The Most Corrupt Countries - Coursework Example

 I. Compare and contrast the most corrupt countries with the least corrupt countries. A. When “temptation meets permissiveness”—where corruption exists According to Transparency International, corruption exists in places where “temptation meets permissiveness.” As temptation comes in the form of huge sums of money, the degree of permissiveness determines the level as to which temptation will be seized. In other places, temptation may not come in the form of huge sums of money, but any amount of money. This is most true in relatively poor countries which make any person to resort into corruption in order to improve living on a very short-term basis. Permissiveness on the other hand is related to the costs that a person incurs when he or she engages in corruption. The costs may come whether as legal and economic costs in the form of threat of court litigations which may result in substantial fines or penalties, or at the worst, imprisonment. Or they may come in the form of social costs, such as loss of face, reputation and opportunities like jobs and access to credit. The relative level as to these costs are prevalent will determine the factors that will discourage corruption. In other cases, the absence of it creates incentives to those who commit to corruption, making the act more and more prevalent. B. Temptation: implication of economic indicators of countries compared and contrasted In order to compare and contrast the most ethical countries—Canada and Japan, to the least ethical countries—Romania and the Philippines, we first look at this existence of temptation due to the relative income of the country and its relevance to corruption. Large sums of money are usually one of the major causes of corruption. Apart from this cause, there are certain inherent causes that make even small amounts of money “temptations” in facilitating corruption. In other countries, the relative poverty of the people makes even the slightest chance to get a small amount of money through corruption possible. Although corruption cannot be entirely attributable to poverty, poverty pushes people to look for ways to get money—corruption provides opportunities for those. The World Bank comes up with a purchasing power parity system that will represent the cost of living in a country based on relative price levels using international dollars. The report gives a detailed gross national income per capita of the countries using the purchasing power parity method. According to the purchasing power parity in the report, Canada’s gross national income per capita is 35,310 while Japan’s is 34,600; these two countries rank 26th and 28th highest among the world in terms of gross national income per capita. Using the Atlas method, another method but uses US dollars instead of international dollars, Canada’s gross national income per capita is 39,420 while Japan’s is 37,670. They rank 22nd and 25th highest respectively among the other countries World Bank had studied. In contrast, Romania and the Philippines rank 87th and 141st highest under the purchasing power parity method, with 10,980 and 3,730 in gross national incomes per capita respectively. Under the Atlas method, Romania and the Philippines rank 83rd and 142nd, with gross national income per capita of 3,730 and 1,620 respectively. The two most ethical counties are part of the G7 or group of seven nations. As apparent in the per capita income of Japan and Canada, under both Atlas and purchasing power parity method, these two countries are some of the wealthiest in the world. On the other hand, Romania is in the relatively lower rank as well as the Philippines—part of the relatively poor countries in the world. C. Permissiveness: implication of political systems of countries compared and contrasted Japan and Canada have faced relatively stable governments over the past decades. This stable political system has enabled institutions to strengthen their practices, which makes the acceptance of ethical codes within the institution easier, thus making the anti-corruption activities more effective. The stable political institutions over the years have developed as these countries grow. On the other hand, Romania and the Philippines have a thing in common in terms of the political system—the two countries have both been under dictatorship and have only been liberated in the past twenty years. Thus, after the fall of the dictators in the respective countries, political institutions stagger to uphold their very purposes, as well as integrity. These weak institutions make reinforcement of laws and policies less effective for the countries, and while anti-corruption efforts have started to materialize to combat the acts, the countries are on a long way before they can establish ethical conduct. This is because, in this countries, like other countries that are plagued with corruption have their leaders and key people part of the corrupt system, also benefit in the process which makes the effort to combat corruption less effective. II. What are the trends in corruption for these respective countries? A. Canada Canada is one of the least corrupt countries according to the report in the National Integrity System. The result of the efforts of the Canadian people in order to combat corruption has made transparency among the various institutions in the country is vital in order to encourage public trust. The challenges that face Canada as regards corruption are the globalization and the increasing roles of the public sector as regards trade and globalization. As more services become privatized, the trend of corruption in the country is now geared toward the fraud and other corruption in the private sector. B. Japan According to the National Integrity System Country Studies for Japan (2006), the country faces four types of corruption namely, administrative corruption, individual political corruption, institutionalized or systemic corruption, and corruption within the private