StudentShare solutions
Triangle menu

Corporate Corruption: Causes and Reactions - Essay Example

Not dowloaded yet

Extract of sample
Corporate Corruption: Causes and Reactions

Executives are charged with criminal offenses, politicians rush to propose new legislation, and the country tends to forget the root causes of corruption, and the public policies that make such corruption possible, until new cases inevitably emerge.
To be sure, new cases emerge rather frequently. No sooner do the Enron executives of the world enter the appeals process than new indictments are being readied for the latest round of corporate scofflaws. Just two days ago, for instance, it was reported that one of America’s foremost corporations, the chip maker Intel, is being investigated for unethical pricing methods in an effort to eliminate competition and to thereby sustain its share value (Landed, 2008: 27). Another major American multinational corporation, General Electric, is being forced to defend allegations of tax fraud by its subsidiaries in Latin America (Johnston, 2008: 27). The clear implications are threefold: (1) corporate corruption seems a systemic feature of the American capitalistic system; (2) heavily publicized efforts to create legislation and programs to prevent or minimize cases of corporate corruption seem riddled with flaws and loopholes; and, (3) the people whom suffer the most are the majority of the American public.
In order to provide a clearer picture of the problems associated with corporate corruption, I would like to discuss the fundamental causes of corporate corruption, the types and consequences of corporate corruption, some illustrative cases, and some of the proposed remedies.
Causes of Corporate Corruption

As a preliminary matter, it is essential to note that corporate corruption is not a single, precise type of abuse; quite the contrary, cases of corporate corruption take many forms and manifest themselves in the abuse of different types of public trust and the violation of different types of legislative frameworks. There are, for instance, cases of corporate corruption which result from fraudulent or misleading accounting practices, from the improper use of inside or proprietary information in violation of relevant securities laws, from the use of offshore entities and jurisdictions in order to evade taxation and thus inflate balance sheets and share values, and fraudulent or misleading representations about products in development or research data. In short, the notion of corporate corruption must be viewed as an umbrella designation within which many different types of abuse may and do occur.
What causes these different types of corporate corruption If policy makers are to design and implement effective types of protective legislation then it is imperative to understand the root causes or the motivations which lead those in charge of corporations to engage in abusive and corrupt practices.
In a commentary delivered by a leading scholar to the Financial Times, it was stated thusly:
What led American executives to think they could get away with hiding billions of dollars in corporate losses or invent staggering amounts of non-existent revenues Greed, arrogance, dishonesty and other human frailties are obvious answers. But they are not the most interesting. After all, hubris and corruption among the powerful are as old as the Bible. The 1990s excesses are another popular explanation. The economic bonanza and the ease with which new capital was raised even for the most unjustified ventures contributed to the recent wave of corporate frauds, as did the extravagant compensation schemes that became fashionable (Naim, 2002: n.p.)
Such assertions, that greed causes corporate corruption for example, are misleading. They are misleading because greed is simply a generally category of human behavior; the truest causes are those which inspire the greed ...Show more

Summary

Hardly a year goes by without a major case of corporate corruption being highlighted by the mass media. Some of the major cases that spring to mind include such notorious corporations as Enron, Global Crossing, and the ImClone stock trading case.
Author : kathlyn08
Corporate Corruption: Causes and Reactions essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Corporate Corruption: Causes and Reactions"
with a personal 20% discount.
Grab the best paper

Related Essays

Police Corruption
There are various sorts of police corruption acts; one is the corruption of authority where police officers are given free items by the suspects. Secondly, there is the act of opportunistic theft from the suspects and the victims of a criminal act.
6 pages (1500 words) Essay
Corporate Governance and Ownership
This paper discusses how globalization brings about changes to the corporate governance in East Asia. This paper examines the recent change or governmental reformation of Japan, China and Singapore in terms of corporate ownership structure and governance.
32 pages (8000 words) Essay
Police Corruption
Researchers have been conducted on this subject as police corruption has proved to play a negative role for different societies. Researchers have concluded that individuals responsible to conduct police duties are vulnerable to corruption as these individuals have authority, they have discretion to take actions on their own, their duty is such that they are in constant contact with different crime committers, and actions they perform are not always in the best interest of the public.
5 pages (1250 words) Essay
Corruption
Intention is an important factor. Thus, the “gift culture” cannot be an excuse for someone who practice or engaged into corrupt practices. I believe that corruption exists in all kinds of societies and does not leave out the traditional ones. Deflem (1995) viewed traditional practices in non-industrialized societies as practices that cannot be labelled corrupt because these might be justified in the traditional life world.
2 pages (500 words) Essay
Corporate Social Responsibility
There is very little information on how corporate decision makers can reconcile differences between the public and private interest goals. There are no singular limitations of CSR concept which act in the favour of aligning the personal and business goals (Tapang and Bessong, 2012).
7 pages (1750 words) Essay
Anti-corruption: Transparency in private sector Corporate Governance
Then, Corporate Governance which acts as a tool against anti-corruption is dealt with. The main theme of transparency in Corporate Governance is also elaborated in depth. The adherence to Corporate Governance by the private sector companies in Egypt are mentioned next.
5 pages (1250 words) Essay
Political Corruption
Social scientists and policy makers have long been puzzled by the relationship between corruption and political and economic development and the question of how to effectively hold corruption and scandal. Conventional perception is that corruption harms rule of law, demoralizes the society, and inhibits economic growth.
12 pages (3000 words) Essay
Corporate social responsibility
Practicing CSR enables the managerial procedures into practice and indicates a pluralistic society that maximises freedom of expression,action,and responsibility which in turn results in a widely diversified set of loyalties to many different causes and organisations and minimises the danger that any one leader of any one organisation will be left uncontrolled.
10 pages (2500 words) Essay
Corruption
Intention is an important factor. Thus, the “gift culture” cannot be an excuse for someone who practice or engaged into corrupt practices. I believe that corruption exists in all kinds of
2 pages (500 words) Essay
Corruption in corporate America
However, after 2 weeks, my friend said that his department head says he still does not have enough money and promised to help my friend get a higher ranking instead. My friend was then fervently asked not to mention this concern to anybody connected to the
2 pages (500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation