Corruption is difficult to measure, but The Economist projects that corruption may be measured at approximately $9 trillion per year.
That’s what happened to us. Corruption here was very rampant. Hopefully with the new administration, we can feel some sort of improvement…with pnoy’s crusade na pag walang kurap, walang mahirap
In a survey conducted by the Political and Economic Risk Consultancy (PERC) of 2,174 expatriate business executives, it found that among the 16 Asia-Pacific economies, Singapore again lived up to its reputation and came out squeeky cleanest with a corruption score of 1.42. Australia came in second, followed by Hong Kong, Japan, Macao, S. Korea and Taiwan. The most corrupt economies, in the opinion of business expats, was topped by Indonesia. It was trailed by Cambodia, Vietnam and the Philippines. Indonesia had come in last in 2009 as well but with a marginally better score of 8.32. Xxxxxxxxxxxxxxxxxxxxxxx
Pictures below Are some silly smuggling ideas, We have it here, sa atong back door
From dirty to clean money
We have the amla in the phils…may explain
Who do you think is the expert when it comes to counterfeiting and piracy
It is a well known fact that bribery is a common norm in India
FCPA violations carry severe penalties of up to $2 million, or twice the gain for firms; and $100,000 for individuals and up to five years imprisonment.
And more governments and international institutions should be encouraged to publicly list firms they sanction. That constitutes a powerful deterrent. Check here for instance the public webpage at the World Bank where hundreds of companies and individuals have been declared ineligible to be awarded World Bank-financed contracts due to fraud and corruption. And imagine a world where virtually every important international institution and government did the same. Again, the cost-benefit equation would be radically transformed in the calculation of any company officer contemplating whether a bribe is needed to secure a lucrative contract.
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States (30 Member Countries)
NBN/ZTE scandal - It all began with the back-and-forth trips of Abalos, Mike Arroyo, and the President Mrs. Arroyo to China in order to broker a deal with ZTE, which ultimately led to a US$ 329.5 million contract for a national broadband network (NBN) that will improve government communications capabilities.
The Oil For Food Program was started in 1995 to allow Iraq to sell its oil under United Nations supervision in return for buying food, medicine, and humanitarian supplies. Finally, Iraq demanded kickbacks from any company that wanted to sell goods to Iraq. That was the situation with GE. It had to bribe officials in the Iraqi Health Ministry in order to win deals with them. A review of abuses under the Oil for Food Program found that General Electric was just one of approximately 2,000 companies that paid kickbacks in return for contracts with Iraq.
Ethics & corruption in the global marketplace.1
ETHICS & CORRUPTION IN THE GLOBAL MARKETPLACE
Corruption and The Shell Group <ul><li>The Shell Group operates in more than 140 countries. They frequently face demands for “facilitation payments” from junior officials, and for “bribes” from more senior people. </li></ul><ul><li>Shell has a clear anticorruption policy: it does not sanction giving or receiving any type of bribery or illegal payment; an employee who is found to have done so is instantly fired and prosecuted. </li></ul>
Corruption in International Business <ul><li>Corruption is an exchange between two partners that has an influence on the allocation of resources and involved the use or abuse of public or collective responsibility for private ends. </li></ul>
The Origin of Corruption <ul><li>Corruption is proposed to come from two key factors: </li></ul><ul><ul><ul><li>Developing or transitional economies which have weak infrastructure, weak legal systems, and inadequate enforcement </li></ul></ul></ul><ul><ul><ul><li>A high level of government involvement with industry and business and a very low pay for public official </li></ul></ul></ul>
The Origin of Corruption <ul><li>Culture is also a predictor to corruption level. It correlates with receptivity toward questionable accounting practices, uncertainty avoidance, and masculinity </li></ul>
Drawbacks of Corruption <ul><li>Corruption slows progress </li></ul><ul><li>Corruption obstructs firm growth </li></ul><ul><li>Corruption causes misallocation of capital </li></ul><ul><li>Corruption produced distorted information </li></ul><ul><li>Corruption undermines trade and foreign direct investment </li></ul><ul><li>Corruption undermines trade liberalization </li></ul>