sector. In the first type of corruption, the NIS describes it as when a “lower-level government officials and private individuals are involved in small-scale malfeasance (2006)”. As for the individual political corruption, the “high-level government officials, politicians, businessmen or intermediaries are involved in secret collusion, with illegal donations and collusive bidding dominant”. The third type of corruption, the systemic or institutionalized corruption involves “powerful political leaders and business interests try to personalize and manipulate the state organs and wealth in their own interest through close relationships with bureaucrats.” The fourth type of corruption pertains to the private sector. The NIS describes it as follows: “bid-rigging by a supplier and a receiver in collusive agreement in an attempt to induce and share illicit profits at the cost of the trusting partners […] bid-rigging is said to prevail in most domestic as well as international transactions; private-sector companies defrauding consumers, shareholders and/or regulators; illicit disguise of commodities, as has occurred with deceptive reporting of imported beef/pork and defective diesel particulate filters (DPF).” C. Romania After the fall of communism in Romania, corruption has been seen as a result of the transition to another model of society. As Alison Mutler in her article “Poverty, Corruption Haunt Romania” (2002), she describes the trend of corruption as follows, “but most Romanians still barely get by in grinding poverty and believe the only way out is by being corrupt. It begins with parents having to give teachers gifts to make sure their children are well treated. It continues with having to ay a bribe for a driver's license, decent hospital treatment or a seat on a crowded airliner. Romanians routinely ask each other, ‘What did you open the door with?’ The answer: a packet of coffee, a bottle of perfume, a carton of Kent cigarettes.” Corruption in Romania can be illustrated to have penetrated the daily lives of the people. The trend of corruption suggests that while the act is not only prevalent in public institutions but also among many individuals, the unethical practice has been very prevalent in the country. D. Philippines Quoting from the National Integrity System Country Report Studies for the Philippines (2006), “public and private sector corruption come in two types – grand and petty. Grand corruption involves large amounts of money, ‘big fish’ corruptors and large doses of undue influence. Examples of grand corruption prevalent in Philippine society are: state capture, presidential graft, electoral corruption, ‘money politics’ and irregular practices in procurement projects. Petty corruption occurs in the form of ‘speed money’ for bureaucrats, tong (speed money) for the police and bribes for court officials.” Corruption in the Philippines is prevalent in both the public and private sectors of the society. While usually depends on the favor the other party expects in return, will the range of amount of money be determined and qualified either as grand or petty. Even the lowest-level officials in both the private and public sector can engage in petty corruption, as apparent in its prevalence in its society. III. What are the major differences between the most and least corrupt countries you selected? A. Economic profile The most corrupt countries differ greatly from the least corrupt countries in terms of economic profile. As stated earlier, the most corrupt countries are relatively poorer than the least corrupt countries in terms of gross national income per capita. Also, investments in infrastructure and necessities such as public healthcare and public education are not given enough emphasis on the spending of the most corrupt countries. B. Political system The two groups vary in terms of the strength of political systems in the respective countries. As discussed earlier, Canada and Japan have long experienced a stable government over the decades which help their institutions instill a sense of purpose as well as integrity in their operations. This political stability has enabled governments to enact policies and make sure they are reinforced well in order to make efforts more effective. On the other hand, the Philippines and Romania ever since they are freed from dictatorships have not yet strengthened their institutions again in order to ensure enactment of policies. The weak political system in these most corrupt countries makes increasing the costs to offset the incentives of engaging in corrupt practices. C. Emphasis on civil vigilance The emphasis on civil vigilance differs among the two groups. The least corrupt countries have more active civil societies which engage in resolving public dilemmas, and contribute by expanding the public awareness about a certain issue. Civil vigilance have been part of the success of combating unethical practices in the least corrupt countries, in that they increase the number of watchdogs, thus the pressure for the public sector to reinforce the policies. On the contrary, civil societies in the most corrupt countries are less active in engaging in political talks and resolving dilemmas regarding their countries. Thus, the force behind resolving certain issues is weak, that leads to weak reinforcement as well. This force from the civil societies encourages governments to do the same, and be active in resolving issues such as corruption. IV. What influence does culture play in the countries business ethics? A. Canada Canada is an English and French-speaking country and has long developed a culture of integrity by encouraging vigilance among the public, through public discussions and forums. The Canadian government has been very active to combating corruption by establishing ethical codes and guides for their various institutions, as well as encouraging transparency among the various agencies. By involving the public as a whole, Canada has ranked as one of the most ethical