Corruption in International Businesses

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1750

A trend is not only detrimental to the socio-economic&nbsp.life of the people living in the country. it also affects the stability of both public as well as private institutions (Ginnochi). Corruption and bribery diminish the productivity of organizations and also affect the confidence of public in institutions and governmental setup. Curbing corruption, therefore, becomes imperative for the economic progress of a country. Despite global efforts and legislation by countries in this regard, corruption stays at a very high level, particularly in the underdeveloped world. This has very bad implications on international investment trends in poor countries. Moreover, most of the organizations including some multinationals do not have strong code of ethics regarding corruption and are involved in paying bribes to the governmental officials in poor countries for securing contracts. So for the eradication of corruption steps will have to be taken on two levels. legislative and institutional reforms in the administrative setups of the countries to ensure least involvement of government officials in corruption and formulation of strong code of ethics against corrupt dealings and bribery by business organizations in order to minimize the chances of corruption (Eicher). Corrupt practices at an international level can do more harm to poor countries than corrupt practices at a local level because it affects the prospects of the development of international businesses in these countries. In international businesses usually, a lot of capital is involved and most of the time it is derived from the public funds of the country, therefore, thousands of lives are at stake. Corruption significantly affects the prospects of growth which fair competition offers (Luo). When organizations get big contracts through unfair means this greatly affects the morale of the employees of honest organizations motivating them towards corruption.