Understanding the Demand-Side Issues of International Corruption

• Published in: Journal of business ethics Vol. 57; no. 1; pp. 65 - 81
• Main Author: Beets, S. Douglas
• Format: Journal Article
• Language: English
• Published: Dordrecht Springer 01.03.2005; Springer Nature B.V
• Subjects: Accountability; Accounting; Business corruption; Business ethics; Consumer Price Index; Corporate culture; Corporate responsibility; Correlation analysis; Corruption; Countries; Demand; Demand side economics; Demographics; Employment statistics; Ethics; Government corruption; International; International organizations; Modern society; Moral corruption; P values; Political corruption; Poverty; Studies; Transparency
• ISSN: 0167-4544; 1573-0697
• DOI: 10.1007/s10551-004-3824-3

In global business, business organizations and their representatives frequently encounter corruption and may be the perpetrators, victims, or simply participants in such acts. While international corruption has existed in multiple forms for several years, many individuals, companies, nations, and international organizations are currently attempting to reduce or eliminate corrupt acts because of their harmful effects on local economies and the quality of life of citizens. Several of these corruption curtailment efforts have been directed toward the supply-side of corruption, i.e., those who make corrupt payments. In developing an understanding of corruption, however, and formulating strategies for its reduction, consideration must also be given to the demand-side of corruption, i.e., those who demand and accept corrupt payments. Accordingly, this study examined the demand-side of corruption and several related factors in the categories of government, economy and poverty, education, geography, and culture. Analysis of these factors employed the Corruption Perceptions Index (CPI), formulated annually by Transparency International (TI), and other sources. Several factors in each of the five categories were found to correlate significantly with perceived corruption, and strategies for addressing these issues were developed and discussed.