countries in the world. Vigilance of the citizens also plays a great part in the effectiveness of combating corruption. While there are forums and public discussions when resolving public issues the country faces, non-government organizations have been very active in being watchdogs and encouraging the citizens to do the same. B. Japan Among the Japanese, a certain level of corruption is still prevalent. But the efforts of the Japanese government to instill reforms as part of the anti-corruption practices have been successful partly to the culture of the Japanese. The prevalence of corruption is attributed to the Japanese culture that has roots in the ancient days when harmonizing with other people is the ultimate value in order to be respected. This part of the culture of the Japanese, as some people say, is the reason why others are not participating actively on combating corruption. While this can be partly true, the benefits and costs to a country of its people engaging in corruption has made the Japanese people more vigilant and surpass the dictate of culture. The effectiveness of the Japanese government’s effort to instill reform is made possible by people from the private sector, media and other non-government organizations to serve as watchdog and induce transparency among government transactions. C. Romania While there are a lot of reasons why people engage in corruption, the prevalence of it in Romania has been attributed by some to its history with the Balkans, where bribery is a common thing. While the political system and economic factors may have an influence on the prevalence of corruption, the culture has a bit of a stronghold. D. Philippines Corruption has been prevalent in the Philippines because of the incentive to doing it exceeds the cost of engaging in the act. Apart from this and other factors such as weak political institutions and poor economic progress, culture is considered a factor as regards prevalence of corruption in the country. The long history of the country with the Spaniards and American occupation has distorted the culture of the citizens in such a way that most practices that lead to corruption, such as cronyism and nepotism have become prevalent. E. Implications Given the culture of the countries as a factor on how the countries are able to combat corruption or not, culture does play a part in a country’s business ethics. The strength of the culture plays to reinforce what is acceptable and not acceptable as regards people’s behaviors. A certain culture that condemns corruption and supports it with all the vigilance makes the efforts more effective. On the other hand, there are cultures that support corruptions, not in the sense that culture promotes it, but there are certain behaviors that are part of the culture, and considered normal lead to corruption itself. Other countries that have become aware of their own cultures and made adjustments and changes in their culture in order to adopt more transparent practices against corruption have been more effective in their anti-corruption efforts. This is because, by being aware whether a certain set of behavior counteracts or leads to corruption, people can make choices on their own and start to act. V. What are the major ethical problems of the least ethical countries? A major dilemma that the least ethical countries face is the necessity to lessen corrupt practices in order to reduce the cost of corruption and spur growth, but in order to lessen these unethical and corrupt practices governments have to invest huge sums in training and reinforcement. The government of one of the least ethical countries has to make priorities in order to combat corruption, and make sure that this is part of its budget. Apart from the resources, another dilemma that the least ethical countries face has something to do with reinforcement and initiatives. While the initiative may come from groups outside the government, policy-makers are the ones who have the power to enact laws in order to combat corruption. However, if the same policy-makers are involved in corruption, how can policies be enacted to combat it? Thus, in pursuing anti-corruption activities, these are some of the major ethical problems the least ethical countries face. VI. What issues or actions favor the most ethical countries? The fervent reforms in order to make anti-corruption activities have encouraged public trust and participation among the public. Because of enhanced transparency among the different agencies and institutions within the country, more people are encourages to contribute by expanding public awareness and joining forums. Civil vigilance is sparked further by continuous effort from the public sector and government to combat corruption. Also, these reforms have positive effects on the integrity of the business sector. By instilling reforms and focusing on incorporating ethics on the way of doing things in both the public and private sector, trust is improved which gives a lot of benefits to relationships especially for business entities and investors. VII. What are possible ways to lessen the corrupt and unethical behaviors? A. Educate the people about the costs of corruption to the country as a whole One of the ways to lessen the corrupt and unethical behaviors is to educate the public about the relevant costs of corruption to society. By making the public informed about what happens when a person engages in corrupt and unethical actions, the public can make choices to combat it. By providing the public about the costs of corruption to a country, even not the quantified ones, the public sees the adverse effects of it and how relevant it is to them as people. B. Increase the cost of doing corruption against the benefits Another way to lessen the corrupt and unethical behaviors is to increase the cost, or risks to incur when a person engages in corruption. When costs relative to the incentives or benefits to a person are small or relatively nonexistent, the act seems to be rewarding