Corruption Rankings <ul><li>The CPI has these as the five highest and lowest corruption countries. </li></ul><ul><li>Highest: Bangladesh, Nigeria, Paraguay, Madagascar, Angola. </li></ul><ul><li>Lowest: Finland, Denmark, New Zealand, Iceland, Singapore. The United States rates 16th lowest, the United Kingdom 10th. Russia is 71st, and Mexico is 57th. </li></ul>
Regional corruption survey: Singapore least corrupt, Indonesia most corrupt, Korea in middle of the pack (9:13am, Wed, Mar 10, 2010 ) Corruption Index, Scale of 0 to 10 1. Singapore, 1.42 2. Australia, 2.28 3. Hong Kong, 2.67 4. United States, 3.42 5. Japan, 3.49 6. Macau, 4.96 7. South Korea, 5.98 8. Taiwan, 6.28 9. Malaysia, 6.47 10. China, 6.52 11. India, 7.18 12. Thailand, 7.60 13. Philippines, 8.06 14. Vietnam, 8.07 15. Cambodia, 9.10 16. Indonesia, 9.27
Types of Corrupt Practices <ul><li>Smuggling </li></ul><ul><li>Money Laundering </li></ul><ul><li>Piracy and Counterfeiting </li></ul><ul><li>Bribe Paying </li></ul>
Types of Corrupt Practices Smuggling – illegal trade and transportation of goods devised to circumvent custom duties, quotas and other constraints in the movement of goods
Types of Corrupt Practices Money Laundering - typically involves transferring money through several countries in order to obscure its origins
Types of Corrupt Practices <ul><li>Piracy and Counterfeiting </li></ul><ul><ul><ul><li>Piracy – means using illegal and unauthorized means to obtain goods, such as copying software </li></ul></ul></ul><ul><ul><ul><li>Counterfeiting – goes a step beyond attempting to pass the copied product as an original, such as producing and selling a fake Gucci bag or a Rolex watch </li></ul></ul></ul>
Types of Corrupt Practices Bribe Paying – fees, commissions, gratuities and sweetness. It is a perennial form of corruption in international business
The Transparency International Bribe Prayers Index 2002
“ Hands under the table ”in the former Soviet republics
The Foreign Corrupt Practices Act (FCPA) The U.S. Congress passed the Foreign Corrupt Practices Act ("FCPA") in 1977 in an attempt to ensure commercial fair dealing, government integrity and accountability. The FCPA established criminal and civil penalties for payments made by U.S. companies or U.S. nationals to foreign officials that could be considered bribes.
There are two main areas of FCPA focus: <ul><li>Anti-Bribery Provisions prohibit the promise, payment, or giving of money or anything of value to any foreign official for the promise of obtaining or retaining business. </li></ul><ul><li>Accounting Requirements apply to companies required to file periodic reports with the U.S. Securities and Exchange Commission ("SEC"). These companies must maintain a system of internal accounting controls that provide reasonable assurances that honest and accurate records are being kept; and they must keep books, records and accounts which reflect the transactions and dispositions of the issuer. </li></ul>
The Globalization of the Fight Against Corruption <ul><li>Organization for Economic Cooperation and Development – is an organization that acts as a meeting ground for 30 countries which believe strongly in the free market system, </li></ul><ul><li>Corruption threatens good governance, sustainable development, democratic process, and fair business practices. The OECD as a global leader in the fight against corruption, takes a multidisciplinary approach to combat corruption in business via the OECD Anti-Bribery Convention , taxation, development aid, and governance in its member countries and beyond. Regional programmes help the OECD reach out globally to curb corruption. </li></ul>
<ul><li>Global firm Siemens pay $800 million to settle violations on the Foreign Corrupt Practices Act with a series of bribes and kickbacks to officials around the world. </li></ul><ul><li>The German company and its subsidiaries, which produce light bulbs, wind turbines. trains and more, made more than 4,000 payments, totaling $1.4 billion, to government officials around the globe just to win contracts. </li></ul>Corruption Charges: Siemens to Pay U.S. $800M
<ul><li>July 2010, (GE) was fined $23.5 million by the Securities and Exchange Commission (SEC) for illegal dealings with Iraq during the Oil for Food Program. Last year GE had to pay an additional $50 million for fraudulent activities in Iraq from 2002-2003. </li></ul>