Business case against corruption

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Business case against corruption
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Cost of corruption

• Corruption may seem necessary but the cost is
  high in terms of
• Legal risk( fines and penalties)
• Reputational risks( loss of stakeholder
  confidence)
• Financial costs ( add 10 to costs 25 to public
  procurement costs)
• Blackmail
• Personal risk( jail term)
• 'The one who cheats will be cheated against
• Known as clean repeat demands

According to the world bank bribery is 1
trillion industry
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Corruption Dilemma
Private sector can be a Source of corruption
Solution?
Private sector can be a Victim of corruption
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The Corruption Question

• How does one ensure that partners and competitors
  are ethical?
• How does one change the culture of doing
  business?
• How does one get competitors and stakeholders on
  board?

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Company exerciseHow do we work with corruption?

• In the context of your business
• List five situations where you see corruption
  occurring (for each company)
• Categorize the above situations into -
  bribery/facilitation.
• Can you identify the root causes in these
  situations? ( internal/external)
• Discuss possible solutions to avoid corruption in
  the above cases.

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Anti corruption efforts

• Understand corruption in your context-bribes
• Distinguish b/w hard soft forms of corruption
• Start with the small things- low hanging fruit.
• Establish a Corporate culture against corruption
• Build consensus against corruption in the
  business community
• Watch business relationships for corruption
• Avoid situations that could lead to bribes
• Be transparent

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Anti corruption efforts

• Have a written policy against corruption
• Collective action Dont be alone
• Be aware of legislation/regulation applicable to
  prevent non-compliance and avoid bribes.
• Use instruments of Whistle blowing.
• Involve customer/supplier other relevant
  stakeholders
• Create a level playing field- collective action

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• December 9th Is Internationalanti-corruption day