enough, thus it will just become more prevalent. But increase the costs and the risks to doing it, enough to offset or surpass the incentive that will be received—corruption can be curbed as many will find it less beneficial, if not detrimental to engage in such acts. C. Develop ethical guidelines and invest in trainings In line with the suggestion of educating the public in order to combat corruption, the government can develop ethical guidelines and agencies to disseminate these guidelines to the various institutions in the country. A national ethical guideline can be considered. By investing also in trainings in order to make sure the implementation of these guidelines, corruption can be curbed by discouraging at a mass level corrupt and unethical acts that people may commit without realizing them. Trainings will also make people know how to respond when they are faced with ethical dilemmas, as such that involve corruption. D. Involve the other institutions: media, private sector, NGOs By involving the other civic forces within a society such as the media, private sector and non-government organizations, the effectiveness of the efforts to combat corruption can be increased. By increasing the number of watchdogs to force the public sector as well as most of the institutions to observe ethical guidelines, pressure can be applied to hasten the effects of the efforts. The more people are involved to put pressure on reinforcing the policies, the better for the country. VIII. How does your home country compare with the least and most ethical countries you selected? Please explain. A. US-near the most ethical country in the scale; United States has belonged to the group of the more ethical countries according to the Global Corruption Barometer of the Transparency International. United States, like Japan and Canada, also fares high in terms of its gross national income per capita under both the purchasing power parity method and the Atlas method. Another thing that is also in common with United States and Canada and Japan is the constant vigilance of both the government and the civic societies to combat corruption. The awareness of the civic societies and activism among non-government organizations to combat corruption also contribute to the success of the United States as a country to give priority on ethical values in its business practices. Reference List Bartol, K., Martin, D., Tein, M., & Matthews, G. (2001). Management: A Pacific Rim Focus. Australia: McGraw Hill Company. Ferrell, O. C., Fraedrich, J., Ferrell, L. (2008). Business Ethics; Ethical Decision Making And Cases, 7th ed. Houghton-Mifflin. Mutler, A. (2002, February 17). “Poverty, Corruption Haunt Romania”. Associated Press. Global Policy.Org. Retrieved September 15, 2008, from http://www.globalpolicy.org/nations/launder/regions/2002/0217romania.htm. Transparency International. (2001). Transparency International Country Study Report. Canada 2001. Transparency.org. Retrieved September 15, 2008, from http://www.transparency.org/content/download/1637/8332 Transparency International. (2006). Transparency International Country Study Report. Japan 2006. Transparency.org. Retrieved September 15, 2008, from http://www.transparency.org/content/download/14728/156321/file/japan_r.pdf Transparency International. (2005). Transparency International Country Study Report. Romania 2005. Transparency.org. Retrieved September 15, 2008, from http://www.transparency.org/content/download/2843/17675/file/romania_r.pdf Quimson, G. (2006). Transparency International Country Study Report. Philippines 2006. Transparency.org. Retrieved September 15, 2008, from http://www.transparency.org/content/download/15151/162883/file/NIS_philippines_2006.pdf Transparency International. (2007). Transparency International Global Corruption Barometer-Report. Transparency.org. Retrieved September 15, 2008, from http://www.transparency.org/content/download/27256/410704/file/GCB_2007_report_en_02-12-2007.pdf Robbins, S. (2005). Organizational Behavior. Philippines: McGraw-Hill. World Bank. (2008). “Gross National Income Per Capita”. World Indicators Database. World Bank. Retrieved September 15, 2008, from http://siteresources.worldbank.org/DATASTATISTICS/Resources/GNIPC.pdf. I. Compare and contrast the most corrupt countries with the least corrupt countries. A. When “temptation meets permissiveness”—corruption defined B. Temptation: implication of economic indicators of countries compared and contrasted C. Permissiveness: implication of political systems of countries compared and contrasted II. What are the trends in corruption for these respective countries? A. Canada B. Japan C. Romania D. Philippines III. What are the major differences between the most and least corrupt countries you selected? A. Economic profile B. Political system C. Culture D. Emphasis on civil vigilance E. Activeness of institutions to combat corruption IV. What influence does culture play in the countries business ethics? A. Canada B. Japan C. Romania D. Philippines E. Implications V. What are the major ethical problems of the least ethical countries? A. Combating corruption entails huge funds for training and enforcement B. Lack of resources to put this into priority C. Those who will enact the policy are against the policy because they are involved in corruption VI. What issues or actions favor the most ethical countries? A. Fervent reform programs to instill public trust B. Benefit of integrity to businesses operating in the country VII. What are possible ways to lessen the corrupt and unethical behaviors? A. Educate the people about the costs of corruption to the country as a whole B. Increase the cost of doing corruption against the benefits C. Develop ethical guidelines and invest in trainings D. Involve the other institutions: media, private sector, NGOs VIII. How does your home country compare with the least and most ethical countries you selected? Please explain. A. US-near the most ethical country in the scale; Read More