetary Fund (IMF)
Corruption thrives when governments intervene by putting these in place to keep prices lower for certain goods and services.
Price controls
Eliminating foreign competition through _________________ thereby opening up the possibility of a semi-monopoly by domestic players.
trade restrictions, tariffs, and trade barriers,
Corporations and groups may receive government grants and ________ when they aren’t the intended recipients.
subsidies
Corruption Prevention
Education
Environment
Accountability
Regulation
Reporting
A strong educational focus must reinforce best business practices and alert managers and employees where to look for corruption.
Education
A robust control environment reduces the risk of corruption as do thorough background checks before hiring or promoting employees.
Environment
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.
Accountability
Setting up codes of conduct and ethics can help avoid situations that can create conflicts of interest.
Regulation
______ _______ hurt economic development and fairness in business. Many countries and global organizations have created laws and guidelines to stop bribery, especially in international business
Bribery and corruption
_______________ are systems, rules, laws, and practices designed to prevent, detect, and punish corrupt practices like bribery, fraud, embezzlement, and abuse of power.
Anti-corruption frameworks
These frameworks can be implemented at the international, national, or organizational level. They typically include:
Laws and regulations (like FCPA or UK Bribery Act)
Compliance programs in companies
Monitoring and enforcement by regulatory bodies
Reporting mechanisms for whistleblowers
Laws and Agreements
UK Bribery Act (2010): UN Convention Against Corruption (2003):
OECD Convention (1997): UK Bribery Act (2010):
US Foreign Corrupt Practices Act (FCPA):
Makes bribing foreign public officials illegal.
OECD Convention (1997):
Covers bribery in both public and private sectors.
UN Convention Against Corruption (2003):
One of the strictest laws. Applies globally to any company with ties to the UK. Covers bribing others, accepting bribes, bribing officials, and failure to prevent bribery.
UK Bribery Act (2010):
Focuses on bribes to foreign officials if linked to the US.
US Foreign Corrupt Practices Act (FCPA):
To strengthen the UK’s ability to fight bribery and corruption both domestically and internationally.
- UK Bribery Act (United Kingdom, 2010)
Tools for Fostering a Culture of Integrity
- Clear Code of Conduct / Ethics
- Leadership by Example (“Tone at the Top”)
- Ethics and Compliance Training.
4.Whistleblower Hotline / Reporting Mechanism - Rewarding Ethical Behavior
- Regular Risk Assessments
- Internal Controls and Monitoring
- Open Communication Channels
- Third-Party Due Diligence
- Regular Audits and Investigations
