Hefty fines, damaged reputations and jail sentences – recent scandals prove that corruption in business doesn’t always bring profits. Yet bribery persists. Almost a fifth of executives surveyed by Ernst & Young claimed to have lost business to a competitor who paid bribes. More than a third felt corruption was getting worse.
Corruption distorts markets and creates unfair competition. Companies often pay bribes or rig bids to win public procurement contracts. Many companies hide corrupt acts behind secret subsidiaries and partnerships. Or they seek to influence political decision-making illicitly. Others exploit tax laws, construct cartels or abuse legal loopholes. Private companies have huge influence in many public spheres. These are often crucial – from energy to healthcare. So it’s easy to see how corruption in business harms taxpayers’ interests. The solution?
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