What is corruption?

Corruption of the human soul is called sin (an offense against God, a spiritual transgression). This is true
in theology. In socioeconomic and political arena, corruption may be defined as any dishonest or illegal
practice that undermines the integrity of the organization. Business integrity can be undermined from
within your company, or as a result of pressures from outside, or through collusion between staff and
third parties.

Generally speaking as the abuse of entrusted power for private gain. Corruption can be classified as
grand, petty and political, depending on the amounts of money lost and the sector where it occurs.

Grand corruption consists of acts committed at a high level of government that distort policies or the
central functioning of the state, enabling leaders to benefit at the expense of the public good. Petty
corruption refers to everyday abuse of entrusted power by low- and mid- level public officials in their
interactions with ordinary citizens, who often are trying to access basic goods or services in places like
hospitals, schools, police departments and other agencies.

Political corruption is a manipulation of policies, institutions and rules of procedure in the allocation of
resources and financing by political decision makers, who abuse their position to sustain their power,
status and wealth.

GENERIC FORMS OF CORRUPTION

The following are certain generic forms of corruption that can undermine business integrity:

1. Bribery
The offering, promising, giving, accepting or soliciting of an advantage as an inducement for an
action which is illegal, unethical or a breach of trust. Inducements can take the form of gifts,
loans, fees, rewards or other advantages (taxes, services, donations, favors etc.)

2. Fraud and deception

The ordinary meaning of fraud is to obtain something of value through deception, by
misrepresenting the truth and or by cheating the rightful owner of the subject of the fraud. The
legal definition of fraud is not far off. It is a criminal offence of intentionally deceiving other
people in order to derive a personal gain from such deception.

3. Vulnerabilities in contracting and procurement

The collusion between contractors and employees.

4. Illegal information brokering

 5. Organized crime
A group of individuals, either local, national or international, that engage in criminal enterprises
for profit. The rationale behind why they are formed varies because they may be politically
motivated, financially motivated or an organized criminal gang.

6. Money laundering
The process of concealing the origin, ownership or destination of illegally or dishonestly
obtained money by hiding it within legitimate economic activities to make them appear legal.

References:

Maximiano, Jose Mario B. (2007) Business Ethics and Corporate Social Responsibility. Pasig City,
Philippines: ANVIL Publishing Inc.

How do you define corruption?. Transparency International 2016. Retrieved from

https://www.transparency.org/what-is-corruption/#define

Anti-Corruption Glossary. Transparency International 2016. Retrieved from https://

www.transparency.org/glossary/term/bribery

Fraud & Deception. London Criminal Defence Solicitors. Retrieved from

londoncriminalsolicitors.co.uk/fraud/deception

Contract and Procurement Fraud. Association of Certified Fraud Examiners. Retrieved from
https://www.google.com.ph/url?sa=t&source=web&rct=j&url=http://www.fraudconference.com/uploa
dedFiles/Fraud_Conference/Content/Course-Materials/presentation/23rd/ppt/post-05-Collusion-
Between-Contractors-and-Employeres.pdf&ved

What is Organized Crime? Definition, History & Examples. Study.com. Retrieved from
study.com/academy/lesson/what-is-organized-crime-definition-history-examples.html

Anti-Corruption Glossary. Transparency International 2016. Retrieved from https://

www.transparency.org/glossary/term/money_laundering